Tag Archives: Ridings

Introducing The City HOA

guest blog by Nila Ridings

Pagedale, Missouri appears to have learned the “tricks of the trade” from HOAs by turning homeowners into cash cows.

Most city codes do not allow for cars up on jacks in driveways or front yards. They frown on RVs, travel trailers, and eighteen wheelers parked in driveways. And peeling paint or a falling fence will no doubt be met with a violation warning letter. But the City of Pagedale has a line of homeowners waiting to pay fines for a BBQ grill in the front yard, a free-standing basketball goal on the driveway, or the wrong color of blinds in the windows. If the windows are missing screens it makes for another reason to fine the homeowners. Even an 84 year old woman has been ordered to change her window treatments or be fined.

I’m wondering if a former HOA board member has been elected to the Pagedale City Council? This behavior sounds all too familiar!

The Institute for Justice has gotten word of this excessive fining against the Pagedale homeowners. After investigating the homeowner’s claims they stepped in with a lawsuit against the city. It’s unfortunate this group doesn’t come to the rescue of the HOA homeowners, too.

Be sure to take note of the homeowner who has taken out loans to pay her fees at close to a 100% interest rate. I think somebody also needs to investigate this lender as well!

What Happens If HOAs Can Affect Your Credit Score?

guest blog by Nila Ridings

At various times, I have heard the discussion of HOAs having the ability to report delinquencies in HOA dues to credit reporting agencies. The link below offers some excellent information about the importance of having excellent credit. It also brings to mind the additional risks of owning in an HOA.

For example: Numerous times in my growing up years, my dad told me to never co-sign a loan for somebody. He would not be proud to know I listened to him and never co-signed for a friend’s loan, but I did co-sign to pay the debts of 512 of my neighbors! That’s right. Buying in an HOA puts every homeowner in a position of being the guarantor on all debts, loans, lawsuits, settlements, construction defects, and disaster rebuilds. That makes co-signing for a car loan for your recent college-graduated kid brother seem like small potatoes, doesn’t it?

According to this article, a bad credit score can prevent you from getting a license to practice medicine, law, and other professions. Hypothetically, let’s say grandma gives you the gift of a down payment on a condo so you have a place to live while you go to medical school in Boston. And you leave your trash can out twelve hours too long because an emergency happens and you stay to help at the hospital. So, the HOA fines you $100 for the trash can violation. You refuse to pay it. They tack on another $2,000 for the attorney to send you a letter demanding the money for the fine. Next comes interest, more legal fees, and on and on. If this HOA had the power to report to the credit reporting agencies you could graduate from medical school, pass your boards, but still not be issued the license to practice medicine! All because of one day when you were trying to help save lives you didn’t make it home to put the trash can away by the deadline.

If I shared this scenario with a non-HOA resident they would most likely laugh and say that is insane!!! But for those of us who live in HOAs we know all too well this could very likely happen.

I think it makes yet another good point why HOAs should never have the ability to affect the homeowner’s credit. Not to mention so many of these HOAs have such poor financial record keeping.

For example, I talked to a neighbor a few days ago. He told me our HOA has gotten a judgement for back dues against him. He asked for a ledger so he could see what charges they have applied. They told him they do not have one, but would try to get it from the property manager. The property manager said they do not have one, but maybe the previous property manager has one. The only thing anybody seems to have is a total amount he owes. In the past, he has owned a business and finds this insane that nobody can give him a detailed ledger of the charges. I agree with him, it is insane. And he is at the mercy of them to pay what they demand because his house is being held hostage with a lien. What would happen if they could also destroy his credit rating?

Clearly, too much power would be in the hands of the totally incompetent. There’s no limit to the destruction they could cause to homeowners in HOAs!

America, please wake up! Please stop pretending that HOAs are some sort of fun-loving living paradise! Please stop building these horrible nightmares! And please prevent them from EVER having the authority to report to the credit bureaus!

(link to column about credit scores and how they can impact you)

 

 

Out Come The Checkbooks In Visalia, California

guest blog by Nila Ridings

Oh, the tempers have started furiously flying at the sight of the assessment letters arriving in the mail!

The homeowners in the elite HOA of The Lakes in Visalia, in the Central San Joaquin Valley, are fuming because the private roads need paving (according the property manager and the board) and that requires an emergency assessment of $2,300 per lot. If a person owns three lots they need to triple that payment. Why the need for the emergency assessments? Quick answer: The reserves are underfunded. Which comes as no surprise to all of us who work daily on HOA issues.

The HOA attorney has informed the unhappy homeowners that the HOA board is within its legal rights to demand the assessments. And, if not paid, they will lien the properties until it is.

Our regular readers have heard me say this many times: Buying into an HOA comes with massive risks. When the ink dries on the purchase contract, you become the guarantor for all debts, loans, lawsuits, settlements, liabilities, construction defects and disaster rebuilds for the entire HOA. There is no way to escape it. The CC&Rs are never quite that clear and easily understood, but that’s what it boils down to.

The Lakes of Visalia has now joined the massive number of HOAs that are already war zones. Welcome to the REAL WORLD of HOA living!

(link to The Business Journal on paving fight)

 

 

 

Judge Approves Purple Swing Set!

guest blog by Nila Ridings

The Stout family is celebrating around the purple swing set tonight! It’s not going away. The parents are not going to jail. The kids can smile and be happy while swinging to their hearts content.

The Raintree Lake board of directors (Missouri) just wasted a lot of money on legal bills and put their HOA on national news. Not to mention the story went viral on the internet. Let’s HOPE they learned something from this case.

 

Here’s an excerpt from the court ruling:

FINDINGS OF FACT
Plaintiff Raintree Lake Home Owners Association (hereinafter “Raintree Lake” or “Plaintiff Raintree Lake”) filed its Petition for Mandatory Injunction and Associated Relief on December 29, 2014, requesting that the Court order Defendants Lewis W. Stout, Jr. and Marla R. Stout (hereinafter “Defendants”) to remove their purple-colored swing set from their property and the subdivision, that the Court award fines, and that the Court award reasonable attorney fees and costs incurred.

Defendants filed their answer to Plaintiff’s Petition for Mandatory Injunction and Associated Relief on February 27, 2015, asserting various affirmative defenses.
A trial on the merits was conducted on August 21, 2015 before this Court.
Plaintiff presented evidence alleging that Defendants were parties to
“Declarations of Covenants, Conditions and Restrictions” (hereinafter “Restriction Agreement”), dated October 29, 1973, and that Defendants were in violation of Article VII, Section 3 of the Restriction Agreement by the erection of the purple swing set at issue in the above-captioned matter.

Article VII, Section 3 of the Restriction Agreement provides that Defendants will not make “improvements, alterations, repairs, change of paint colors, excavations, changes in grade or other work which in any way alters the exterior of any property or the improvements located thereon” or “as relates to any structure on the property to commence it, erect it, make it, or do it” without prior written approval of the property owners association’s Architectural Review Board.

Plaintiff Raintree Lake presented evidence suggesting that Defendants were in breach of the Restriction Agreement when they erected a purple-colored swing set on their property without the written approval of the Architectural Review Board.
Defendants presented evidence that attempts were made to obtain the approval of the Architecture Review Board but that an arbitrary standard was used by the Board, preventing the approval.

Defendants also presented testimony that the color of the swing set met the requirement as set forth in the Raintree Lake Property Owners Association Architectural Review Board Guidelines which states for swings sets and play equipment: “Color: must be subdued and within harmony with other colors of the community including slides, swings and canopies.”

CONCLUSIONS OF LAW
Plaintiff Raintree Lake failed to establish that it is entitled to injunctive relief pursuant to § 526.030, R.S.Mo., and is therefore not entitled to judgment on its Petition for Mandatory Injunction and Associated Relief. An action seeking an injunction is an action in equity. “An injunction is an extraordinary and harsh remedy and should not be granted where there is an adequate remedy at law.” City of Greenwood v. Martin Marietta Materials, Inc., 311 S.W.3d 258, 265 (Mo. App. 2010) citing City of Kansas City v. N.Y.-Kan. Bldg. Assocs., L.P., 96 S.W. 3d 846, 855 (Mo. App. W.D. 2002). The elements for a claim for injunction include: (1) irreparable harm, and (2) lack of adequate remedy at law. Id. Irreparable harm may be found when pecuniary remedies fail to provide adequate reimbursement for the improper behavior. Id. at 266. There is no “adequate remedy at law” when damages will not adequately compensate the plaintiff for the injury or threatened injury. Id. at 265-266.

Plaintiff Raintree Lake failed to present evidence as to the element of irreparable harm. There was no evidence presented to this Court that Plaintiff Raintree Lake will or has suffered irreparable harm as a result of the erection and/or color of the swing set. Although, as stated previously, irreparable harm may be found when pecuniary remedies fail to provide adequate reimbursement for the improper behavior, the evidence before the Court was that Defendants were initially fined in regards to the swing set but that fine was then set aside by Plaintiff Raintree Lake’s own Appeals Board. Plaintiff Raintree Lake failed to meet the first element required under Missouri law for permanent injunctive relief and therefore is not entitled to the relief requested in its Petition for Mandatory Injunction and Associated Relief. As the Court has found that Plaintiff Raintree Lake failed to prove the element of irreparable harm, the Court finds that it is unnecessary to address the second element, that there is no adequate remedy at law.

JUDGMENT
IT IS HEREBY ORDERED, ADJUDGED AND DECREED that the Court finds
in favor of Defendants and against Plaintiff as to Plaintiff’s Petition for Mandatory Injunction and Associated Relief.
IT IS FURTHER ORDERED, ADJUDGED AND DECREED that Plaintiff’s request for the award of fines is denied.
IT IS FURTHER ORDERED, ADJUDGED AND DECREED that Plaintiff’s request for reasonable attorney fees is denied.
IT IS FURTHER ORDERED, ADJUDGED AND DECREED that Defendants’ request for reasonable attorney fees is denied.
IT IS SO ORDERED.
Date:August 28, 2015

 

What’s The Cause?

guest blog by Nila Ridings

We’re back in Saint Louis, Missouri where homeowners are in the midst of a very heated battle.

Some are saying it’s over skin color. Others say it’s the barking dogs. A few think it’s the criminal history. Whatever it is, it’s heating up.

These folks live in an HOA. Personally, I do not see where the HOA should even think of getting involved in this battle.

The black lesbian lady with the four barking dogs has the NAACP and experienced Ferguson protesters backing her up. She has served time in prison for a murder-for-hire on her ex-husband. And that plan failed because her cousin was the hired killer and he ratted her out to the police. Somewhere along the way she acquired the barking dogs that are keeping the neighbor awake at night. She is also being accused of punching the neighbor lady in the face and leaving her with a swollen lip and bloody nose.

I see HOA involvement as nothing more than a promise to destroy the bank accounts of the homeowners. Others think they should enforce the CC&Rs of no more than two dogs per household. I still say stay away from this battle.

And for the lady who can’t get any sleep, I suggest a white noise machine with earplugs. You’ll never hear the barking dogs but be sure you have a number of smoke alarms in your house so you would hear them if there’s an emergency.

As the battle rages on, I will be watching from the sidelines.

(link to story in the St. Louis Post Dispatch)
Youtube video of barking dogs: