I’m so glad someone sent me this link. It’s a Skype discussion between some concerned HOA members in Minnesota and Dr. Gary Solomon. Solomon is one of the premiere experts on the national HOA scam and every second you spend watching this video will pay off many times over.
(link to Skype discussion between Dr. Solomon and Minnesota homeowners)
The link below has absolutely nothing to do with HOAs. It should. But it’s interesting nevertheless. It’s also a chance for me to tell another one of my weird personal stories.
It was the early 70s and we were three years into our marriage. We had our second baby son and we were living in relative poverty. Still, we went looking for a home and found one for sale on the Seattle Eastside. I think the original price was around $30,000 but I calculated that all we could afford was $23,000. I gave the owner 200 bucks cash for the earnest money deposit and since there was no Realtor involved and nothing to sign I wrote up my own contract on the only paper in the house: A paper napkin. What was I thinking? I was just 24 and still dumb about life.
The owner of the house signed the paper napkin, reluctantly of course. I know he had regrets about accepting my low-ball offer, but he still honored our agreement. And I carried that napkin into my bank to see if they would give me a loan. Based on the signatures on the napkin they gave me a full loan.
After getting the TV job in Denver a couple of years later we sold the house…and got $36,000. Had I kept that old house it would be worth more than a half million dollars today! You win some, you lose some.
Anyway, here’s a link to some interesting home buying tips:
I’ve whined about this sort of thing repeatedly: HOAs shutting down little kids’ lemonade stands just because some witch on the board thinks that kids’ activities destroy the neighborhood. Ah, how I long for the good old days when the presence of kids and their activities actually increased community property values.
Speaking of property values, I wonder if one of our Florida friends could track home sales in the Hawk’s Point HOA and see how they compare to home values outside any HOA? I would bet dollars to donuts that…naw, I’ll wait until the data comes in.
(link to Fox News story on shutting down of lemonade stand)
I know nothing about this California broadcaster or podcaster, but I grew up in Seattle and know how crazy some of its legislators can be. This guy sounds fanatical, but with my Seattle background I think he definitely deserves to be listened to.
Spencer’s Plantation homeowners association is in the midst of conflict, according to a report from First Coast News, Jacksonville.
Defunct developer, Mercedes Homes, ended business operations in 2012. Since that time, SPHOA’s Board leadership has changed several times, dwindling from 5 members a few years ago to only 2 members as of June 2015. The management company has been changed twice, most recently a few weeks ago, according to public records.
According to the report, the new Board has been aggressively pursuing homeowners for various minor covenant violations, issuing hefty fines. A search of the Clay County Clerk’s database confirms that the past 2-3 years have seen a fair amount of activity, with the HOA filing liens upon properties that were later paid and satisfied by those owners.
Recall attempts by homeowners have failed to remove the Board President and Treasurer, and it looks like the matter will now have to go to arbitration with Florida’s Division of Business and Professional regulation (DBPR).
Do low annual assessments = fewer HOA conflicts?
One fact that caught my eye in the news report: Spencer’s Plantation includes 222 homes, with annual assements of only $250. Reading the Declarations online, this HOA’s common areas consist of a few storm water “lakes” and a small green space. This is a relatively small, no-frills HOA, especially for Florida.
There is sometimes a misconception that HOAs with minimal common area maintenance and low annual fees are somehow less of a hassle than elaborate gated communities with golf courses, club houses, pools, and the like.
But when I read through the Covenants, Conditions, & Restrictions (CC&Rs) for Spencer’s Plantation, I noticed that the Use Restrictions and aesthetics standards — what I like to call “Keeping Up Appearances” — or KUA Rules, are every bit as elaborate as those fancy master planned communities such as Celebration or The Villages.
So that means that the HOA Board can, and often does, end up with a few members who are gung-ho on enforcing those elaborate rules to the letter. And often, there is a property management company and an HOA attorney aiding and abetting those efforts. After all, these “service” providers make a living as HOA Enforcers.
Apparently, that’s what’s going on at Spencer’s Plantation, according to the homeowners that contacted First Coast New. It’s a familiar story that we hear about over and over again.
Don’t be fooled by the size or simplicity of the community. Be sure to read all of the CC&Rs, plus any related Rules and Regulations, very carefully. Better yet, hire a qualified real estate attorney to represent your interests from the time you execute a sale contract through closing. If reading and understanding the fine print and details raises red flags, better to walk away before the deal is done!
Read the story on First Coast News here:
