Tag Archives: HOA Hell

HOA Trouble In Colorado

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guest blog by Stan Hrincevich   (coloradohoaforum.com)

Colorado Springs Town Hall Meeting: let us know how you can help get the word out about this meeting on Feb 13: contact legislators, post flyer at your HOA, local media, etc.

Construction Defects Legislation: here we go again with the Denver Post exclusively contacting the Community Associations Institute (CAI) to represent homeowners’ interests in how homeowners’ money is used in litigation. Below is our letter to the editor of the Denver Post and copied to legislators:

“The Denver Post again allows those making millions of dollars from HOA Construction Defects (CD) litigation to represent the voice and rights of homeowners and distort the debate in CD legislation reform. No input is accepted from any recognized homeowner’s organizations. Once again, the only point person on homeowner’s rights is none other than the Community Associations Institute (CAI). The CAI represents the interests of property managers and HOA lawyers, NOT HOMEOWNERS! If CD legislation is ever be explained in a truthful, balanced, and productive manner it must first get by the pervasive CAI smoke screen.

First, almost all HOAs created in the past 15 years mandate in their Declaration that arbitration must be used in CD dispute resolution. Of the 8,500+ HOAs in the State most are beyond the statute of limitations and cannot sue. As a percentage or relative number of all HOAs, those that changed their Declaration (at the encouragement of HOA lawyers) is very, very small. Thus, precluding HOAs from changing their declaration and infringing upon homeowner’s rights is a weak argument. Furthermore, a recent Colorado court case has ruled HOAs can be prevented from changing their Declaration. The CAI would have the public believe the inability to change the Declaration will have a profound impact on homeowners’ rights but the reality is that it would mostly impact the ability of HOA lawyers to promote litigation in our costly court system.

The other issue involves requiring homeowners to vote on the approval of the use of their own funds in CD litigation. Currently, any HOA Board at the encouragement of their attorney can spend unlimited HOA funds on litigation without the knowledge or approval of homeowners. The CAI opposes this empowerment of homeowners as it would effectively reduce litigation.

We at the Colorado HOA Forum offer the following CD legislative proposal to mitigate litigation and empower homeowners: “HOA homeowners are required to be apprised of and vote on the use of HOA funds in all litigation.” Why is this so difficult?”

 

Impact of Embezzlement in an Emergency!

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OK, the biggest reason for a Homeowners Association is to protect property values. Right? Well, let’s visit another of hundreds of thousands of parallel cases around the country. This one involves the Big Wood Springs HOA in Winnsboro, Texas.

I’ve lived in Texas, El Paso and San Antonio, and even as a kid I knew how powerful some of those winter and spring storms could be.

Members of this HOA were trapped when a December storm damaged the only bridge that separates them from the rest of the world. They need tens of thousands of dollars to repair the bridge along with a number of HOA roads which were damaged by the rains. Emergency vehicles can’t reach them, visiting nurses can’t reach elderly homeowners. Government agencies can’t help out because the damaged bridge is on private property. It’s illegal to use state funds to improve or repair privately-owned structures.

The problem is that the former HOA treasurer was recently arrested for embezzling 60 to 80 thousand dollars from the neighborhood’s budget. Now, there’s no money left for the emergency repairs.

Who’d have thought? Who’d have thought that an embezzler could cause an emergency that would risk the lives of an entire community?

What are your property values now, Big Wood Springs?

(link to KLTV report on HOA embezzlement)

 

Las Vegas Review-Journal is Wrong, Wrong, Wrong!

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Finally, I’ve found something written by reporter Jeff German to be dead wrong. You’ll think it’s a minor point, but I think it’s huge. However, I still think it would be a sin not to award this journalist the Pulitzer for his stories on the massive organized crime network that stole more than 60 million dollars from Las Vegas Homeowners.

German will think his error is small, but he might even end up agreeing with me. The misstatement is contained in the fourth paragraph linked below. The story is about the last criminal in the HOA swindle being sentenced to three years in prison after the prosecutor asked for 21 years in prison. More horrible sentencing by a Federal Judge.

German’s misstatement is this line:

“Her sentencing officially ends the largest public corruption case federal authorities have brought in Southern Nevada.”

No, this public corruption case is not officially over because the coverup is still going on. And the cover is being provided by a Federal Judge and US Attorneys who are refusing to let the public see more than ten million pages of documents on the long-running investigation. This is the same judge who is handing out tongue-lashings and feather-light sentences to racketeers who were instrumental in crashing the entire Las Vegas housing market. Tens of thousands, possibly hundreds of thousands of Nevada homeowners lost their savings, their confidence or their homes in the 2008 housing meltdown. That was the same time these racketeers were plundering Homeowners Associations across the Valley. That was the same time when stories were wildly circulating that judges and high state officials were involved in the scam.

And now a judge won’t let the public see what kind of information the FBI uncovered?

It’s rather obvious to most observers that 43 people couldn’t steal 60 million dollars. I’d promise to run naked around the Nevada State Legislature at High Noon if those unreleased papers didn’t implicate ten times the number of people convicted.

“Some high state officials and judges might be embarrassed because the secret papers might reveal some bizarre sexual activities by high state officials. It might hurt their families.”  Awwww. There was lots of bribery in the Las Vegas HOA scam. Since the beginning of time one of the most effective forms of bribery is illicit sex.

Going one step further, the taxpayers paid for those ten million pages of documentation. Right or wrong, the public deserves to see them and make their own decision. Who has more rights,  a few hundred high state officials, judges and businessmen who took part in one of the largest racketeering cases and public corruption cases in history? Or the rights of 300 million Americans to oversee  the federal government’s use of tax dollars?

No, this public corruption case will never be ‘officially’ over until a corrupt judiciary recognizes its errors and begins treating the taxpayers with the respect they deserve.

(link to latest Review-Journal story on the last conviction in HOA case)

 

 

 

Followup to Condo Confiscation

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guest blog by Sara Benson

Last night’s post on Neighbors At War referred to a Chicago high rise condo building where many homeowners are about to lose their shirts. Once the developer has control of 75% of the units he can begin to put the remaining owners out of their homes.

The frightening thing is that the American Bankers Association stopped tracking foreclosure rates in condos. We have documented severe erosion of values in condo associations–as high as 77 percent in one building alone where 100 percent of the condos went into foreclosure. The average special assessment in older high rise buildings that were converted in the 1970s and 80s is a whopping $50,000 per door. And we’ve seen some special assessments that high in buildings that were converted in the mid-2000s due to faulty construction. One owner reported a special of $150,000. All this in addition to the “regular” monthly fee.

It’s a nightmare out there.

Confiscating Your Condo

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The first part of the story linked below is interesting, but not earth-shaking. It’s about apartments that are converted to privately owned condos, and then back to apartments. It happens all the time. But what happens next should shake you to your boots!

If 75% of the condo owners want to sell to a developer who’s converting condos back to apartments, then screw the remaining 25%. They pretty much have to take whatever the developer offers, which is sometimes a fraction of what those condos were worth.

In Florida, if a developer controls 90% of the units, the remaining residents may as well go live in a park someplace. They’ll get next to nothing as the developer seizes their homes.

Again, when a Realtor says HOAs protect property values, tell them they are pathetic liars. Then just walk out.

(link to article on how they seize your home)