Tag Archives: foreclosure

Spiders Run The Trost Family Off

guest blog by Nila Ridings

This time it’s not the HOA that ran a family out of the neighborhood. It’s 6000 brown recluse spiders.

Brian and Susan Trost purchased their $450,000 dream home in a Saint Louis, Missouri suburb and soon found it had little creepy crawling dangerous poisonous spiders running everywhere. They sued the previous owners, David and Tina Gault and got a settlement of $472,000 but haven’t collected a dime.

They contacted Jamel Sandidge, an expert from the University of Kansas. He determined the spiders did not arrive after the Trost’s purchased the property. They have State Farm Insurance, but no settlement has been given. Based on my experience with State Farm Insurance all I can say is, Good Luck!

Overall, if they end up not buying another HOA house, I think they will live happily ever after. Next time it could be the HOA that bites them. That could be worse than any spider out there.

(link to aol.com article spider invasion)

 

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)

 

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)

 

 

HOAs and Owner Involvement: An Oxymoron? (part 2 of 3)

guest blog by Deborah Goonan

Debunking the myth that owners can actually change their HOAs

CAI’s educational booklet makes the assumption that owners elect their Board. In reality, the Developer appoints the Board – or at least one or more members of the Board – for several years, or even decades during construction. When the developer still controls the Board and possesses weighted voting rights, isn’t owner participation essentially a moot point?

Have HOA proponents, and CAI in particular, ever considered that a homeowner, having had no opportunity to elect the Board or amend documents during many years of developer control, is unlikely to ever make a successful transition to widespread participation in voting? And by the time it is no longer developer-appointed, what if the Board is still controlled by a small minority of investors or developer affiliates, who hold the majority of voting rights? This situation is far more common than CAI industry professionals would lead us to believe.

Vote the bums out!

As for CAI’s oft-prescribed solution to dissatisfaction – electing a new Board – is it really that simple? Not really. Post-turnover election procedures are based upon written provisions of the governing documents, possibly subject to limited statutory guidelines. The fact is, HOA governing documents are not reviewed and approved for compliance with constitutional voting procedures. Therefore voting systems are generally built upon the following components:

–Inequitable allocation of voting rights (votes allocated by number of units owned or proportional share of ownership)

–Voting processes that often involve proxies and/or representative voting systems that disenfranchise residents

–Typically, tenants cannot vote

–Members can have their voting rights revoked as a result of an alleged violation or dispute, or for being delinquent on assessments. (If you were told you could not vote at the polls as a result of being delinquent on your property taxes, would you accept that?)

Although laws in some states address a few of these issues individually, no statute addresses all of them, most notably equitable allocation of voting rights. Some states mandate ballot election for Board members, but not for amending governing documents.

Quite often, loopholes allow existing HOAs to avoid compliance with applicable statutes, with the qualifying phrase “unless otherwise stated in the governing documents” inserted before election and voting provisions. And because there is no national standard, the relative fairness of elections and voting varies considerably from state to state and from one Association to another. Obviously, more realistic solutions are needed.

See Part 3: Exploring Solutions

Link to CAI’s publication, Community Association Living

HOAs & Owner Involvement: An Oxymoron? (part 1 of 3)

guest blog by Deborah Goonan

Let’s get real!

One of the most common laments of HOA industry professionals is this: “Owners are apathetic. No matter what we do, we cannot get them involved in governance of the community.”

I have previously blogged, tongue-in-cheek, about the tendency of Boards to cultivate apathy. Today I will explore the issue in more depth.

Is it realistic to expect widespread participation?

Historically, few people actively participate in city, town, or county government, so what makes anyone believe that there would be a higher participation rate in HOAs?

Consider that HOAs (and especially condo associations) are marketed as carefree, low-maintenance lifestyles, often including amenities that owners do not have to personally maintain. HOA homes are not explicitly disclosed as what they are: shares in real estate investment, almost always part of a corporate entity. And, even if we could enlighten buyers and owners about the need to protect their investments in their HOAs, how many would take active roles? After all, most people with retirement accounts tend to put their money into funds managed by financial professionals – few actively monitor their funds.

Does HOA governance structure encourage or discourage participation of residents?

Some critics of HOA governance have suggested that Boards should allow residents to actively participate at meetings, with the ability to present ideas, make motions, and vote on resolutions directly affecting them.

But I doubt we will see such change, because CAI – and most governing documents written by attorneys for developers – promotes policies that give the Board broad authority to act on behalf of the association.

Refer to page 30 of Community Association Living: (Emphasis added in bold)

“Board members and committee members are volunteer leaders who meet regularly to discuss pertinent details about running their community. A board meeting at a community association is comparable to a town council meeting of a municipality. The basic authority in a community association lies with the owners. However, the owners elect a board of directors to act on their behalf. Usually the governing documents delegate almost all of the association’s decision-making powers to a board. This leaves the owners with very few direct powers. Typically, owners have only the voting power to:

  • Elect and remove directors
  • Amend any of the governing documents, except board resolutions

Occasionally, owners will approve the annual budget for their association. But all other decisions are usually left to the board. As a result, if owners are unsatisfied with a board decision, they usually do not have the direct authority to “veto” or “undo” its action. Under such conditions, their only remedy is to elect a new board to represent them.”

Clearly, the status quo discourages active participation of owners, exacerbating apathy. See Part 2: Reality Check