Whitefish Subdivision Seeks Intervention in Lawsuit Over Gated Communities - Flathead Beacon

Whitefish Subdivision Seeks Intervention in Lawsuit Over Gated Communities - Flathead Beacon: “Notably, gates have been generally disfavored and disallowed by the City Council in a number of other neighborhoods as antithetical to the type of community in which the majority of Whitefish residents would like to live,” according to the lawsuit. “To that end, on Oct. 6, the City passed Resolution 14-48 which prohibits any subdivision or residential neighborhood from gating its streets so as to prohibit public access.”

Grouse Mountain Homeowners Inc. wishes to intervene in the lawsuit to “oppose Grouse Mountain Estates proposed installation of gates, enforce and defend its contractual rights, and to otherwise protect its residents’ rights to unimpeded and unobstructed use of Mountainside Drive.”

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More pushback against Fortress Privatopia.

West Sacramento council OKs development – without gated entry | The Sacramento Bee

West Sacramento council OKs development – without gated entry | The Sacramento Bee: Council members told the developer that a gated community would defy their long-held notion of what West Sacramento stands for and what it wants to be.

“This is not a city that gates its neighborhoods off. That’s not who we are as a town,” West Sacramento Mayor Christopher Cabaldon said at the Dec. 17 City Council meeting. “It’s a pretty open-and-shut issue as far as what our values are.”

Gated neighborhoods are not prohibited in West Sacramento, and the city already has three of them. But the idea has been widely unpopular for years in this town with working-class roots. A gated single-family development has not been built in the city in 20 years, Cabaldon said at the meeting.

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West Sacramento declines to join Fortress Privatopia.

Zombie Christmas display owner defies order to remove

"CINCINNATI (AP) — A "Zombie Nativity" scene in a southwest Ohio suburb remained undead Tuesday, days past the deadline to remove it.

Sycamore Township officials said last week they had received complaints about debris at the home and concluded that the display violates rules on size and placement of yard structures. They sent resident Jasen Dixon two zoning violation notices and gave him until the day after Christmas to take it down."

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Apparently there is some esoteric freedom of expression idea at the root of this, but I confess that it eludes me. In general I'd agree that people should be able to have whatever holiday display they want, but I don't understand the  motivation behind being intentionally and purposefully offensive. 

Illinois General Assembly - Bill Status for HB4204

Illinois General Assembly - Bill Status for HB4204



Governor Quinn just signed this into law, creating the office of Condominium Ombudsperson for the state of Illinois.  I helped State Rep. Elaine Nekritz with this bill over the last year.  The Ombudsperson's functions are mainly ADR and education.  In addition, condo associations will be required to have an ADR policy and they will have to register with the state.

You can get the full pdf version of the bill at my mckenzie-law wiki page here:

The Federal Housing Finance Agency is "concerned" about state legislatures....

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Statement of the Federal Housing Finance Agency on Certain Super Priority Liens

Today, the Federal Housing Finance Agency (FHFA) is alerting homeowners, financial institutions, and state authorities of the agency’s concerns with state-level actions that threaten the first-lien status of single-family loans owned or guaranteed by Fannie Mae and Freddie Mac.  In particular, FHFA is concerned about state actions to create super-priority liens in two instances: 1) through certain energy retrofit financing programs structured as tax assessments and 2) through granting priority rights in foreclosure proceedings for homeowner associations.  In issuing this statement, FHFA is acting in furtherance of its statutory obligations as regulator and conservator of Fannie Mae and Freddie Mac. 

The existence of these super-priority liens increases the risk of losses to taxpayers.  Fannie Mae and Freddie Mac, while operating in conservatorship, currently support the housing finance market by purchasing, guaranteeing, and securitizing single-family mortgages.  One of the bedrock principles in this process is that the mortgages supported by Fannie Mae and Freddie Mac must remain in first-lien position, meaning that they have first priority in receiving the proceeds from selling a house in foreclosure.  As a result, any lien from a loan added after origination should not be able to jump in line ahead of a Fannie Mae or Freddie Mac mortgage to collect the proceeds of the sale of a foreclosed property.  However, as is detailed below, FHFA is concerned by some liens being advanced to “super-priority” status over Fannie Mae and Freddie Mac first-lien mortgages...FHFA is aware that, in certain jurisdictions, liens for unpaid homeowner association ("HOA") dues may be deemed to be senior to preexisting mortgage liens on a homeowner's property.  As a result, on December 5, 2014, FHFA and Fannie Mae filed an action in federal court in Nevada, seeking a determination that a HOA's foreclosure sale is invalid and contrary to federal law to the extent that it purports to extinguish Fannie Mae's property rights.  Federal National Mortgage Association v. SFR Investments Pool 1, LLC, No. 2:14-cv-02046 (D. Nev. December 5, 2014).  FHFA has also intervened in Saticoy Bay, LLC Series 1702 Empire Mine v. Federal National Mortgage Assoc., No. 2:14-cv-01975 (D. Nev.), seeking a declaration that a prior HOA foreclosure sale is invalid to the extent that it purports to extinguish Fannie Mae's property interests.   

​​These FHFA actions are based on federal law which precludes involuntary extinguishment of liens held by Fannie Mae or Freddie Mac while they are operating in conservatorships and bars holders of other liens, including HOAs, from taking any action that would extinguish a Fannie Mae or Freddie Mac lien, security interest or other property interest. Specifically, Title 12 USC Section 4617(j)(3) states that "[no] property of the Agency shall be subject to levy, attachment, garnishment, foreclosure, or sale without the consent of the Agency, nor shall any involuntary lien attach to the property of the Agency."  FHFA is authorized, as conservator, to bring this suit because Enterprise lien interests in collateral constitute property protected by this provision.   FHFA has an obligation to protect Fannie Mae's and Freddie Mac's rights, and will aggressively do so by bringing actions to void foreclosures that purport to extinguish Enterprise property interests in a manner that contravenes federal law.

http://www.fhfa.gov/mobile/Pages/public-affairs-detail.aspx?PageName=Statement-of-the-Federal-Housing-Finance-Agency-on-Certain-Super-Priority-Liens.aspx
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Needless to say, the Community Associations Institute is vehemently opposed to this FHFA position. CAI is the major proponent of "superlien" laws that give associations priority over first mortgages to some extent.  Here's what CAI has to say about this:

 CAI: FHFA Move Threatens Associations & Owners 

12/23/2014  - Falls Church , VA

Dec. 23, 2014—The Federal Housing Finance Agency (FHFA) released a statement yesterday expressing concern about state statutes that allow community associations to obtain lien priority over first mortgages for unpaid association assessments. By asking a federal court to intervene, FHFA is trying to bail out mortgage servicers that have failed to fulfill basic contractual obligations to Fannie Mae and Freddie Mac.

"Make no mistake, FHFA is bailing out mortgage servicers that lacked the competency to meet basic contractual requirements and follow established rules of civil procedure," said Thomas M. Skiba, CAE, chief executive officer of Community Associations Institute (CAI). "By suing community associations, FHFA is trying to protect Fannie and Freddie at the expense of association homeowners. That's unfair, unconscionable and unacceptable."

For years, CAI has joined with federal regulators (as well as Fannie Mae) to call on mortgage servicers to secure and maintain vacant and abandoned properties and meet their financial obligations to community associations and their homeowners. These calls and regulatory directives have been largely ignored with impunity by mortgage servicers. 

"In one case, Fannie Mae’s servicers failed to respond to legal service of process and, despite mandatory notification pursuant to Nevada law, failed to appear at a foreclosure auction to protect Fannie Mae's financial interests," Skiba continued. "It says a lot about FHFA priorities that the agency now is suing to recoup Fannie Mae's losses from the pockets of community association homeowners, rather than suing servicers for breach of contract. Someone must stand up for homeowners and that’s what CAI will continue to do."

FHFA is nothing if not strategic, electing to release its statement on the heels of a lawsuit filed by the agency in federal court in Nevada. FHFA is seeking a determination that an HOA's foreclosure sale is invalid and contrary to federal law because it would extinguish Fannie Mae's property rights. However, the right of foreclosure FHFA is seeking to invalidate nationwide is permitted by law in Nevada, 21 other states and the District of Columbia.

FHFA asserts that it is compelled by law to file suit to protect Fannie Mae's and Freddie Mac's rights and to prevent taxpayers from incurring losses. Skiba said the FHFA statement "blatantly ignores" Fannie Mae and Freddie Mac rights under the respective seller/servicing guides that allow these mammoth enterprises to recover losses resulting from the mismanagement of mortgage servicers. Despite a range of available remedies, FHFA has opted to sue to invalidate state priority lien statutes rather than enforcing its rights under contract.

"It's incredulous that a Federal agency would sacrifice the interests of 65 million taxpayers who live in community associations to protect the very banks all American taxpayers spent billions of dollars to bail out during the economy-shattering housing crisis," Skiba said. "And it’s shocking for FHFA to attack state laws that have been in place for more than 100 years of precedent and practice. Fact is, by paying their association assessments and protecting property values, these homeowners protect the value of lenders' assets in associations. Yet, FHFA is enabling the bad behavior of mortgage servicers who don't spend a dime to maintain and protect their own property investments."

CAI will continue to monitor FHFA's hostile actions against the right of community associations to secure priority liens on properties within their boundaries.”

Get more information on the priority lien issue, including a detailed CAI statementand a map of states with priority lien statutes. See the Nevada Supreme Court decision.

With more than 33,000 members dedicated to building better communities, CAI works in partnership with 60 chapters to provide information, education and resources to community associations and the professionals who support them. CAI’s mission is to inspire professionalism, effective leadership and responsible citizenship—ideals reflected in communities that are preferred places to call home. Visit www.caionline.org or call (888) 224-4321. 

http://www.caionline.org/about/press/Pages/FHFAMoveThreatensHomeownersandtheirCommunities.aspx

Las Vegas HOA fraud trial will stay in Las Vegas

Why? Because it happened in Vegas.  The judge on this massive fraud trial ruled that the trial will stay right where it is, denying a change of venue motion based on the level of publicity.  The defense is particularly upset at the Las Vegas Review-Journal's Jeff German for obtaining documents concerning  Leon Belzer's plea bargaining talks with the US Attorney's office. Those talks didn't result in a deal, so off  to trial they go.  The funny part: the only reason German was able to get the documents is that one of the defendants put them in the court record and they were available to the public for two days. So the most damaging publicity is their own fault.




http://www.reviewjournal.com/news/las-vegas/las-vegas-hoa-corruption-trial-stays-las-vegas

Pasco county HOA calls homes unsafe

In the sense that they might fall down in a high wind.

http://www.wtsp.com/story/news/local/2014/12/22/pasco-county-hoa-call-homes-unsafe/20693037/

Malfunctioning elevators and association inaction equal financial disaster

A condo association has had malfunctioning elevators for six years and hasn't fixed them properly because they say they can't afford it. Now they are facing $5 million in fines. I wonder if they can afford that.

http://www.miamiherald.com/news/local/community/miami-dade/north-miami/article4925946.html

Orange County Threatens Big Fines For Excessive Christmas Decorations

Looks like the grinch came early to Ladera Ranch this year:

"LADERA RANCH (CBSLA.com) — Orange County is threatening substantial fines to one neighborhood over their extreme Christmas decorations. Twenty-one residents in Baudin Circle in Ladera Ranch say they received letters from the Orange County Public Works department, stating that their lights are safety hazards.  Some homeowners at Baudin circle have taken pride in putting together an impressive Christmas lights show for ten years....“This was, I think, our second notice today, and basically it says we have twenty-four hours to take (the lights) down, before we get fined five-hundred dollarsa day,” resident Cynthia Mellow said."

The bad kind of unionism?

Police unions have come to stand above all for the principles that (1) individual cops should be above the law,  and (2) police forces should operate independently of political control. Now that this situation has generated protest and media coverage, with institutional racism being exposed for teh whole world to see, police union bosses are dropping the mask of civility and going straight to authoritarian rage.  Very instructive for those who are paying attention.

http://www.huffingtonpost.com/2014/12/23/police-unions_n_6373380.html

"They’ve bitterly opposed civilian review boards (and, if established, have sought to undermine them). They’ve fought the placement of names and badge numbers on officer uniforms. They’ve resisted rooting out police misconduct. “The modern police union movement,” criminologist Samuel Walker argues, “originated largely in reaction to the civil rights movement and its criticisms of police conduct during the 1960s…. Any local unions originated or at least became more militant in response to specific police-community relations initiatives in the 1960s.”

Ohio town threatens legal action against zombie baby Jesus

I can never understand why people do things that are intended to annoy their neighbors, but here's the latest  outrage.
http://www.rawstory.com/rs/2014/12/ohio-town-threatens-legal-action-against-zombie-baby-jesus-nativity-scene-on-mans-lawn/

Why the controversy over police shootings is so ugly.

Joseph Wambaugh, a best-selling novelist and former LAPD officer, said that policing isn't a physically dangerous job if you look at the statistics. Being a cab driver, a construction worker, a farm laborer, and many other occupations have higher fatality rates.  But being a police officer is one of the most psychologically dangerous occupations by far.  More police officers die by their own hand than die in the line of duty.  Most of them start out as idealistic people who want to help others and the job is fun.  But they spend 8 hours per day seeing people at their worst and this gradually makes them cynical and pessimistic.  The cop subculture is their resource for dealing with these feelings because they all feel this way.  As time goes by cops develop an us versus them mentality. They get absorbed into the cop subculture where they come to believe that they are the thin blue line between naive sheep who don't understand how bad things are, and vicious predators. There is a lot of alcohol abuse and relationship problems are the norm. Over the years they come to surround themselves entirely with other cops.  They literally don't associate with anybody who isn't a police officer.  This leads to a profound sense of isolation from society, but they reinforce each other in these distorted perceptions.   Eventually they don't trust anybody who isn't a cop.  They become quick to get paranoid and angry and confrontational--and violent.  And they know that prosecutors and judges are terrified of their unions.  

This is why they cover for each other, even in the most inexcusable situations. It is why police unions relentlessly defend cops who killed unarmed civilians in situations that would lead to murder convictions for anybody else.

And if you look at the other side of the controversy, you see millions of people who are horrified at the thought that anybody with a badge and a gun can beat them senseless or shoot them full  of holes on the slightest pretext and face no legal consequences at all.  In African-American and Latino neighborhoods the rage, the sense that the time has come to say no more of this, is intense.  They have had over twenty years of "broken window" policing in their neighborhoods, where they get rousted for the most trivial reasons on the theory that this is how to haul in the people with warrants and weapons.  But think of all the bogus stops, the harrassment, the reality-based sense of being persecuted, that has built up in low income neighborhoods. It is intense. Read Matt Taibbi's take on that.  He says law enforcement is becoming illegitimate, because the poor are ground to hamburger by the law, but the rich can steal millions and face no consequences at all. It's like something out of Dickens.

And this is why the current controversy over police shootings and beatings has the potential to be so profoundly ugly. It will be hard to  find any middle ground, because maybe there isn't any.  

Most hostile "holiday" display ever

"Ansell, an electrician, has a display on his yard that features a beheaded choir, a hanging Mickey Mouse and even a urinating Santa Claus that lights up at night".

And that's not all. It's enough to make you wish you had an HOA.

http://abcnews.go.com/US/man-terrorizing-neighbors-hostile-holiday-decoration-display/story?id=27671282

Prosecute John Yoo, says Erwin Chemerinsky

http://m.thenation.com/blog/192809-prosecute-john-yoo-says-law-school-dean-erwin-chemerinsky

I've never heard of a law school dean calling for the prosecution of a law professor, but in this case, why not? He provided legal cover for the Bush/Cheney administration's torture program. Torture is a   crime under US law, as is conspiracy to torture.

Homeowners angry with HOA over rumble strips

http://www.fox5vegas.com/story/27636264/homeowners-hoa-to-rumble-over-street-strips

The strips are noisy, say residents.   As with many such disputes the association says it was settled by a vote but residents say they didn't know anything about it.  Internal communication in HOAs is often bad, with BODs saying the residents aren't paying attention and residents  claiming the BOD operates in secret. The other typical feature is putting social control over other priorities.  People have been asking for 30 years why so many HOA and condo boards obsess about controlling people.
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"We could have slides, nice playground equipment. We could have barbecues fixed – some are toppled over. We could have landscaping. We could have community events, but we have rumble strips," Karen Frantel said.
The Frantels said they were told the HOA board and residents voted on the strips, but they weren't aware of a vote.


Read more: http://www.fox5vegas.com/story/27636264/homeowners-hoa-to-rumble-over-street-strips#ixzz3M46CMQz1

City says 'forged or altered' document let to $2 million tax break for condos

http://www.baltimoresun.com/news/maryland/baltimore-city/bs-md-ci-tax-credits-20141212-story.html#page=1


"Baltimore's planning department was tricked into awarding $2.1 million in historic tax credits to a Little Italy condominium project based on a "forged or altered" document, a city review panel says in a new report."
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And that means 25 condo owners will see their property tax bills go up by $10,000 per year.

How Las Vegas gambled on the housing boom--and lost

http://m.thenation.com/article/191777-how-las-vegas-gambled-housing-boom-and-lost

The Las Vegas area has no water and a mono-economy that depends entirely on gambling.  Here's a great idea:  let's start a huge housing boom and grow like crazy.  What could possibly go wrong?

Homeowner association boots residents' cars on city streets!

http://krqe.com/2014/12/10/homeowners-association-boots-residents-on-city-streets/

And the city sent them a cease and desist letter that could lead to criminal prosecution if the HOA continues to defy the law.

A handful of lawyers have the Supreme Court's ear

Does this sound familiar? A small group of attorneys specializes in appearing before the USSC. But they are very reluctant to represent ordinary people because that would interfere with the flow of money from their elite corporate clients. It isn't that lawyers are bad people, as many people seem to think. It is that the economic incentives are structured so that representing human being doesn't pay off.

http://m.truthdig.com/eartotheground/item/a_handful_of_corporate_lawyers_have_the_supreme_courts_ear_20141212

Bill would force HOAs to allow fake grass | UTSanDiego.com

Bill would force HOAs to allow fake grass | UTSanDiego.com: SACRAMENTO — California homeowner associations would be required to allow artificial turf in front yards under a bill recently proposed by the San Diego County Water Authority.

The bill, or a version of it, is likely to be championed by Assemblywoman Lorena Gonzalez, D-San Diego.

Only a fraction of the state’s 47,000 HOAs permit synthetic grass on front lawns, with many saying its out-of-place look is a threat to property values.