Tag Archives: HOA Nightmare Stories

“That’s One for You, Ten for Me, One for You and Ten for Me.”

The number of embezzlements by HOA officers is almost laughable. I’d say unbelievable but that’s not the right word. Greed is part of the human condition and has been around since Cain and Able.

Still, you’d think that some embezzlers would feel a little bit guilty.

Enter Elizabeth Mills Wilson, treasurer of the Manor at Harmon Lake Homeowners Association in Forsyth County. Now I’m not saying she’s guilty. That’ll be determined by a jury, or by a guilty plea. Her Sheriff’s booking photo makes her look a little bit arrogant. 

But then, you’d have to be a little arrogant to steal $40,000 from your neighbors. A judge will give her a suspended sentence and maybe a tongue lashing. What this country really needs is some real lashings!

 

ULI Promotes Urbanization, While Developers Prefer Rental Properties To Condos

guest blog by Deborah Goonan

Members of a recent Urban Land Institute (ULI) panel are reporting high demand for urban housing, both within existing city cores and in densely populated “instant cities” (HOAs), created by developers in suburban locations near mass transit.

The attached article highlights how the major players in American housing policy and the real estate industry are not all on the same page.

Housing policy makers still push home ownership as the endgame, while NAR and CAI lobby Congress to pass FHFA proposals to relax mortgage standards. Meanwhile, developers and investors are shying away from less profitable, more risky condominiums, and engaging in new construction and redevelopment for the rental market.

Housing is becoming less affordable, across the board, as cities become more and more gentrified. If left unchecked, the majority of Americans will left with few housing choices: rent for the long-term in an apartment community, or buy or rent a single family home in a private, corporate-governed HOA.

(link to Urban Land Magazine: Changing Face of Residential)

(link to Urban Land Institute – mission and priorities)

 

The Ghost of Christmas Past

guest blog by Dave Russell

In 2011 a friend of mine sent me a news report about 3-year-old Cooper Veloudis who has cerebral palsy. Cooper’s therapist suggested that a playhouse be built in the backyard of the family’s home. The playhouse cost about $5000.

However, the Andover Forest Homeowners Association in Lexington, Kentucky, said little Cooper’s house had to go because the HOA says it’s a structure and is prohibited. Cooper’s parents were fined $50 a day until they complied. What the HOA didn’t say is that there are other such structures in the same development. But nobody seemed to really care about those.

This story literally kept me up at night thinking that little Cooper was basically being foreclosed upon by the HOA. Where were the folks down at Fair Housing or the Americans with Disabilities Act people? Couldn’t anyone have stepped up to the plate and defended this little tykes therapy house?

As usual, the Homeowners Association won, and little Cooper’s playhouse was ‘foreclosed’ upon by the big, bad and powerful HOA. Somehow, this story still haunts me like the Ghost of Christmas Past, but also reminds me to be a little more understanding with the children in my own HOA community.

I sure hope I’m not the only one who’s haunted by the Ghost of Christmas Past. In time, just like in the Christmas Carol, written by Charles Dickens, each board member and the pond-scum attorneys who represented Andover Forest Homeowners Association deserves a visit from one of Dicken’s ghosts.

If you are going to watch the news report linked below, you might want to have a Kleenex handy. I sure needed one.

(link to disabled boy’s therapy home on KTSM-TV)

 

Don’t Be Gay In A Texas HOA

One of the most fundamental problems with the American HOA system is that it actively encourages apathy among its residents. In a hostile neighborhood, homeowners are afraid of being targeted for public shaming or humiliation. It makes neighbors paranoid of each other, afraid to be activists. After all, most of us want to live in private homes in a human quest for peace and quiet. That, in turn, makes people unwilling to participate in the governing process. Stay home, don’t make waves, don’t stand out from the crowd. Beyond all else, don’t show up at HOA meetings.

Bam! That’s the dynamite!

Once you remove a majority of the neighborhood from the governing process, small-minded power-hungry dictators are free to threaten, defame, cheat, steal, and embezzle with pure abandon. It’s hog heaven for human swine. With tiny majorities behind them they rise to the top where they create neighborhood havoc, usually by finding and tormenting a handful of targeted ‘unwanteds.’ An unwanted homeowner can be anything from a single mom to a family with a Down’s Syndrome child, to unmarried couples, black families, Jews, gays, lesbians, essentially anyone the dictator on the board thinks can be easily targeted. It’s fundamentally good war strategy. Don’t give the enemy a reason to fight back, turn the enemy against itself. Churn up chaos and drive homeowners further behind their shield of apathy.

That brings us to a crazy situation in the Gilbert Homeowners Association in Dallas. A single man owned a condo for years but his domestic partner is not listed as an owner. He’s deemed by the HOA to be “a guest.” The HOA board in its lawsuit against the couple said, “Ken Ray (the guest) is not an owner of the condo….under current Texas law he is, therefore, not a member of the Association.”

It gets a whole lot crazier. The two men claim they tried to get the association to repair a leaking sprinkler back in 2008. The repair never happened. The two domestic partners began to get a little more aggressive in trying to get the HOA to fulfill its obligations to repair the damage. One of the men discovered the contractor who was supposed to do the repairs was a daughter of a board member. The homeowner demanded to see the HOA’s financial records.

That’s when the proverbial “ship hit the span.”

The two domestic partners claim they were indirectly threatened with “use of a firearm.” Their sprinklers were purposely turned off damaging their landscaping. The front gate entry code was changed so that the buzzer went to the management company, not to the mens’ condo. Threats were made to physically remove “the guest” from HOA property. The men were prohibited from hiring their own contractors to repair damage caused by the board’s neglect.

The lawsuits and counter-suits mean the eventual legal bills will stretch into the hundreds of thousands of dollars. A jury verdict against the HOA could conceivably stretch into the millions.

If so, one more American HOA could be forced into bankruptcy. It’s happened before.

“I see stupid people. They’re everywhere. They walk around like everyone else. They don’t even know that they’re stupid.”  -slight rewrite from The Sixth Sense, 2007

(link to Dallas Observer story)

 

Something Stinks In This Washington State HOA!

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)