Category Archives: Fraud

A Great Resource & Great Publicity

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guest blog by Jill Schweitzer

I’m a painter, and painting a picture: Imagine living in a neighborhood where you can’t have a bench to sit on in your front yard. Imagine a Board member tries getting the board to fix a drainage issue multiple times, the Board and HOA property manager do nothing, and the condo eventually floods. Imagine having a leak for 11 months in your dining room, HOA still has not fixed it. Imagine an HOA trying to get the Board to agree to sign a Code of Conduct giving all control to the President and property manager, the rest of the Board does nothing in between meetings. Imagine a property manager that is so bad that 12% of the owners sell and move out in approximately six months, and note that the management company makes $4800 in transfer/disclosure fees as their reward for poor management?

Also note that most of those new buyers probably weren’t too happy this week to receive notice there may be a 3-5 thousand dollars special assessment. Imagine a property management company trying to charge for coupons, charging for printing because they think it’s different from copies, and trying to pay the old company a ridiculously high termite warranty renewal fee and then pretending the new termite company only gave a two year warranty, when it’s actually five years…all these situations have happened.

“Buying into an HOA with your eyes wide open” is a 22 page report about HOAs in Arizona, but basically applies everywhere. The situations above didn’t make it into the report. This week the report is being released to the world…if everyone gives it to five people, with the ‘give to five people’ message, the information could spread. Send to friends, realtors, legislators, Association of Realtors, Real Estate Commissioner, judges, news stations..even leave copies in your Doctor’s office. How refreshing to grab this report rather than your typical waiting room magazine.

One piece of material educating people on many aspects of HOA living, with a multitude of examples, written to help buyers know what they need to look for when buying into an HOA. A real eye opener…change occurs one buyer and one HOA at a time.

Legislators need to make substantial changes to the law and can’t ignore this. If they do, lets hold a rally. Most real estate agents I know are disgusted and want this changed. Today it was made available to 4700 of them. Please help by giving this report to 5 people and ask them to give it out to five people.

(go to report, print this out and distribute)

(KPHO-TV news story about Jill Schweitzer’s brochure!)

Nevada Judge Finally Shows Some Guts

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Well, good old Las Vegas mobster Leon Benzer has finally met justice in his plan to steal millions and millions of dollars from Homeowners Associations. Not much justice, but at least federal judge James Mahan has now sentenced Benzer to 15 1/2 years in federal prison. With ‘good time’ he may end up spending seven years behind bars. Most of his 38 co-conspirators in the massive scam to take over Las Vegas Homeowners Associations got probation to a year-and-a-half in prison.

Of the other conspirators, a number have died, some of them by suicide. Benzer was the last to be sentenced in the long-running case.

How much did Benzer steal from homeowners? Untold millions. But this gangster’s damage has ripples that will go on forever. Home values in Las Vegas crashed, people lost their homes and all their retirement savings. Foreclosures spiked because so much money was bled out of HOAs. Investigators have said Benzer & Company actually stole somewhere beween 60 and 100 million dollars from homeowners.

But get ready for the real story: It hasn’t happened yet. Leon Benzer is very familiar with Mexico. A ton of money he stole ended up in a Mexican resort. There are links in the HOA investigation to a Mexican drug cartel. Benzer once owned his own Mexican tequila company. He doesn’t have to report for prison until November 6th. As fundamentally corrupt as this piece of trash is, what would stop him from crossing the border? Oh, that’s right. He might not be able to get across the ‘border fence.’

We’ll see.

(BTW, Benzer reads this website! How’s it goin’ Leon?)

(link to Las Vegas Review-Journal story on Benzer’s sentence)

N. Carolina HOA In Tatters

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guest blog by Andrea Barnes

HOAs across the country are begging local governments for help supporting their dilapidated “amenities”, roads and buildings.

Two issues:

1. Buyer beware. Most HOA contracts now have language that allows the sale of common land. All that lovely “green space” you paid a hefty price for may soon be public property.

2. Municipalities have relegated their “governmental” duties to private contracts. Since they operate as such and are being given the same powers to maintain infrastructure, manage neighborhood safety and health concerns, it’s long past time to acknowledge HOAs as mini municipalities.

The neighborhood group previously asked the town for help paying for maintenance, but was turned down because town officials didn’t want to spend public funds on a private pond. The town has turned down many neighborhoods that had similar requests, Frantz said.

But at Coronado Village, he said, “There are some concerns now that it’s potentially becoming a health problem.”

(link to News Observer story on Coronado Village)

(link to additional story in News Observer)

One Person One Vote

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Our frequent guest blogger, Deborah Goonan, alerted me to an excellent documentary which could ultimately go straight to the heart of the fight against the HOA disease. It’s produced by the Annenberg Foundation and reviews two of the most important U.S. Supreme Court decisions of the 20th Century, Baker v. Carr and Reynolds v. Simms, which were both decided in the early 60s.

The Court essentially ruled that the 14th Amendment, enacted 3 years after the civil war, should have made all citizens equal. But as the decades rolled on it became obvious that because of unequal state apportionment of legislative districts, people in rural counties had much more voting power than high density cities. The court essentially ruled that equal rights means equal voting power. It overturned 150 years of precedence and all legislatures had to reapportion their states so a roughly equal number of people resided in each voting district. There’s been frequent gerrymandering, of course, but that’s a story for another time.

There was another major milestone that happened about that same time. The country decided that blacks had just as much right to vote as whites. Congress enacted and the President signed the 1964 Civil Rights Act, and many southern laws which restricted black voting rights were overturned.

The amazing thing that should interest us…is that these two court decisions and the Civil Rights Act led immediately to the creation of the modern HOA movement which decided that by incorporating housing developments and then controlling them with HOA mini-governments, they were able to once again subvert the one person one vote principle. Actually, it was more perverse than that. Most HOAs allotted one vote per parcel owned. It was an arrogant refutation of three of the most important government decisions of the century.

“We’re private corporations. The Constitution allows us to handle our people in whichever way we want. You can’t tell us how to treat our ’employees’ and ‘investors.'”

But that could be the Achilles heel of the HOA movement. These are our homes we’re talking about. This is where we live, where we’re supposed to be able to find ultimate privacy, shelter against abusive government (HOA officers and property managers). But this is the one remaining bastion where the one person one vote principle falls apart. We get one vote per property owned. For example, the investor who owns 50 parcels out of a hundred home development (even if he doesn’t live in the community) may get 50% of the vote, so the neighborhood looks the way he wants it, regardless of the wishes of all the other neighbors. He may easily, and probably will get himself installed as lifetime president of the board.

One person one vote. Think about it folks. As you watch the 26 minute documentary linked below, ask how this might be applied in your own HOA.

(link to the Annenberg documentary)

Take The Survey!

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Our frequent guest blogger, Deborah Goonan, is part of a team of consumer advocates conducting a nationwide HOA survey. In addition to a social media presence, she has posted it on her own web page at Indepentent American Communities (IAC). Obviously, such a survey is more accurate when the survey sample is large. And the more people who respond, the more likely our combined voices will be heard. So, if you haven’t participated yet, please do.

In email exchanges around the country I have a rough idea of what many Americans think about HOAs, POAs and condo associations. But Deborah has fine-tuned a number of survey questions and the results will ultimately be distributed to policy makers.

It’s finally your time to be heard! Here’s your chance to begin the process of making change happen.