Category Archives: Government

Another Train Wreck! Headed Straight For You!

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I take no personal joy in bringing you these HOA horror stories. But I have no problem being the Paul Revere of the Gated Community industry. Read the story linked below. And trust it. It’s real.
 
Is Your Homeowners Association Underfunded?

Is Your Homeowners Association Underfunded?

by the Real Estate Bloggers

It is one of those horrible scenarios, but you may be on the hook for a potentially large assessment from your homeowners association, and not even know it. In fact, your homeowners association may be close to being broke…

When you buy a home that is governed by a homeowners association you sign a long document that gives the association certain powers over your property. Typically you get the bylaws right around closing time as you have 100 plates spinning in the air, and you give it a quick glance at the homeowner bylaws and then sign that you agree to be bound by them.

This could be costly. These agreements govern how the homeowners association can collect their dues, including potentially foreclosing on your house to do so, how you must maintain your home, and assess special fees if the association needs to make upgrades or create new amenities.

So you may wake up one day to hear about a $10,000 assessment because the association feels the need to fix a problem or add an amenity and it will be coming out of your bank account.

Now here is the scariest part, a majority of the homeowners associations in the United States are underfunded. The housing crisis has put incredible pressure on the associations as people just can not pay their dues, or the homes in their neighborhoods are in foreclosure.

Foreclosures on delinquent properties by homeowners associations were almost unheard of before the financial crisis of 2008. Now lawyers and real estate researchers say they are becoming more common as association funding bases shrink because of previously foreclosed homes’ standing empty. About 70 percent of association-governed communities are underfunded, up 12.5 percent from 10 years ago, according to Association Reserves. The average association has financial reserve accounts — the amount required to maintain infrastructure and common areas — that are only funded at 52 percent, down from 60 percent a decade ago, its research shows. via AOL Real Estate

This is not to scare you from buying a home with a homeowners association, but do read the documents when looking at the neighborhoods and ask about potential assessments in the future, or common maintenance issues that you see. It may save you from an expensive mistake.

(link to The Real Estate Bloggers)

http://www.therealestatebloggers.com/is-your-homeowners-association-underfunded/

Container Home VS HOA Living

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guest blog by Nila Ridings

 
Oh, to be HOA free!  People are finding all sorts of creative ways to put a roof over their heads.  Sometimes that means a sacrifice of space for the savings of money.  Which means less need for high-stress and high-income employment.  Or it’s an opportunity to pay off school loan debt. Or spend less of your retirement savings on empty space that eats utilities, creates taxes, insurance, maintenance and needs constant cleaning.  And yet for others it’s a way to stay out of an HOA or condo association.
 
It’s a housing movement that is catching on and growing by leaps and bounds.  Could it be because we are learning that life is about living not about servicing debt and empty spaces? Or it might just be the brutal experience of living in a nightmare condo association or HOA that has shocked us into seeking a place that can be moved if our surroundings start to feel like we are trapped.
 
Whatever the reason the creativity seems endless in our quest for uncontrolled shelter.  This one even offers a roof top deck!
 
 
http://www.tinyhouseliving.com/casa-cubica-a-tiny-container-home-2/
 

CAI Socks It To Homeowners In Tennessee!

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One of our blog members in Tennessee says the CAI appears to be the only group spending its lobbying money on a Homeowners Association bill now before the legislature.

The proposed bill would make important changes to protect private homeowners in that state.

But the crows at CAI have billions of dollars at their disposal.They make sure that Tennessee lawyers have guaranteed employment as they dip deeply into the pockets of homeowners.

The bill actually sounds like a pretty good one. But in HOA Amerika logic and justice are not really compatible concepts.

The following is an exact copy of what a CAI bigwig is telling his minions to lobby:

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To: All Community Association Board Members

From: Scott Ghertner

Date: February 6, 2014 Subject: Urgent legislative call to action – HB 2060 and SB 2098

As Chairman of the Tennessee CAI Legislative Action Committee and Co-President of Ghertner & Company, I would like to immediately bring to your attention some very disturbing legislation being introduced this month in our Tennessee legislature. Representative Jeremy Durham and Senator Jack Johnson, both of Williamson County, are co-sponsoring a bill (HB 2060 in the House and SB 2098 in the State Senate) that seeks to significantly diminish the authority of condominium and home owner associations in Tennessee.

This bill if passed will:

 Eliminate the automatic lien that associations have with regard to delinquent payers , thereby potentially

jeopardizing the financial solvency of associations and the willingness of lenders to make loans to associations and unit owners;

 Limit the amount an association can fine for rule violations;

 Attempt to insert State rules regarding parking enforcement on public streets within the association;  Prohibit associations from enforcing covenant restrictions with regard to political signs.

Please contact these leaders today and inform them that you want them to withdraw this bill immediately!

Senator Jack Johnson at 615-741-2495 or via email at sen.jack.johnson@capitol.tn.gov

Representative Jeremy Durham at 615-741-1864 or via email at rep.jeremy.durham@capitol.tn.gov

You can also contact the following members of the House Business and Utilities Subcommittee who will hear House Bill 2060 and let them know that you do not support this bill. Please remember the committee members listed below did not introduce this bill and will be hearing about this bill for the first time next week. So we ask you only to communicate to them your opposition to this proposed bill.

Chairman Art Swann at 615-741-5481 or via email at rep.art.swann@capitol.tn.gov

Representative Kent Calfee at 615-741-7658 or via email at rep.kent.calfee@capitol.tn.gov

Representative Barry Doss at 615-741-7476 or via email at rep.barry.doss@capitol.tn.gov

Representative Pat Marsh at 615-741-6824 or via email at rep.pat.marsh@capitol.tn.gov

Representative Jason Powell at 615-741-6861 or via email at rep.jason.powell@capitol.tn.gov

Representative Curry Todd at 615-741-1866 or via email at rep.curry.todd@capitol.tn.gov

Representative Tim Wirgau at 615-741-6804 or via email at rep.tim.wirgau@capitol.tn.gov

Thank you for your attention to this very important issue.

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Now that we know exactly how CAI plans to throw its influence around, they’ve provided a list of legislators who they consider weak…so we can now lobby them right back. 

Open Letter On LinkedIn About The CAI

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by Deborah Goonan, Ormond Beach, FL

(The oft repeated rhetoric) is that further regulation of HOAs would amount to increased “government control.” In fact, the purpose and goal of smart regulation of HOAs is to protect owners’ rights by way of limiting the power of HOA corporate Board governance through a proven system of CHECKS AND BALANCES. The goals of regulation must not be to control community choice in HOAs, but rather to provide a favorable environment where the rights of owners are balanced against the rights of the Association, to allow for all members to have a voice in self-governance, and to promote harmony rather than division in communities. 

I trust that legislators will ignore the tired CAI, status-quo rhetoric repeated over and over again on this forum, the same rhetoric that has prevented substantive HOA reform in states all over the country. To what end? How does ignoring obvious problems, and washing one’s hands of responsibility for fair and just treatment of constituents benefit communities, states, and our country? 

I trust that readers of this and similar forums will seriously consider the cumulative negative effects that have resulted from limited respect for the rights of owners, in favor of special interests. Those of you who “get it,” please let your legislators know that you support positive reform and consumer protections for millions of owners and residents in over 300,000 community associations across the country.

Tequila Tab (Unknowingly) Paid By The Homeowners

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 guest blog by Nila Ridings

Far too often board members are using the HOA funds to make personal purchases.  This LA Times reader, who appears to be a board member, questions how to stop other board members in the HOA from buying booze, cigarettes, dog food, and chewing gum with the dues.
 
This may seem like a no-brainer to most of us.  You know, like if a friend hands you $50 and asks you to pick-up a copy of Neighbors At War! by Ward Lucas at the Tattered Cover you wouldn’t buy a copy of The Boy Who Was Raised By Librarians by Carla Morris and Brad Sneed for your grandson with your friend’s money.  Why?  Because you have integrity and your friend trusted you with their money.  But some board members think you should trust them with your money and never question what they do with it.  They ignore the fact that as board members they have a fiduciary responsibility.
 
My HOA encountered this a few years ago when the board president died.  His successor sent a $180 floral bouquet to his funeral.  This was discovered when some homeowners were reviewing financial records.  When it was addressed during a board meeting the board justified it as being only thirty-five cents per homeowner.  The question was not raised to be cost-justified! It was raised because dues are not to be spent on funeral flowers!  And since our community has TEN MILLION DOLLARS unaccounted for under this guy’s “leadership” many of us would not have willingly donated two cents to his flower fund.
 
Living in an HOA should not come with a blind faith and trust that your board member neighbors are honest people.  Far too often it has been proven they are nothing but liars and thieves.  Making purchases for non-HOA related items is a form of theft.  And it cannot be justified in any other way.  Ask to see the financial records and go over them closely…you just might be very surprised to learn what you’re paying for.
 
http://www.latimes.com/business/realestate/la-fi-associations-20140126,0,3432150.story#axzz2s69SwcGT