Category Archives: Fraud

Not Exactly an HOA Story, But Worth Watching

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. 

(click here for Niagara Falls drone video)

 

The Sagas of Smith and Jones

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.

 

Elder Abuse– Dr. Gary Solomon

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

 

HOA Corruption In Las Vegas

As you read the Vegas Voice editorial linked below, please keep in mind the massive organized crime and racketeering indictments in Nevada. The Homeowners Association movement in this country is fundamentally corrupt. The basic HOA structure is flawed because it encourages embezzlement, extortion, bribery, and abuse of neighbors. It’s good to see a few public voices here and there expressing concern.

(click here for The Vegas Voice story)

http://www.thevegasvoice.net/articles/the-flip-side-of-hoa-wars-2-it-s-all-about-money-4104.aspx

Great Column in Las Vegas Newspaper

Rana Goodman

On My Soap Box

The Mess Continues, The Government Does Nothing!

For the past two months, I have been telling you about the issues of the Crossroads III Condominiums homeowners. Unfortunately, nothing has been resolved as of this date, since the wheels of the Nevada Real Estate Division (NRED) move painfully slow – even in the face of this emergency situation.

Terry Williams, Public Information Officer for the Nevada Department of Business & Industry, did speak to me about the case and promised to see what she could find out. She wrote me a long email ending with the following which I found very troubling:

“When an intervention affidavit is filed, the case is considered the state’s case. It is not the complainant’s case. The state has no further duty to report the status of the investigation until the investigation has been completed. The Division caseload is extremely heavy and while a complainant may feel a particular sense of urgency for resolution, the division can only complete an investigation as resources and circumstances (including responsiveness of the other parties named in the complaint, etc.) of individual cases allow.”

Perhaps that is why I have another homeowner incident on my desk that is now going into the fourth year. It has simply languished (or perhaps, been ignored?) by NRED’s bureaucracy.
And perhaps that is why Jerry Marks, who is a Supervisory Community Association Manager, (licensed by the NRED) turned to Channel 13 TV for help when he ran into problems with the HOA he lives in, rather than go through the tedious steps of “going by the NRED book.”

Jeez, the new forms alone would give you angina.

In my attempt to help the Crossroads III board and homeowners, I reached out to their Las Vegas Councilman, former Senator Bob Coffin. I sent several emails via his web page, as well as the previous Vegas Voice editions. I also enclosed a cover letter listing the problems and contact information for the board. The Councilman did not even have the courtesy to respond. No email, no phone call – nothing!

With no end in sight, Crossroads III homeowners cannot even get simple repairs made. The common areas are simply neglected by Sherryl Bacca, the community manager, even though she is paid by the “other” group that claims to be the “rightful board.”

There is now a 4 page recall petition for the “second board” that has been signed by many owners in the complex. Now that they have the required amount of signatures, by law, management has 90 days to hold that election.

If they refuse to do so, the homeowners would have to go back to the Real Estate Division to force compliance. However, as previously stated, no help has been forthcoming from NRED.
Believe me, I am very familiar with the cliché: “If you don’t like living in a HOA, why did you buy a home in one?”

Well, let’s be realistic. The largest percentage of homes built in the Valley over the last 15 or 20 years are in HOA communities. There is very little choice. Reading your governing documents only tell you the rules; you do not have any idea as to the type of board or management you are going to get.

When I was first introduced to the NRED Ombudsman’s office around 2007, a homeowner’s first “HOA problem-solver”, they were happy to give help and instruction. These days, that office is tied up for unlimited amounts of time with bureaucratic layers of forms and rhetoric that lead nowhere.

At the 2011 legislative session, few legislators wanted to talk about presenting HOA bills. However at the last session, there were hundreds of HOA bills, since legislators were besieged by homeowners who were having so many types of problems and needed help.
Things are only going to get worse and help will not be available since while “a complainant may feel a particular sense of urgency for resolution, the division can only complete an investigation as resources, circumstances… allow.”

Suffice to say, any homeowner wishing to sell and bail out of Crossroads III might as well forgetaboutit. There are disclosure laws in this state and sellers must “show and tell” if there are law suits pending, defects they are aware of, and/or “trouble in “River City.” A potential homeowner would have to be out of his/her mind to buy into that mess.

Unless of course, they are into war games!

Rana Goodman is The Vegas Voice political editor and a “trouble shooter, advocating for seniors.” She also maintains a community web site, Anthem Today; a forum for residents in Sun City Anthem. She can be reached at: rana@thevegasvoice.net.