Tag Archives: HOA

StoneGate Gets Its HOA Butt Spanked

guest blog by Dave Russell

For those of you who know me, messing with sick or disabled children is my biggest pet peeve. So when I heard the story about the StoneGate Homeowners Association, in Raymore MO and their board president Stacy Bayers, I did a little research. Now according to the Missouri Secretary of State’s Office, the StoneGate HOA was actually ‘dissolved’ back in 2009. I’ll get back to this later. For now, let’s take the story from the top.

Ella Schultz is only 6 years old and she’s battling cancer. The Make-A-Wish Foundation heard that little Ella wanted her very own playhouse. They contacted construction giant J.E. Dunn and that company agreed to build one in Ella’s backyard in Raymore, Missouri. They even used shingles to match those used on other homes in the neighborhood. .

What a touching story — a sick child and some awesome people who wanted to help out. That is until the HOA board officers reared their ugly little heads and threw a wrench into Ella’s playhouse. “I’m not at liberty to discuss that,” Bayers said Tuesday night when asked why it’s difficult to make an exception for Ella. “The proposed plan they’ve given us is a violation of our covenants.

KCTV 5 News (CBS) in Kansas City, has reported, “The StoneGate Homeowners Association is not in good standing with the Missouri Secretary of State’s office and hasn’t been properly registered for four years.” If you pull up the information on the Secretary of State’s website, it clearly shows that this HOA’s status is “Admin Dissolved –nonprofit.” Oh, say it isn’t so! I wonder how the reporters found out about this. No doubt one of those crazy anti-HOA people called them up.

So did the StoneGate HOA really have the legal right to deny the playhouse in the first place? You know, considering the HOA appears to have been ‘dissolved.’ Can this HOA legally enforce any of their governing documents? Has this HOA been illegally operating as a not-for-profit corporation? Are they illegally collecting assessments, fines and placing liens on properties within their Association? As one would imagine, it’s probably going to take a lawyer and judge to figure this one out. This also makes one wonder if the HOA dues they took in over the past four years should be considered taxable income.

I guess you could call this a bad case of HOA KARMA. Now StoneGate HOA president, Stacy Bayers, is doing a little backpedaling. She issued this unbelievable statement last night. Really, it’s unbelievable.

”The board has met for the better half of the day and at this time we would like to release the following statement:”

“Our hearts are with Ella Schultz and her family as they battle this terrible illness. Our homeowners’ association board is committed to working with Make-A-Wish Foundation and J.E. Dunn to see if we can figure out a way to make Ella’s wish come true. The initial request from Make-A-Wish to place a barn-style shed was not accepted because the board did not have enough information to grant an exception to the subdivision’s covenants. In hopes of getting enough information, we are requesting an immediate meeting with Make-A-Wish and J.E. Dunn Construction to work out a solution in the most expeditious manner possible.”

Oh, how nice of you Stacy Bayers, president of the StoneGate HOA, working so hard to make this little girl’s wish come true. I’m personally not buying a word of it! Neither is the rest of the world.

 

StoneGate Stops Make-A-Wish

guest blog by Nila Ridings

Cancer is an ugly disease and it’s uglier when an innocent child becomes it’s victim. Ella Schultz is just six years old. Sadly she is facing down two very difficult monsters; cancer and her StoneGate HOA board of directors.

Ella was contacted by Make A Wish. What she wished for is a playhouse. Make A Wish contacted J.E. Dunn Construction Company in Kansas City. They are willing to build that playhouse with a matching roof to the houses in the neighborhood. Being from Kansas City, I am well aware of this company and over the years have known some of their employees. I am not one bit surprised to hear they were ready and willing to make this wish come true for Ella. They are a big company with a big heart!

On the other hand, I am not at all surprised to hear the StoneGate HOA has brought Ella’s wish to a screeching halt. Why? Because that’s what HOAs are all about! ENFORCE THOSE COVENANTS AT ALL COSTS!!! Forget the human factor. Deny the ill child. Show her from a early age that the almighty power of the HOA will stop her wish in it’s tracks. Ignore the neighbors who are supporting Ella’s wish.

President Stacy Bayers, as the leader of your HOA board do you have any common sense? When KCTV-5 contacted you did you EVER THINK to call an emergency board meeting and share these circumstances with the other board members? Do you realize you can torment adults 365 days per year, but little Ella’s supporters from all over the world are going to fiercely support a sick child with a wish against your HOA? Can you even imagine the negative exposure StoneGate is going to get? For years to come people will drive by StoneGate and say, “That’s that horrible place that denied that little girl with cancer a playhouse!!!” So much for property values Ms. Bayers! Win your battle…lose your war!

When Ella wins her battle against cancer I feel sure I know one thing that won’t ever be in her future. She’s shed her tears at six over an HOA and what a life lesson she has had, but she won’t be shedding tears at sixty because of bullies on an HOA board. Nobody will catch her buying property in the HOA trap.

Let’s send prayers out for Ella Schultz and her battle against cancer. And much gratitude to KCTV-5 reporter Jamie Oberg for giving this story television exposure.

(link to KPHO story on cancer girl)

(latest comments on cancer girl from Kansas City Star) 

 

A Mini-Love Canal in a Pennsylvania HOA

guest blog by Andy Ostrowski (former PA Congressional Candidate)

The Wilson School District was going to purchase a tract of land adjacent to the Hidden Valley condominium. They are both part of the same parcel in the “Lincoln Park” area of West Lawn, Spring Township, Berks County, Pennsylvania. Ironically, you cannot even find the Hidden Valley Condominiums at 1334 West Wyomissing Boulevard address on google maps – it is hidden, indeed. Google map it.

The School District did not go through on the purchase because battery waste was found on the property. The owner of that property, Al Barg, who was also once a President of the Hidden Valley Condominium Owners’ Association, and an owner of several units at Hidden Valley, then sold the property to Weiner Development, which, it is my understanding, is affiliated with Pinnacle Development. In the mid-2000s, Pinnacle constructed Penn’s Crossing on the property, which is a low income retirement apartment building containing 52 units.

The land upon which both are built has been referred to by one Environmental Protection Agency representative as “The Love Canal,” except for the amount of waste involved, which became the subject of national attention when the presence of toxic waste on that site was revealed in the 1970s, after having been concealed for decades. Accordingly, at least the 26 unit owners at the Hidden Valley Condominium, and the 52-plus residents at Penn’s Crossing may be living on contaminated land.

There were two fires at Hidden Valley, one in 1999 and one in 2011, both of which are believed to be electrical in origin. The one in 1999 affected 6 to 8 units. The 2011 fire resulted in the death of one of the residents, after over 80% of his body was burned. Although the Pennsylvania State Police are supposed to have exclusive jurisdiction in the investigation of fires resulting in injuries and death, the Township of Spring Fire Marshall did a report labeling the cause of the fire as “undetermined.” There was allegedly a statement made by the man who died, and a photograph of the burnt inside of an electrical box that were not mentioned in the report.

During my campaign, I began to be contacted by many people from across the country who are residents of Homeowner’s Associations (HOAs), with all manner of horror stories about their experiences. I see these as being core civil rights issues – affecting the very essence of people’s lives – the right to live and raise families in safe, secure, peaceable homes. I wrote a couple pieces about my view of these constitutional issues, i.e., the usurpation of basic government functions, by these private entities, who rely on their money for access and control of legislative initiatives, and their access to the courts, and posted them on my campaign site.

I met a woman who bought a unit at Hidden Valley when she was 26 years old – in 1999. She worked on my campaign. Hers was one of the units affected by the 1999 fire – the bottom, left unit of the building, for those who have seen the photos on http://hiddenvalleyhiddentruths.webs.com/. I learned much more about the situation, and the fifteen years of litigation in which this homeowner had been involved. I will cover more of that story down the road, but the bottom line is that, despite the clear, unequivocal proof of the deplorable conditions of that building, and the failure of the HVCOA and Township of Spring to do and/or enforce the proper repairs, nothing was done. Instead, the litigation turned into a years-long assault on the character and person of the homeowner.

I note that this particular homeowner has shown a character, resolve, and moral fiber that is possessed by only the rarest of breeds of people in this world. She realized what she had come upon, and the number of people who were at risk because of what she learned, and she has fought, against all odds, on the principles involved in this situation – all over a $40,000, 800 square foot condo. As you learn more about this, and as I continue to reveal more of the truths that have been, and continue to be, hidden, ask yourselves “would I have done what this homeowner did? Do I have that strength?”

After relying on lawyers, and getting mistreated by them, for years, the homeowner lost her trial in the Berks County Court. How? Why? This will be another facet of the story along the lines of what I have discussed for the past few years about problems in the courts. More to be revealed. I note that the EPA representative did tell her it was “political,” and he, along with almost all others along the way, told her to “just sell the unit,” i.e., don’t disclose these known hazardous conditions, and put others in harm’s way, and try to move on with your life, and live in peace. She was actually told to get out of the state, or even the country (why would he suggest Belize?).

Not just this, but she was told to “just get out,” “they want you to have a fire and burn the fuck up,” and many frightening, intriguing things along these lines, like turning over a stack of documents containing information about environmental contamination, insurance fraud, and sundry other misconduct, and warning her that “once I turn over these documents, there is no backing out. You must go all the way now, and I will be killed if they find out.” There are two dead former HVCOA Board members. This one, and the one who burned in the 2011 fire, who also was allegedly about to blow the whistle on the HVCOA. More to be revealed.

After she lost her court case in 2009, and had her lawyer mishandle her appeals, and commit egregious malpractice (or deliberate malfeasance), she did not go away. She continued to fight. She continued on her own, with just a few trusted friends along the way, to gather evidence, talk to witnesses, and fight the fight that her heart and conscience motivated her to fight. It was a truly remarkable effort by a truly remarkable person. Again, more to be revealed.

After years of relying on lawyers, not finding anyone who would go down to this property, having her proof cut off at trial, having her personal work product stolen by her own attorneys, being denied any access to justice, and being followed, defamed, harassed, and abused all along, she did finally find a highly-credentialed structural engineer to do a report on the property.

That report was finalized on February 5, 2015. That report confirms everything this homeowner has said all along. That report talks about severe moisture infiltration, subsurface conditions, fire hazards, an entire electrical system in need of evaluation, needed environmental testing, suspicious missing documentation for the Department of Labor and Industry, changed documents, the battery acid meeting minutes, a reference by our EPA friend to this place as a “contaminated condo,” and the fact that “major demolition” is needed to even do any type of full and proper investigation.

On Monday, February 23, 2015, I attended a Spring Township Board of Supervisors meeting with Stephen Runyeon, a friend, and loyal supporter, of the homeowner (more to be revealed). Stephen presented the report and some other information to the Board of Supervisors who, at least in the past, had ample and abundant knowledge of the problems at the Hidden Valley. Stephen did so in a very professional and appropriate manner, supporting the homeowner’s contentions all along. (A Board member communicated that the HVCOA got their lawyer through the Township – more to be revealed). He made a passionate appeal that the Board of Supervisors perform their public duties, and enforce appropriate action to have these issues properly addressed, and to protect the residents of Spring Township who are in harm’s way.

I got up after Stephen, and talked directly about the people in harm’s way, and my motivations in taking an interest in this case, and the extent of the information about the contamination issues, and the HOA issues implicated by this situation, and the problems that occur when government functions are ceded to private, corrupt, money-driven entities. I also asked that this place be condemned, and that steps be taken immediately to address the safety and security of the people at Hidden Valley, at Penn’s Crossing, and in Lincoln Park, where two elementary schools were recently torn down for some vague reason, one specifically on an adjacent tract of land.

Upon advisement, the homeowner did not attend, citing the history of abuse and defamation, and the recent information she learned from her EPA contact after discussions with Township officials that “they” wanted a “pound of flesh” from her, that she would not get off “scot-free” (completely free from obligation, harm, or penalty), among continuing defamatory remarks.

Interestingly, and very sadly, she was also told by this EPA representative that she should just put Hondurans, or Mexicans, or some other people in her unit who would be used to those conditions, and would just be happy to have a roof over their head. Of course, this is unacceptable to this homeowner, as she has always been motivated by the protection of the many lives at risk at this “contaminated condo,” with its mold and fire hazards, and her demand has always been the same – the truth. The truth has been hidden for many years. It is now being revealed.

We need all of your continued assistance. We do not expect the Township to come in and do what they should do, and we are cautious about the other law enforcement authorities taking this case and running with it – read about the effort that was required at the Love Canal. We need this information proliferated. We need the people at Penn’s Crossing contacted. We need the Township contacted. We need to fill the meeting rooms, and use the phone lines of the Attorney General, the U.S. Attorney, the Township of Spring, and Governor of Pennsylvania, and anyone else we can think of to get some attention, and immediate action, on these issues. We need to show the power of the people, and the strength in numbers, and we need to make sure that there are no more hidden truths at Hidden Valley. We need to show that this is what is demanded by our Constitutional right to life, liberty, and the pursuit of happiness.

You may tell them that you got the information from Andy Ostrowski, and that I asked you to call.

This One Will Absolutely Fry Your Brain!

Dear Lord, I ask myself each night, can it really get worse? Can American homeowners really live under a burgeoning Nazi dictatorship? And the tragic answer is, “Yes, they can.” Nazi, Fascist, Communist, you name it, Americans are stupid enough to fall for it.

Windemere Cay Homeowners Association in central Florida has an interesting rule. If a homeowner writes a negative online review about this fascist organization, they are automatically fined 10,000 bucks! Payable within ten days, no less?

And the owner of the complex is instantly awarded all copyrights on any comments or photographs involving Windemere Cay.

Sometimes, on long lonely nights, I just slap myself silly over the claptrap that’s being issued by the country’s HOA Nazis. Yes, I slap myself. But the nightmare still doesn’t go away.

(go on, slap yourself silly after reading this)

 

Legislative fix for FL condo takeovers?

guest blog by Deborah Goonan 

In 2007, Florida passed a law that has been dubbed “Eminent Domain for Condos.” The law allows for 80% of voting interests to approve a plan to terminate the condo association for the purposes of redevelopment, as long as no more than 10% of voting interests object to the plan.

At the time the law was passed, the stated intent was to make it easier for owners of hurricane damaged or functionally obsolete condos to sell their ailing building to investors who would then redevelop on valuable land.

However, in the 8 years since enactment of this law, real estate investors and developers have descended like vultures, preying upon distressed condominium associations. Taking advantage of FL statutes, investors have been buying unsold units in bulk, at pennies on the dollar, taking control of the association, amending the governing documents where necessary, and voting to terminate the association.

In most cases, their intent is to convert all of the units to rental apartments, at a time when record numbers of people are renting rather than buying condos. Investors have forced nearly 20,000 condo owners – many of them homestead owners – to accept termination proceeds equal to one-third to one-half of what they paid for their units at the height of the real estate market prior to 2007. Essentially, condo owners have been kicked to the curb, many with outstanding mortgage balances for homes they no longer own. Cash buyers lost most of their hard-earned life savings with nothing to show for it.

An op-ed written by two attorneys from Greenspoon Marder Law firm states that a proposed bill in Florida “could satisfy public outcry” over condo takeovers that have forced nearly 20,000 owners to sell their homes, many of them at a fraction of their purchase price.  (You might recall from my previous blogs on this topic that Steven Geller, the sponsor of the 2007 legislation amending FL condominium termination process, is now a shareholder at the same law firm.)

Condo owners adversely affected by Florida’s flawed legislation have pressured their state Representatives and Senators to take action. Florida Realtors, who have helped to draft HB 643, have also expressed deep concern. The current draft provides that bulk buyers must make  “third-party” owners whole at termination, by paying 110% of the condo owner’s purchase price or fair market value, whichever is higher.  In addition, all first mortgages must be satisfied, and a relocation allowance is payable to homestead owners.

Realtors hope that legislative change will renew confidence in the condo market. Between negative media coverage and word of mouth, buyers are reluctant to purchase real estate in Florida, particularly condominiums that have been featured in the media. Additionally, many condo owners are finding it difficult to sell their units, except to other bulk buyers hoping to snatch up units at a low price.

The current bill, (HB643), retains 80% vote of approval – as long as no more than 10% of voting interests reject a plan – for optional termination of condominium. That provision remains unchanged as sponsored by Geller and signed into law by Governor Christ in 2007.

As has always been the case, the governing documents can still provide a lower percentage of owner approval for termination.

Attorneys Mark F. Grant and Raul Valero claim in their article that unanimous consent of owners for a condominium termination is unrealistic and that a single holdout can extract too much money out of the termination settlement.

Grant and Valero go on to explain that in 2010 the FL Legislature passed the Distressed Condominium Act, a law set to expire on June 30, 2016. The Act reduces liability of condo-buying investor groups for construction defects and deficits in reserve funding allegedly caused by the original developer. The Optional Termination and Distressed Condominium statutes, when combined, created the golden opportunity for hostile condominium takeovers in Florida.

As currently written, HB 643 still does not address a key issue. Voting interests are allocated to the number of units owned or proportional share of condominium ownership, not to individual owners. The result is that we have real estate investor corporations outvoting homestead owners, terminating the condominium and forcing them to sell, even at a substantial loss.

As long as votes are allocated to the property vs. people, investors will find a way to exploit that loophole. Because FL statute sets no absolute minimum threshold for termination approval, a bulk-buyer-controlled Board that holds sufficient voting interests can simply amend the governing documents to reduce the approval threshold, thus making termination possible on their own terms.

The only ways to remedy that situation is to more equitably allocate voting interests among the people involved, rather than tying them to inanimate units. Bottom line: opportunistic investors should not be able to trample the rights of homestead property owners.

Grant and Valero characterize bulk buyers as some sort of saviors that have “rescued” failing condominium associations, the buyers later concluding that a de-conversion would make better financial sense.

Whether or not you believe that the condo takeover fiasco was carefully crafted or the result of unintended consequences now is the time to consider the rights and needs of condo owners that thought they were buying a home as opposed to a real estate investment property.

Tragically, even if a homeowner-friendly bill is passed, it will be too late to help tens of thousands who have already lost their homes, their life savings, and their credit.

(link to op-ed regarding Condo Termination legislative proposals)

(link to FL HB 643)