Slowly, but surely state legislators are hearing from bullied homeowners that the national HOA scam is ruining lives. And more news agencies are doing stories on out-of-control boards. The story linked below is from South Carolina which has a growing number of homeowner complaints.
Legislators tell themselves, “Of course, we can pass some laws.” Only problem is they can’t. The U.S. Constitution guarantees the ‘right to contract.’ And you certainly can sign a contract to give up your constitutional rights. That’s the rub. Florida’s Deborah Goonan has it right when she says at least we can license HOA management companies. That’s a good start. But it won’t end the nightmare of board members who feel entitled and empowered to throw their weight around.
Still, the more people who complain to legislators, the better. Ultimately, though, the solution has to come from the courts.
Anybody who’s seen the ugly insides of the national HOA scam knows that Homeowners Associations are lawsuit machines. In most lawsuits and criminal actions Americans have access to the Due Process clause of the U.S. Constitution. In the typical Homeowners Association each member unknowingly contracts away that access. Bam! In Pennsylvania Dutch, “there goes the egg money!”
Throw away your access to Due Process and every lawyer within spitting distance knows there’s money to be had. Free money. Your money. Paint your door the wrong color and you get fined, liened, sued and you pay all the HOA’s legal expenses. Lawsuit machines. No other possible description.
In Arizona, a prominent HOA law firm is all upset by a court ruling that says lawyers can’t tack on extra legal fees they rack up trying to garnish the wages of a losing homeowner.
Rest assured, though, this law firm has a number of sneaky plans to hijack this decision. The lawyers win. The lawyers always win.
Yes, that’s pretty much the new code word for Homeowners Associations: Gentrified or Gentrification. And it’s the word of the day in Denver where brand new HOAs or condo associations are trying get rid of some homeless shelters and rescue missions. The missions have been in the lower downtown Denver area almost forever. But Coors Field changed everything.
The now-famous home of Colorado Rockies baseball was built where land was cheap, right at the intersection of skid road and the nation’s central railroad hub. The rescue missions continued to do their work but suddenly the ‘gentrified’ wanted to live near the ball park. Century-old slaughter houses were turned into luxury condos. A two-bedroom setup where cows were once butchered can now cost millions of dollars.
The bums still lie around on the streets where they always did. The City of Denver issued a permit for one mission to improve its homeless shelter. But the ‘Newly Gentrified’ went nutz and took the whole mess to court. The judge issued his order this week. Gentrification is in. Bums are out.
A huge jury verdict in Nevada was just awarded to a homeowner against two HOA collection companies. Across the country many HOA boards assess minor fines and liens against homeowners and then turn the accounts over to their law firms for collection. It’s so tempting for an ambulance-chasing law firm to turn to the easy profits of debt collecting. It’s not unheard of for minor fines to turn into huge foreclosures. Law firms add so-called ‘collection costs’, legal fees, interest and other such nonsense onto nickel-and-dime fines. It’s enormously profitable for such lawyers to have a buddy down at the county offices when the properties are auctioned off for pennies on the dollar. A whole roomful of Las Vegas lawyers are in jail right now for similar racketeering convictions.
The law firm hired by the Arrowcreek Homeowners Association in Washoe County, Nevada was accused of violating federal and state regulations against racketeering and violations of the Fair Debt Collections Act. The jury agreed and awarded the homeowner more than $600 thousand.
The link below is to a press release by the homeowners legal team. Obviously, the press release is to attract business. But since this law firm has affiliates in many other states it could possibly strike some fear in the hearts of the HOA Lawn Nazis!
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!
