Tag Archives: HOA Neighborhood

CAI seeks Federal Legislation, So Should Homeowners Rights Advocates

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guest blog by Deborah Goonan

CAI makes it abundantly clear they oppose federal regulation of HOAs. Yet the HOA industry has relied heavily on federally backed mortgage financing to support a behemoth HOA housing empire created of, by, and for Developers.

The height of industry hypocrisy is made apparent when we take a close look at federal legislation that the HOA industry promotes before our Congressional leaders.

CAI recently conducted its “August 2014 Recess Advocacy Campaign,” where members were urged to meet with Congressional leaders in their respective District (local) Offices.

CAI is currently focused on three key federal issues. Let’s look at each one, using CAI’s own words, my emphasis added in italics for clarity.

1) Mortgage finance reform

CAI’s goal is to ease access to federally backed mortgage financing. Congress is planning to replace Fannie Mae and Freddie Mac with a new finance system that will likely be more dependent on private lenders with potentially diverse (strict) lending standards. CAI members are instructed to remind Congress that the  “current national standard for community associations has reduced complexity and duplicative work by associations when providing information to mortgage lenders. Eliminating community association standards will drive up association cost, create confusion, and lead to impractical requirements that interfere with the responsibilities of association boards.”

2) Disaster relief fairness

CAI laments that Association insurance policies do not always fully cover repair costs after natural disasters, and reasons that HOAs should be eligible to receive FEMA disaster relief because, “Residents of community associations should be treated equally with all other taxpayers … Owners in community associations must likewise receive the same federal benefits as all other residents within a local jurisdiction in the aftermath of a natural disaster.”

3) Amateur radio parity in associations

 “CAI opposes unnecessary federal intervention in the operations and governance of community associations… Community associations do not need an Act of Congress to work through differing points of view that are simply best settled by neighbors talking to each other.”

Take note of CAI’s interesting perspective for protecting the rights of HOAs.  But are these advocacy efforts beneficial to HOA owners?

Historically, loose mortgage standards have led to high default rates, and failure of Fannie Mae and Freddie Mac, which has proven to be more harmful than helpful to HOA owners. CAI seeks FEMA benefits for HOA common areas that lack adequate insurance coverage and protective measures such as surge protection. They do not advocate for FEMA relief for individual homes or units.  The more important concern should be why are so many HOAs lack inadequate insurance protection in the first place? The odds of squeezing funding out of a cash-strapped FEMA for HOA common areas is slim to none, particularly since FEMA views corporate HOAs as businesses. (I wonder where they got that idea?)

Now, let’s examine the People’s perspective. Why do advocates seek federal legislation aimed at HOA reform, and improved alternatives to HOAs? Why support federal standards and oversight?

First, federal standards would reduce complexity and confusion that results from a mosaic of ever-changing statutes across the country. Furthermore, mandating national democratic governance standards tied to Constitutional rights will prevent individual states from enacting state-level legislation that primarily serves the interests of the local real estate industry.  If state-level advocates exchanged notes on what policy works and doesn’t work, it could save potentially millions of dollars spent on lobbying for or against potentially harmful or ineffective legislation.

As advocates, we seek equal justice under the law, on par with other taxpayers. Are HOA residents not entitled to the same federal benefits of the Constitution through the 14th amendment, and under the same Bill of Rights as the rest of our fellow Americans? Are we, as individuals, not entitled to consumer protection in the form of policy that holds HOA leaders accountable to the people? After all, we pay taxes just like our counterparts that do not reside in the HOA regime! We should be treated equally!

And, recall that it DID take an act of Congress to remind HOAs that Americans have the right to display our country’s flag. Yes, Congress passed the American Flag Act of 2005, a law that some HOAs still flagrantly ignore and manipulate by creating twisted rules under the dubious authority of a “contract.” Disputes still occur with the neighbors that should be able to settle disagreements by simply talking to each other. After all, homeowners and HOAs never need to hire a $400-an-hour attorney to settle those differences, right?

With CAI lobbying at the Federal level, it becomes even more important that HOA Reform advocates do the same.

(link to CAI’s August 2014 Federal Advocacy Campaign)

HUD Cracks Down on Housing Discrimination Against Disabled

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guest blog by Deborah Goonan

It saddens me that housing discrimination against the disabled is so common. An apartment complex, an independent living facility, and two HOAs are among four offending housing providers in HUD’s early November report.

From denial of an accessible parking space, to reluctance to provide wheelchair access; from denial of an emotional support animal, to terminating residency after short-term hospital stays, management of these communities continues to find ways to try to skirt around the law.

“We continue to see more cases of discrimination against persons with disabilities than any other type,” said Gustavo Velasquez, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity. “It is unacceptable that individuals with disabilities have to fight for the opportunity to live where they want, or to have reasonable accommodations extended to them so they can enjoy their dwelling. The cases we’re announcing today reflect our ongoing commitment to leveling the playing field for all Americans when it comes to housing.”

In 2013, almost 54 percent of the complaints filed with HUD (4,426) alleged housing discrimination based on disability.

The stark reality is that most of us will face disability at some point in our lives. For some of us, it may be temporary. For others, it may be a long-term progressive health condition that leads to limited mobility, depression and anxiety, or limited mental capacity.

Therefore, shouldn’t we all be compassionate and understanding? No one guarantees that life will be tidy and convenient for the disabled, their families, their neighbors, or the managers of their housing developments.

It is truly a silver lining that at least our Federal government still takes a role in enforcing fair housing laws. In fact, it seems as though filing a fair housing complaint is the only way to get some HOAs to comply. What a shame that some HOAs are so willing to waste assessment dollars and cause so much suffering in the process.

(link to housing discrimination news release)

Something Stinks In This Washington State HOA!

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guest blog by Deborah Goonan

Ruth Crompton and her neighbors recently discovered that 7,000 gallons of raw sewage has been discharged into their storm sewer vault over the past 9 years. It seems that someone, presumably the defunct developer, mistakenly connected Crompton’s black sanitary sewer pipe to the white storm sewer drain. Big “Oops!” The error was recently discovered by the County’s Surface Water Management Division.

Crompton and her neighbors want to know why the County inspector signed off on the plumbing project at the time of construction. Not willing to accept responsibility, the County claims that perhaps a bad repair was made sometime after the County inspector approved the work.

Snohomish County officials insist that Crompton and five neighboring homes belong to an inactive HOA, and that homeowners are now responsible to pay for the cleanup, at a total cost of $15,500. If owners do not comply, they could face additional fines up to $5,000 each. The crazy part is, Crompton and her neighbors never knew about the small HOA. It was never discussed prior to sale, and, without a Board, they have never paid any assessment fees. County records indicate that the community was created as Starlight Park Condominiums. The six homes share a driveway, and, even though the now-bankrupt developer never funded the HOA, owners are just discovering they must share the cost of maintaining their common drainage system.

Ms. Crompton plans to fight against paying for what she believes is the County’s error and responsibility.

Never mind the apparent inspection blunder at the time of construction. Since this HOA never got off the ground, shouldn’t the County step in? And why did it take the County 9 years to discover the problem? Obviously, the County and water management authorities approved construction permits for the developer, who turned out to be somewhat of a dud. Why should the owners – who are truly victims of circumstance – pay for the errors and incompetence of the parties who were responsible for construction from initial permitting to issuance of a certificate of occupancy?

The Ombudsman’s explanation: well, if these owners don’t pay for the cleanup, the County will face sizable Federal stormwater fines, and the taxpayers will have to foot the bill. Sounds like someone is passing the buck – literally.

I predict that County taxpayers WILL pay for the inevitable lawsuit brought by Crompton, and they may also be unable to avoid the federal fines. Wouldn’t it be less expensive, easier, and fair for the County to simply take care of the problem it helped to create?

(link to Herald Net article about sewer system cleanup)

A Nod To Robin Williams

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I’ve frequently said on this blog that our fight against HOA abuse is not a liberal/conservative fight, or a Republican/Democrat fight. It’s a fight by any patriot who believes our Constitution is a document worthy of the utmost respect. So if I tip my hat here to a performer at the 1982 convention of People For The American Way, I am not endorsing the organization.

I do think the performance by Robin Williams should be watched by everyone, especially in view of the vulgar meanness of many HOAs toward homeowners who want to display the American flag. In the video linked below, Williams takes the stage to become The American Flag and shows once again the comic genius that we all will miss.

(link to Robin Williams, 1982)

What Should Federal HOA Regulation Look Like?

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guest blog by Deborah Goonan

We have a huge, systemic problem in the US. It used to be that regulation was enacted and enforced to protect the People, the taxpaying constituents of government. The purpose of regulation was to uphold individual rights and to honor our federal and state Constitutions.

Over the years, that original purpose has been perverted by pervasively symbiotic public-private partnerships between large corporations and every level of government. Unfortunately, many of America’s elected public servants have sold out to special business interests that contribute heavily to campaigns and pay lobbyists to create and promote self-perpetuating legislation.  Even some of our elected judges have shifted their loyalties to corporate and government cronies instead of individual Americans.

The great citizens’ challenge presented to us in the 21st century is restoring America’s values to upholding the inalienable rights of its people. American government’s focus must shift away from protecting profits and revenue of power players, to the detriment of We the People.

In the HOA realm, the current power players are Developers, NAHB, CAI, NAR, FHA, Freddie Mac, Fannie Mae, HUD, ULI, and local governments that benefit from increased property tax revenues. Forgive me if I might have missed a few.

It is a daunting problem. Where to begin?

I have observed that there are a few instances where the HOA almost always loses in court: discrimination based upon federally protected-class status like race and disability are two that come to mind. But most rights to freedom of speech and expression, access to due process, and use of personal property are significantly limited under the cover of so-called contractual agreements written by the power players.

The disturbing truth is that corporate real estate interests have gained excessive control and nearly free reign to exploit HOA owners and residents because laissez faire government policy and practices aid and abet their efforts. But We the People have elected these so-called leaders! (Or have chosen not to vote)

So the first order of business is for individual Americans to reassert our inalienable rights. That starts with becoming educated constituents and voting for public servants based upon their personal character, and not upon false rhetoric supported by wealthy corporations. We need to elect men and women that truly serve the interests of Americans as individuals.

The second order of business is to push for HOA legislation that upholds the Constitutional rights of owners and residents. The overall goal is to limit the power HOAs exert over owners and residents – to get HOA de facto government out of the way! It may sound contradictory, but Federal regulation of HOAs must result in fewer, less complicated laws governing their operation.

Federal Regulation would start by stripping HOA Boards  – private corporate entities – of their authority to enact rules, to fine homeowners, and to lien and foreclose on property. All of these matters would be deferred to local code enforcement and the court system on a very limited basis, with a strict litmus test: does the transgression of the owner or resident rise to the level of causing significant harm to fellow citizens? And significant harm must not be defined as “anything that might potentially harm property values,” because intrinsic human values must trump values of non-living things and possessions.

Because of the perverted nature of regulation in America, where corporations often create legislation to regulate themselves, in my opinion, a global approach is necessary.

Federal legislation, therefore, must be viewed as the next generation of Civil Rights in America.

1)   No entity, public or private, must be permitted to unduly limit or alter the inalienable rights of any American, as they are spelled out in the Constitution and the Bill of Rights.

2)   Any contract that limits the rights of either party must be set forth in plain language, and explicitly acknowledged by all parties – and the terms of the original contract cannot be subject to modification after the fact, without the express written consent of each individual party.

3)   Furthermore, the government shall have the absolute duty to uphold individual Constitutional rights, and to enforce appropriate penalties against individuals or entities, public or private, that violate those rights, including, in the case of elected officials, removal from office.

Those three sentences alone clearly limit the power and authority of corporate or government entities over Americans.

The end result would be the automatic invalidation of the majority of offensive and trivial provisions in CC&Rs, just as previously enacted federal Fair Housing legislation has invalidated overtly discriminatory deed restrictions real estate sales and leasing practices.

No complex, lengthy regulatory manuals required. Less truly is more.