Tag Archives: foreclosure

Condo or Hotel?

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guest blog by Deborah Goonan

AirBnB, VRBO, and online vacation rental sites have taken on a life of their own. Now condo owners can arrange to rent their units by the week, with the click of a few buttons. But some Florida condo owners are upset that their condo building has been overrun with tourists from all over the world, making their homes feel more like a hotel.

In the video report linked below, Michele Gillen, CBS4, Miami Beach, features Octagon Towers, just steps from South Beach. One condo owner laments that she no longer knows her neighbors, because they change every week. The problem has been ongoing.

The City of Miami Beach is threatening to shut off utilities to Octagon Towers, if owners do not cease and desist short-term rentals. That’s against city fire code. And Miami Beach already has dozens of hotels and Condo Hotels specifically permitted for vacation lodging.

But that doesn’t stop Condo Board member Sigmund Esposito from breaking condo restrictions and city codes all day long. Check out the interview of his vacation tenants, who were apparently unaware of the City’s ordinance restricting short-term rentals in residential condominiums.

Here’s my take on this. Octagon Towers is but one example of why condo owners frequently disagree about how their Association should be governed and managed. There is almost aways a conflict between the owners who actually live in their units and the owners who rarely stay in their units, but want to collect maximum rent.

So, here’s a suggested solution. If we are going to create RESIDENTIAL condominiums such as Octagon Towers (where long term leases may be allowed), then let’s not run the Association like a corporation! Don’t hand all the power to the Board, and don’t allow corporations to own individual units as if they were actual “persons.” (Searching public records for Octagon Towers, I noticed quite a few LLCs as owners.) Treat residents as actual citizens of their community, albeit a small community. Pre-screen buyers and long-term tenants to be certain they are looking for a place to live in peace and quiet, and not a money-making revolving door for vacationers.

Steer those hoping to make a killing on vacation rentals to what should be called INVESTMENT communities, such as condo hotels. Perhaps this is the kind of Association CAI had in mind when it decided years ago that “Community Associations” are businesses.

Some may be. But most aren’t — or shouldn’t be

(Miami Beach Condominium Reportedly Being Used As A Hotel « CBS Miami)

(Just in case you want to know what a condo hotel is:)

Las Vegas HOA Sentences Handed Down

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Well, well! The sentencing of the Las Vegas HOA scammers has begun. Readers of this blog know that that I predicted the vast majority of these dirtballs will spend no more than eighteen months in prison. That’s what most white collar crime leads to. Steal a million or a hundred million and our judicial system doesn’t have the guts to hand down sentences these people actually deserve. You can get more time behind bars abusing an animal than for ruining the lives of thousands of humans.

This federal judge has already told the thousands of victims of the Vegas swindling machine that they’ll probably never see their money again because it’s all gone. It seems to me these 41 crooks should stay in prison until each and every victimized homeowner gets ALL his money back. It’ll never happen.

Steve Wark is the first to be sentenced. He’s a well-known political strategist in Nevada. Incredibly, he only got 366 days in prison. Counting his time off for good behavior he’ll spend far less time behind bars than the 18 months I predicted.

Other sentences today:
15 months in prison.
21 months in prison.
21 months.
15 months.
3 months of home confinement.

For all the thousands of people who lost their homes and life savings to this mob: How do you feel now?

(link to Review Journal in Las Vegas)

Oh, and BTW, if you think I’m crazy about animal abuse being more serious than ruining thousands of human lives, try this link:

(man gets year in prison for killing dog)

http://www.foxnews.com/us/2015/05/12/southern-california-man-gets-year-in-jail-for-beating-death-his-pet-poodle/

More Segregation In This Economy

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There’s a fascinating article in the Washington Post about how the foreclosure crisis is leading to increased segregation in American neighborhoods. The article is worth reading, even though it doesn’t directly target Homeowners Associations.

 

There are interesting implications, though. The big irony is that the modern homeowner association movement started in 1964 shortly after the Civil Rights Act was passed. White homeowners and developers recoiled at the thought of minorities moving into white neighborhoods and made sure subtle racial controls were woven into the HOA system.

 

The recent mortgage crisis hit HOAs especially hard with foreclosures being done both by mortgage companies and HOA boards. And there’s no question that many ‘private governments’ have used their ‘secret rules and powers’ to come down harshly on minorities. Keep that in mind as you read the Washington Post story, linked below.

 

(link to story on increased segregation)

 

Timberlake Management, aka “The Condo Crime Family”

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guest blog by Deborah Goonan

Former FL Representative Julio Robaina calls the Timberlake management company run by the Duggers the “Condo Crime Family,” in this special News 10 report by Bob Norman. Take a look at the video of some of these communities that the Duggers manage – clogged storm drains, flooded streets every time it rains, trash all over the place. Exactly all of the blight that HOAs are supposed to prevent, right? Have these HOA property values been enhanced over the years? Not on your life!

Supposedly, Florida has the Department of Business and Professional Regulation (DBPR) to oversee condominiums, timeshares, and mobile home parks, to protect homeowners from financial misconduct and abuse. But how many complaints must be filed before Timberlake is shut down for good, and the Dugger family is held accountable? Apparently more than 30! Florida’s DBPR, a state level agency, does very little to protect condo owners.

That may explain why, for two years in a row, the FL Legislature has not even considered a bill that would extend DBPR authority to include oversight of Homeowners Associations. Meanwhile, the state has taken nearly half of the revenue paid by condo owners ($4 per condo unit across FL) and spent it on other services. Another slap in the face to condo owners.

Anyone who owns or resides in Association-governed property in Florida should be outraged. In fact, even if you are lucky enough not to have to live under HOA rule, as a taxpayer, you should still be very concerned about obvious incompetence and corruption that affects the lives of millions of your family members, friends, and neighbors.

Not In My Back Yard!

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David Evans, guitarist in the rock band U2, owns some view acreage overlooking Malibu. He’s now into his 9th year trying to get approval to build five luxury homes, one of which he plans to live in himself. For all those years, opponents have complained to zoning officials that those five new homes will bring in way too much noise and traffic and spoil their view.
Now, it looks like zoning officials are moving closer to approving the project.

It’s too bad Evans didn’t follow the lead of movie director George Lucas, who’s been refused permission to build a small studio on his property north of San Francisco. When Lucas wasn’t allowed to build on his 1100 acre estate, he announced he’d turn his estate into a big development of affordable housing (read that, ‘low rent’). These days it’s next to impossible for county officials anywhere to reject plans for affordable housing.

Evans should use the same strategy on his Malibu property. Heaven knows Malibu could certainly use a few hundred low-rent homes!

(link to story on U2 guitarist’s development)