Tag Archives: CAI

I Have Met The Enemy and He is She!

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It’s been forty years since the last syndicated Pogo comic strip. My headline is a bad re-write of the famous Pogo line. But it happened to me at a gathering of authors and publishers last weekend. A very attractive young lady approached me and said, “I’ve been wanting to talk to you about your book, Neighbors At War.” That’s not an extraordinary experience. I’ve been approached by many other authors at such events. But it’s what she said next that stunned me.

“I am C.A.I.”

“Huh? What?”

“I am C.A.I. The Community Associations Institute. I’m their spokesperson. And we all know about your book.”

“Well, you’re the enemy,” I told her. She said she’d only been working with them for the past year and said the organization was working to change it’s image.

“Absolutely not possible,” I said. “The only thing you can do to improve your image is disband, dismantle the entire warped structure of Homeowners Associations and start over with a new organization of communities that respect and honor the U.S. Bill of Rights.

What’s really hilarious is that several other authors/writers gathered around us and began supporting me with their own stories of HOA horrors. One or two of them were former HOA board members and said they quit because of the bullies on the board. How weird is all that?

Anyway, we later exchanged cards. I told her if she and her buddies would actually read my book I’d agree to pay for lunch. I’m not sure if that’ll ever happen but it was an amusing way to spend a Saturday picnic.

 

CAI seeks Federal Legislation, So Should Homeowners Rights Advocates

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guest blog by Deborah Goonan

CAI makes it abundantly clear they oppose federal regulation of HOAs. Yet the HOA industry has relied heavily on federally backed mortgage financing to support a behemoth HOA housing empire created of, by, and for Developers.

The height of industry hypocrisy is made apparent when we take a close look at federal legislation that the HOA industry promotes before our Congressional leaders.

CAI recently conducted its “August 2014 Recess Advocacy Campaign,” where members were urged to meet with Congressional leaders in their respective District (local) Offices.

CAI is currently focused on three key federal issues. Let’s look at each one, using CAI’s own words, my emphasis added in italics for clarity.

1) Mortgage finance reform

CAI’s goal is to ease access to federally backed mortgage financing. Congress is planning to replace Fannie Mae and Freddie Mac with a new finance system that will likely be more dependent on private lenders with potentially diverse (strict) lending standards. CAI members are instructed to remind Congress that the  “current national standard for community associations has reduced complexity and duplicative work by associations when providing information to mortgage lenders. Eliminating community association standards will drive up association cost, create confusion, and lead to impractical requirements that interfere with the responsibilities of association boards.”

2) Disaster relief fairness

CAI laments that Association insurance policies do not always fully cover repair costs after natural disasters, and reasons that HOAs should be eligible to receive FEMA disaster relief because, “Residents of community associations should be treated equally with all other taxpayers … Owners in community associations must likewise receive the same federal benefits as all other residents within a local jurisdiction in the aftermath of a natural disaster.”

3) Amateur radio parity in associations

 “CAI opposes unnecessary federal intervention in the operations and governance of community associations… Community associations do not need an Act of Congress to work through differing points of view that are simply best settled by neighbors talking to each other.”

Take note of CAI’s interesting perspective for protecting the rights of HOAs.  But are these advocacy efforts beneficial to HOA owners?

Historically, loose mortgage standards have led to high default rates, and failure of Fannie Mae and Freddie Mac, which has proven to be more harmful than helpful to HOA owners. CAI seeks FEMA benefits for HOA common areas that lack adequate insurance coverage and protective measures such as surge protection. They do not advocate for FEMA relief for individual homes or units.  The more important concern should be why are so many HOAs lack inadequate insurance protection in the first place? The odds of squeezing funding out of a cash-strapped FEMA for HOA common areas is slim to none, particularly since FEMA views corporate HOAs as businesses. (I wonder where they got that idea?)

Now, let’s examine the People’s perspective. Why do advocates seek federal legislation aimed at HOA reform, and improved alternatives to HOAs? Why support federal standards and oversight?

First, federal standards would reduce complexity and confusion that results from a mosaic of ever-changing statutes across the country. Furthermore, mandating national democratic governance standards tied to Constitutional rights will prevent individual states from enacting state-level legislation that primarily serves the interests of the local real estate industry.  If state-level advocates exchanged notes on what policy works and doesn’t work, it could save potentially millions of dollars spent on lobbying for or against potentially harmful or ineffective legislation.

As advocates, we seek equal justice under the law, on par with other taxpayers. Are HOA residents not entitled to the same federal benefits of the Constitution through the 14th amendment, and under the same Bill of Rights as the rest of our fellow Americans? Are we, as individuals, not entitled to consumer protection in the form of policy that holds HOA leaders accountable to the people? After all, we pay taxes just like our counterparts that do not reside in the HOA regime! We should be treated equally!

And, recall that it DID take an act of Congress to remind HOAs that Americans have the right to display our country’s flag. Yes, Congress passed the American Flag Act of 2005, a law that some HOAs still flagrantly ignore and manipulate by creating twisted rules under the dubious authority of a “contract.” Disputes still occur with the neighbors that should be able to settle disagreements by simply talking to each other. After all, homeowners and HOAs never need to hire a $400-an-hour attorney to settle those differences, right?

With CAI lobbying at the Federal level, it becomes even more important that HOA Reform advocates do the same.

(link to CAI’s August 2014 Federal Advocacy Campaign)

HOAs As “Mini-Governments”

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guest blog by Deborah Goonan

A recent article published at Virginia’s TimesDispatch.com, has summarized the proliferation of HOAs as follows:

“(Homeowners’) associations are nearly ubiquitous for new residential housing in the Richmond area, embraced by developers as a way to handle long-term care of common amenities and by local officials as “mini-governments” that can help maintain order and property value.”

The article’s author, Ted Strong, interviewed several county officials on the subject. For readers who may doubt claims of some home buyers that it is nearly impossible to find HOA-free housing in many parts of America, just feast your eyes on the following blatant admissions by Richmond, VA, area officials representing Henrico County:

Kirk Turner, Chesterfield County’s director of planning, said his county wants the associations in the vast majority of cases. “From our standpoint, we actually encourage the creation of an HOA….”

At this point, “probably 100 percent” of new subdivisions in Chesterfield County of at least 20 lots have associations, Turner said.

“To me, the HOA is like a mini-government,” said Henrico County Attorney Joseph P. Rapisarda Jr.

There you have it. The ubiquitous nature of HOA-Land is driven by supply-side expediency and economics. The Developer gets to increase housing density, and therefore, profits. Local planning boards encourage HOAs, because such organizations are viewed as extensions of local government.

Developers love to preserve their “visions” – i.e. perpetual control – of communities they have created. Local governments love the fact that they can just sit back and collect property tax revenue, and leave strict code enforcement to HOAs.

Says Attorney G. Elmore, of the Community Associations Institute (CAI)-member Community Association law firm:

“Associations often help to preserve developers’ visions for common features or aesthetics.”  Elmore is an attorney at Chadwick, Washington, Moriarty, Elmore & Bunn P.C., which represents community associations extensively.

“Well-kept common features help property values and a neighborhood’s livability,” he said. “And associations are necessary if a neighborhood hopes to maintain aesthetic standards stricter than those in county laws.”

Ah, CAI’s vision now becomes crystal clear: without HOAs, aesthetic standards would suffer and property values would plummet. Or would they?

Do we really buy Elmore’s premise?

I think it is true that HOAs can, and often do, enforce stricter aesthetic standards than counties. But, is that a good thing for residents? Not necessarily, when strict standards result in costly lawsuits over flagpoles or home-based businesses.

And taking it one step further, Elmore fails to mention that HOAs can, and often do, enforce standards that limit Constitutional rights of free speech and expression. He also forgot to mention that HOAs tend to fall short when it comes to upholding important government duties such as conducting fair elections and handling disputes over violations with sufficient due process.

Isn’t that the least residents should expect from “mini-governments?”

But wait a minute – back in 2007, CAI issued the following press release in regard to the Supreme Court decision in Committee for a Better Twin Rivers v. Twin Rivers Community Association. Back then, the court decided that HOAs are not governments, and CAI happily echoed the sentiment. Here’s a quick refresher:

• The Twin Rivers decision held that residents of an association not only have the right to express themselves; they also have the freedom to adopt reasonable policies regulating expression in their communities.

• Community Associations are not governments, but rather, private agreements among neighbors; the New Jersey Supreme Court ruling indicated that the government should be respectful of these private agreements.

• Homeowners’ rights of expression and speech are not changed in New Jersey or elsewhere by the Twin Rivers decision, but rather, the case affirmed residents’ freedom to adopt reasonable policies governing such expression.

• Although courts across the country may find the decision in Twin Rivers persuasive, it does not have the binding authority of precedent outside of New Jersey.

• At its core, the Twin Rivers decision supports the rights of residents within community associations to make reasonable decisions for themselves without being second-guessed by courts or politicians.

Well, CAI better get their local government allies on the same page. Are HOAs “contractual agreements” or “mini-governments?”

The last statement about residents making decisions for themselves is blatantly false on its face in most Associations. The Developer creates rules long before there are residents, even before construction begins. And the HOA Board – often controlled by Developers for many years – makes nearly all decisions on behalf of its residents. In reality, the Twin Rivers decision supports the rights of the HOA Board to make most, if not all, decisions, and not be second-guessed by any branch of US government.

Last but not least, note the veiled admission of classic CAI philosophy – that the HOA Board of Directors (aided and abetted by the Community Manager and/or the HOA Attorney) is absolutely essential to maintaining the “vision” by “taking the lead on enforcement, “ because individual owners cannot be relied upon to exercise good judgment.

“It’s a lot easier to maintain a certain style or look or quality if you have an organization taking the lead on enforcement as opposed to relying on individual owners,” Elmore said.

(link to Times Dispatch article on HOAs as mini-governments)

(link to CAI news release about Twin Rivers decision in 2007)