Tag Archives: HOA Abuse

Stealing Homes In Indiana

guest blog by Deborah Goonan

Last year, residents of Charlestown, Indiana, thwarted an eminent domain attempt initiated by Mayor Bob Hall to allow developers to buy out, raze, and redevelop their entire Pleasant Ridge neighborhood. With pro bono assistance from Institute for Justice, and a well-organized effort, residents were able to put an end to those plans, and keep their homes.

Pleasant Ridge is still in need of improvement, however, and owners want to work with the Mayor on alternative plans to reduce crime and clean up problem properties. Therefore, several neighborhood leaders have proposed establishing a steering committee, to work with the Mayor’s office on revitalizing their Pleasant Ridge neighborhood. Mayor Hall has been asked to serve on the Board of this steering committee, along with one other representative from his staff.

But Mayor Hall has reservations about working with the Neighborhood Association.

Check out this statement made by the Mayor:

“Hall said Wednesday that the neighborhood association and the steering committee represent too few residents of the neighborhood.

“They are more of a special-interest group than they are a homeowners association,” Hall said of the neighborhood association. “They only represent less than 15 percent of the property owners in Pleasant Ridge. A real homeowner’s association will represent 100 percent of the properties in a subdivision.”

Hall said he has made efforts to revitalize the neighborhood since 2000, and it’s important to him that the area improves.

“I am not the mayor of the minority of Pleasant Ridge, I am the mayor of the whole city,” he said. “I am not going to be involved in a committee that has a very narrow focus and is only representing a very small interest.”

Recall from my previous blogs that the Mayor’s plans for redevelopment, though never solidified, included multifamily structures and mixed use development. In other words: establishment of Homeowners’ Associations. Apparently, Hall thinks mandatory membership HOAs would better represent owners’ interests than a voluntary membership resident-supported Neighborhood Association. Where on earth did he get that idea?

Apparently someone has been drinking the Kool-Aid, courtesy of HOA Industry special interest groups representing Community Associations and Developers.

Obviously, Mr. Hall hasn’t got a clue about the realities of HOAs! Although 100% of owners are required to be members, that does not mean that the HOA actually “represents 100 percent of the properties in a subdivision!” Note the use of the word “properties” with regard to representation — not “homeowners” or “people.”

Ask any minority property owner in an HOA if his or her interests are represented, or if those interests are merely outnumbered by majority stakeholders.

And as for having a “very narrow focus” and “only representing a very small interest,” — well, that’s the norm for HOAs. And the people of Pleasant Ridge weren’t very happy about the Mayor’s previous attempts to align himself with the narrow interests of the developer, who, along with the Mayor, wanted to get his hands on grant money.

So who is representing the interests of the homeowners in Pleasant Ridge at this point? At the last City Council meeting, neighborhood association representative Jason Patrone reportedly seemed to have the support of neighbors in attendance.

Let’s see how this one plays out.

(link to Charlestown News and Tribune)

 

Simple Explanation

guest blog by Nila Ridings
HOAs! I am 100% convinced that is the answer to the mystery (no mystery to me) of the article linked below.Originally created to make neighbors with commonality friendly and social. But the HOA concept failed when the structure was established for neighbor to rule neighbor. Even to the point of being able to fine, lien, and foreclose on their home. With that being allowed to happen the trust is gone and the fear antenna goes up while the boxing gloves sit waiting by the front door to go on.

In multiple ways HOAs are destroying human life!

 

High stakes $120m lawsuit over condo termination blocked by rival

guest blog by Deborah Goonan
Here is the flip side of the coin in the chaotic world of Florida’s optional condo terminations.

Owners of roughly 30-year old, 48-unit, Tropicana Condominium in Sunny Isles Beach, Florida, decided they’d like to take advantage of the hot real estate market, and offer their condo for sale to the highest bidder.Back in 2013, a majority of Voting Members of the Association approved an amendment to the declaration, allowing for termination with 80% approval, bringing their documents in line with FL Statute 718.117, which became law in 2007.

Several Florida attorneys have gone on record touting the potential benefits of the Optional Termination provisions — later dubbed by many critics as “eminent domain for condos” — as a means for owners of older condo buildings located on high-value land parcels to “cash out” by terminating the association and selling to a willing developer. (see link to a blog below that appeared in the Sun Sentinel a few years ago)

Reportedly, the Association received one offer of $100 million. With the attractive offer on the table, the Association was easily able to obtain more than 80% of the vote. However, five units had recently been sold to new owners representing 10% of the condominium association. These five owners objected to the termination and filed suit against Tropicana Condo Association to block the termination. As you may recall from previous blogs, Florida statute maintains that 10% of members of an Association can challenge a termination approved by at least 80% of members.

So who are the “hold out” owners of these five condos? Tropicana Board members allege (in a $120 million counter suit) that they are straw buyers with ties to Manuel Grosskopf and Edgardo Defortuna, wealthy real estate moguls currently developing a 52-story Ritz-Carlton condo tower directly adjacent to the Tropicana. The Tropicana is only 9 stories, but if sold to another developer, the building would be razed and another new high-rise condo would be constructed in its place, effectively blocking ocean views for many of the Ritz-Carlton’s multi-million dollar units.

In this case, instead of wealthy investors staging a hostile takeover and kicking out owners at a substantial financial loss, we have what appears to be a small band of rogue buyers thwarting a termination to prevent a condominium sale to a rival developer!

How is that for the irony of unintended consequences?

Seething Over Solar Seems Senseless In Kehrs Mill Estates

guest blog by Nila Ridings
Most of our readers can relate to being an activist working towards changes in America’s HOAs. We understand being passionate about sharing our knowledge of the abuses and corruption. We can relate to Frances and Jim Babb in many ways. For one, they live in an HOA. And they are strong supporters of solar energy. They believe it is right for America for many reasons. And it’s the most efficient way for them to provide energy to their upscale Victorian mansion in Clarkson Valley; a posh Saint Louis suburb.The Saint Louis Dispatch stated, “The Babbs’ ordeal has turned Frances Babb into a advocate. She’s lobbied state legislators over the past year for the Senate Bill 579, which bars homeowners associations from prohibiting solar energy.” The bill passed. End of the story…or is it? No, it isn’t.

The Babbs requested approval for the installation of the solar panels from their HOA board at Kehrs Mill Estates. There was no response within the time allowed by their CC&Rs. Next they applied for a permit from the City of Clarkson Valley where they ran into a snag that ultimately had to be resolved with litigation and a great deal of nonsense. The Babbs prevailed. The City of Clarkson Valley appealed the court’s decision but were again ordered to issue the permit. The Babbs installed the solar panels and looked forward to living in peace while setting a trend towards using cleaner energy and doing their part to make America less dependent on Arab oil.

Suddenly, guess who has an issue with their solar panels? I know you guessed it right, THE KEHRS MILL ESTATES HOA! Some neighbors claim the solar panels might cause car accidents or bring rabies into the exclusive community. So, now do they want them removed? The Babbs’ house sits a football field length away from the road surrounded by trees so it’s barely visible to passersby.

Will there be another legal battle or will the Kehrs Mill Estates BOD realize how senseless it would be to file suit when the State of Missouri has passed a law that allows solar panels, the City of Clarkson Valley has lost court battles twice, and they didn’t follow their own CC&Rs? We know how this historically goes….after $100,000 or more is spent in legal bills somebody gets tired or goes broke in the fight.

I’ve spoken with Frances Babb and I am 99.9% sure she isn’t going to take her solar panels off of her roof! I’m cheering her on and I hope you will, too. HOAs expect their members to jump at every command and demand but when they don’t follow their own CC&Rs it can sure come back and bite them. Perhaps this will be a lesson learned?

Oh! And a word of caution to our pilot readers. Please do not mistake the Babbs’ solar panels as the runway lights for Lambert Field. Landing your Boeing 757 on one of the HOA private streets is strictly prohibited!

The three attached links are well worth reading!)

(St Louis Post-Dispatch story on the solar fight)

(followup story on solar fight)

(story in Clean Technica)

Some HOA Humor from Florida’s Jan Bergemann

FLORIDA-FRIENDLY LANDSCAPING?
HAVING FUN?

 

Opinion By Jan BergemannPublished March 1, 2015
All over Florida we see lawsuits popping up against owners who use the laws established in  2009 by the Florida Legislature [FS 720.3075 (4)(a) and FS 373.185] to change their landscaping to preserve water and avoid heavy fertilizing with dangerous chemicals. There was reason this law passed — and the folks insisting that the original rules of the community have to be obeyed by should finally realize that Florida-Friendly Landscaping can look as well very pretty, sometimes a lot nicer than a boring green lawn.But since laws obviously haven’t changed their minds yet, maybe some humor will?Here it goes:

GOD and LAWN CARE

GOD to ST. FRANCIS:

Frank,  …  You know all about gardens and nature. What in the world is going on down there on the planet?  What happened to the dandelions, violets, milkweeds and stuff I started eons ago?   I had a perfect no-maintenance garden plan. Those plants grow in any type of soil, withstand drought and multiply with abandon. The nectar from the long-lasting blossoms attracts butterflies, honey bees and flocks of songbirds. I expected to see a vast garden of colors by now. But, all I see are these green rectangles.
St. FRANCIS:

It’s the tribes that settled there, Lord. The Suburbanites. They started calling your flowers ‘weeds’ and went to great lengths to kill them and replace them with grass.
GOD:

Grass? But, it’s so boring. It’s not colorful. It doesn’t attract butterflies, birds and bees; only grubs and sod worms. It’s sensitive to temperatures. Do theseSuburbanites really want all that grass growing there?
ST. FRANCIS:

Apparently so, Lord. They go to great pains to grow it and keep it green. They begin each spring by fertilizing grass and poisoning any other plant that crops up in the lawn.
GOD:

The spring rains and warm weather probably make grass grow really fast. That must make the Suburbanites happy.

ST FRANCIS:

Apparently not, Lord. As soon as it grows a little, they cut it-sometimes twice a week.
GOD:

They cut it? Do they then bale it like hay?

ST. FRANCIS:

Not exactly, Lord. Most of them rake it up and put it in bags.
GOD:

They bag it? Why? Is it a cash crop? Do they sell it?
ST. FRANCIS:

No, Sir, just the opposite. They pay to throw it away.
GOD:

Now, let me get this straight. They fertilize grass so it will grow. And, when it does grow, they cut it off and pay to throw it away?
ST. FRANCIS:

Yes, Sir.
GOD:

These Suburbanites must be relieved in the summer when we cut back on the rain and turn up the heat. That surely slows the growth and saves them a lot of work.

ST. FRANCIS:

You aren’t going to believe this, Lord. When the grass stops growing so fast, they drag out hoses and pay more money to water it, so they can continue to mow it and pay to get rid of it.
GOD:

What nonsense. At least they kept some of the trees. That was a sheer stroke of genius, if I do say so myself. The trees grow leaves in the spring to provide beauty and shade in the summer. In the autumn, they fall to the ground and form a natural blanket to keep moisture in the soil and protect the trees and bushes. It’s a natural cycle of life. 

ST. FRANCIS:

You better sit down, Lord. The Suburbanites have drawn a new circle. As soon as the leaves fall, they rake them into great piles and pay to have them hauled away.
GOD:

No!? What do they do to protect the shrub and tree roots in the winter to keep the soil moist and loose?
ST. FRANCIS:

After throwing away the leaves, they go out and buy something which they call mulch. They haul it home and spread it around in place of the leaves.
GOD:

And where do they get this mulch?
ST. FRANCIS:

They cut down trees and grind them up to make the mulch.
GOD:

Enough! I don’t want to think about this anymore.

St. Catherine, you’re in charge of the arts. What movie have you scheduled for us tonight?

ST. CATHERINE:

‘Dumb and Dumber’, Lord. It’s a story about….
GOD:

Never mind, I think I just heard the whole story from St. Francis.

 

ARE WE HAVING FUN YET?