Tag Archives: HOA Embezzlement

So You Think You’ve Heard Everything?

I’d love to call this one a scam, but there isn’t enough information to make that kind of allegation. It’s just too bizarre. The City of McAllen, Texas, charges each resident an extra ten bucks on their water bill, supposedly collected on behalf of Homeowners Associations. Theoretically, that money is supposed to go to HOAs for maintenance. But nobody seems to be getting the maintenance or the money, and the City of McAllen has no idea where the money is going. There’s never been an audit. Money is even being collected from homeowners who live in neighborhoods where the HOA has been dissolved. We may be talking about millions of dollars, here.

Huh?

(link to story on disappearing money)

 

Dr. Solomon Wins A Round

One of the heroes of our movement, Dr. Gary Solomon, has won a round in his own battle against an out-of-control HOA in Nevada. It involved an idiotic fine of $100 so he tried to get it heard in Small Claims Court, where it really belongs. That court kicked him upstairs to District Court which really has no business hearing 100 dollar claims. After two years, Solomon has won the right to take the case back to Small Claims. Here’s the decision:

Minutes
12/09/2014 3:00 AM
– This is an appeal from a Small Claims Judgment entered in the Las Vegas Township Justice Court. By this Judgment filed May 5, 2014, the court found that it lacked subject matter jurisdiction over this case, and that it had to be filed in District Court instead. This case involves a fine of $100 imposed by Respondent Palm Hills Home Owners Association (the HOA ). Petitioner Dr. Solomon ( Solomon ) disputed the imposition of the fine. It appears that a lien was placed by the HOA against the subject property as well. Pursuant to NRS 38.310, because this dispute involved the interpretation, application or enforcement of the community’s CC&R s, the dispute first had to be submitted to arbitration or mediation with the Nevada Real Estate Division ( NRED ). Solomon filed a complaint with NRED which resulted in a ruling in favor of the HOA and against Solomon. The arbitrator also awarded the HOA $7348.17 for attorney s fees and costs incurred. Pursuant to NRS 38.330(5), within 30 days after the final decision and award in this nonbinding arbitration, Solomon was permitted to commence a civil action in the proper court concerning the claim which was submitted for arbitration. This action would be a de novo proceeding. Solomon filed this case in Small Claims Court in the Las Vegas Justice Court. The Justice Court found it lacked subject matter jurisdiction and dismissed the case, holding that NRS Chapter 38 . . . requires that such disputes be adjudicated in District Court. However, nothing in chapter 38 specifies that this de novo proceeding must be filed in District Court. Moreover, the case the HOA relies on, Hamm v. Arrowcreek Homeowners Association, 124 Nev. 290, 183 P.3d 895 (2008), does not address the question of jurisdiction as between district court and justice court. The HOA also argues that the lower court lacked jurisdiction pursuant to NRS 4.370(2) because this is an action in which the title of real property . . . [is] involved. However, in the Hamm case, the Nevada Supreme Court held that even a dispute about HOA fines where a party sought to release a lien imposed does not relate to title to the property. Additionally, while the HOA disputes whether Solomon ever held title to the property at issue in this case, this defense of the HOA is not to be considered in evaluating subject matter jurisdiction, which instead is based on an evaluation of the face of the complaint. The fact that the HOA may challenge Solomon s ability to proceed as a real party in interest does not deprive the court of subject matter jurisdiction. Thus, this case in which Solomon filed a small claims complaint for less than $7500 was properly filed in Small Claims Court and that court s dismissal was in error. Accordingly, the Small Claims Judgment is hereby reversed and the case remanded for further proceedings in accordance with this Court s ruling. CLERK’S NOTE: The above minute order has been distributed to: Gary Solomon, 1001 Calico Ridge Dr., Henderson Nv. 89011, & Troy Dickerson (Angius & Terry) 1/28/15 kr

Net ‘Neutrality’ and this Website!

Well, the news this week is pretty bad for net neutrality. The White House has come up with a 332 page book of regulations that it’s going to hand to the FCC for implementation. Just as in the Affordable Care Act, they have to pass the bill so we can all see what’s in it. A lone renegade on the FCC is warning that this bill is so heavy handed that it will fundamentally change the way the Internet is governed, essentially treating it as a public utility.

Hundreds of billions in new taxes, controversial websites (like this one) may be subjected to a version of the old (and failed) Fairness Doctrine, and smaller businesses and smaller political operatives will essentially be driven off the web. Websites will be censored. Another name for the bill is “full employment for trial lawyers.”

The Internet has given us a measure of freedom that never would have been granted by traditional government. It has fundamentally changed the world, both socially and financially.

FCC Commissioner Ajit Pai says the future looks pretty grim.

http://dailycaller.com/2015/02/10/fcc-commissioner-unprecedented-involvement-of-executive-branch-in-our-decision-making/

 

Stop Building Crap!

That’s the power phrase that came out of an interview with Jon Harris, who owns a condominium in Denver’s Five Points neighborhood. Five Points leaders tried for decades to turn around its image as a run-down part of the city. Back in the 20s and 30s it was the home of some of the best jazz clubs in the country. But as Denver expanded in all directions of the compass, Five Points was subjected to typical inner city decline.

Still, neighborhoods can be reborn and Five Points leaders have worked hard to try to make the neighborhood a showplace once again.

The problem is that they mandated higher density ‘affordable’ housing which meant developers were ordered to create Homeowner and Condo Associations. To encourage developers to build such high density housing the city loosened zoning regulations and inspections.

Condo owner Jon Harris desperately wanted to buy a quality home and live in a neighborhood rich in Colorado history. Now, he says, every condo in his complex is beset with construction defects. Meanwhile, the State Legislature is trying to pass a bill that would limit lawsuits against builders.

Harris says the legislation is wrong. The only right answer is for builders to “STOP BUILDING CRAP!”

Most of us could agree with that.

(link to KDVR-TV story on construction defects)

 

Blossom Park Condo in FL plagued by crime, drugs, and multiple code violations

guest blog by Deborah Goonan

This is the fate of a 1970s motel, converted to condos in 2003. By 2010, this low-rent condo hotel was in Receivership. Almost all of these units are leased to tenants, but apparently the Association is not putting the assessments to work, or dealing with a vacancy problem.

The condo complex has been reportedly plagued by drug trafficking, especially heroin, and was the scene of three murders in 2014. Residents say they fear for their safety.

According to reports, Blossom Park Owners Association has racked up $175,000 in code violations from Orange County. The staircases were recently deemed unsafe, and 2nd and 3rd floor residents had to be relocated until repairs can be made. Elevators are also inoperable. Some residents have moved to the first floor, but if repairs are not made to the seven buildings soon, the remaining residents may face eviction.

Where is all the money going? Obviously the owners are collecting rent from tenants (listed on Realtor.com for about $600-$650/month), and at least one resident was interviewed, stating that she pays $200 per month for maintenance fees.  And the attorney receiver states there will be a special assessment to cover the cost of needed repairs and payment of fines.

This is just one example of condo blight in Florida. The question is why does the state of Florida keep allowing condo conversions? What was the logic behind approval of Blossom Park in 2003? Did Orange County really think that an old broken down motel would become an affordable haven for some lucky owners? Or did they count on 350 separate landlords screening their tenants and keeping their units maintained? Clearly, it isn’t working. Orange County has been working with Blossom Park for almost 5 years, and conditions have not improved.

http://www.orlandosentinel.com/news/breaking-news/os-orange-blossom-park-evictions-20150130-story.html

http://www.wesh.com/news/residents-asked-to-leave-blossom-park-condos-in-orange-county/31056348

http://www.orlandosentinel.com/news/breaking-news/os-blossom-park-condos-homicide-20140926-story.html