Category Archives: Fraud

Condo Owners vs. Rent-Controlled Apartment Dwellers

guest blog by Deborah Goonan

In the Los Angeles Bunker Hill community, condo owners and traditional apartment dwellers have been locked in a 3-year long legal battle over their once-shared pool and barbecue area, with no end in sight.

The two articles referenced below explain some of the details of how the dispute began, but, in short, there has been a disagreement over cost-sharing of recent improvements made to the pool area. A few years ago, the Bunker Hill Tower condo association dictated expensive changes, apparently without agreement from the apartment owner, Essex Property Trust. Essex objected, refusing to pay for the renovations. The owner of the 2 apartment buildings has been paying two-thirds of maintenance costs since the 1980s, following the condo conversion of one of the three original buildings.

As of today, the condo association has installed a fence around the pool to lock out the tenants. At the same time, the owner of the 2 rent-controlled apartment buildings (that were never converted to condos) is planning to build a separate pool and common space on the roof of the parking garage that serves tenants.

What I find intriguing about this situation: the conflict is between a Condo Association and non-members of the Association. Ironically, even if you’re the type of person that purposely avoids condominiums, because you don’t particularly like the fact that your neighbors can tell you what you can and cannot do, you cannot always escape the condo conflict madness that is encroaching upon residents in surrounding dwellings!

Sometimes an Association-Governed Residential Community Board over steps its authority and attempts to impose its rules or its ideas of aesthetic appeal on its neighbors. In this case, the Condo Association decided that everyone, including Essex Property Trust, should want to invest in a resort-style pool renovation. Perhaps a more basic facelift would have been sufficient, not to mention less costly. I’d be willing to bet some of the condo owners feel the same way, although they are all obligated to pay assessment increases to cover the cost.

Come to think of it, the behavior of Bunker Hill Tower Association toward Bunker Hill Apartment tenants reminds me of the bossy kid on the block, back when we were all in grade school. Whenever that annoying kid started telling me what to do, my favorite response was, “You’re not the boss of me!”

Apparently Essex Property Trust feels the same way, and is not interested in appeasing the Condo Association.

Source articles:

Bunker Hill Residents Have Been at Legal War For Three Years Over a Pool

The Battle on Bunker Hill

 

Now, For Your Involvement!

guest blog by Deborah Goonan

Are you interested in improving living conditions in homeowners associations (HOAs), condo associations, and cooperatives in the US? Or would you like to see a broader array of housing choices in this country?

A group of housing advocates is interested in organizing to promote consumer-friendly policies and standards for local governance and management of our communities, particularly those that are private, Association-Governed Residential Communities (more commonly known as HOAs). We are conducting a CONSUMER–FOCUSED survey of interested residents and former residents of HOAs in the US.

We want to hear from you.

What are the issues that are most important to you?

What has been your personal experience living in HOAs, Condo Associations, or Cooperative?

Why are you interested in change, and have you been involved in trying to make that happen?

The survey is sponsored by Sara Benson, proprietor of Association Evaluation LLC, an innovative, comprehensive community association rating service, the first of its kind in the US. Benson and Don DeBat, both of Chicago, are co-authors of Escaping Condo Jail, a book that exposes the truth and debunks the myths surrounding the condo lifestyle. Both authors are committed consumer advocates with a lifetime of experience in the Real Estate industry. Benson is a veteran Real Estate Broker and former HUD consultant, DeBat is a Journalist and Editor of Real Estate columns in two Chicago newspapers. You can read book reviews and learn more about the co-authors on Amazon.com.

Please note that this survey is consumer-focused, and is NOT sponsored by Community Associations Institute (CAI), National Association of Home Builders (NAHB) or any other industry or trade group. Our goal is to give housing consumers a voice in US housing policy-making, and that begins with listening to your concerns.

Please take a few minutes to respond to our brief survey by August 1st. We value your input and your privacy. Your responses will remain confidential, and will not be shared with salespeople, vendors, or anyone in your HOA.

Here is the link to the survey:

http://bit.ly/1K11ovs

http://independentamericancommunities.com/2015/07/26/do-you-want-to-organize-improve-our-communities-and-preserve-the-american-dream/

 

Condo Owners vs. Rent-controlled apartment dwellers

By Deborah Goonan

In the Los Angeles Bunker Hill community, condo owners and traditional apartment dwellers have been locked in a 3-year long legal battle over their once-shared pool and barbecue area, with no end in sight.

The two articles referenced below explain some of the details of how the dispute began, but, in short, there has been a disagreement over cost-sharing of recent improvements made to the pool area. A few years ago, the Bunker Hill Tower condo association dictated expensive changes, apparently without agreement from the apartment owner, Essex Property Trust. Essex objected, refusing to pay for the renovations. The owner of the 2 apartment buildings has been paying two-thirds of maintenance costs since the 1980s, following the condo conversion of one of the three original buildings. 

As of today, the condo association has installed a fence around the pool to lock out the tenants. At the same time, the owner of the 2 rent-controlled apartment buildings (that were never converted to condos) is planning to build a separate pool and common space on the roof of the parking garage that serves tenants.

What I find intriguing about this situation: the conflict is between a Condo Association and non-members of the Association. Ironically, even if you’re the type of person that purposely avoids condominiums, because you don’t particularly like the fact that your neighbors can tell you what you can and cannot do, you cannot always escape the condo conflict madness that is encroaching upon residents in surrounding dwellings! 

Sometimes an Association-Governed Residential Community Board over steps its authority and attempts to impose its rules or its ideas of aesthetic appeal on its neighbors. In this case, the Condo Association decided that everyone, including Essex Property Trust, should want to invest in a resort-style pool renovation. Perhaps a more basic face lift would have been sufficient, not to mention less costly. I’d be willing to bet some of the condo owners feel the same way, although they are all obligated to pay assessment increases to cover the cost. 

Come to think of it, the behavior of Bunker Hill Tower Association toward Bunker Hill Apartment tenants reminds me of the bossy kid on the block, back when we were all in grade school. Whenever that annoying kid started telling me what to do, my favorite response was, “You’re not the boss of me!”

Apparently Essex Property Trust feels the same way, and is not interested in appeasing the Condo Association. 

Source articles:

Bunker Hill Residents Have Been at Legal War For Three Years Over a Pool

The Battle on Bunker Hill

 

Whoa! Is this the Beginning?!?

There are some scattered court cases which may have an interesting impact on Homeowners Associations, an impact many of us would love to see. From the National Law Review, the West Virginia Supreme Court of Appeals ruled that HOAs are debt collectors. We all know they file liens and harrass homeowners into paying dues, fines, collection costs, attorneys’ fees. But if they’re debt collectors then they have to follow all the laws governing debt collections. With what we know about HOA bullies that could subject associations to huge fines.

(link to National Law Review discussion of HOA debt collectors)

The Supreme Court’s recent disparate impact decision has been discussed before on Neighbors At War. It will most likely lead to a huge increase in lawsuits because people were discriminated against even if there was no intent to discriminate. Well, housing discrimination is basically the middle name of many HOA board bullies. This creates tremendous financial liability for all HOA communities.

(link to National Law Review article on disparate impact decision)

Then there’s the Nevada high court ruling that HOA liens have super-priority status over mortgage companies. Nearly two dozen states have such rules. Lenders might become extremely wary of lending money to potential buyers of HOA property. Once that trend starts, HOA home values will crash because buyers won’t be able to find lenders.

(link to recent FHFA warning about super-priority liens)

The tide may be turning against the so-called lure of HOA life!

Clooney Loonies

Poor George Clooney. The American actor can’t seem to catch a break from his new British neighbors.

Clooney and his wife bought a 16 million dollar property in rural England…a chance to get away from the celebrity stalkers and paparazzi. But his new neighbors are outraged at his presence. More accurately, they’re outraged because he put up an extensive video security system which they say invades their privacy.

Having a video security system of my own I would bet the vast majority of Clooney’s cameras are fakes. Nobody who has security cameras has the time to watch them, even if they are real.

(link to Hollywood Reporter story on Clooney’s problems)