Tag Archives: Realtor

Texas Judge to Decide Meaning of ‘Family’ in HOA

guest blog by Deborah Goonan

This is an update to an earlier blog about the Plantation Resort 2 in Frisco, Texas. The PR2 HOA is filing a lawsuit against City House, to block use of a home they recently purchased and renovated for use as transitional living for homeless youths.

The local CBS affiliate has been covering the story, and the link to their video is below.

While PR2 HOA has allowed two young women to move into the home owned by City House, they have made it clear they do not want any more residents to join them. The house was originally intended for transitional living for 6-8 youths. Public records indicate that PR2 homes are good-sized, most with 4 bedrooms and between 2500 – 3000 square feet, with an average sale price hovering around $270,000.

This is the part that really sticks in my craw. A statement made by PR2 HOA Attorney Chad Robinson, Riddle & Williams:

“City House is a great cause. But, on the flip side, we can’t pick and choose which rules we enforce.”

To put this statement into perspective, let’s consider that the real estate industry has had a long history of creating all sorts of deed restrictions and business practices intentionally designed to homogenize neighborhoods in the interest of protecting home values. Up until Fair Housing and Civil rights legislation was enacted in the 1960s, federal housing and lending policies explicitly aided and abetted segregation between the haves and the have-nots, along racial lines.

Since the late 1960s, the real estate industry has created hundreds of thousands of HOAs, many of which continue similar, less explicit homogenizing practices by way of carefully crafted CC&Rs. And because the Rules are considered “contractual agreements,” and HOAs are not acknowledged as de facto governing entities or state actors, a lot of ambiguous and petty restrictions escape federal scrutiny.

In other words, you can agree to any rules and restrictions you want, even if they happen to be petty, socially reprehensible, un-American, or unconstitutional. Remember folks, in HOAs, The Bill of Rights Need Not Apply.

At issue in this dispute is whether a transitional living arrangement fits the definition of “family,” as specified in the governing documents for PR2 HOA. City House believes that their non-commercial use of the home as a stable living environment falls within the definition, but PR2 HOA Attorney Robinson does not.

But in 21st century America, what, exactly, constitutes a family? Gone are the days when most family households consisted of mom and dad with a couple of children. We have single-parent households, same-sex partners with children, families blended following remarriage after divorce or death of a spouse, unmarried couples with or without children, extended families that include grandparents and adult children. And what if you rent the home you own to unrelated roommates? Which of these falls into PR2 HOA’s narrow definition of “single family use?” How many of these variations already exist in PR2?

Next week a judge will hear the case and decide whether City House can continue their great work with homeless youths, and create transitional families in PR2.

(link to CBS-local coverage of Frisco HOA dispute with City House)

 

Another Insignificant HOA Embezzlement?

guest blog by Deborah Goonan

Another isolated incident?

It seems like there are several reports of HOA theft and embezzlement each week. Sometimes it’s a rogue Board member writing checks to herself or buying himself a new car. But sometimes it’s the Community Association Manager skimming funds, as in this case in Georgia. Atlanta, Dunwoody, and Chamblee police departments are currently investigating up to twelve HOAs where Michael Sisson was hired to manage the communities’ operations and finances.

Yes, up to one dozen.

So far, Dunwoody police have filed charges against Sisson involving $180,000 in missing funds from two separate HOAs.  Hopefully, these HOAs had adequate insurance policies and were paid in full. No doubt they were relying on Sisson to pay the bills.

Anyone care to guess how much this investigation is going to cost taxpayers, including the ones who are fortunate enough not to live in one of these HOAs?

(link to news report about GA HOA embezzlements)

Thuggery in Fort Lauderdale

We did a blog here a month or two ago about the president/treasurer of a Fort Lauderdale HOA. Seems the neighbors are irked that this guy has written tens of thousands of  of dollars worth of ‘salary’ checks to himself. Then he got pretty cocky and used money from the neighborhood budget to buy himself a new car.

Well, police have finally seen fit to arrest the guy on a second class misdemeanor. A couple of observations, here. The most this guy can get is a 30 day jail term and six months probation. That’s not bad work at all, if you can find it.

Second observation. The story was broken by a TV reporter. That means (to me, anyway) that the news media are starting to discover a lucrative source of stories and on-camera confrontations among corrupt Homeowners Associations. We’ve got to remember the pioneer in this kind of TV journalism, Nevada’s Darcy Spears of the HOA Hall of Shame report.

(link to Florida arrest story)

 

Beach Erosion Threatens SC Condominium

guest blog by Deborah Goonan

Stories like this one never cease to amaze me. Some people will do just about anything for an ocean view. An illegal sea wall and some sand bags are the only thing stopping the Ocean Club condominium from washing out into the Atlantic on the coast of South Carolina.

The million dollar unasked question is why was a construction permit issued on this site nearly 30 years ago? The resort sits at the mouth of the Dewees inlet, where waves batter the fragile coastline.  Adjacent to the condo building of 150 units, part of the beachside golf course had to be closed, slowly eroding into the ocean.

Condo owners face a hefty $750,000 fine from the state environmental protection agency for erecting the illegal seawall in 2013. Even after spending nearly $3 million trying to keep beach erosion in check, owners must once again replenish the beach next month, just as they did in 2008.

It’s a battle with Mother Nature that they are eventually going to lose – if the regulatory fees don’t bankrupt the Association first.

(link to news article about Ocean Club Condominium) 

New Mexico HOAs Struggle After Embezzlement Investigation

Embezzling from HOA budgets is the gift that keeps on giving. More than two months ago a New Mexico realty business which managed a number of Rio Rancho HOAs was raided. All the computers were seized. Homeowners don’t even know how much was stolen because the management company’s records are still under lock and key.

Investigators say hundreds of thousands of dollars were embezzled. All Rio Rancho homeowners know is that their monthly dues are going up. They have no way of knowing how high. Strange, that while the consequences are so severe most HOA thefts by board officers and management companies are only discovered by accident.