Saturday, March 29, 2014

Justice Watch: Suit Claims D.R. Horton Left Miami Gardens HOA In A Mess | Daily Business Review

Justice Watch: Suit Claims D.R. Horton Left Miami Gardens HOA In A Mess | Daily Business Review: "D.R. Horton Inc. markets itself as "America's homebuilder."
On its website, the Fort Worth, Texas-based company advertises it will make residents' dreams come true.
At Majorca Isles in Miami Gardens, that dream has taken on the qualities of a nightmare with broken front gates and random garbage piles left by outsiders. There's also a padlocked, half-finished park choked with weeds and a malfunctioning heated pool, which usually is under repair and sometimes green. Not to mention the gym, where equipment has not been maintained properly.
In a Jan. 29 lawsuit filed in Bankruptcy Court, the court-appointed trustee for the master homeowner association alleges D.R. Horton left the HOA in financial shambles, essentially abandoning the project when the housing market collapsed.
The trustee, forensic accountant Barry Mukamal, a partner at Marcum in Miami, is a seasoned bankruptcy veteran. He said he's never seen a builder undercut an HOA and community like D.R. Horton did at Majorca Isles."


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Really? Come on up here and look at what Neumann Homes did to Clublands in Antioch, IL

Friday, March 28, 2014

Residents of Struggling Cities Opt to Skip Town | FiveThirtyEight

Residents of Struggling Cities Opt to Skip Town | FiveThirtyEight:

"Eighteen U.S. metro areas had unemployment rates of 12 percent or higher in 2012, according to the Bureau of Labor Statistics, and all but three of them saw a net decline in migration — that is, they saw more people move out than move in.

These cities are overwhelmingly in inland California, where the collapse of the housing bubble left deep and lasting scars. California accounts for 13 of the 18 cities with unemployment rates of 12 percent or above,2 and for 18 of the 56 with unemployment rates in the double digits." [emphasis added]


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Many cities, large and small, are dealing with multiple problems--unemployed residents, cratered housing markets, vanishing employers, increased social service and pension costs-that make them unable to deal with maintaining public infrastructure.  This problem is one reason cities have been promoting CID housing, with its private infrastructure.  But that crutch isn't working all that well presently. It has been obvious for years that HOAs and condos will be dealing with their own private infrastructure crisis, and that is happening right now.

Bill aims to resolve conflict over homeowner association managers

Bill aims to resolve conflict over homeowner association managers:

"Attorneys say community managers are doing more things, like filling out legal paperwork, that rightly should be done by qualified lawyers.

Managers, and the homeowners they work for, counter that they should be allowed to fill out forms without the expense of an attorney, which is sure to increase association fees."


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Homeowners Associations Are Short on Cash

Homeowners Associations Are Short on Cash

Indeed they are.

Thursday, March 27, 2014

Drought battle focuses on homeowner rules, meters | UTSanDiego.com

Drought battle focuses on homeowner rules, meters | UTSanDiego.com

"With California in the grips of a prolonged dry spell, state lawmakers are looking to grant members of homeowner associations the freedom to plant drought-resistant landscaping without the fear of fines. One cornerstone bill cleared its first hurdle Wednesday when the Assembly Committee on Housing and Community Development approved legislation carried by Assemblywoman Lorena Gonzalez, D-San Diego. Her bill seeks to override some homeowner association (HOA) regulations that effectively require residents to keep lawns and other water-guzzling landscapes pristine — even during dry spells. “Homeowners who install plants that are less water-intensive should not be penalized for recognizing California’s water crisis and proactively conserving,” Gonzalez told the committee."

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Of course, CAI is against it. Unbelievable. Absolutely unbelievable.


Wednesday, March 26, 2014

Dade City HOA loses suit, can’t charge for legal fees

Dade City HOA loses suit, can’t charge for legal fees

"DADE CITY — The neighborhood at the center of a costly dispute over wheelchair accessto its homeowners association meetings has no legal authority to assess homeowners for its mounting legal bills, a Pasco County judge has ruled.
Judge William Sestak agreed with three Bayhead Landings homeowners that the association board failed to follow its own procedures for extending the neighborhood deed restrictions in 2010. He issued a court order Monday ruling that the deed restrictions and covenants expired three years ago."
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Tuesday, March 25, 2014

Dade City HOA loses suit, can’t charge for legal fees

Dade City HOA loses suit, can’t charge for legal fees: The association’s legal bills reached “upwards of $70,000,” according to a letter signed by all three board members. The board passed a special assessment, charging property owners thousands of dollars to pay the legal bills.

DiCiollo said he paid the first two assessments, but when the board passed a third special assessment, he asked for documentation of the expenses. “We can’t get our hands on these billings,” he said. “Every time I ask to see them, the board members say it’s attorney-client privilege.”

That’s when he and two other homeowners sought to have the community association disbanded by the court.

In his final order, Sestak wrote that he could find “no genuine issues to any material fact” that Bayhead Landings used an improper method to extend its deed restrictions, as alleged, before they were set to expire on Jan. 1, 2011. “Thus the deed restrictions were not properly extended and have expired.”

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Sorry, the judge rules. You're on your own for attorneys fees. The CC&Rs have reached their "use by" date.

Sunday, March 23, 2014

Are the Suburbs Making People Live Paycheck to Paycheck? - Matthew O'Brien - The Atlantic

Are the Suburbs Making People Live Paycheck to Paycheck? - Matthew O'Brien - The Atlantic


Interesting analysis that points toward conclusion that people buy more house than they can afford because they want to live in certain school districts. It also could explain why HOA assessments go unpaid when money gets tight.

Thursday, March 20, 2014

Cars must go in garage, judge says : Lincoln, NE Journal Star

Cars must go in garage, judge says : Lincoln, NE Journal Star: When the tow truck driver hoisted Matt Catlett's BMW onto his truck one summer day in 2012, he didn't know it, but he'd driven into the middle of a brewing feud.

Catlett, a Lincoln lawyer, didn't park somewhere he shouldn't have on a Husker game day. Nor did he forget to feed a meter.

He parked in his own driveway.

That violated a Bishop Square Inc. covenant, and the homeowners association for the townhouse development just south of the Country Club of Lincoln called for the tow truck.

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Lawyer trapped in Privatopian web of CC&Rs. The good counselor vows to continue fighting on appeal.

Monday, March 17, 2014

Condo association tries to make cancer survivor remove pink ribbon | Odd News - Yahoo News

Condo association tries to make cancer survivor remove pink ribbon | Odd News - Yahoo News: 16 years ago, Naples, Florida resident Linda Karp successfully overcame her breast cancer diagnosis. Since then, the pink ribbon has been a symbol of great importance and meaning to her, so she displays it in the window of her home. Apparently, the homeowners association of Regent Park does not care for that, according to WFTX FOX 4 News .

Linda, who has been renting the home she lives in for the last three years, says she was told the pink ribbon violates the rules. Those rules don’t make sense to her. She told WFTX, “I'm not offending anyone. My neighbors are all supportive of breast cancer [sic]. I don't know why they’re not." On top of that, the ribbon is actually inside Ms. Karp’s home, affixed to the, “inside of [Linda’s] entryway.”

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More bad press for Privatopia. Film at 10 on WFTX FOX 4 News.

Saturday, March 15, 2014

The Cost of Aging Infrastructure

The Cost of Aging Infrastructure

Residential Segregation by Income, 1970-2009

‎www.s4.brown.edu/us2010/Data/Report/report10162013.pdf



Americans have become increasingly segregated by income over the last 40 years. There are several causes, one of which is increasing income inequality. The middle class has been squeezed by deindustrialization, deunionization, tax cuts that favor the rich, the loss of their home equity, and other forces. And in addition to all that, I am wondering what role the real estate development industry has played in sorting us out by income. In particular, what role does the rise of CID housing play in this sorting process?

Why We Should Focus Infrastructure Spending on Urban America

Why We Should Focus Infrastructure Spending on Urban America

My colleague Michael Pagano knows more about public infrastructure than just about anybody. Maybe it's time to stop builidng private infrastructure in CIDs and go public.

Economist's View: Inequality and Residential Segregation

Economist's View: Inequality and Residential Segregation


America’s Most Unequal Metros | Trulia Trends

America’s Most Unequal Metros | Trulia Trends

And rising income inequality is a major contributor to residential income segregation.

Federal Privatization and the Expensive Philosophy of the Circular A-76 Process

Federal Privatization and the Expensive Philosophy of the Circular A-76 Process

Law professor Ellen Dannin shows how privatization isn't all it's cracked up to be.

Monday, March 10, 2014

Money missing from Murfreesboro neighborhood HOA fees - WSMV Channel 4

Money missing from Murfreesboro neighborhood HOA fees - WSMV Channel 4: MURFREESBORO, TN (WSMV) -

Money meant for the upkeep of a Murfreesboro neighborhood is now missing, and police have a lot of questions for the woman who was supposed to be keeping track of it all.

"I'm almost speechless. It's unbelievable to me," said neighbor Christin Barrett. "I'm appalled and disgusted by it."

Neighbors in the Villages of Garrison Cove subdivision trusted a property management company to keep things running smoothly, but the manager at the company is accused of keeping thousands of dollars for herself.

The homeowners' association board has since hired a new company to manage the neighborhood.


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Gambling in Casablanca? Graft in Privatopia? Shocking!

Scott Mooneyham: Why reining in homeowner associations is difficult

The Daily Advance: RALEIGH — A couple of years ago, two members of the state House who had been overseeing efforts to rein in abusive homeowners associations gave their colleagues a skeptical send-off as they handed over leadership of their committee.

“I wish you well,” said Rep. Julia Howard, a Davie County Republican.

Howard and then-state Rep. Jennifer Weiss, a Wake County Democrat, referred to previous legislation passed by the General Assembly as watered-down.

At the time, legislators had approved a measure that required a homeowners association board to at least take a vote before lawyers or property management companies could begin foreclosure proceedings.

Since then, the General Assembly has approved a law that encourages mediation when homeowners and the associations that enforce neighborhood covenants get into disputes.

Other bills, though, were never voted on. They include one that prohibits foreclosure proceedings over delinquent fees and another that would have required association board members to take a training course.


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This story underscores a point the perfessor has made over the years: The community association industry has a well greased lobbying machine -- and the denizens of Privatopia do not. 

After audit reveals corruption, Florida town's days could be numbered - Yahoo News

After audit reveals corruption, Florida town's days could be numbered - Yahoo News: "It's like something out of a Southern Gothic novel," Bradley told Time magazine. "This town exists apparently just to write speeding tickets. Most people don't understand why it exists in the first place."

Via CNN:

Hampton cops were a fixture out on U.S. 301. They sat on lawn chairs, pointing radar guns at unsuspecting motorists. They hid behind recycling bins. As more and more money came in, they idled in slick SUVs, trolled the median strips in riot gear and toted state-of-the-art firepower. Locals gave one the nickname "Rambo" because he slung an AR-15 rifle across his chest.
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No, this isn't an HOA despite this being Florida. But could provide a business model for HOAs looking to boost revenues that would be less vulnerable to state disincorporation like this town. Y'all come back now, hear?