Tag Archives: HOA corruption

Yet Another Clueless Columnist

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The link below is to a story in the Chicago area’s Daily Herald. The question it poses is innocent enough. “Should condo owners press their boards to seek FHA approval?” But the writer misses some terribly important points.

1. 70% of all HOAs in the country have underfunded reserves.

2. With all the fines, lawsuits, liens and foreclosures across the country, any kind of HOA is an investor’s worst nightmare.

3. People are getting educated about HOA Amerika, and Realtors everywhere are hearing, “Only show me listings that are NOT in HOAs.”

4. Fifteen to thirty year old neighborhoods are falling apart, making disaster properties impossible to sell at any price.

5. Financial experts say there’s a housing bubble coming that will look more like a nuclear bomb than a bubble. This one will be a doozie.

It would be very interesting to see if the FHA has approved any Homeowners Associations in the past decade. My guess is that you’d be hard-pressed to find a single one. Freddie and Fanny have financed some recent HOA projects but these two federal agencies are already on life support.

If anyone knows this Illinois journalist, drop him a line. Tell him to do some real reporting.

“The times, they are a-changin’.” -Bob Dylan

(link to column on FHA approval)

 

Hogtied & Hammered By Transfer Fee!

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I knew it was coming. I just didn’t realize how massive the damage would be. It’s huge.

Some close friends just sold their HOA home in Highlands Ranch, Colorado. Before they could sell their house they had to come up with $10,000 at closing, much of that for a Transfer Fee. The Realtor didn’t warn them (they rarely do). Despite me writing Neighbors At War, and doing this blog nightly, these friends just didn’t understand what was coming. It’s hard for younger folks to listen to the ‘old man.’ I’m embarrassed to say that at their age I never listened to my own ‘old man’, either.

But these friends had counted on that $10,000 to help with the down payment for a new house (again, in an HOA!). In their position I would be seething with bitterness.

Dear Readers, Colorado Realtors stood silent when Homeowners Rights advocates tried to convince State Legislators that Transfer Fees are fundamentally unjust and illegal. Just three years ago the state passed a law which actually declared transfer fees to be illegal (except in Homeowners Associations). Why the exception for HOAs? Well, just a single HOA lobbying group takes in 55 billion dollars a year. How in Hell does an insider industry group NOT use that kind of money to ‘buy’ legislation?

Shame on the corrupt HOA lobby. Shame on the greedy legislators. Shame on the Realtors who stood silent when they could have made a difference.

I really think our rising movement should take aim at Realtors. They make 7% on a home sale. On a $400,000 house that’s $28,000.  All homeowners should begin demanding that Realtors agree IN WRITING that they will pay the cost of all transfer fees. You don’t agree? You don’t get the listing.

Maybe those Realtors will join us at the Legislature next year.

Damn The Military! What The Heck Do They Matter?

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As the son of a West Point graduate who was a highly decorated combat veteran and a POW of the Nazis, I’m often mystified at the rank hatred expressed by some people towards those in uniform. Who knows? Maybe those haters staged anti-war demonstrations in the 60’s and 70’s, or maybe they built bombs or lit fires.

But for someone who has five family members buried at Arlington, it just rankles when I see the viciousness of those who’ll deny any acknowledgement to the men and women who spend their lives protecting the rest of us.

Our latest story comes from the Frenchman’s Creek Homeowners Association in Lafayette, Louisiana.

A military family put up a Welcome Home sign for their son,  Anthony Marsiglia, who’s in the Navy. The HOA lawyer told them, “Nope! Not without severe restrictions.” And now they’ve been ordered into mediation.

Other military families who’ve put up yellow ribbons in support of Marsiglia had them quickly torn down.

Can you imagine if this kind of thing had happened in WWII?

Yep, damn those military creeps. They’re just a bunch of brain-dead losers anyway.

(link to Lafayette story)

 

Blind Man Crushed To Death In Willow Creek Condos Trash Compactor

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guest blog by Nila Ridings
 
Roger Mirro of Palantine, Illinois thought he might have accidentally thrown his cell phone in the garbage bag he dropped down the trash chute in his four story condo building.  He was given the key to access the compactor by Larry Boni, a board member.  Since Boni was waiting on a phone call he allowed Roger to take on the task of searching the trash unsupervised. But he failed to mention the equipment was activated by an electronic eye which had no emergency safety shut-off mechanism.
 
Roger fell into the compactor, tripping the automatic mechanism for compaction and died.  He was blind.  Regardless of that, there were no signs or warnings posted around this dangerous piece of equipment.
 
Did Roger know this was an electronic crushing device?  Or did he think he was going to be searching through a standard trash receptacle?  I suppose these questions will be answered in the wrongful death, pain and suffering lawsuit that has now been filed in Cook County by his wife, Donna Mirro.
 
I wonder?  Do the condo owners in this association realize the massive liability they could be facing simply because a board member handed over the key to the compactor?  This widow deserves compensation for the needless loss of her husband and the attorneys will dig deep into everybody’s pockets to get it.
 
This tragedy should raise the awareness that something as simple as handing over a key can change the lives of everyone when you live in an HOA or condo association.
 
 
 

Virginia HOAs Fighting For Unlimited Power

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Just about every time you think it can’t get worse, it does.

The Virginia Legislature is considering a bill that would essentially allow Homeowners Associations to fine homeowners for almost anything, even if those ‘violations’ are not mentioned in the original deed restrictions or CC&Rs.

Wanna fine a homeowner who’s too fat? No problem under this law.

Wanna fine a homeowner with a handicapped kid? No problem. Just guise the fine as one being levied against an ugly resident. Handicapped kids have federal protection. Ugly kids do not.

Of course it all sounds outrageous. But this bill has already passed the Virginia House and is probably headed for further successes in the Senate and Governor’s Mansion.

And what’s a victim of an out-of-control HOA supposed to do? He or she has to hire a legal team and file a lawsuit. They’ll win in court, of course, but only after spending several hundred thousand dollars in legal fees. It’s guaranteed employment for lawyers.

Dear Lord God, where are we headed?

(link to Washington Post story)