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Wilbur Wins!

      5 Comments on Wilbur Wins!
guest blog by Nila Ridings

I am so happy to share this wonderful news from Rori Halpern. She is the mother who fought long and hard to keep the family’s pot-bellied pig for her sons.

“Long day for all involved. We are beyond elated to say Wilbur Bacone will remain forever in our home, continuing to bring joy and happiness to all. Due to confidentiality agreements between both parties we cannot share details. The only thing that matters is that we can keep our boy without anymore worries. Thank you from the bottom of our hearts to all who came forward in support of us. We love you all.”

It is no surprise that the notorious HOA “gag” order has been placed on the Halpern’s. Typical HOA style when they lose a legal battle. We know in this case they did lose because Wilbur is staying put. I sure hope the judge awarded the Halpern’s reimbursement for their legal bills and punitive damages for their pain and suffering.

Who wants to take a guess at how long it will be before the next HOA sues a homeowner over a pot-bellied pig? My guess: at least one more before the end of the year!

(link to Wilbur’s story)

 

Candidate For Congress Is Listening!

      12 Comments on Candidate For Congress Is Listening!
guest blog by Nila Ridings

Over the past week I have been emailing back and forth with Andy Ostrowski. He’s hoping to become the newly elected member of Congress from Pennsylvania. Tuesday, November 4th is the critical day that will decide whether his goal has been achieved. Please get out and vote regardless of what state you live in. If you live in Pennsylvania give your neighbor, church friends, golfing buddies, yoga sisters, or the freshly registered voter from the college campus a ride to the polls!

Somebody out there in HOA Land put a ‘bug’ in Andy’s ear about the abuse and suffering home owners are dealing with in condos and HOAs. He had no idea how bad it really is. He had friends a while back who had problems with their HOA, but that was where his exposure to the insanity stopped. Our emails have ping ponged back and forth and most of you know I don’t candy-coat my words. Andy knows we need a hero. He knows we need a legislator who will work across party lines. And he knows we don’t need any more politicians in bed with the CAI! He gets it!

You’ll find his website at the bottom of this blog.

And now a message from Andy Ostrowski-

Homeowners’ Associations – A Need for Congressional Action

“During my run for Congress, I have met many people with many unique needs for assistance, and government action. None has been as compelling as those Americans who are involved in property ownership in Homeowners’ Associations (HOAs).

I was surprised to learn that some 60 million Americans own property subject to HOAs, and have heard many horrific stories about the abuses that they suffer.

Home ownership – the right to own property, and use it for the purposes of raising a family, and providing solace for all of our private affairs, is a core value in our constitutional republic, and, in many ways, is part and parcel to the “pursuit of happiness.” These HOAs, however, are creating the pursuit of misery.

I have a lot to learn, but have heard enough, and understand enough to know that this is a widespread problem across this country, and something that may require Congressional action to address.

The Community Associations Institute (CAI) is a trade organization that passes itself off as an educational organization designed to promote “professionalism, effective leadership, and responsible citizenship,” but is, in reality, a lobbying group backed by builders and developers, and bent on getting their access to legislators across the county to create a legislative field tilted heavily in their favor – and they have been successful.

HOAs, and their Boards, serve public purposes traditionally reserved for governments, and elected officials, and this reveals one of the true hearts of the problem – there is no accountability to oaths of office to uphold and defend the constitution. People who try to sue these HOAs are told that they are not government entities, and do not have the same responsibilities and duties as do their governments. They are creatures of corporate law, and planned development acts.

Individuals unknowingly give up core constitutional rights to private entities created under the authority of law, and subject themselves to foreclosure actions, fines, forced entries, and evictions without the protections of law otherwise available. It is the lack of accountability that we at least theoretically can demand from our government, through, at the very least, the right to vote, that is the source of the true harm in this area – one that affects the lives of 60 million Americans – this needs to change.

To tie this in with my particular expertise, these HOAs are often then protected by the courts, which are subject to the same crony influences that the legislatures are often subjected to, and is further evidence of how the system is tilted in favor of the big banks, and corporate and monied interests, and away from the rights of the individual.

There are many proposals around among the individuals being hurt and harmed, and I will be studying and considering them all. The AARP, for example, has recently voiced concern that homeowners associations pose a risk to the financial welfare of their members. They have proposed that a homeowners “Bill Of Rights” be adopted by all 50 states to protect seniors from rogue Homeowner Associations. This bill of rights should apply to all homeowners and Constitutional protections should also be restored for a fair and balanced playing field.

The plight of the individuals whose pursuit of happiness is being obstructed, and whose lives are being ruined, is one area that needs specific focus.

This is a true civil rights issue as it involves legislatures across the country enacting laws that cut off constitutional rights, and access to courts for millions of Americans, and I will fight to give government back to the people by fighting for the rights of these individuals.”

Website for Andy Ostrowski for Congress:

(http://andyostrowski.com)

 

Due process? Fugeddaboudit!

      2 Comments on Due process? Fugeddaboudit!
guest blog by Robert E. Frank, USAF (Ret.)
      founder, HomeOwnersCoalition.Org & veterans advocate

John Tarlton likes the idea of due process, but seems to think something like 3.4 would be too costly for small organizations. It says: “4. The parties may present witnesses and all witnesses shall be subject to cross-examination by the opposing party and may not, without the consent of all the parties, be present when other witnesses are testifying except for the alleged violator who may be present for the entire hearing and may testify if he or she so chooses.”

Really?? Too costly to ensure fair challenges and cross examination to possibly false statements by someone in the hearing process (including directors, CAMs, etc.) who wish to do possible harm (minor or extreme) to a member? While false statements might be innocently made in board hearings, under no circumstances should they be allowed to stand. Our nation allows rigorous challenges against false witnesses, and justice demands nothing less.

I believe competent association managers and/or volunteer directors can figure out low-cost ways to protect the vital interests of both members and the association without violating something as basic as the “right” to challenge false witnesses and expose “possible criminal violations” by false hearing statements. Regardless, if the rule is worth enforcing, and the member violation is worth charging, the board’s cost of defending the accuracy and appropriateness of the charge is an unavoidable cost.

I say possible criminal violations because the outcome of most board hearings is cash coming out of the pockets of members. Any submitted/accepted false witness statements by anyone in the hearing process could be grounds for various types of common criminal statute violations including theft, extortion, etc.

Having personally seen false claims being accepted by boards against innocent members that resulted in arbitrary/unfair hard cash penalties and sometimes extreme impacts against out-of-favor members, I cannot imagine why industry professionals would tolerate policies for such to be created or allowed to exist in any developer-sponsored CC&Rs. Protection of all due process rights could/should be embedded in every CC&R.

Judgments by HOA/Condo Boards must ALWAYS be seen as done fairly, justly and above board. We professionals must demand nothing less than EQUAL justice for ALL members–not just the favored few.

And, IMO state legislatures are derelict in their duties if they allow CC&Rs to contain provisions where the basic due process protections for all owners and other occupants are not guaranteed.

Individual rights MUST prevail in this nation–EVEN in HOAs and Condos. The majority cannot be allowed to overrule such individual rights to protect property and freedom. It is embarrassing and deeply troubling when so many of the professionals in this HOA/Condo business are able to look the other way and ignore this major flaw in our governance practices.

Since the costs of operations are borne by, and benefit, all members, failing to protect all due process rights for all individuals under CC&R governance rules is indefensible–in my view.
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This situation should remind us of Patrick Henry’s passionate demand for liberty or death…. Our personal property rights have been “taken” and we have no choice but to reclaim them for our survivors in the future.

Open Letter On HOAs To All Policy Makers

      3 Comments on Open Letter On HOAs To All Policy Makers
guest blog by Deborah Goonan

Although HOA horror stories and reports of financial failures of common interest developments are reported daily in the media, industry proponents claim these are “isolated” incidents, that most people are happy under government by CC&Rs, and that buyers actually want more of the same.

When I or others attempt to discuss realities from the HOA resident’s perspective, we hear “HOAs aren’t for everyone,” “move if you don’t like it,” and “stop whining and complaining.”We are told our democratic proposals for reform are “fantasy” and “unrealistic.” Tell me, when did Democracy become taboo?

Today, in response to this arrogant drivel, I was inspired to write the following Open letter to CAI, State, and Federal Policy makers:

For more than a decade, HOA homeowner advocates have proposed many solutions to problems that vex HOAs: one vote per resident, ballot voting for elections, increased government oversight, better buyer disclosure, reforming laws that are skewed in FAVOR of the HOA corporate entity to eliminate the power imbalance it creates for owners. But we have faced consistent opposition every step of the way, not from fellow owners but from special interest groups: notably developers, real estate investors, Real Estate BARs, and management companies – including CAI. In all fairness, it is becoming increasingly apparent that even CAI members and attorneys disagree on policy matters, to include “eminent domain for condos.”

You may think that dismissing those of us that have the audacity to speak out against injustice and bad policy as “whiners” is an effective strategy to silence us. But all that does is prove the arrogant, dismissive attitude that prevails in the industry and our state Legislature that backs the special interests.

I recognize that Florida’s condo takeovers – a seven-year-old practice that is just beginning to get national attention – are a result of their financial failures. I do not object to their dissolution. What I object to is the injustice that results – kicking folks out of their homes, often forcing them to take huge financial losses, and with no effort to make these people whole. It was an injustice to sell those condos at artificially inflated prices in the first place, not to mention all the bad mortgages that resulted in many thousands of foreclosures and personal family tragedies. It was bad policy and greed that led to the failure of many condo and HOA communities.

And at the same time in Florida, millions of dollars are being invested in brand new high-end luxury condos. The folks in the middle and lower income ranges are merely collateral damage. And you can bet that the loans for all those displaced condo owners will become non-performing mortgages. No wonder the banks balk at financing for condos.

Other states also experience similarly owner-unfriendly issues, including local elected officials that seek to relax building codes, and reduce construction defect liability for Developers.

Furthermore, the financial and social model of common interest developments is unsustainable, which will ultimately lead to increased costs for local and state governments as these HOA communities mature. We are already seeing increased evidence of condemnations and HOAs that must appoint receivers because no one wants to serve on the Board of a failing community.

I am thoroughly disheartened by discussing HOA issues with people who refuse to acknowledge the truth and simply do not care about homeowners, tenants, or taxpaying citizens that do not toe the line and conform to the HOA corporate agenda.

I call upon reasonable, responsible, and compassionate State and Federal leaders to recognize that corporate communities are incompatible with American values of Democracy and Equality, and that HOAs exist primarily for the benefits of Real Estate interests. Americans must not be expected to relinquish their rights, freedoms, and financial stability for the sake of increasing the property tax base with high-density development.

Thank you.

 

HOAs and Owner Involvement: An Oxymoron? (part 3 of 3)

      8 Comments on HOAs and Owner Involvement: An Oxymoron? (part 3 of 3)
Guest blog by Deborah Goonan

Exploring Solutions and Empowering HOA Residents

CAI proposes the following in Community Association Living:

“… the board has an obligation to listen to the owners’ concerns and to take those concerns into consideration in making its decisions. Formal means for obtaining owner input include the:

  • Resident/owner forum at board meetings
  • Participation of owners on committees
  • Annual membership meeting

Other means of owner input include owner surveys and letters and suggestions from owners. Just as a board has the responsibility to encourage owner input via these means, owners have the responsibility to use them to make their views known.”

Sounds good in theory, right? Put the onus on the owners to speak up and be heard!

But, suppose the Board does not care to listen, and resists serving the interest of HOA residents?

The truth is, the person who comes forward with ideas or suggestions is often ignored or rebuked by the Board. That has been my personal experience, and one frequently recounted by many other HOA residents. How often have we experienced or heard accounts of the following?

  • Owners sit through 2-hour long meetings, only to be told that there is “no more time” for comments at the end of the meeting.
  • Owners are told to sit down and “shut up.” Some meetings even result in physical altercations, or police or security escorting owners out of the meeting.
  • Meetings are adjourned prematurely to prevent input.
  • The Board avoids meetings altogether. If there are no open meetings, how can there be owner participation?
  • Meetings are not openly announced, or are held in secret.

Bottom line: HOA governance structure must be legally modified to comply with Federal and State democratic processes. Additionally, States must enforce these processes by allowing members to legally challenge non-compliant governance without having to file a civil suit and pay out of their own pockets, while also paying for the HOA to defend its actions.

Unless fundamental Constitutional rights are incorporated into their governance structures, HOAs will continue to operate as closely held corporations and/or de facto oligarchies.

(Link to CAI’s publication, Community Association Living)