The article linked below is exceedingly long. But it’s another sign the mainstream media are finally ‘getting it.’
(link to HOA story in the Houston Press)
http://www.houstonpress.com/news/tipping-point-in-huntington-village-the-community-association-has-all-the-power-7998755
For several years I’ve warned readers of this website that this country is facing a massive fiscal crisis because of too many years of profligate spending. It’s not just the U.S. government, either. It’s China, Russia, Japan, Greece, Brazil, Portugal, Ireland and many others. Because these countries don’t back up their currencies with cold, hard assets, the value of these fiat currencies is whatever the respective government says it is. If a government overspends, then it just devalues its currency and uses inflation to lessen the pressure of its federal debt.
That’s a ponzi scheme, and ever since Charles Ponzi’s stamp selling scam in Boston in the 1920s, the world has known that even legitimate businesses (or governments) that continually spend more than they take in…eventually collapse.
On this website I’ve occasionally warned you that a fiscal calamity could ripple across the nation’s Homeowners Associations and because of a history of mismanagement by HOA bullies, mortgage companies will be increasingly reluctant to lend money where neighborhood associations are mired in a pattern of litigation. If a home buyer can’t get a mortgage to buy your house, what is your house really worth? Did the HOA really fulfill its promise to protect your property values?
Now, going one step further, pay very close attention to news events of this next week. A fiscal disaster that could profoundly affect the U.S. housing market could happen as early as next weekend. Oil prices across the world have collapsed to under thirty dollars a barrel. Some on Wall Street say the price could eventually go as low as sixteen dollars a barrel.
Saudi Arabia, one of America’s staunchest allies, is panicking. Oil sales amount to 75% of that country’s income. For years, the Saudis have pegged the value of the riyal to the U.S. Dollar. If they pull that peg and the riyal is devalued against the dollar, then Katy bar the doors. There’s no one who can predict how this will impact the world economy.
Massive inflation might help the individual who holds a large fixed interest mortgage. For many decades homeowners have been able to inflate their mortgages away. But a frightened financial industry doesn’t like to offer reasonably priced mortgages in risky neighborhoods.
I’m not an economist so I’m open to criticism. But these are interesting times, aren’t they?
Wow! Sometimes I read about egregious HOA acts of discrimination that boggle the mind.
This is one of those times.
Gary and Renee Kuhn are the parents of a severely disabled adult daughter. Khrizma has Down’s Syndrome, autism, chronic digestive problems, scoliosis, and the intellectual capacity and functionality of a 2-year old child.
In 2005, they purchased a home in The Fountains at McNary Estates, making them subject to not one, but two, sets of HOA restrictions.
For the first five years of residence, Khrizma lived with her parents part time. Beginning in 2010, their daughter became a full-time resident. In 2014, her medical condition worsened, causing Khrizma to experience urgent bowel movements. Unable to care for herself, the Kuhns must provide round-the-clock care, which includes quick access to toilet facilities and access to a shower for clean up after use of the toilet. The curvature of Khrizma’s spine makes it necessary for her to lie down when being transported to various medical appointments and treatment centers.
The Kuhn’s were faced with the difficult dilemma of how to best care for their daughter’s needs, particularly during transport to and from appointments and medical treatment. In conjunction with her doctors, it was determined that the best solution would be to purchase a specially equipped RV with toilet and shower facilities, as well as a bed for her to rest. The doctors recommended parking the RV in the driveway for immediate access as needed. However, HOA rules prohibit parking of RVs in driveways.
Khrizma’s doctor provided a written explanation of the necessity of accommodating the family’s need to care for their disabled daughter, and the Kuhns made several requests for reasonable accommodation under the Fair Housing Act, both at the federal and state levels.
Both McNary Estates and The Fountains HOAs denied those requests, under the advice of their attorney, Kevin Harker, owner of Community Associations Law Group in Portland, Oregon. Harker insists that the HOA is not obligated to provide accommodation for the RV, as it is merely a method of transportation, and does not involve Khrizma’s use and enjoyment of the dwelling itself.
I told you it was egregious.
Fair Housing Council of Oregon (FHCO) vehemently refutes Harker’s claims, but the HOAs both stood firm in their convictions to deny the civil rights of Khrizma and her parents. FHCO informed both HOAs that Kuhns were legally entitled to park an RV in their driveway, and, after months of delay, the Kuhns proceeded to do just that. The HOA immediately began threatening to sue the Kuhns in order to force them to remove their RV.
According to the complaint, several of the Kuhn’s neighbors, two of them former HOA Board members, allegedly engaged in hostile behavior, including spying on the Kuhn’s from the residence across the street.
This is a common theme we see repeated in Association Governed Residential Communities all over the US. The Board often discredits and demonizes homeowners with whom they disagree. Many homeowners then either avoid the alleged “troublemaker” or engage in further harassment.
The family was forced to sell their home to remove themselves from the hostile environment, and to obtain necessary accommodations for their daughter’s disabilities.
The story has been covered by Oregonlive.com, and includes a link to the Legal Complaint filed on behalf of the Kuhns by their Civil Rights attorneys, Dennis Steinman and Scott J. Aldworth, of Keller, Alterman, & Runstein, based in Portland, Oregon.
Parents sue homeowners association that wouldn’t let them park RV to help disabled daughter
Read the Complaint filed on behalf of the Kuhns
Upon reading the complaint, I was able to discover some disturbing claims brought by the Kuhns:
A few other nuggets:
It appears that HOA members will be on the hook for more legal expenses, which may very well be denied by their insurance policy. Stay tuned for updates.
Colorado Springs Town Hall Meeting: let us know how you can help get the word out about this meeting on Feb 13: contact legislators, post flyer at your HOA, local media, etc.
Construction Defects Legislation: here we go again with the Denver Post exclusively contacting the Community Associations Institute (CAI) to represent homeowners’ interests in how homeowners’ money is used in litigation. Below is our letter to the editor of the Denver Post and copied to legislators:
“The Denver Post again allows those making millions of dollars from HOA Construction Defects (CD) litigation to represent the voice and rights of homeowners and distort the debate in CD legislation reform. No input is accepted from any recognized homeowner’s organizations. Once again, the only point person on homeowner’s rights is none other than the Community Associations Institute (CAI). The CAI represents the interests of property managers and HOA lawyers, NOT HOMEOWNERS! If CD legislation is ever be explained in a truthful, balanced, and productive manner it must first get by the pervasive CAI smoke screen.
First, almost all HOAs created in the past 15 years mandate in their Declaration that arbitration must be used in CD dispute resolution. Of the 8,500+ HOAs in the State most are beyond the statute of limitations and cannot sue. As a percentage or relative number of all HOAs, those that changed their Declaration (at the encouragement of HOA lawyers) is very, very small. Thus, precluding HOAs from changing their declaration and infringing upon homeowner’s rights is a weak argument. Furthermore, a recent Colorado court case has ruled HOAs can be prevented from changing their Declaration. The CAI would have the public believe the inability to change the Declaration will have a profound impact on homeowners’ rights but the reality is that it would mostly impact the ability of HOA lawyers to promote litigation in our costly court system.
The other issue involves requiring homeowners to vote on the approval of the use of their own funds in CD litigation. Currently, any HOA Board at the encouragement of their attorney can spend unlimited HOA funds on litigation without the knowledge or approval of homeowners. The CAI opposes this empowerment of homeowners as it would effectively reduce litigation.
We at the Colorado HOA Forum offer the following CD legislative proposal to mitigate litigation and empower homeowners: “HOA homeowners are required to be apprised of and vote on the use of HOA funds in all litigation.” Why is this so difficult?”
OK, the biggest reason for a Homeowners Association is to protect property values. Right? Well, let’s visit another of hundreds of thousands of parallel cases around the country. This one involves the Big Wood Springs HOA in Winnsboro, Texas.
I’ve lived in Texas, El Paso and San Antonio, and even as a kid I knew how powerful some of those winter and spring storms could be.
Members of this HOA were trapped when a December storm damaged the only bridge that separates them from the rest of the world. They need tens of thousands of dollars to repair the bridge along with a number of HOA roads which were damaged by the rains. Emergency vehicles can’t reach them, visiting nurses can’t reach elderly homeowners. Government agencies can’t help out because the damaged bridge is on private property. It’s illegal to use state funds to improve or repair privately-owned structures.
The problem is that the former HOA treasurer was recently arrested for embezzling 60 to 80 thousand dollars from the neighborhood’s budget. Now, there’s no money left for the emergency repairs.
Who’d have thought? Who’d have thought that an embezzler could cause an emergency that would risk the lives of an entire community?
What are your property values now, Big Wood Springs?
(link to KLTV report on HOA embezzlement)
