Category Archives: Government

Now, For Your Involvement!

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guest blog by Deborah Goonan

Are you interested in improving living conditions in homeowners associations (HOAs), condo associations, and cooperatives in the US? Or would you like to see a broader array of housing choices in this country?

A group of housing advocates is interested in organizing to promote consumer-friendly policies and standards for local governance and management of our communities, particularly those that are private, Association-Governed Residential Communities (more commonly known as HOAs). We are conducting a CONSUMER–FOCUSED survey of interested residents and former residents of HOAs in the US.

We want to hear from you.

What are the issues that are most important to you?

What has been your personal experience living in HOAs, Condo Associations, or Cooperative?

Why are you interested in change, and have you been involved in trying to make that happen?

The survey is sponsored by Sara Benson, proprietor of Association Evaluation LLC, an innovative, comprehensive community association rating service, the first of its kind in the US. Benson and Don DeBat, both of Chicago, are co-authors of Escaping Condo Jail, a book that exposes the truth and debunks the myths surrounding the condo lifestyle. Both authors are committed consumer advocates with a lifetime of experience in the Real Estate industry. Benson is a veteran Real Estate Broker and former HUD consultant, DeBat is a Journalist and Editor of Real Estate columns in two Chicago newspapers. You can read book reviews and learn more about the co-authors on Amazon.com.

Please note that this survey is consumer-focused, and is NOT sponsored by Community Associations Institute (CAI), National Association of Home Builders (NAHB) or any other industry or trade group. Our goal is to give housing consumers a voice in US housing policy-making, and that begins with listening to your concerns.

Please take a few minutes to respond to our brief survey by August 1st. We value your input and your privacy. Your responses will remain confidential, and will not be shared with salespeople, vendors, or anyone in your HOA.

Here is the link to the survey:

http://bit.ly/1K11ovs

http://independentamericancommunities.com/2015/07/26/do-you-want-to-organize-improve-our-communities-and-preserve-the-american-dream/

 

HOA Burglars!

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I guess we learn things all the time and this one is interesting. It’s a paper published in the University of Cincinnati Law Review about the 2008-2009 mortgage meltdown. Lending institutions are way behind on dealing with all the foreclosed properties. They’ve hired property management companies to help deal with the overload.

Now there’s been a rash of lawsuits by homeowners late on their payments who’ve come back to find that their homes have been trashed and their personal property stolen. Seems it’s being done by these third-party contractors hired by the mortgage companies.

I wonder if there’s any spillover by management companies that foreclose on liens on people in Homeowners Associations?

(link to paper on mortgage burglaries)

 

Florida HOA Update: Mostly Bad News

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guest blog by Deborah Goonan

Spencer’s Plantation homeowners association is in the midst of conflict, according to a report from First Coast News, Jacksonville.

Defunct developer, Mercedes Homes, ended business operations in 2012. Since that time, SPHOA’s Board leadership has changed several times, dwindling from 5 members a few years ago to only 2 members as of June 2015. The management company has been changed twice, most recently a few weeks ago, according to public records.

According to the report, the new Board has been aggressively pursuing homeowners for various minor covenant violations, issuing hefty fines. A search of the Clay County Clerk’s database confirms that the past 2-3 years have seen a fair amount of activity, with the HOA filing liens upon properties that were later paid and satisfied by those owners.

Recall attempts by homeowners have failed to remove the Board President and Treasurer, and it looks like the matter will now have to go to arbitration with Florida’s Division of Business and Professional regulation (DBPR).

Do low annual assessments = fewer HOA conflicts?

One fact that caught my eye in the news report: Spencer’s Plantation includes 222 homes, with annual assements of only $250. Reading the Declarations online, this HOA’s common areas consist of a few storm water “lakes” and a small green space. This is a relatively small, no-frills HOA, especially for Florida.

There is sometimes a misconception that HOAs with minimal common area maintenance and low annual fees are somehow less of a hassle than elaborate gated communities with golf courses, club houses, pools, and the like.

But when I read through the Covenants, Conditions, & Restrictions (CC&Rs) for Spencer’s Plantation, I noticed that the Use Restrictions and aesthetics standards — what I like to call “Keeping Up Appearances” — or KUA Rules, are every bit as elaborate as those fancy master planned communities such as Celebration or The Villages.

So that means that the HOA Board can, and often does, end up with a few members who are gung-ho on enforcing those elaborate rules to the letter. And often, there is a property management company and an HOA attorney aiding and abetting those efforts. After all, these “service” providers make a living as HOA Enforcers.

Apparently, that’s what’s going on at Spencer’s Plantation, according to the homeowners that contacted First Coast New. It’s a familiar story that we hear about over and over again.

Don’t be fooled by the size or simplicity of the community. Be sure to read all of the CC&Rs, plus any related Rules and Regulations, very carefully. Better yet, hire a qualified real estate attorney to represent your interests from the time you execute a sale contract through closing. If reading and understanding the fine print and details raises red flags, better to walk away before the deal is done!

Read the story on First Coast News here:

 

Another Neighbor From Hell

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Yes, they do exist. Neighbors from Hell. And despite my anti-HOA angst I have to admit it when a certain neighbor should be hung from a yardarm.

Orange County, Florida, this woman even looks creepy. She set up a massive stereo speaker woofer system that intentionally blasted noise through her floors to drive her downstairs neighbor crazy. She could control the entire system from her smart phone.

Marianna Seachrist. What a piece of work!

It took a while, but the cops finally showed up. And now this attractive Florida beauty has a date with a judge.

(link to Marianna Seachrist facing criminal charges)

http://www.wftv.com/news/news/local/deputies-woman-set-elaborate-system-bother-neighbo/nmwKx/

Stan “The Man” and the Transfer Scam

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In my book, Neighbors At War, I wrote about a nasty little piece of HOA theft called ‘transfer fees. ‘ They’re hidden deep within the text of your CC&Rs and the vast majority of home buyers never even see them. Sometimes they’re not even in the paperwork. But they can cost you hundreds to thousands of dollars at closing time. What are transfer fees? They’re a scam. They probably refer to photocopying costs which at ten cents a page shouldn’t cost you more than about ten bucks. But the transfer fee is pure slush that pours into the pockets of the nearest property manager or lawyer.

Stan Hrincevich is the HOA Warrior in Colorado who’s long been trying to educate legislators about this scam. And Stan is Enemy #1 on the CAI’s list of really bad guys. To me he’s Colorado’s biggest hero. His battles against DORA (Department of Regulatory Agencies) are legendary. The Colorado Legislature created an HOA Ombudsman’s Office to try to shut Stan up. Sadly, the Ombudsman has no budget, no power and is dumber than a box of rocks. The only thing this ‘Ombudsman’ ombuds for is his own salary.

That’s the background.

Knowing that this same kind of situation exists in almost every state in the union I’ve asked Stan for permission to reprint a recent news release he sent to homeowners around Colorado.

by Stan Hrincevich (www.coloradohoaforum.com)

The HOA Manager licensing law requires disclosure of fees imposed by property management companies on home owners to be in their contracts with the HOA. If you know of anyone who has recently (after July 1, 2015) sold or bought into an HOA and paid an HOA Transfer Fee (this can be identified as a one liner on the closing documents) let us know. These home owners might be eligible for a refund and the management company fined. We will help in filing their complaint with DORA to pursue this issue.

The HOA Manager licensing rules are very weak for home owners and purposely left out specifics and justifications regarding fees imposed by management companies on home owners. However, there is still room for filing complaints and requiring HOA Boards and management companies to justify the imposition of the HOA Transfer Fees in HOA contracts and governing documents. Additionally, your HOA Board may also be required to inform home owners if they endorse such fees and to change the HOA governing documents/declaration to indicate the Transfer Fee is a financial obligation of the home owner upon the sale of their home (which may require a vote of home owners).

When someone buys a home in an HOA they are to be apprised of all financial obligations to the HOA as a home owner. This includes HOA dues and special assessments. The HOA Transfer Fee is rarely if ever disclosed as a legal obligation and therefore the property management company (and HOA) should be precluded from assessing this fee. The new licensing law precludes assessing fees unless it is in their contract with the HOA and/or supported by the HOA governing documents.

Filing a complaint costs zero and we will help as needed.

We will periodically issue this email requesting your cooperation on this topic.

NOTE: THE COLORADO HOA FORUM PROVIDES INFORMATION AND OPINION ON HOA ISSUES BUT SUCH INFORMATION SHOULD NOT BE CONSIDERED LEGAL ADVICE. WE ARE NOT LAWYERS. ALL LEGAL ADVICE ON COURT CASES AND OTHER LITIGATION SHOULD BE HANDLED BY A LAWYER.