Tag Archives: HOA

HOA Water Stupidity & California Drought

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Homeowner Association bullies continue to show their utter stupidity in the face of the horrible southwest water drought. I have two links for you. The first is the idiotic treatment of a homeowner by the Aviara Master Association in northern San Diego County.

The second link is even more fascinating. It’s about the mind-blowing drought in the Middle East and what happens when you don’t respect Mother Nature.

(link to story on HOA drought idiocy)

(link to story on Middle East drought)

 

 

Light At The End Of The Quivira Falls Tunnel

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guest blog by Nila Ridings

Today, I had lunch with one of the escapees from Quivira Falls Community Association. Sixteen years of his life was spent in this rotten hellhole. He finally walked away and let the place foreclose. Only to say today he wishes he had done it years ago.

He tried for years to see the financial records. Filing a pro se lawsuit produced no results. When it rained, the hillside between his and his neighbor’s front door washed mud all over his sidewalk. It was often times over an inch deep so walking to the door resulted in muddy shoes. The front door has big pieces of peeling paint to greet visitors.

A dead tree stood out front for a long time before somebody took a saw and cut it down leaving the stump to rot. His fence around the patio is falling down and missing pickets. The hillside behind it is all weeds.

This is the ‘quality’ of maintenance provided by Quivira Falls if you are one of the “pariahs” as a former board president called those she does not like in the community newsletter.

When this man tells the story about the “blow and go” paint jobs prior to my mistaken purchase into Quivira Falls, it’s hysterical. The board hired a painting company that sprayed the townhouses with paint; windows, screens, doors, and foundations included. One warm night after the “blow and go” he decided to open his second story bedroom window. One push and the entire window flew out and crashed onto the patio below. Fortunately, he had some carpentry skills and was able to install a replacement window.

After lunch we removed all of the new door knobs, light fixtures, tools, and other supplies from the garage. I will donate all of it to Habitat Restore tomorrow. At one time, he had plans to completely redecorate the inside of his unit, but finally accepted the fact it was a waste of time and energy. He stopped paying the HOA dues and mortgage payments. And gave up hope for better days in Quivira Falls. He set himself free of the insanity to live out the rest of his life in a rented apartment which he loves.

To help him walk away and never look back, I agreed to be the Power of Attorney and coordinate the foreclosure with the attorneys and mortgage company. Without any hassle, they were nice enough to give me a set of keys after they changed the locks. Imagine that: A foreclosure company is far more pleasant to work with than the Quivira Falls board members that are also neighbors! They asked me if they should expect the owner to protest the foreclosure and I said, “Oh no! That will never happen because he’s delighted that you are taking the place off of his hands!”

And the light at the end of the Quivira Falls tunnel is getting brighter for another escapee.

Got $60,000 to Spare?

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guest blog by Deborah Goonan

Do you have $60,000 to spare?

Imagine you own a one or two bedroom condo in Fort Lauderdale, with a balcony view toward the Intracoastal, and within walking distance to the Atlantic Ocean and beach city night life. Ah, paradise!

Until you get a letter from the Condo Association, demanding that you cough up nearly $60,000 for needed repairs in just a few weeks. You read that right: SIXTY.THOUSAND.DOLLARS.

According to a Channel 10 news report by Bob Norman, owners received notice of the special assessment on February 20, 2015. The first $20,000 was due on April 10, with the full balance due by June 10. Nearly half of owners were unable to come up with the first $20,000 installment. It’s not looking good when the Association cannot collect even one third of what it says is needed to make repairs.

Now many owners are understandably stressed out, knowing they face possible lien and foreclosure if they are unable to come up with all the money within a few weeks. The Association Board is reportedly looking into loan financing to raise the balance of the money needed for repairs, and to allow owners to pay over time. It’s looking like a loan — if they can secure one — will be for millions of dollars plus interest. Either way, assessments will increase dramatically. So much for the argument that condos provide affordable housing.

A quick check of public records for Embassy Tower II Condo reveals recent sales values of perhaps $170,000 – $300,000 per unit, depending on the size and number of upgrades inside. This special assessment amounts to perhaps 20-33% of the value of the unit at the time of sale. Even if owners are able to come up with this sizable chunk of change, will they ever see a good return on their investment?

Also according to public records, Embassy Tower II condo was built in 1973. That makes this condominium complex 42 years old. If owners had been setting aside reserves all along, there would be no need for a $60,000 special assessment. But, as readers of this blog know, it is rare for HOAs to adequately fund reserves.

Let’s do the math, 102 units times $60,000…that’s about $6.1 million shortage of reserves!

So, I’ll make a prediction. Because of its location near both the Atlantic Ocean and the Intracoastal, I’ll bet investor groups are keeping a close eye on Embassy Tower II, just waiting to snatch up units from owners desperate to sell, or facing foreclosure. Why, as soon as they can oust enough current owners, and take control of the Board, they can terminate the Association, and boot out the remaining owners. Then they can raze the 42-year-old building and put up a shiny new condo tower with twice as many units! They’ll make millions!

You see, the dirty little secret about many “affordable” condominiums is that planned obsolescence is part of the equation, virtually guaranteeing redevelopment every 30-50 years.

 

(link to Channel 10 report on huge special assessment)

Update: Justice served for one Florida Condo Association

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guest blog by Deborah Goonan

After Bob Norman of Channel 10 news brought media attention to Board member misconduct at Georgian Court North Condo Association last fall, former President Ed Ryan entered a guilty plea on criminal charges of practicing community association management without a license.
The Judge sentenced Ryan to 3 months probation and 25 hours of community service. Ryan was also ordered to return his ‘borrowed’ car to the Association and resign from the Board. The judge did not order financial Restitution.

The Attorney General opened the case following an investigation by Local 10 News in September.

The media really can be effective in resolving problems for homeowners. The Association is now pursuing a civil lawsuit in an attempt to recover hundreds of thousands of dollars that Ryan paid himself over ten years.

http://www.local10.com/news/condo-president-admits-wrongdoing-in-court-after-local-10-investigation/32561836

 

Dallas HOA Still Affected by Internal Strife

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guest blog by Deborah Goonan

A few months ago, a County Judge dismissed a case brought by Highlands of McKamy HOA against the Toras Chaim congregation. The small Orthodox Jewish congregation thought its battle was over, and then the City of Dallas sued the congregation over permit violations. That case is still pending.

Now, the same HOA community is back in the news, this time regarding a dispute between a homeowner and the Association over a brick wall that was inexplicably torn down, without notice, from the rear border of his yard. That left the affected homeowner’s back yard wide open to a busy road and nearby railroad tracks, significantly increasing noise levels and eliminating privacy.

It seems the brick wall was in need of repair, and the Board, led at the time by former President David Schneider, made the hasty decision to tear it down, rather than attempting to shore it up.

Kind of a metaphor for how all disputes were handled by Schneider and his allies.

The affected homeowner had been trying to sell his house, but that attempt was unsuccessful. Perhaps the gaping hole in the barrier wall is the primary reason the house remains unsold?

According to the report in the Dallas Observer, before a majority of homeowners recalled Schneider from the Board, they also forced a $10,000 cap on the budget, in order to limit the HOA’s exposure to legal expenses over the unpopular decision to sue the Toras Chaim. That led to a lack of funds to replace the wall after it was torn down nearly a year ago.

In the meantime, the City of Dallas was about to levy fines because the wall has not yet been replaced. Fortunately, the Dallas Observer reports that the new Board has authorized an emergency repair, and the wall will soon be rebuilt.

Once again, we are reminded that one rogue Board member and a few allies can wreak plenty of havoc in a once peaceful and harmonious HOA community. Even an HOA with minimal common areas and low HOA assessments can run into trouble and considerable expense. A personal dispute that should have stayed between neighbors of two residences has become a source of ongoing strife for the entire HOA. A contentious and questionable election led to a recall that divided the community.

Every member of the Highlands of McKamy Association had to pay for legal expenses for what amounted to a frivolous lawsuit aimed at denying First Amendment rights and religious freedom. Now the HOA also has to pay to replace a 9-ft. tall brick wall that might have been saved rather than torn down. Oh, and yet another homeowner has just filed suit against Schneider’s former HOA Board, claiming the Board violated its bylaws by awarding a contract to demolish the wall to a single bidder, with no competitive bids.

Please explain to me once again, how do HOAs enhance and improve property values?

(link to continuing saga at McKamy HOA)