Across the country, more and more major news agencies are either doing, or are planning extensive stories on the HOA mess. It’s more than a mess. It’s a national outrage. It perpetuates the outrageous lie that a Homeowners Association will protect your property values. Not in my experience!
Here’s the link to an excellent story beginning with the victimization of an innocent family.
The Illinois Supreme Court has handed down some pretty goofy decisions on behalf of Homeowners Associations. I loved the one last year, the ruling that gave untrained, private HOA security guards police powers, the ability to pull over motorists and hand out tickets.
This latest one is a humdinger. It makes any new buyer of a condo responsible for all unpaid assessments, fines and legal costs run up by the previous owner IF it fails to pay the first monthly assessment on time. Once again, ask yourself what financial organization in its right corporate mind would invest in an HOA? And if you can’t find lenders, what does that do to property values?
(link to story on Illinois court decision)
Florida is choked with Homeowners Associations and their regulations can sometimes be draconian, such as no drying of clothing on the backyard clothes line. Here we are facing a worldwide energy crisis, we’re supposedly facing global warming. Yet HOAs threaten to fine, lien and foreclose on homes where somebody tries to save energy by hanging some towels out on the line.
Florida actually passed a law prohibiting HOAs from enforcing such prohibitions. HOAs and property managers should know the law. But they’re more comfortable bullying than in recognizing homeowners’ rights. The story linked below is about a Fort Myers homeowner who did know the law. But she’s now being targeted by the Cross Creek Estates Homeowners Association.
She’s going to lose, of course, because HOAs know that by the time a controversy has been settled the homeowners who try to stand up for their rights have to spend a fortune on legal bills. That’s why I frequently refer to the ‘national HOA scam.’ It’s all about funneling money into the pockets of lawyers, all the while claiming to protect property values.
At least this lady is getting a little emotional support from the news media. If you have friends in Florida just let them know about that state’s Right-To-Dry law. And drop this lady a note thanking her for her courage.
(link to laundry controversy in Fort Myers)
I blogged about the Cobblestone Community Homeowners Association a few days ago, but the update linked below is worth reading. While I can refute this reporter’s claim that “Most homeowners’ associations work and work well….” Hmmm, this leads me to believe this reporter is a novice. In truth, every Homeowners Association is one vote away from disaster. They don’t protect property values, they don’t ensure personal security, they don’t protect you from embezzlers on the board or in the management company.
The lawyer quoted in the story says he’s frustrated. Of course he is. He knows how dangerous HOAs can be!
(link to Fox5-Atlanta story on Cobblestone HOA)
That’s Pennsylvania Dutch, and you can look it up if you’re interested.
But it basically means that a homeowner’s savings are all gone. And that’s exactly what’s happening as FEMA redraws its maps for flood zones. A couple of years ago 20,000 homes were damaged or destroyed in a devastating flood in Boulder, Colorado. I remember it well because a close friend and I spent 12 hours trying to find a way out of the flooded streets, the collapsing pavement and entire homes drifting down the middle of major boulevards. We survived, but we had to endure waves of water crashing over my 2001 Blazer. I can personally testify that Chevy Blazers actually float…at least for a little while.
The federal flood maps didn’t list any of those Boulder neighborhoods as flood zones and many homeowners discovered, to their horror, that as members of HOA corporations they didn’t qualify for federal emergency relief. If you own a home you get federal relief. If you’re in a Homeowners Association you are considered a stock holder, not a homeowner. Who knew?
Now, thousands of people around the country are discovering that their membership in Homeowners Associations won’t save them from future weather disasters as FEMA re-draws all the flood maps. What does that do to HOA property values? You get just one guess!
(link to the redrawing of flood maps by FEMA)
