Tag Archives: HOA Abuse

Dallas HOA Still Affected by Internal Strife

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guest blog by Deborah Goonan

A few months ago, a County Judge dismissed a case brought by Highlands of McKamy HOA against the Toras Chaim congregation. The small Orthodox Jewish congregation thought its battle was over, and then the City of Dallas sued the congregation over permit violations. That case is still pending.

Now, the same HOA community is back in the news, this time regarding a dispute between a homeowner and the Association over a brick wall that was inexplicably torn down, without notice, from the rear border of his yard. That left the affected homeowner’s back yard wide open to a busy road and nearby railroad tracks, significantly increasing noise levels and eliminating privacy.

It seems the brick wall was in need of repair, and the Board, led at the time by former President David Schneider, made the hasty decision to tear it down, rather than attempting to shore it up.

Kind of a metaphor for how all disputes were handled by Schneider and his allies.

The affected homeowner had been trying to sell his house, but that attempt was unsuccessful. Perhaps the gaping hole in the barrier wall is the primary reason the house remains unsold?

According to the report in the Dallas Observer, before a majority of homeowners recalled Schneider from the Board, they also forced a $10,000 cap on the budget, in order to limit the HOA’s exposure to legal expenses over the unpopular decision to sue the Toras Chaim. That led to a lack of funds to replace the wall after it was torn down nearly a year ago.

In the meantime, the City of Dallas was about to levy fines because the wall has not yet been replaced. Fortunately, the Dallas Observer reports that the new Board has authorized an emergency repair, and the wall will soon be rebuilt.

Once again, we are reminded that one rogue Board member and a few allies can wreak plenty of havoc in a once peaceful and harmonious HOA community. Even an HOA with minimal common areas and low HOA assessments can run into trouble and considerable expense. A personal dispute that should have stayed between neighbors of two residences has become a source of ongoing strife for the entire HOA. A contentious and questionable election led to a recall that divided the community.

Every member of the Highlands of McKamy Association had to pay for legal expenses for what amounted to a frivolous lawsuit aimed at denying First Amendment rights and religious freedom. Now the HOA also has to pay to replace a 9-ft. tall brick wall that might have been saved rather than torn down. Oh, and yet another homeowner has just filed suit against Schneider’s former HOA Board, claiming the Board violated its bylaws by awarding a contract to demolish the wall to a single bidder, with no competitive bids.

Please explain to me once again, how do HOAs enhance and improve property values?

(link to continuing saga at McKamy HOA)

Disaster Relief for HOA Members? Ha!

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I’m linking to the CAI site only for the purpose of backing up a previous blog.

If you are living in a Homeowners Association which experiences a weather or earthquake disaster, don’t count on getting federal help of any kind. An HOA member hit by a flood is not considered a homeowner, but an investor in a corporation. When 20,000 homes were damaged in the Boulder flood two years ago, many homeowners discovered they were flat out of luck. Those inside HOAs found that FEMA wouldn’t help them and they couldn’t get federal loans. They couldn’t buy federal flood insurance either because they didn’t live inside recognized flood zones. Who knew Boulder Creek could ever launch that big a flood?

We learned recently that if HOA boards in California don’t buy earthquake insurance for the whole community, then individual homeowners can’t get coverage either.

CAI reports that a couple of Democratic Congress members have made some progress in getting the feds to help Homeowners Associations badly hit by Hurricane Sandy.

CAI’s press release is about as dishonest and disingenuous as they come. What they should really be talking about is not about federal exemptions, but about the fact that the very membership of an HOA in CAI is a red flag to the feds. You HOA members are investors, NOT HOMEOWNERS!!!

(link to CAI press release)

 

Outright Bald-Faced Theft From Florida HOAs!

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An astonishing blog was just published by our friend in Florida, Jan Bergemann. He points out that the trust fund, which was created to help members of Homeowners and Condo Associations, is being looted annually by the Florida State Legislature.

This money was not meant to be transferred to the Legislature’s general fund. It’s paid by HOA members and should be held in trust for HOA members.

It’s just another in a thousand ways that HOA members are getting ripped off. How many other states are seeing such theft?

(link to Jan Bergemann’s story on plundering of the HOA Trust Fund)

 

HOAs often pit Investors vs. Homeowners, and homeowners usually lose

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guest blog by Deborah Goonan
Even in the nation’s Heartland, homeowners’ and condo associations are subject to considerable consumer risk. The Des Moines Register story highlights just one example of what happens when investors take over an Association, a common occurrence across the country.

Here’s the blatant truth. The corporate structure of HOAs — allocating voting rights to the Property instead of allocating those rights to People based upon residency — leads to the inevitable consequence of pitting investors against homestead property owners.

Because an HOA property owner gains voting rights for EACH property owned, it creates the incentive for investors or developers to buy up – or retain – as many “shares” of the HOA corporation as possible. And everyone knows that a majority shareholder controls a corporation.

But not everyone realizes that nearly all HOAs are corporations. Share this story with everyone you know, especially if they are considering buying a home.

We need to decide in this country: are homes a place to live and gradually accumulate stable personal wealth over time, or are they merely investment commodities subject to the whims of a volatile real estate market – where a few people profit at the expense of everyone else?

(link to warning in Des Moines Register)

 

Disbanding an HOA

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I think I’ve written about this before, so forgive me if this is repetitive. But a friend of mine lives in a tiny HOA of about a dozen houses. Last year he bought a dozen copies of my book and lobbied every member of the association to read it. The neighbors voted unanimously to disband their corporation.

Now, my friend says, there are sounds of kids laughing and playing. Several basketball hoops have gone up. Neighbors are now talking over the back fence and inviting each other over for dinner. He says the difference in the neighborhood is incredible.

Plus, insurance liability costs have gone down.

Life is amazing, isn’t it?