Many years ago I read a hilarious article By Bill Vaughn in Outside Magazine. It’s not about Homeowners Associations, per se, but it’s a fantastic story about living with crappy neighbors. I re-read the story about once a year just to keep my spirits up. Now I want to share it with you!
Long-time readers of this blog know that the most corrupt Homeowners Associations in the country are in Nevada. We know that from the 41 or more organized crime racketeering convictions earlier this year in Las Vegas. Just as I predicted, despite the tens of millions of dollars in losses all but one of these HOA mobsters got less than 18 months in federal prison.
That being said, there are some shining lights of honesty in that area. Dr. Gary Solomon, Jonathan Friedrich, Colonel Robert Franks among others. Sadly, the corruption is so rife within the Homeowners Association movement that the system works hard to stomp out those who sacrifice to help others.
Today, Bob Franks sent out the following letter to explain to his legions of admirers why he has to step back in the fight for homeowners’ rights:
(Bob Frank’s LinkedIn address)
East Texas, Big Woods Springs HOA is a relatively small community of 85 homes, with low assessment payments of $35 per month. They need the money to maintain their road, a small bridge, and a dam for their lake. Homeowners have just been “blindsided” by the theft of $31,000 from their HOA.
The theft allegedly occurred over a 26-month period, by their neighbor and former Treasurer, Letha Anna Thomas. Owners became suspicious when their repeated requests to see financial statements were ignored.
The new Board members vow to operate with transparency, and intend to conduct background checks on all future Board candidates.
Note that $31,000 represents about a year’s worth of assessment payments for the Association. Most of the residents are on fixed incomes.
Just because the community is small and assessments are low, don’t assume that the HOA cannot be a target for embezzlement.
7 on your side: HOA theft victims say, “We’ve been kept in the dark for years.”
(link to KLTV-TV story on latest embezzlement)
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.
(link to homeowner complaints in South Carolina)
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.
(link to column by the HOA Institute)
