While I honestly believe the approaching mortgage and housing collapse will be the biggest in our history, I still respect well-written satire of economic fatalists like me.
Yes, China might someday be the biggest holder of American homeowner debt, but in the meantime I’ll always be able to smile at such wonderful prose:
http://www.marketplace.org/topics/economy/big-book/how-survive-next-economic-collapse
Many HOA board members who are tired of fulfilling their duties try to hire professional management companies to do the heavy lifting. But an HOA in Houston has learned a sad lesson about how some idiot HOA managers can get them into massive trouble.
Jacqueline Greene, a single mom with three kids, got behind in her rent at the Villa de Cancun complex owned by Woodfair Properties. Woodfair has a nifty way of forcing late-payers into forking over the money. They just screw the front door to the doorframe. Jacqueline removed the screws. The HOA management company did it again, once again forcing her to remove the screws so she access her apartment.
This time, Woodfair properties simply removed the front door altogether. Neat trick to pull on renters, right?
Well, not exactly. After Jaqueline and her kids spent several nights in the cold she contacted a lawyer. They filed suit based on the fact that this oh-so-professional management company had blatantly broken the law. There are legal ways to evict a tenant. Woodfair chose the illegal way. And guess who won? Jaqueline, the tenant.
If you’re a homeowner whose board just decided to hire a management company, remember you may be more vulnerable than ever. And if you have deep pockets just remember the phrase, “joint and several liability.” It means that even if you had no idea your management company was being so stupid, a lawyer can start digging through your pockets to force you to pay the entire judgment.
Welcome to HOA Amerika.
(link to Houston Chronicle story)
Another journalist, writing on the blogsite, watchdogwire.com has obviously paid special attention to the growing national HOA debacle. We’re all witnessing the beginning of a crash of a massive part of the American dream, the thrill of home ownership.
The right to own a home sets us apart from all other people on the planet. And home ownership was ingrained in the mindsets of early arrivals on our continent. The idea of personal ownership of property is so woven into our history and our Constitution that it’s been rightly said that no other right is as fundamental to the idea of being truly American than this right to own a patch of ground. It’s our ‘castle’, our protection against the intrusiveness of government, our protection against those forces which would try to confiscate what we own.
Of course, for years government has used the courts to intrude on the sanctity of this right, but it’s still written into the fabric of our souls. The act of owning a home is what makes us truly American.
The American Homeowners Association movement is fundamentally flawed because it fools would-be homeowners into believing we possess such a right. The purchase of an HOA or condo controlled housing is not truly an exercise of this right. Instead, we are merely purchasing a ‘share’ in a corporation which in turn owns the home we fool ourselves into believing we own. Owning corporate shares in a neighborhood is not the same thing as owning a home in a neighborhood. Your purchase of corporate shares is not protected by the Constitution. Your corporate ‘share’ is not your ‘private castle’ and it can never be. Your privacy or the Constitutional protection of your ‘private papers’ is not guaranteed in your corporate documents. Thus, in a private home there are no rights to practice your own religion, no rights to speak your mind, no rights to assembly or to own and carry a gun, no rights against having the government seize your property in order to house troops, no right of habeus corpus. Indeed, the right not to face discrimination because of race or disability is constantly under attack in the HOA corporate structure.
On this website, you’ve read the guest blogs of many people who are true American heroes. People like bloggers Nila Ridings, George Staropoli, Shu Bartholomew, Jonathan Friedrich, Col. Bob Frank, Jan Bergemann, Dr. Gary Solomon, Evan McKenzie are the true heroes of our age. These are the people who have stepped up in a public forum to take a stand against what they see as a fundamental wrong in our society. They all could have taken the easy way out by ducking controversy and fleeing from social suicide. But they’ve taken great social, financial and legal risks to “do the right thing.” Because of the risks they take in ‘going public’ they will someday be recognized and admired for their bravery. They are our modern-day pioneers in every sense of the word.
How many of us have wished we could have been counted among the brave souls who stood up for civil rights in the 60s? How many have wished we could have opened our mouths and hearts and given a warning about the approaching housing tsunami which threatens our very existence as a free people?
Not enough. Not nearly enough. That’s why I so admire the bravery of the tiny handful of people who’ve actually sacrificed and joined the fight so others don’t have to.
http://watchdogwire.com/blog/2014/06/03/homeowner-associations-americas-hidden-layer-government/
R-E-C-O-R-D-S! Release the Records!
Recently, I have talked with HOA members locally and across the country who are frustrated because they cannot see the financial records in their HOA.
One homeowner requested to see ONE financial document and was told by the Associa management operation that a $200 advance payment was required to see it! Others have gotten the same old song and dance about paying to see the HOA records.
Back in 2007, it was discovered after much stalling and excuse making by the board president that Quivira Falls had $10,000,000.00 unaccounted for. Yes, that figure is TEN MILLION DOLLARS!!! And the audits had not been performed for years, as required per the by-laws. A homeowner filed a pro se lawsuit to see records. Five months later, I filed a lawsuit to recall the board and gain access to the records.
At that time, I was fairly new in the neighborhood. But my corporate experience helped me recognize I was dealing with some shysters. Shifty eyes, mumbling and bumbling, couldn’t give me a straight answer, nervous, cocky, stalling, and quickly trying to dismiss my questions always with “we’ll take that under advisement.”
Before the homeowner filed the pro se case he told the board members, “If we find embezzlement somebody is going to jail!” The response was a finger pointed at us and a booming angry voice from the HOA president, “If you think there has been any embezzlement or malfeasance, you’ll never find it!”
This guy had been the Quivira Falls Community Association president for 26 years! Homeowners had made no efforts to question anything he did. One of the board members, Jody Lamping said he put her through “mental masturbation” but never answered questions with legitimate answers.
Ongoing investigation was revealing more and more eye brow raising information. One being this Quivira Falls HOA president was running for the board of an HOA in Carlsbad, California. He had just purchased two places in that community. His bio read like Mr. Magnificent in the world of homeowners associations. Several residents of Quivira Falls contacted the manager of the Carlsbad HOA and his name was immediately pulled from the ballot. Ryan Rader died a few days later.
When Johnson County Judge Thomas Sutherland, ordered the records be turned over to me Rader’s successor, Jody Lamping, under oath, proclaimed, “there are no records!” Judge Sutherland gave her fair warning of perjury charges should records turn up at a later date. That did not deter her one iota, she threw her nose in the air and declared, “there are no records!” The board treasurer, Bill Reavis claimed Quivira Falls Community Association had no bank accounts, either.
I contacted the Johnson County District Attorney’s office and was instructed to file a “suspicion of embezzlement” report with the Overland Park Police. The detective ultimately hit dead ends because current and former board members claimed no knowledge of anything, stating only Ryan Rader knew about the inside workings of the HOA. What he did find was thousands of dollars in cash logged onto the ledgers but not one dime was ever deposited into the numerous bank accounts that Quivira Falls had established around the Kansas City area. The detective had no way to obtain information from a dead man so the case was closed, but he advised me to contact him if anything changed.
A year later, a homeowner that was very familiar with the details walked into the clubhouse and caught Jody Lamping with another board member and a former board member shredding records. I was called and my attorney instructed me to go immediately to the clubhouse with witnesses and cameras which we did. Jody Lamping was so nervous her mandible was flipping back and forth like a pendulum on a one hundred year old grandfather’s clock. The former board member was hiding on the staircase behind a wall, while the other was pretending to be on the phone to the HOA attorney letting him know the HOA records had just been found. Thinking we hit a goldmine, I called the detective. It was no surprise when he said that was not true because two months after the judge ordered the records turned over to me he was given access to those records!
There are more stories to this “new” board that promised Quivira Falls homeowners they could be trusted, but I’ll share those at another time.
For now, it’s best to say, DO NOT HAVE A BLIND FAITH AND TRUST IN YOUR HOA BOARD MEMBERS!
Do not allow anyone to be the president of the HOA for decades. I would suggest limiting that position to 1-2 years.
Do not allow 1 or 2 board members to be signers on HOA checks. Have 3 people and be sure they are all qualified to be bonded and do background and credit checks on them. If they have a criminal history or financial problems they are not good candidates to be handling your HOA funds.
Do not allow the HOA property manager to have exclusive access to bank accounts and checks. If your by-laws require yearly audits, demand they be done!
Do not allow cash payments to be made to the HOA for any reason.
Do not give the HOA president carte blanche to spend thousands of dollars without board approval. A $1,000 limit should be sufficient.
If the HOA operations have been “shaky” and you manage to land a position on the board, insist on a forensic audit during a board meeting and double check to be sure it was recorded in the minutes. If you are a homeowner, submit a written request for a forensic audit. Retain a copy of your request.
If your by-laws allow for more than 5% of your annual budget to be spent by a property manager without board approval, suggest a change to the by-laws. It would be most beneficial to require a vote by the homeowners for any spending that will exceed 5% of the annual budget.
Regarding audits: The statement has been made on many occasions that honest board members don’t need audits. I strongly disagree. Audits work both ways; keeping thieves from stealing from an easy target and protecting honest people from being accused of stealing.
Never forget that people who have nothing to hide, hide nothing!
Here we go again! I hope this will be an eye-opener for our readers.
Quivira Falls Community Association still ranks at the top for winning the “HOA Bullying Award.” Why? Because like most HOAs they love to bully people. They seem to really get some sort of sick thrill out of irritating the homeowners. But, it’s far more than irritating, they are putting us at risk for property damage and liabilities.
Gutters being my responsibility, I had new ones installed in 2008. Knowing that Quivira Falls has a very long history of not performing necessary maintenance, I spent an extra three hundred and fifty dollars to have gutter guards installed. The company I did business with has been around since 1972 and certainly knew what they are talking about when they said, “do not let anyone use leaf blowers on your gutters because it will tear up the guards!” So, I notified Quivira Falls HOA office that I did not want anyone to clean my gutters going forward. Well…let’s see, it’s been six years and they still love to put people on my roof with leaf blowers which now results in me calling the police.
Two years ago, they taped a note on my front door saying since I didn’t want my gutters cleaned by the HOA they would no longer be doing it. I gave a sigh of relief…finally…somebody learned how to read and understand what my letters said. Yeah! Nope, not yeah…within hours of writing me that letter on Quivira Falls letterhead they were up on my roof! I called the police and kept the report in my files.
Today, after all these years of emails, letters, and calling the police, they were back up there with the leaf blowers! From my office window I could see the ladder and hear the noise. With my phone and camera in hand, I walked outside and removed the ladder from my guttering and dropped it into the grass. I called 911 and told the dispatcher what was happening and that they were still on my roof and the ladder was laying in the grass. With my camera positioned and ready, I waited for them to come over the ridge of the roof. They saw me, my camera, and the missing ladder. When I said the police were on their way the one started apologizing and the other stood stone-faced on my roof. In nothing flat the police arrived just as their supervisor/owner did. He immediately instructed them to get to the next job, but the officers wanted to see their identification first.
The police advised me they cannot arrest workers for trespassing. Nor can they arrest a company owner unless he’s caught on the roof. I’m basically screwed except I have the option of taking them to circuit court. You bet I can do that! I’m always welcome to spend $30,000, $50,000 or even $100,000 in legal bills to try and stop myself from being bullied and attempt to be reimbursed for construction repair bills. I will also be the one paying the tab for damage to my gutters and shingles along with the cost of water damage repairs on my ceilings caused by broken shingles that create leaks! And, if I’m really lucky they may cause a rafter or two to snap which gives me the pleasure of hiring a contractor to come and snake his way through my bedroom closet and into the attic while carrying long pieces of lumber that scrape my walls and woodwork.
To properly clean gutters you must remove the debris and then flush the downspouts with a garden hose. Walking around on roofs with leaf blowers is a waste of time and money since the downspouts are ignored. It’s a farce, to say the least. And a way to fool homeowners into thinking they are getting something for their $240 monthly dues.
So, I asked the officers, “How would I sue somebody when I don’t know their name, company, or location?” With that, the officer asked the company owner if he would like to share his name and contact information with me? He said, “No!” I looked at the cops and stated people who have nothing to hide, hide nothing and this guy won’t even identify himself. Yet, I’m supposed to sue him if I have damage to my roof or guttering? Really? With that, he reluctantly handed me his business card.
After he left, I mentioned that one of the roof top workers reeked of something that smelled…you know…medicinal. The cop said he wished he’d of smelled it. Possibly he would have if “Mr. Mystery” had not quickly shooed his workers away from the area.
Bottom line, my attorney has told me to never let anyone work on my property without seeing their certificate of insurance even if they are employed or contracted through the HOA. Reason being, if they fall into my fenced area or on my front porch resulting in injuries or death, I will be the person responsible and hit with the lawsuit if they are uninsured!
On this same issue, a few years ago the HOA cleaned the gutters of some new homeowners that moved here from a foreign country. The nicest people you would ever want to meet! Their gutter guards were blown out and left laying on the grass around their townhouse. They asked if I would type a letter on their behalf requesting they be re-installed because they don’t speak or write English fluently. I suggested they mail it certified. Quivira Falls refused it, so when it came back they hand-carried it into the office. How shocked they were when the woman in the office told them to put the gutter guards back in themselves! That’s right, the HOA blows them out and you can just buy a ladder and climb up there and do the job yourself! “Welcome to America!!! and Quivira Falls Community Association one of the nation’s finest bullies in HOAs!”
As the police were leaving the fire department ladder truck pulled up. I guess the 911 dispatcher must have assumed a roof rescue was going to be needed. Yes, indeed these HOAs are costing the taxpayers a ton of money and they don’t even have a clue. The police chief’s office says always call them to come out and make a report even if they can’t arrest anybody. That way if you end up in court with an HOA case you’ve got police reports to back you up.
I just lost another precious day of my life in HOA HELL!
