Tag Archives: HOA
On this rainy day in Kansas hearing such a happy and excited voice just made my day! I asked if the legal fees were covered. Enock said Liberty Council provided their defense at no charge. That information added to the excitement of the phone call.
Lies, Loans and Liabilities
guest blog by Dave Russell
Lies, Loans and Liabilities
So, your HOA has overspent, misappropriated funds or has simply “run out of money.” Now what? Well the answer here is simple, “let’s take out a loan!” That’s right, if your overinflated mandatory dues weren’t enough, your HOA is going to put you, the homeowner, on the hook for tens of thousands, if not millions of dollars for a loan.
Hypothetically, let’s say your HOA borrows a million bucks, you know, to “pay the bills.” What the homeowner may not realize is that the HOA Manager and/or the Management Company may possibly be receiving a minimum 10% “finder’s fee” for assisting the HOA in acquiring the loan. That’s right, a legalized kickback of over 100K for simply doing, well, nothing.
Call it what you want, a line of credit, or an extended line of credit, but it is still considered a LOAN. Is this really legal? Can your HOA board just simply borrow this money on behalf of its membership? The answer here is Yes and No. Yes, if your association doesn’t have any restrictions about “Loans” in their governing documents. No if there are restrictions regarding “Loans” in the governing documents.
Many associations do have provisions regarding loans however, those provisions are usually buried in a lengthy set of governing documents, that homeowners don’t read, or no longer have in their possession. In some cases, the governing documents require 2/3 of their membership approval before the HOA acquires a loan on their behalf. In some cases, your association may require the signatures of 2/3 of its membership before they sign those loan papers.
It happens often, loans being taken out without the required approval or signatures of the HOA membership. Maybe, I should have billed this story as, Fraud and Finders Fees vs. Lies, Loans and Liabilities.
I’ve seen this little scenario play out time and time again, and it’s wrong, simply wrong I tell you!
If your association is thinking about, or has acquired a loan, make sure it was, or is, being done legally. As the homeowner, you need to read through every governing document including, the CC&R’s, Bylaws, Rules and Regulations, and most importantly, the Articles of Incorporation, which are rarely ever read. Before your HOA makes you, the homeowner, liable for that loan, make sure they have done it legally and legitimately.
Spiders Run The Trost Family Off
guest blog by Nila Ridings
This time it’s not the HOA that ran a family out of the neighborhood. It’s 6000 brown recluse spiders.
Brian and Susan Trost purchased their $450,000 dream home in a Saint Louis, Missouri suburb and soon found it had little creepy crawling dangerous poisonous spiders running everywhere. They sued the previous owners, David and Tina Gault and got a settlement of $472,000 but haven’t collected a dime.
They contacted Jamel Sandidge, an expert from the University of Kansas. He determined the spiders did not arrive after the Trost’s purchased the property. They have State Farm Insurance, but no settlement has been given. Based on my experience with State Farm Insurance all I can say is, Good Luck!
Overall, if they end up not buying another HOA house, I think they will live happily ever after. Next time it could be the HOA that bites them. That could be worse than any spider out there.
(link to aol.com article spider invasion)
Wilbur Wins!
guest blog by Nila Ridings
I am so happy to share this wonderful news from Rori Halpern. She is the mother who fought long and hard to keep the family’s pot-bellied pig for her sons.
“Long day for all involved. We are beyond elated to say Wilbur Bacone will remain forever in our home, continuing to bring joy and happiness to all. Due to confidentiality agreements between both parties we cannot share details. The only thing that matters is that we can keep our boy without anymore worries. Thank you from the bottom of our hearts to all who came forward in support of us. We love you all.”
It is no surprise that the notorious HOA “gag” order has been placed on the Halpern’s. Typical HOA style when they lose a legal battle. We know in this case they did lose because Wilbur is staying put. I sure hope the judge awarded the Halpern’s reimbursement for their legal bills and punitive damages for their pain and suffering.
Who wants to take a guess at how long it will be before the next HOA sues a homeowner over a pot-bellied pig? My guess: at least one more before the end of the year!
Candidate For Congress Is Listening!
guest blog by Nila Ridings
Over the past week I have been emailing back and forth with Andy Ostrowski. He’s hoping to become the newly elected member of Congress from Pennsylvania. Tuesday, November 4th is the critical day that will decide whether his goal has been achieved. Please get out and vote regardless of what state you live in. If you live in Pennsylvania give your neighbor, church friends, golfing buddies, yoga sisters, or the freshly registered voter from the college campus a ride to the polls!
Somebody out there in HOA Land put a ‘bug’ in Andy’s ear about the abuse and suffering home owners are dealing with in condos and HOAs. He had no idea how bad it really is. He had friends a while back who had problems with their HOA, but that was where his exposure to the insanity stopped. Our emails have ping ponged back and forth and most of you know I don’t candy-coat my words. Andy knows we need a hero. He knows we need a legislator who will work across party lines. And he knows we don’t need any more politicians in bed with the CAI! He gets it!
You’ll find his website at the bottom of this blog.
And now a message from Andy Ostrowski-
Homeowners’ Associations – A Need for Congressional Action
“During my run for Congress, I have met many people with many unique needs for assistance, and government action. None has been as compelling as those Americans who are involved in property ownership in Homeowners’ Associations (HOAs).
I was surprised to learn that some 60 million Americans own property subject to HOAs, and have heard many horrific stories about the abuses that they suffer.
Home ownership – the right to own property, and use it for the purposes of raising a family, and providing solace for all of our private affairs, is a core value in our constitutional republic, and, in many ways, is part and parcel to the “pursuit of happiness.” These HOAs, however, are creating the pursuit of misery.
I have a lot to learn, but have heard enough, and understand enough to know that this is a widespread problem across this country, and something that may require Congressional action to address.
The Community Associations Institute (CAI) is a trade organization that passes itself off as an educational organization designed to promote “professionalism, effective leadership, and responsible citizenship,” but is, in reality, a lobbying group backed by builders and developers, and bent on getting their access to legislators across the county to create a legislative field tilted heavily in their favor – and they have been successful.
HOAs, and their Boards, serve public purposes traditionally reserved for governments, and elected officials, and this reveals one of the true hearts of the problem – there is no accountability to oaths of office to uphold and defend the constitution. People who try to sue these HOAs are told that they are not government entities, and do not have the same responsibilities and duties as do their governments. They are creatures of corporate law, and planned development acts.
Individuals unknowingly give up core constitutional rights to private entities created under the authority of law, and subject themselves to foreclosure actions, fines, forced entries, and evictions without the protections of law otherwise available. It is the lack of accountability that we at least theoretically can demand from our government, through, at the very least, the right to vote, that is the source of the true harm in this area – one that affects the lives of 60 million Americans – this needs to change.
To tie this in with my particular expertise, these HOAs are often then protected by the courts, which are subject to the same crony influences that the legislatures are often subjected to, and is further evidence of how the system is tilted in favor of the big banks, and corporate and monied interests, and away from the rights of the individual.
There are many proposals around among the individuals being hurt and harmed, and I will be studying and considering them all. The AARP, for example, has recently voiced concern that homeowners associations pose a risk to the financial welfare of their members. They have proposed that a homeowners “Bill Of Rights” be adopted by all 50 states to protect seniors from rogue Homeowner Associations. This bill of rights should apply to all homeowners and Constitutional protections should also be restored for a fair and balanced playing field.
The plight of the individuals whose pursuit of happiness is being obstructed, and whose lives are being ruined, is one area that needs specific focus.
This is a true civil rights issue as it involves legislatures across the country enacting laws that cut off constitutional rights, and access to courts for millions of Americans, and I will fight to give government back to the people by fighting for the rights of these individuals.”
Website for Andy Ostrowski for Congress:
