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:
My appointment to the HOA Commission is completed. I did not request
reappointment for a normal 3 year term. So, I can now move on with the
satisfaction that CICCH Commission records show I did my best to make a
difference on behalf of unit owners.
Regretfully, the record shows that legislative and executive branch
authorities do not appear to want the CICCH (HOA) Commission to
effectively perform its statutory mission on behalf of all home
owners. It is under the tight control of industry and government
interests–to the serous detriment of unit owners and other occupants.
The record of the past decade shows that well over 95% of unsettled law
violation complaints filed with the state by unit owners against HOA
boards and licensed managers are summarily dismissed by the state. The
division does not have to show or defend the merits and results of its
secret, multi-year investigations with board presidents and their
attorneys. The division’s dismissal decisions are not subject to
anyone’s review or dispute unless high cost civil lawsuits are
initiated. This is gross injustice for unit owners. Imagine if the
courts only tried 5% of the valid complaints filed with them?
The less than half a dozen cases out of hundreds filed each year that
are actually prosecuted under the administrative statutes by the
Attorney General staff to the CICCH Commission always reflect high level
criminal violations as well. But, criminal investigations and
prosecutions never seem to get prosecuted. HOA and Condo unit owners
are losing many millions of dollars due to known criminal violations
every year and the government is failing to do anything. This knowing
and willing failure of justice for HOA owners is a true outrage for our
state.
The Real Estate Division is also not subject to any kind of outside
oversight of its decisions that almost always favor the boards and
licensed managers. This means the Division is given a blank check by
the Legislature to continue to hide its apparent misconduct and denial
of homeowner justice.
As a result, HOA owners currently have no viable paths for demanding and
expecting to receive citizen property rights protections from the
abusive industry and state/local government controllers.
Unfortunately, it now seems clear that a large, Nevada grassroots
organization and legislative caucus must be formed to represent
aggrieved property owners against the combined business and government
power blocs. The consequences of doing nothing can create a continuing
blight upon the previously attractive Nevada home markets.
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.
All of a sudden, the boy arrested and kicked out of school for bringing a homemade clock to school is generating wild comments from columnists on both sides of the political aisle. “Racism!” yell some. “He deserved it!” yell others.
I’m among those who are appalled that this youngster was treated so harshly. And even though I was actually one of the reporters who covered the 1999 Columbine massacre in Colorado, I still think reactionary politicians are trying to create a national police state starting with our schools. Heck, when I was growing up we didn’t even get an annual school visit from Officer Friendly. Today, there are cops at every school doorway and inspections of every lunch box before kids can get to class. What gives? Is our society really so violent that we have be such knee-jerk fear-mongers?
It got me thinking: How quickly is school violence growing in our country? I thought readers of this blog might be interested if I could show a graph of how rapidly school violence is escalating. That’s what Wiki is for, isn’t it?
Well, I guess I was surprised. I actually found a pretty thorough list of school shootings dating all the way back to the 1700s! Keep in mind that there are currently 100,000 public schools in this country. Look at the number of school shootings and ask yourself, “Is it possible that this country is massively overreacting to the raging torrent of over-hyped headlines?
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!
Yep, that’s the quotable quote emerging from an HOA scandal in Anne Arundel County, Maryland.
Residents of the Russett Community Association voted to throw out the top two board members who homeowners claimed were misusing HOA funds. True to form, the two board members voted that the recall elections weren’t valid because they weren’t approved by the board. Then they fought the recall election in court, and of course they spent neighborhood dues money to pay for their own defense. It happens in thousands of HOAs across the country!
In this case, though, a judge ordered that the two board bullies step down from their positions. They’re not going easily, though. They’ve squandered anywhere from 80 to 100,000 bucks and more in dues money to fight the homeowners in court.
Those of us ‘in the know’ just shake our heads in wonder.
