Category Archives: Fraud

Balance of Power in U.S. Senate Based On HOA Chickens?!?

Some stories are just too weird to embellish, even for the sake of humor. But the U.S. Senate seat from Iowa may boil down to a neighborhood dispute over chickens.

Democratic Congressman Bruce Braley is running for Senate in a razor thin race. Braley has a vacation home in the ritzy Holiday Lake neighborhood in Brooklyn, Iowa. Covenants in the neighborhood say, “No animals or birds other than household pets can be kept in the subdivision.” But one of Braley’s neighbors (also a registered Democrat) keeps chickens on her property as ‘therapy animals’ for mentally handicapped youngsters.

The chickens apparently strayed into the Braley’s yard and litigation was threatened. The owner of the chickens tried to make amends with a gift of eggs, but the Braleys wouldn’t have any part of that.

Now, there’s a hot new Iowa Republican attack ad with some talking chickens making fun of Braley’s threatened lawsuit. You can read the rest of the details at the links below, but the story is just too ridiculous for words.

If the balance of power in the U.S. Senate shifts in this election, finally, FINALLY folks in Congress might start talking about the idiocy and meanness of neighborhood disputes in Homeowners Associations.

(talking chickens ad)

(washington post take on the chicken dispute)

 

Nevada ‘Mouth’ Moves Again

Ah, Barbara Holland, how we love thee! Ms. Holland, who writes a column in the real estate section of the Las Vegas Review-Journal, complains about a recent guest blog that lists some of the complaints against her: One is that she gets paid for writing her newspaper column which is massively biased in favor of Homeowners Associations.

Ms. Holland, who describes herself as the “Dear Abby of Homeowners Associations,” will never deny that writing her newspaper column has made her very rich in the real estate business. Her ‘voluntary newspaper column’ is the kind of self-promotion that every entrepreneur dreams of. Whether she gets paid ten or twenty bucks per column by the newspaper is absolutely immaterial. Barbie Baby, you started piling up your millions in the property management and Realty business the day your first column was published. In the most corrupt real estate market in the nation, most honorable people would be scared to death to identify themselves as being the “Dear Abby” or “Dear Ann Landers” of anything HOA related.

But all of that is petty infighting and beyond the point. The issue at hand is the stupidity and short-term thinking of the Nevada Supreme Court which ruled that an HOA’s Super-Priority lien could extinguish the mortgage company’s first deed of trust. Bottom line: thousands of Nevada homes that are in crisis can be snatched up by real estate bottom feeders who grab homes for a couple thousand bucks at auction, and flip them for hundreds of thousands of dollars each. A windfall profit. A disaster for those in the mortgage business. And Barbie tells us, “No big deal.”

In fairness to Barbie Baby, here’s her latest take on the subject:

(link to Barbara Holland’s column on Nevada court decision)

Now that “Dear Nevada Abby” has spoken, let’s look at some totally different conclusions made by far more astute financial folks at the Wall Street Journal, reporters like Joe Light (joe.light@wsj.com). The link below sometimes asks for a registration, but any good Internet researcher can find a way around that.

(link to WSJ article on Nevada mortgage mess)

(link to parallel article in Bloomberg News)

Now, to you, Dear Reader. Do we believe in dear ‘Self-Interest Nevada Abby?’ Or the financial folks on the national scene who are actually talking to the nation’s lending institutions about all the impending consequences?

 

 

 

 

Texas Judge to Decide Meaning of ‘Family’ in HOA

guest blog by Deborah Goonan

This is an update to an earlier blog about the Plantation Resort 2 in Frisco, Texas. The PR2 HOA is filing a lawsuit against City House, to block use of a home they recently purchased and renovated for use as transitional living for homeless youths.

The local CBS affiliate has been covering the story, and the link to their video is below.

While PR2 HOA has allowed two young women to move into the home owned by City House, they have made it clear they do not want any more residents to join them. The house was originally intended for transitional living for 6-8 youths. Public records indicate that PR2 homes are good-sized, most with 4 bedrooms and between 2500 – 3000 square feet, with an average sale price hovering around $270,000.

This is the part that really sticks in my craw. A statement made by PR2 HOA Attorney Chad Robinson, Riddle & Williams:

“City House is a great cause. But, on the flip side, we can’t pick and choose which rules we enforce.”

To put this statement into perspective, let’s consider that the real estate industry has had a long history of creating all sorts of deed restrictions and business practices intentionally designed to homogenize neighborhoods in the interest of protecting home values. Up until Fair Housing and Civil rights legislation was enacted in the 1960s, federal housing and lending policies explicitly aided and abetted segregation between the haves and the have-nots, along racial lines.

Since the late 1960s, the real estate industry has created hundreds of thousands of HOAs, many of which continue similar, less explicit homogenizing practices by way of carefully crafted CC&Rs. And because the Rules are considered “contractual agreements,” and HOAs are not acknowledged as de facto governing entities or state actors, a lot of ambiguous and petty restrictions escape federal scrutiny.

In other words, you can agree to any rules and restrictions you want, even if they happen to be petty, socially reprehensible, un-American, or unconstitutional. Remember folks, in HOAs, The Bill of Rights Need Not Apply.

At issue in this dispute is whether a transitional living arrangement fits the definition of “family,” as specified in the governing documents for PR2 HOA. City House believes that their non-commercial use of the home as a stable living environment falls within the definition, but PR2 HOA Attorney Robinson does not.

But in 21st century America, what, exactly, constitutes a family? Gone are the days when most family households consisted of mom and dad with a couple of children. We have single-parent households, same-sex partners with children, families blended following remarriage after divorce or death of a spouse, unmarried couples with or without children, extended families that include grandparents and adult children. And what if you rent the home you own to unrelated roommates? Which of these falls into PR2 HOA’s narrow definition of “single family use?” How many of these variations already exist in PR2?

Next week a judge will hear the case and decide whether City House can continue their great work with homeless youths, and create transitional families in PR2.

(link to CBS-local coverage of Frisco HOA dispute with City House)

 

Another Insignificant HOA Embezzlement?

guest blog by Deborah Goonan

Another isolated incident?

It seems like there are several reports of HOA theft and embezzlement each week. Sometimes it’s a rogue Board member writing checks to herself or buying himself a new car. But sometimes it’s the Community Association Manager skimming funds, as in this case in Georgia. Atlanta, Dunwoody, and Chamblee police departments are currently investigating up to twelve HOAs where Michael Sisson was hired to manage the communities’ operations and finances.

Yes, up to one dozen.

So far, Dunwoody police have filed charges against Sisson involving $180,000 in missing funds from two separate HOAs.  Hopefully, these HOAs had adequate insurance policies and were paid in full. No doubt they were relying on Sisson to pay the bills.

Anyone care to guess how much this investigation is going to cost taxpayers, including the ones who are fortunate enough not to live in one of these HOAs?

(link to news report about GA HOA embezzlements)

Thuggery in Fort Lauderdale

We did a blog here a month or two ago about the president/treasurer of a Fort Lauderdale HOA. Seems the neighbors are irked that this guy has written tens of thousands of  of dollars worth of ‘salary’ checks to himself. Then he got pretty cocky and used money from the neighborhood budget to buy himself a new car.

Well, police have finally seen fit to arrest the guy on a second class misdemeanor. A couple of observations, here. The most this guy can get is a 30 day jail term and six months probation. That’s not bad work at all, if you can find it.

Second observation. The story was broken by a TV reporter. That means (to me, anyway) that the news media are starting to discover a lucrative source of stories and on-camera confrontations among corrupt Homeowners Associations. We’ve got to remember the pioneer in this kind of TV journalism, Nevada’s Darcy Spears of the HOA Hall of Shame report.

(link to Florida arrest story)