Category Archives: Fraud

Not Just HOAs! ALL Of You!

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guest blog by Deborah Goonan

There may be a tendency on the Neighbors At War website to concentrate on warning people in Homeowners Associations. But that may be too narrow a scope.

Don’t limit our audience to HOA owners. Include tenants, who make up more than 30% of HOA residents in many communities. Include home and condo buyers, particularly those who are looking for a home and true quality of life.

Savvy real estate investors who really want the HOA model and know how to work the system: We can leave them out of the equation.

But an important audience of people who SHOULD be paying attention to the big picture are the owners of non-HOA properties. You see, all taxpayers are eventually going to foot the bill for the next approaching crisis in housing, as aging, failing HOAs with insufficient funds to maintain the infrastructure turn to traditional government to solve their problems. When HOAs cannot be maintained, blight and crime increase. Property tax bases decrease along with property values.

Evan McKenzie has explained this well in Beyond Privatopia. Local governments will have to pick up at least some responsibility – and cost – of repairing crumbling roads, correcting poor drainage that leads to flooding, increased police protection for crime-infested areas, increased strain on the courts related to crime and HOA-related lawsuits, etc.

I will give you a real life example. My former HOA in Florida had a developer-owned water & sewer utility which was recently sold to the local municipality and County under an inter-local agreement.

According to the pre-purchase County-funded Engineer evaluation, the water/sewer system was in shambles, the sewer system out of compliance with FDEP since 2010, the water system with a history of sporadic water quality violations and boil water advisories. Two out of four wells were unusable, and two wells were barely enough to meet demand. The entire system needs to be rebuilt – potable and sewer treatment system, lift stations, wells, etc. The system lacks redundancy – meaning there is NO back up if a major component fails. So redundancy must be built in to bring the system up to current code. This will cost in excess of $11 million. There are about 1500 homes and a handful of commercial customers (who threaten to connect to a different utility provider). After the purchase last fall, owners received a 47% rate hike. More increases will follow. So far, it has only been HOA owners affected.

But the local news recently reported that the city who purchased the utility is “broke” and they blame the high cost of acquiring the water utility from the HOA! They are reporting there will be tax increases for City residents! So you see, the people in this municipality are going to have to pay for the former HOA developer’s deferred maintenance of a water/sewer system that is not even used by non-HOA residents.

I recently read that Fairfax County VA is seriously considering taking over maintenance of “larger” storm water ponds in HOAs. Why? Because the HOAs cannot afford to maintain them, and downstream flooding is resulting due to lack of maintenance. Who will pay for this? Fairfax County homeowners, even if they do not live in an HOA.

So, should the Neighbors at War message be aimed only at those who own homes in Homeowners Associations? My answer would be “NO!” It’s a problem for all American homeowners. You will eventually be taxed for the misdeeds of the out-of-control Homeowners Association Industry.

Community Associations Institute (The Disinformation Institute)

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guest blog by George Staropoli

Think in terms of the Third Reich and the Ministry for Public Enlightenment and Propaganda, Josef Goebbels in charge.

CAI is the modern incarnation of the Ministry. If, as has happened, CAI goes unopposed with its ongoing propaganda campaign about the grand and glorious benefits of HOAs without even whispering “constitutional violations” or “de facto private governments” who will believe anything is amiss?

What? Those malcontent, troublesome homeowners who don’t know how to live in a community with rules? That handful of trouble makers? They can’t even write decent legislation! Let the CAI lawyer/lobbyists explain the issues to your legislators so you can make better decisions.

Who would you believe?

Over the years CAI in Arizona has been basically silenced in the public media, because I would confront, challenge, and expose their lunacies and false statements whenever I could.

In the 2000 – 2005 time period the CAI repeatedly slandered homeowner advocates. We often heard statements from legislators like, “You’re just trying to get out of a contract.” “You agreed and you should have read your contract.” “Anyone who didn’t read or understand their CC&Rs and signed anyway was really stupid. I wouldn’t do anything like that.” Or even worse, “If you don’t like your HOA, just move out. That’s all!”

This year the Arizona Legislature approved SB 1482 without any questions being raised in committee. The bill was simply voted on and passed. Why? An almost identical bill was passed last year but failed in the courts. Also last year I repeatedly confronted and exposed CAI simply by quoting erroneous statements their lobbyists had made in public. Many legislators began to realize CAI was feeding them bad information. Of course, the previous law was eventually thrown out by the courts because it was fundamentally illegal.

However, CAI lobbyists still walk the halls of the legislatures whispering in each lawmaker’s ear, spreading the same old disinformation. This will never change unless voters contact their legislators and truly educate them on the issues.

Why Do HOAs Keep Electing Losers?

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The Windemere Condo Association in Will County, Illinois is facing a big embezzlement. At last count they were missing about $150,000.
The suspect? The guy now under arrest and facing charges of embezzlement? Oh, he was just the Condo Association’s president.

A Grand Jury says Bob Dorosz has been stealing since January of 2007.
One last thing: The police report on his arrest says his home address is….. homeless.

Of course. It all makes sense.

(link to story on embezzlement arrest)

 

Beiber’s New Babysitter

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The Beverly Hills homeowners association where Justin Beiber has a full-time party pad has had it up to its corporate eyebrows with Beiber’s behavior. His parties get out of control, the neighbors are miserable.

But according to TMZ, they’re trying to crack down. The HOA has voted to hire a security company to work during Beiber’s party hours. And they’re going to bill Beiber’s landlord which is the way it should be.

Despite this blogger’s annoyance with the illegal activities of many HOA boards across the country, there’s no reason for people to have to put up with willful illegal activity of a resident. And this HOA is doing what HOAs are supposed to do.

Until Beiber grows up he really should live in a farmhouse way out in the country.

(link to Beiber security story)

 

 

 

HOA Hall Of Shame Targets Forest Hills

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Homeowners in Las Vegas are some of the fortunate few in the country who can monitor the behavior of their HOA boards. But it wouldn’t happen without Darcy Spears, creator of the HOA Hall of Shame report. There’s never a lack of misbehavior among Nevada Homeowners Associations to report on.

The latest is in the Forest Hills Homeowners Association where homeowners have often found their water shut off because of collapsed water pipes. Complain to a board member and they refer you to the management company, H&L Realty, which either refers you back to the board or hangs up on you. If you want that morning shower you have to find a contractor and pay for all the damage yourself. Of course, you have to keep paying those high HOA dues which theoretically are supposed to pay for basic maintenance.

It’s just another in a long, long list of reasons to discard the current HOA system.

(link to Darcy Spears and KTNV’s Hall Of Shame)