Tag Archives: HOA

Orange County officials dealing with Blossom Park, Tymber Skan Residents living in unsafe condos

guest blog by Deborah Goonan

I have blogged about the Blossom Park condo conversion recently. In recent weeks, Orange County Fire Department has stationed one of its trucks at the scene, and a structural engineer has examined the buildings, including the staircases and upper decks, deeming most of them unsafe. An official report is due this week, and in the WFTV report linked below; Orange County officials expect to order an official evacuation within days.

The County is now providing financial assistance to move the residents – mostly low-income tenants – to safe housing.

Court-appointed receiver, Frank Barber of Deer Run Realty & Management Company, insists that the problems are not that dire, and has reportedly urged residents to stay. He is relying on fees collected to pay for needed repairs, and — let’s not miss the obvious — to pay for services provided by his company.

Left unsaid in the many news reports: the taxpayers of Orange County are footing the bill to assist Blossom Park residents. And the bill must be substantial, as it includes increased police protection due to high crime and three recent murders in Blossom Park, stationing the Fire Department adjacent to the condo complex, assigning a structural engineer to inspect the condo buildings, and evacuating and then providing 30-days of free housing to hundreds of low-income residents.

Nearby Tymber Skan is another troubled condo complex, complete with squatters, criminals, dilapidated structures, and rats climbing the walls. Taxpayers have paid hundreds of thousands to cover unpaid water bills, police protection, demolition of buildings, and relocation of residents. This has been going on for several years, and its still not over.

So are HOAs really “no-impact” or “low-impact” tax revenue cash cows for local governments? Perhaps in the short term, but what about over the long term?

And are County officials now “heroes” stepping in to save the day? Hardly. Where have they been all these years, when these distressed condos have been left mainly to their own defenses, living conditions growing progressively worse? No one has been held accountable for allowing residents to live in squalor, for failure to manage the financial affairs of these failed Associations, for creating the conditions that allow violent crime and blight to flourish unchecked.

Better yet, how were these condo projects approved in the first place, with such shoddy construction, and why weren’t regular inspections done to ensure deficiencies were identified and repaired early on? It should have been clear to planning and development commissions that many of these developments and redevelopments were doomed to failure and premature obsolescence.

And what about the social impact to residents and surrounding neighborhoods, where people fear for their health and safety? Can we really put a price on the total costs? Decades of neglect by local governments – preferring to allow thousands of HOAs to attempt to govern themselves and manage their own affairs, while collecting property tax revenues from owners – has led to this chaos.

From deteriorating infrastructure to Bully Boards to neighborhoods divided over how their money is being spent, more and more of these stories are being reported and brought to the attention of the public. And what we see reported on the news is only a small percentage of the problems, because, in many HOAs, owners resist going public for fear of scaring away future buyers (or tenants) and reducing property values. In fact, the outspoken owner is often intimidated, harassed, or ostracized for daring to air the dirty laundry, so to speak. It’s a sick, twisted mindset that threatens the very foundation of the American Dream for millions of Americans.

(link to WFTV story on Blossom Park)

(link to Tymber Skan story)

Dr. Solomon Wins A Round

One of the heroes of our movement, Dr. Gary Solomon, has won a round in his own battle against an out-of-control HOA in Nevada. It involved an idiotic fine of $100 so he tried to get it heard in Small Claims Court, where it really belongs. That court kicked him upstairs to District Court which really has no business hearing 100 dollar claims. After two years, Solomon has won the right to take the case back to Small Claims. Here’s the decision:

Minutes
12/09/2014 3:00 AM
– This is an appeal from a Small Claims Judgment entered in the Las Vegas Township Justice Court. By this Judgment filed May 5, 2014, the court found that it lacked subject matter jurisdiction over this case, and that it had to be filed in District Court instead. This case involves a fine of $100 imposed by Respondent Palm Hills Home Owners Association (the HOA ). Petitioner Dr. Solomon ( Solomon ) disputed the imposition of the fine. It appears that a lien was placed by the HOA against the subject property as well. Pursuant to NRS 38.310, because this dispute involved the interpretation, application or enforcement of the community’s CC&R s, the dispute first had to be submitted to arbitration or mediation with the Nevada Real Estate Division ( NRED ). Solomon filed a complaint with NRED which resulted in a ruling in favor of the HOA and against Solomon. The arbitrator also awarded the HOA $7348.17 for attorney s fees and costs incurred. Pursuant to NRS 38.330(5), within 30 days after the final decision and award in this nonbinding arbitration, Solomon was permitted to commence a civil action in the proper court concerning the claim which was submitted for arbitration. This action would be a de novo proceeding. Solomon filed this case in Small Claims Court in the Las Vegas Justice Court. The Justice Court found it lacked subject matter jurisdiction and dismissed the case, holding that NRS Chapter 38 . . . requires that such disputes be adjudicated in District Court. However, nothing in chapter 38 specifies that this de novo proceeding must be filed in District Court. Moreover, the case the HOA relies on, Hamm v. Arrowcreek Homeowners Association, 124 Nev. 290, 183 P.3d 895 (2008), does not address the question of jurisdiction as between district court and justice court. The HOA also argues that the lower court lacked jurisdiction pursuant to NRS 4.370(2) because this is an action in which the title of real property . . . [is] involved. However, in the Hamm case, the Nevada Supreme Court held that even a dispute about HOA fines where a party sought to release a lien imposed does not relate to title to the property. Additionally, while the HOA disputes whether Solomon ever held title to the property at issue in this case, this defense of the HOA is not to be considered in evaluating subject matter jurisdiction, which instead is based on an evaluation of the face of the complaint. The fact that the HOA may challenge Solomon s ability to proceed as a real party in interest does not deprive the court of subject matter jurisdiction. Thus, this case in which Solomon filed a small claims complaint for less than $7500 was properly filed in Small Claims Court and that court s dismissal was in error. Accordingly, the Small Claims Judgment is hereby reversed and the case remanded for further proceedings in accordance with this Court s ruling. CLERK’S NOTE: The above minute order has been distributed to: Gary Solomon, 1001 Calico Ridge Dr., Henderson Nv. 89011, & Troy Dickerson (Angius & Terry) 1/28/15 kr

Net ‘Neutrality’ and this Website!

Well, the news this week is pretty bad for net neutrality. The White House has come up with a 332 page book of regulations that it’s going to hand to the FCC for implementation. Just as in the Affordable Care Act, they have to pass the bill so we can all see what’s in it. A lone renegade on the FCC is warning that this bill is so heavy handed that it will fundamentally change the way the Internet is governed, essentially treating it as a public utility.

Hundreds of billions in new taxes, controversial websites (like this one) may be subjected to a version of the old (and failed) Fairness Doctrine, and smaller businesses and smaller political operatives will essentially be driven off the web. Websites will be censored. Another name for the bill is “full employment for trial lawyers.”

The Internet has given us a measure of freedom that never would have been granted by traditional government. It has fundamentally changed the world, both socially and financially.

FCC Commissioner Ajit Pai says the future looks pretty grim.

http://dailycaller.com/2015/02/10/fcc-commissioner-unprecedented-involvement-of-executive-branch-in-our-decision-making/

 

Stop Building Crap!

That’s the power phrase that came out of an interview with Jon Harris, who owns a condominium in Denver’s Five Points neighborhood. Five Points leaders tried for decades to turn around its image as a run-down part of the city. Back in the 20s and 30s it was the home of some of the best jazz clubs in the country. But as Denver expanded in all directions of the compass, Five Points was subjected to typical inner city decline.

Still, neighborhoods can be reborn and Five Points leaders have worked hard to try to make the neighborhood a showplace once again.

The problem is that they mandated higher density ‘affordable’ housing which meant developers were ordered to create Homeowner and Condo Associations. To encourage developers to build such high density housing the city loosened zoning regulations and inspections.

Condo owner Jon Harris desperately wanted to buy a quality home and live in a neighborhood rich in Colorado history. Now, he says, every condo in his complex is beset with construction defects. Meanwhile, the State Legislature is trying to pass a bill that would limit lawsuits against builders.

Harris says the legislation is wrong. The only right answer is for builders to “STOP BUILDING CRAP!”

Most of us could agree with that.

(link to KDVR-TV story on construction defects)

 

1st Amendment Win for Orthodox Jewish Congregation

guest blog by Deborah Goonan

Just this week, a Colin County, Texas judge threw out an HOA’s case against owners of a home used as an Orthodox Jewish synagogue. The legal battle began in 2013, when an owner by the name of David R. Schneider independently sued the Congregation Toras Chaim and the owners of the dwelling, Mark and Judith Gothelf, for allegedly violating restrictive covenants specifying “single family” use. The HOA intervened in the case in 2014, shortly after Mr. Schneider was elected to the Board of Highlands of McKamy IV & V HOA.

The Liberty Institute assisted the Gothelfs and the Congregation free of charge. Haynes and Boone LLP also represented the Congregation.

Of course, the media and Liberty Institute are reporting the victory for the small Jewish congregation. They are now permitted to continue using the Gothelf’s home as a synagogue for their small congregation. The Judge dismissed the case primarily based upon two applicable Texas laws: The Texas Religious Freedom Restoration Act (RFRA) and the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA). Both statutes invalidate restrictive covenants against use of real property as a religious institution, upholding First Amendment rights.

Reading the lengthy Motion for Summary Judgment filed by attorneys for the defense, available from the Liberty Institute news release, it was obvious that Mr. Schneider, representing himself, and the HOA, represented by their attorney, had no chance of prevailing. In addition to the obvious violations of religious freedom rights, there were hundreds of pages of case law to back up at least a half dozen affirmative defenses, and transcripts of depositions of Rabbi Rich, Mark Gothelf, Mr. Schneider and two other HOA Board members.

So what exactly happened in Highlands of McKamy IV & V HOA?

Well, it was another typical story of HOA conflict. From 2011 – August 2013, before the Orthodox Jewish Congregation moved the location of their gatherings from one home in Highlands of McKamy to another one across the street from David Schneider, there had been no complaints from neighbors or the HOA.

It often takes just one person, in this case Mr. Schneider, to instigate conflict in an HOA. And that conflict is almost always about some alleged or trumped up violation of a restrictive covenant or Board enacted rule. And quite often – as was the case this time – the restriction itself is unconstitutional at the state or federal level, or both.

Based upon testimony supplied by the Rabbi, Mr. Gothelf, Schneider and two other Board members, the reader recognizes the typical hallmarks of HOA conflict:

·      A ringleader (Schneider) that organizes an allegedly questionable “election” based upon proxies that are not adequately handled in an unmonitored election process

·      A Board President that pushes his own personal agenda as soon as he’s elected

·      A Board member with a history of being difficult to get along with, that has a history of suing people

·      Fellow Board members that follow the Board President’s lead

·      Questionable record-keeping and official document storage and handling practices

·      Board members that are unfamiliar with HOA law and/or their own governing documents

·      A Board that fails to heed their HOA attorney’s advice, yet that attorney is complicit in filing a case he knows has a high probability of failing

·      The tendency of a Board to keep the cost of this legal challenge a secret

·      A divided membership, resulting in angry homeowners and a Board recall attempt that is successful in removing Mr. Schneider in July 2014, but not the remaining Board members

·      Negative attention for the HOA in the local media, and by word of mouth

·      Over a year of stress and unnecessary legal expense for the Gothelfs and the Congregation

Hopefully, this will end the campaign against the Congregation, many of them neighbors in the HOA.  I certainly hope there will not be an appeal. The good Rabbi Rich is wise when he states, “We don’t view this as a victory. The victory would be when the whole neighborhood comes together.”

http://dfw.cbslocal.com/2015/02/04/hoas-case-against-dallas-congregation-tossed/

https://www.libertyinstitute.org/news