Tag Archives: HOA Hell

Does CAI Ever Tell The Truth?

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guest blog by Deborah Goonan,  IndependentAmericanCommunities.com 

Ok, folks. Here’s an opportunity for CHPPI and state advocates across the country to fight against this sickening example of propaganda and help support bills in FL that will limit excessive fees and abuse of consumers.

NOTHING that is written in the most recent Community Associations Institute / Community Advocacy Network press release (referenced below) represents the truth.

The only “advocacy” promoted by CAI and CAN is self-advocacy for their own profit potential.

We can blow this out of the water by exposing who is behind CAI and CAN — management company CEOs and prominent law firms that make their living off of Collection services, document production services, and enforcement of covenants, restrictions, and rules.

Take note that the Business Partner’s Council membership just so happens to include Joseph Russo, owner of GetDocsNow.com – one of the industry’s corporations that directly benefits from charging unlimited fees to provide documents that are needed or required as part of the real estate sales process and title search. What a coincidence!

The premise of the CAI-CAN argument is that fees for providing necessary HOA financial disclosure information should be unlimited, and that the buyer should pay up front, so these charlatans can be assured of getting paid.

And if the buyer won’t pay up front, and the closing doesn’t happen — possibly because the buyer balks at paying artificially inflated liens on the property — then the poor homeowners will have to pick up the cost. After all, the industry fighting this bill certainly does not want to eat the cost themselves! Their Association document disclosure service is SO valuable, right?

And let’s use common sense. What affects the bottom line more for homeowners: covering some of the association’s costs for providing timely and accurate disclosures documents or dealing with thwarted sales related to excessive or surprise closing costs involving liens heavily padded with fees and collection costs?

Aren’t HOA members harmed when delinquency rates remain high due to the fact that sellers cannot unload their homes because buyers won’t pay hefty liens (and then risk being billed for more after closing)? Don’t lenders avoid financing condos and homes in associations with high delinquency rates — or at least offer less favorable financing terms?

I know plenty of true homeowner advocates read this blog. Please give me your thoughts?

References:

(link to CAI Press Release)

(link to Florida House Bill 203)

(link to Florida Senate Bill 722)

 

Colorado CAI!

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(editor’s note: Stan Hrincevich is a hero in the Colorado HOA fight. After years of fighting he’s gotten a few legislators to pay attention and pass a handful of reform bills. The bills still need work.  But the reaction to Stan by the CAI is interesting, and instructive to all of us.)
guest blog by Stan Hrincevich  (letter to legislators from coloradoHOAforum.com)

The fight for financial relief for small CAMs in this Bill was not supported by the CAI in the last legislative session. The cost of a license for small CAMs can equal a year’s income: it’s abusive and burdensome. Previous misinformation spread was that the goal was to exempt small CAMs from being licensed: not true, never in any proposal but believed by too many. This Bill provides fairness and relief to small business with reduced fees and educational requirements commensurate with knowledge to legally and competently service small HOAs of 30 or less units. Educational providers are able to offer small HOA CAM courses at a reduced cost. Costs for Colorado Department of Regulatory Agencies to implement should be covered in the same manner as completed when the total licensing law was implemented.

The Community Association Institute (CAI), the group representing property manager and HOA legal interests, has been lobbying the legislature to oppose our upcoming Bill to improve the CAM licensing law even before the Bill has been officially submitted. The misinformation and untruths are insulting to home owners and exemplifies how CAI wants to continue to be a protected organization/profession with special privileges and the power to operate with secrecy and no accountability.

Here is what I picked up from legislators about CAI’s objections to our proposed Bill:

1. Our Bill proposes that all CAM fees be documented on a receipt to the payee, include an itemization of the charges, be in compliance with the law (in the case of Transfer Fees), justify charges by work performed, explain how the fee is not included and paid for by HOA dues (duplicate charging), and as in the case of the Transfer Fee, a receipt be provided to the home owner 3 days prior to closing. Additionally, all fees should be reasonable. THE CAI OBJECTS TO THIS! THEY WANT THE PRIVILEGE TO BILL YOU WITHOUT PROVIDING A RECEIPT OR JUSTIFYING CHARGES. JUST DO IT BECAUSE THEY CAN. Do you think Master Card, VISA, Comcast, or Xcel Energy would get away with demanding a payment and not justifying the charges?

3. We want to improve and better define how CAMs must comply with State HOA law and HOA governing documents. No, the law is not very defined but is general and lacks specific accountability. CAI feels the broad and ambiguous statements in the law and rules are adequate. What do they have against requiring any clarity in following the law? This speaks for itself.

4. The fight for financial relief for small CAMs in this Bill was not supported by the CAI in the last legislative session. The cost of a license for small CAMs can equal a year’s income: it’s abusive and burdensome. Previous misinformation spread was that the goal was to exempt small CAMs from being licensed: not true, never in any proposal but believed by too many. This Bill provides fairness and relief to small business with reduced fees and educational requirements commensurate with knowledge to legally and competently service small HOAs of 30 or less units. Educational providers are able to offer small HOA CAM courses at a reduced cost. Costs for Colorado Department of Regulatory Agencies to implement should be covered in the same manner as completed when the total licensing law was implemented.

United Breaks Guitars

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Eventually, all of us in this fight for homeowners rights get discouraged. The goal of educating other homeowners is frustrating. Often it seems impossible. We wonder how we can make even a little dent in the massive corruption that infests and characterizes the Homeowners Association movement.

But don’t ever doubt your power as a individual human being to change the world.

Back in 2009, Dave Carroll, a musician from Nova Scotia, was frustrated when his expensive Taylor guitar was severely damaged through the negligence of United Airlines. He was even more frustrated by the callous handling of his damage claim. He couldn’t fight back. But as a musician, he could write a song.

Now, Carroll is a star on the international speakers circuit. He’s making a fortune with his CDs, his books, his concerts and his personal appearances.

Dave Carroll is just one voice out of seven billion. Yet since 2009 his song and his story have been viewed and have impacted more than 150 million people. And United Airlines has spent a fortune trying to repair its damaged image.

The new paradigm is social media. And you and I, my friends, are squarely in the middle of the revolution.

Here’s link to Carroll’s TEDx talk, along with his song, United Breaks Guitars:

Growing Impact of HOA Fees

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The link below gave me some pause to reflect.

It shows the growing impact of HOA fees on different types of neighborhoods. In recent years, more and more people have been moving away from private family homes into life in a condo. The decrease of available land, the mandate by many large businesses that employees should live closer to the city core, and the relatively lower cost of condo living are among the reasons for the demographic shift.

But knowing what we all know about the false promises of ‘easier living,’ the figures below are a little scary. Living in America is all about choice, isn’t it? But more and more we are all losing our God-given freedom of choice. In addition, we are paying higher and higher fees, fines and special assessments for the privilege of living in an HOA-controlled condo.

(link to growing footprint of HOA fees)

 

 

There’s Gotta Be A Better Way!

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There’s yet another home confiscation in Florida, this one in the Waters Edge Homeowners Association. A young Florida family got behind in their HOA dues and their home was snatched right out from under them.

Young families are not wise to the ways of the world. They don’t understand how profoundly corrupt organizations like the HOA movement can simply steal what they own. Young people trust in the honesty of neighbors and neighborhood lawyers. Sadly, too many families who are just searching for a dream end up living a nightmare.

(link to WFTV story on homeless family)