Category Archives: Fraud

Orange County officials dealing with Blossom Park, Tymber Skan Residents living in unsafe condos

guest blog by Deborah Goonan

I have blogged about the Blossom Park condo conversion recently. In recent weeks, Orange County Fire Department has stationed one of its trucks at the scene, and a structural engineer has examined the buildings, including the staircases and upper decks, deeming most of them unsafe. An official report is due this week, and in the WFTV report linked below; Orange County officials expect to order an official evacuation within days.

The County is now providing financial assistance to move the residents – mostly low-income tenants – to safe housing.

Court-appointed receiver, Frank Barber of Deer Run Realty & Management Company, insists that the problems are not that dire, and has reportedly urged residents to stay. He is relying on fees collected to pay for needed repairs, and — let’s not miss the obvious — to pay for services provided by his company.

Left unsaid in the many news reports: the taxpayers of Orange County are footing the bill to assist Blossom Park residents. And the bill must be substantial, as it includes increased police protection due to high crime and three recent murders in Blossom Park, stationing the Fire Department adjacent to the condo complex, assigning a structural engineer to inspect the condo buildings, and evacuating and then providing 30-days of free housing to hundreds of low-income residents.

Nearby Tymber Skan is another troubled condo complex, complete with squatters, criminals, dilapidated structures, and rats climbing the walls. Taxpayers have paid hundreds of thousands to cover unpaid water bills, police protection, demolition of buildings, and relocation of residents. This has been going on for several years, and its still not over.

So are HOAs really “no-impact” or “low-impact” tax revenue cash cows for local governments? Perhaps in the short term, but what about over the long term?

And are County officials now “heroes” stepping in to save the day? Hardly. Where have they been all these years, when these distressed condos have been left mainly to their own defenses, living conditions growing progressively worse? No one has been held accountable for allowing residents to live in squalor, for failure to manage the financial affairs of these failed Associations, for creating the conditions that allow violent crime and blight to flourish unchecked.

Better yet, how were these condo projects approved in the first place, with such shoddy construction, and why weren’t regular inspections done to ensure deficiencies were identified and repaired early on? It should have been clear to planning and development commissions that many of these developments and redevelopments were doomed to failure and premature obsolescence.

And what about the social impact to residents and surrounding neighborhoods, where people fear for their health and safety? Can we really put a price on the total costs? Decades of neglect by local governments – preferring to allow thousands of HOAs to attempt to govern themselves and manage their own affairs, while collecting property tax revenues from owners – has led to this chaos.

From deteriorating infrastructure to Bully Boards to neighborhoods divided over how their money is being spent, more and more of these stories are being reported and brought to the attention of the public. And what we see reported on the news is only a small percentage of the problems, because, in many HOAs, owners resist going public for fear of scaring away future buyers (or tenants) and reducing property values. In fact, the outspoken owner is often intimidated, harassed, or ostracized for daring to air the dirty laundry, so to speak. It’s a sick, twisted mindset that threatens the very foundation of the American Dream for millions of Americans.

(link to WFTV story on Blossom Park)

(link to Tymber Skan story)

Movies About Homeowners Associations

I know of at least four HOA movies in various stages of production. Movies are extraordinarily expensive to do, and to do right. One of the older ones that appears to have stalled had a wonderfully clever trailer….worth watching.

If anyone has an update on this production, please let me know.

 

Update: Osceola delegation denies HOA residents’ third request to make Poinciana a city

guest blog by Deborah Goonan

A few months ago I blogged about a very large Florida HOA with over 45,000 residents, and the fact that a homeowner’s group (PINCHOS) has been trying for three years to incorporate as a city. In all, Poinciana has nearly 60,000 residents. Under the latest proposal, roughly 47,000 live within boundaries that were to create a new municipality.

News reports indicate that Osceola County Legislative Delegation vote was split 2-2, along party lines on the matter, with two representatives not present at the time the vote was taken. A Department of Revenue report, based on a feasibility study, has concluded that Poinciana meets the financial requirements of a city, and stands to take in millions in revenue if it incorporates as a municipality.

At the hearing conducted last month, the delegation reportedly heard from residents both in favor of the proposal and opposed. Those opposed fear that becoming a city would lead to a tax increase, despite a feasibility study’s conclusion to the contrary.  Debate on the finer points has been put on hold for yet another year.

One of the reasons PINCHOS is in favor of municipal incorporation: typical of large HOAs, Poinciana is divided into 9 Villages, and the President of each Village Board serves on the Master HOA. Property owners elect the Master Board, but many of those owners are not actually residents of Poinciana. Meanwhile tenants have no voting rights to elect their leaders. That’s equivalent to taxation without representation! Predictably, the HOA Developer and the Board spoke against Poinciana becoming a city at the Delegation meeting.

According to another recent television news report, Poinciana has been struggling with crime and vandalism. Because they don’t have City status, they cannot have their own police department. Therefore the HOA has decided to spend $100,000 on increasing security staff and adding security cameras.

Keith Laytham, spokesperson for the owners’ group in favor of municipal incorporation says his group will continue to work with State Rep. John Cortes to put Poinciana on the map as a city in its own right.

(Bay News 9 article on controversy) 

(Orlando Sentinel article on Poinciana)

(Letter to Ledger.com from a Keith Laytham)

(WFTV video, Poinciana HOA to spend $100,000 on increased security)

(Previous blog about Poinciana, and why many residents want to create their own city)

So You Think You’ve Heard Everything?

I’d love to call this one a scam, but there isn’t enough information to make that kind of allegation. It’s just too bizarre. The City of McAllen, Texas, charges each resident an extra ten bucks on their water bill, supposedly collected on behalf of Homeowners Associations. Theoretically, that money is supposed to go to HOAs for maintenance. But nobody seems to be getting the maintenance or the money, and the City of McAllen has no idea where the money is going. There’s never been an audit. Money is even being collected from homeowners who live in neighborhoods where the HOA has been dissolved. We may be talking about millions of dollars, here.

Huh?

(link to story on disappearing money)

 

Dr. Solomon Wins A Round

One of the heroes of our movement, Dr. Gary Solomon, has won a round in his own battle against an out-of-control HOA in Nevada. It involved an idiotic fine of $100 so he tried to get it heard in Small Claims Court, where it really belongs. That court kicked him upstairs to District Court which really has no business hearing 100 dollar claims. After two years, Solomon has won the right to take the case back to Small Claims. Here’s the decision:

Minutes
12/09/2014 3:00 AM
– This is an appeal from a Small Claims Judgment entered in the Las Vegas Township Justice Court. By this Judgment filed May 5, 2014, the court found that it lacked subject matter jurisdiction over this case, and that it had to be filed in District Court instead. This case involves a fine of $100 imposed by Respondent Palm Hills Home Owners Association (the HOA ). Petitioner Dr. Solomon ( Solomon ) disputed the imposition of the fine. It appears that a lien was placed by the HOA against the subject property as well. Pursuant to NRS 38.310, because this dispute involved the interpretation, application or enforcement of the community’s CC&R s, the dispute first had to be submitted to arbitration or mediation with the Nevada Real Estate Division ( NRED ). Solomon filed a complaint with NRED which resulted in a ruling in favor of the HOA and against Solomon. The arbitrator also awarded the HOA $7348.17 for attorney s fees and costs incurred. Pursuant to NRS 38.330(5), within 30 days after the final decision and award in this nonbinding arbitration, Solomon was permitted to commence a civil action in the proper court concerning the claim which was submitted for arbitration. This action would be a de novo proceeding. Solomon filed this case in Small Claims Court in the Las Vegas Justice Court. The Justice Court found it lacked subject matter jurisdiction and dismissed the case, holding that NRS Chapter 38 . . . requires that such disputes be adjudicated in District Court. However, nothing in chapter 38 specifies that this de novo proceeding must be filed in District Court. Moreover, the case the HOA relies on, Hamm v. Arrowcreek Homeowners Association, 124 Nev. 290, 183 P.3d 895 (2008), does not address the question of jurisdiction as between district court and justice court. The HOA also argues that the lower court lacked jurisdiction pursuant to NRS 4.370(2) because this is an action in which the title of real property . . . [is] involved. However, in the Hamm case, the Nevada Supreme Court held that even a dispute about HOA fines where a party sought to release a lien imposed does not relate to title to the property. Additionally, while the HOA disputes whether Solomon ever held title to the property at issue in this case, this defense of the HOA is not to be considered in evaluating subject matter jurisdiction, which instead is based on an evaluation of the face of the complaint. The fact that the HOA may challenge Solomon s ability to proceed as a real party in interest does not deprive the court of subject matter jurisdiction. Thus, this case in which Solomon filed a small claims complaint for less than $7500 was properly filed in Small Claims Court and that court s dismissal was in error. Accordingly, the Small Claims Judgment is hereby reversed and the case remanded for further proceedings in accordance with this Court s ruling. CLERK’S NOTE: The above minute order has been distributed to: Gary Solomon, 1001 Calico Ridge Dr., Henderson Nv. 89011, & Troy Dickerson (Angius & Terry) 1/28/15 kr