George Staropoli, one of the nation’s leaders in the homeowners rights movement, has an excellent blog post we should all commit to memory. If his five proposed legislative changes are ever enacted, this would be a far different country; a country of neighbors instead of embattled homeowners and power-tripping board members.
(click here for 5 proposed changes in law)
It never ceases to amaze me how blatant HOA embezzling is. Today’s case involves a board member at the Woodcreek Homeowners Association in Bixby, Oklahoma.
55 year old Gregory Horvath was arrested for stealing 18,000 dollars from his neighbors. Police say Horvath funneled excessive amounts of HOA money through his insurance company, then wrote checks to himself and his wife.
Note to homeowners everywhere: Study the books in your own HOA. You’ll find problems of your own. The very structure of American HOAs encourages cheaters.
(click here for Oklahoma embezzlement story)
I’ve long predicted that Homeowners Associations would soon be using drones to intrusively invade the privacy of homeowners. The mesmerizing video linked below was taken over Niagara Falls and it shows the incredible capabilities of the new drones and digital video.
As you watch this, keep in mind that these cameras and drones are now well within the budgets of all HOA board members and management companies. With the massive amount of abuse that happens in HOAs across America, you don’t have to work too hard to imagine how this technology could be used.
guest blog by Norman McCullough, who lives in Henderson, Nevada
Consider:
Homeowner Smith – (Not living under a Home Owner Association.)
Mr Smith is a senior citizen who purchased a new home. Being a prudent and forward thinking man, Mr Smith plans to repaint his home in ten years. He knows Nevada weather can be harsh. He estimates the future cost at $2,500 and he sets aside $250 every year for the project. In ten years Mr Smith accumulates the $2,500 needed to get the job done. To his good fortune he finds a company that’s willing to do the job for only $1,750, leaving Mr Smith with $750 to spend on his wife and children. He is rewarded for diligently taking care of his property.
Now take the case of Mr. Jones.
Mr. Jones (also a senior), belongs to a Homeowner Association that has been investigated by the Federal Government. It seems the board has been stashing away money from excess dues collections and not returning it to the members as required by federal law. A portion of his dues was used to pay the fine imposed by the I.R.S.
Jones is one of 162 homeowners who have also set aside the required $2,500 to paint their homes. Mr. Jones, too, has discovered that only $1,750 is needed to paint each of the 162 homes.
Now do the math. A logical assumption would be that the board would return the excess funds ($2,500 – $1,750= $750) to each of the 162 HOA members who paid the excess dues. But assume that and you would be dead wrong. You see, this board knows the excess funds in a non-profit corporation might raise suspicion at the Internal Revenue Service. So the Association board comes up with a wily plan to avoid revealing the existence of any excess funds.
The board magically ‘shrinks’ the actual size of all the homes in the neighborhood! No kidding! To avoid returning the excess money to the homeowners, 149,850 square feet of stucco surface needing paint has suddenly vanished from the records. Also gone is all the money set aside to do the painting. The Association has effectively robbed the 162 homeowners of the $750 overpayment and then covered up the deception with some weird math. Mr. Jones will not get the $750 returned to him.
When a family buys a home in an HOA and they sign the Contract they are literally giving up many of their constitutional rights, specifically the right to go to court. Not only does the HOA dictate what color your house should be, but more often than not the board abuses the laws that are supposed to protect the consumer from fraud.
By the way, I am one of the 162 homeowners who live in one of the homes that suddenly shrank. And I’ve done the math.
Nevada psychologist and Homeowners Rights advocate Dr. Gary Solomon has an incredible way with words; cogent, insightful, powerful. His paper on ‘HOA Syndrome’ made headlines. His paper on elder abuse in Homeowners Associations is absolutely worth printing out, and possibly mailing out to some of your HOA neighbors.
Dr. Solomon believes that elderly homeowners are intentionally farmed by HOA management companies because they have trouble fighting back, and this 50 billion dollar a year lawsuit machine creates unbelievable financial and medical distress for hundreds of thousands, possibly even millions of elderly homeowners across the country.
Do yourself a favor and read his elder abuse paper linked below. If HOA abuse of elderly homeowners is ever stemmed, Dr. Solomon will have been one of the three or four national leaders who made it happen.
http://www.texashoareform.org/Documents/HOA-Elder-Abuse.pdf
