In my book, Neighbors At War, I wrote about a nasty little piece of HOA theft called ‘transfer fees. ‘ They’re hidden deep within the text of your CC&Rs and the vast majority of home buyers never even see them. Sometimes they’re not even in the paperwork. But they can cost you hundreds to thousands of dollars at closing time. What are transfer fees? They’re a scam. They probably refer to photocopying costs which at ten cents a page shouldn’t cost you more than about ten bucks. But the transfer fee is pure slush that pours into the pockets of the nearest property manager or lawyer.
Stan Hrincevich is the HOA Warrior in Colorado who’s long been trying to educate legislators about this scam. And Stan is Enemy #1 on the CAI’s list of really bad guys. To me he’s Colorado’s biggest hero. His battles against DORA (Department of Regulatory Agencies) are legendary. The Colorado Legislature created an HOA Ombudsman’s Office to try to shut Stan up. Sadly, the Ombudsman has no budget, no power and is dumber than a box of rocks. The only thing this ‘Ombudsman’ ombuds for is his own salary.
That’s the background.
Knowing that this same kind of situation exists in almost every state in the union I’ve asked Stan for permission to reprint a recent news release he sent to homeowners around Colorado.
by Stan Hrincevich (www.coloradohoaforum.com)
The HOA Manager licensing law requires disclosure of fees imposed by property management companies on home owners to be in their contracts with the HOA. If you know of anyone who has recently (after July 1, 2015) sold or bought into an HOA and paid an HOA Transfer Fee (this can be identified as a one liner on the closing documents) let us know. These home owners might be eligible for a refund and the management company fined. We will help in filing their complaint with DORA to pursue this issue.
The HOA Manager licensing rules are very weak for home owners and purposely left out specifics and justifications regarding fees imposed by management companies on home owners. However, there is still room for filing complaints and requiring HOA Boards and management companies to justify the imposition of the HOA Transfer Fees in HOA contracts and governing documents. Additionally, your HOA Board may also be required to inform home owners if they endorse such fees and to change the HOA governing documents/declaration to indicate the Transfer Fee is a financial obligation of the home owner upon the sale of their home (which may require a vote of home owners).
When someone buys a home in an HOA they are to be apprised of all financial obligations to the HOA as a home owner. This includes HOA dues and special assessments. The HOA Transfer Fee is rarely if ever disclosed as a legal obligation and therefore the property management company (and HOA) should be precluded from assessing this fee. The new licensing law precludes assessing fees unless it is in their contract with the HOA and/or supported by the HOA governing documents.
Filing a complaint costs zero and we will help as needed.
We will periodically issue this email requesting your cooperation on this topic.
NOTE: THE COLORADO HOA FORUM PROVIDES INFORMATION AND OPINION ON HOA ISSUES BUT SUCH INFORMATION SHOULD NOT BE CONSIDERED LEGAL ADVICE. WE ARE NOT LAWYERS. ALL LEGAL ADVICE ON COURT CASES AND OTHER LITIGATION SHOULD BE HANDLED BY A LAWYER.
I’m linking to the CAI site only for the purpose of backing up a previous blog.
If you are living in a Homeowners Association which experiences a weather or earthquake disaster, don’t count on getting federal help of any kind. An HOA member hit by a flood is not considered a homeowner, but an investor in a corporation. When 20,000 homes were damaged in the Boulder flood two years ago, many homeowners discovered they were flat out of luck. Those inside HOAs found that FEMA wouldn’t help them and they couldn’t get federal loans. They couldn’t buy federal flood insurance either because they didn’t live inside recognized flood zones. Who knew Boulder Creek could ever launch that big a flood?
We learned recently that if HOA boards in California don’t buy earthquake insurance for the whole community, then individual homeowners can’t get coverage either.
CAI reports that a couple of Democratic Congress members have made some progress in getting the feds to help Homeowners Associations badly hit by Hurricane Sandy.
CAI’s press release is about as dishonest and disingenuous as they come. What they should really be talking about is not about federal exemptions, but about the fact that the very membership of an HOA in CAI is a red flag to the feds. You HOA members are investors, NOT HOMEOWNERS!!!
Here’s an HOA in Central Florida that will fine you ten thousand bucks if you post a negative online review about the community. And that money has to be paid within ten days.
Not only that, but this fascist HOA leader claims to own all copyrights of all material posted by his Windemere Cay Homeowners Association.
From what store are these idiots buying their supplies of Stupid Juice?
One the the greatest things about this Neighbors At War website is it brings people together in a very unusual way. Most women meet for coffee, a museum tour, book club, or quilting retreat to enhance their social lives. Men meet for a beer, golf outing, or a fishing trip to Alaska. But regardless of our “outside” interests we all “meet” every day or a few times per week on this website. Are we just compelled to read about the sickness that prevails in America’s HOAs? Or are we hoping for an outside chance of some humor to be found here?
This story was sent to me by a friend who finds herself reading the fascinating entertainment of Neighbors At War has become part of her daily routine. She sends me emails that only say: “OMG!” or “CRAZY!” or “NO WAY!” And on a rare occasion she sends “LOL!” With each passing day she is more and more thankful she does not live in an HOA! Today, she sent this story from Portland. I see a good deal of humor in it, so I’m sharing.
Thank you, MG for emailing the link! (I’m using initials to protect identity since her home is surrounded by HOAs. I don’t want her to end up on the area’s HOA radar screen and become their newest target)
This gal lives in Portland and tells her story of the challenging and tiring efforts she made to paint her front porch. She shares the pictures and it’s obvious she likes her house to look cheerful and welcoming. She shares her back story of what a painted porch meant in her growing up days. It certainly would not hold that meaning in the HOAs of America. It could be the catalyst to having her house foreclosed on by the HOA but she was brave…and now…she awaits the arrival of the Porch Paint Nazis.
I’ve never been a big fan of the ACLU. Oh, I’ve interviewed ACLU officials a number of times in my career. They’re rarely the ones who say, “No comment!” And some of their battles I’ve certainly supported. Sadly, there are too many cases which I firmly believe that the ACLU won’t touch.
It’s a completely different story where the Institute for Justice (IJ.org) is concerned. They, too, are a civil rights organization but they seem to be more focused on housing, minority rights, and seeking out the kinds of justice that would help all of us, not just small minority interests.
Guest blogger Deborah Goonan sends this link to us:
Institute for Justice has a number of other great videos at:
IJ.org
You could and should spend an entire afternoon watching their videos and studying their interests. And then, as I’m doing now, write them a check. They’re doing some excellent work.
