Tag Archives: HOA Neighborhood

Norristown PA Condominium Failure Costs Taxpayers Millions‏

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guest blog by Deborah Goonan

Why should you care about continued construction of HOAs, even if you do not live in one?

City and County planning boards love HOAs because they increase the property tax base, while requiring very few, if any, additional services to be provided within the boundaries of these communities. In theory, HOA residents pay assessments for their own services – which can include road maintenance, storm water system maintenance, security, and the like, as well as maintenance of common areas and multifamily (attached) housing structures. In other words, HOA owners pay more of their property tax dollars for a lower level of city or county service. That means higher net tax revenues for cities and counties. Or does it?

I have blogged before about the fact that non-HOA taxpayers are increasingly footing the bill for HOA failures in their cities and counties. Over the past few months, several media reports have surfaced about troubled and failed private HOA communities. Today I present one example from Norristown, Pennsylvania, as originally reported in The Inquirer last month. (see link to article below)

According to the report, a 26-unit condominium at 770 Sandy Street was constructed in the mid-2000s. After construction, when problems became apparent, city “Inspectors pinpointed hazards years after the building was occupied, including load-bearing walls that were hollow, exposed wiring, and fire escape stairs made of wood.” How did the developer, R. Bruce Fazio, get away with selling homes with so many apparent construction defects?

Upon further investigation, it was discovered that the municipality had issued a flawed permit, and apparently failed to identify building code violations prior to occupancy.

In 2010, the building was condemned, and a judge ordered the city of Norristown to make repairs totaling $3 million.

But despite the fact that taxpayers have already forked over $3 million for the apparent negligence and incompetence of the developer and city officials, problems still continue, with many units remaining vacant and unlivable due to water damage from frozen pipes. Another condemnation may be in the works. How much more money will it cost the city of Norristown?

The unfortunate owners of these ill-fated condos have faced major financial loss and stress, but the residents of Norristown at large are also paying the price to clean up the mess left behind. Meanwhile, the developer and city officials are not being held accountable. Read the article below for details.

Your tax dollars at work?

(link to news story about Norristown failures)

 

Lemonade & Garage Doors

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Property values in Western Florida are in the gutter. So it’s not unsurprising that some low testosterone creep would complain that West Dunedin neighborhood values were down because a little boy was operating a little lemonade stand. Lots of neighbors support this kid, to no avail. He’s been ordered to take it down

(lemonade stand story)

Here’s another weird one. A friend of mine sells my book, Neighbors At War, from his packaging store. His last one sold just yesterday. Seems an angry customer was sending off a $1000 certified check to his HOA to pay for a garage door that was inadvertently left open.

Who or What is The Community Association Institute? (CAI)

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guest blog by Stan Hrincevich, (www.coloradohoaforum.com)

Homeowners Associations (HOAs) are comprised of three entities: home owners, HOA Boards and their legal counsel, and the property management company (PMC). Problems can arise from any of these but for those who follow HOA issues the involvement of PMCs can be most problematic. PMCs affect HOA governance with their direct involvement in operational and financial matters and through their trade organization, the Community Association Institute (CAI), which has undue influence in HOA legislative activities that craft HOA law. For decades the sole source for Homeowners Association (HOA) information for the media and the State Legislature has been the CAI. Why not? Their name implies they represent the concerns of community associations and home owners: aka HOAs. Legislators “trust” this organization to represent home owners and citizen interests but most have no idea who or what they represent.

Legislators actually think their membership and funding comes from HOA home owners and HOAs: WRONG. They have trusted this organization for decades and have allowed them to set the rules in HOA governance and financial management. Yes, they craft the legislation that sets the rules for their industry and interests and ensure through their actions that HOA State law and HOA governing documents are highly enforceable from the HOA Board’s and PMC perspective and very weak for home owners. Due to this close relationship between the CAI and legislators across the country, HOA legislative reform has been very difficult and the few Bills that have passed have been watered, are more cosmetic than effective, and in no way help with enforcing home owner’s right

If you visit CAI or their legal affiliate web sites and read their literature you would think they represent HOA home owner interests. Wrong! Their membership is mostly comprised of PMCs and lawyers. The CAI is an organization that derives most of its’ income from selling their educational classes. Nothing wrong with this but read below on how they commingle this business with legislation. Then there is CAI “the trade organization” for PMCs. Nothing wrong with this either except that they have ensured all State HOA laws aren’t written to hold PMCs accountable for their actions.

Then there is the connection between the CAI and HOA lawyers who have ensured through their legislative influence that no binding, affordable, and accessible out of court dispute resolution process is available to resolve HOA home owner complaints. This of course ensures HOA legal enforcement from the home owners perspective against abusive HOA Boards and PMCs remains in our litigious, time consuming, pay-to-play court system making HOA law mostly ineffective.

The CAI and the entities they represent and work with in State legislatures have thwarted HOA legislative reform for decades. Recent examples:

*killing an HOA Transfer Fee Bill that would have limited the fee and required explanation and justification of the fee (this costs home owners in Colorado $10 million a year);

*opposition to a Bill that would have required HOA home owners to approve the use of HOA funds prior to entering into expensive legal actions;

* opposing an out of court binding dispute resolution process for home owner complaints (leaving home owners with only our pay to play court system for the most minor dispute resolution);

*their involvement in writing Colorado legislation to license property managers resulted in using such legislation to promote their sales of educational courses and hence drive up the cost of such required educational courses for property managers;

*opposing the limiting of HOA fees, fines, and administrative and legal fees on HOA debt; opposing term limits on Board members when others are available to serve;

*obstructing legislation on protections of home owners against liens and foreclosure for HOA debt; attempts to promote legislation that would expand the independent authority of Boards in governing HOA operations (without home owner approval); and the list goes on and all anti-home owner.

You can blame the CAI for the lack of HOA reform with their legislative intervention but much blame also goes to our political process that makes money the name of the legislative game and places unfunded citizen groups at a disadvantage.

The CAI and its constituents are the most anti HOA home owner group in the nation and in Colorado they most certainly are a wolf in sheep’s clothing and our legislators and the media are only beginning to realize their role. The beginning of HOA legislative reform and improved governance thus begins with dispelling the belief that the CAI represents home owners; revealing their history and actions in HOA legislative reform; curtailing the CAI’s influence with our Government agencies, media, and legislators; and having HOA home owner groups recognized in our legislature and in the media to offer a home owner centric perspective to improving HOA governance.

California Veteran Wins!

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There aren’t many victories in HOAs run by the likes of Nero and Caligula. But a California man who built furniture in his garage for needy military families has won his fight with the Lake of the Pines Homeowners Association.

There’s no question that public pressure convinced board members to crawl back into their snake hole. Former Vietnam War vet Dennis Kocher’s hobby was building furniture for families at the nearby Beale Air Force Base. Until a neighbor complained.

It wasn’t a complete victory. No apologies. No promises to get off this guy’s back. But the board ruled he can continue his hobby as long as he keeps his garage door closed.

(link to The Union story on war vet carpenter)

 

Fireworks in Carson City, Nevada

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This is shameful.

No state in the union has suffered more from HOA abuse than homeowners in Nevada. No homeowners have been financially stripped and laid bare more than people in Nevada. Organized crime in so entrenched in Homeowners Associations in that state that many people in HOAs have lost up to 90 per in value in their homes. But when Organized Crime sees a chance to put OPM (other peoples money) into their pockets, there’s not much that will hold them back.

But ripped-off homeowners in that state were finally able to convince the U.S. Attorney and the FBI to do an investigation, and 39 people including police officials, attorneys, businessmen, political figures, a well-known TV star were indicted and now face felony trials for theft and official corruption. Well, I’ll modify that, a bit. In typical Nevada fashion, certain key suspects began killing themselves in strangely concocted ‘suicides’, and others began to rat out the bigwigs, eight or nine of whom still face trial for their crimes.

Nevada citizens were even able to get a couple of homeowners advocates placed in key positions on the eminently corrupt Nevada Real Estate Division. These homeowners rights advocates tried to get NRED to respect such Constitutional ‘novelties’ as Due Process, a well-recognized Constitutional Right which protects all the people from government abuse.

Tomorrow and Thursday day is when well-reimbursed stooges on the Division of Real Estate tries to crush that right forever. It’s happening in Carson City. And the largest CAI vultures ever spotted by bird watchers are flying the skies over the state capitol right now making sure their paid minions succeed at stifling any sort of free speech or respect for law and order. Nevada is well known for its deep layers of official corruption. By the end of this week you’ll know whether it’ll be business as usual, or whether those struggling under the weight of oppression can reserve for the people a tiny hope for fairness.