Category Archives: HOA Issues

A Stinking, Treacherous, Romance-killing Bog

It was so romantic when we first moved into the Denver area searching for what we thought might be our Shangri La.  In leaving our home in Seattle, Washington, we were leaving behind a city where nearly every home looked out over a view of lakes, rivers or the ocean.  We had lived all our lives in the Pacific Northwest, where the annual rainfall and humidity are so high that seemingly every drainage ditch was flushed daily and grew an abundance of blackberries, strawberries and raspberries.

In our first plane flight over Denver we thought we saw hundreds of little ponds and reservoirs scattered across the landscape, so we felt we had nothing to fear. Our Shangri La waited for us just below. We didn’t yet realize that the Denver area sits right on the edge of semi-arid desert.

We even found a home on a tiny water-skiing lake. Beautiful white homes surrounded our lovely gem. Neighbors were glad to meet us; we were thrilled to meet them.

But then the cold hard reality set in. Those lakes we saw from the plane were all mirages. They’d been thrown up by developers anxious to make a quick buck. The lakes weren’t stream fed. They weren’t washed by the Spring rains. No, those lakes eventually turned into fetid pools, reservoirs, divots in the ground designed to collect rainwater to be pumped up to the grass in community common areas. They smelled bad, they brewed up a noxious mix of odors, mosquitos and other biting bugs. So in Summertime, we found ourselves cowering indoors, covering ourselves with DEET and shaving cream, and anything else we thought might combat the biting bugs.

Then, came the letters from the Homeowners Association. “Our lake is essentially illegal, since it blocks rainwater and keeps it from flowing into the local drainage basin. We can try to get it permitted by the state, but it would have to be annually dredged to an appropriate depth. We plan to argue that our pond has become a federally protected wetwater area for migrating waterfowl.

“We all love our little wildlife pond. But to maintain it properly and legally is going to require an assessment from each of the surrounding homeowners. We will schedule a series of neighbood hearings, of course, but the meantime it appears that each homeowner is going to be assessed an extra $130,000 to help save our community asset.  Alternatively, we can drain and restore the area with a little wooded park, which should only cost our neighborhood HOA about $50,000 per resident. In any event, none of these costs reflect the legal expenses we will otherwise incur, which will sadly be in the hundreds of thousands of dollars.”

Can you imagine the anger at our annual meeting?  The insults hurled back and forth. The community picnics and parties we would never hold, the icy glares we got from neighbors who once smiled at each other?

We got conned. We all got conned. And it gave us our first taste of HOA community life.

Ward Lucas, author of Neighbors At War! The Creepy Case Against Your Homeowners Association

Another Day, Another Embezzlement

The latest one was in the Osprey Homeowners Association in Sarasota County, Florida.

Charles Nichols allegedly wrote himself at least 33 checks for thousands of dollars. HOA officials said his actions left the association deeply in debt.

Nichols is 69 years old.  This blogger highly doubts the HOA will ever get restitution. That means a special assessment to all homeowners to make up for the losses.

Thanks for the Herald Tribune for bringing this to light.

Ward Lucas, author of Neighbors At War! The Creepy Case Against Your Homeowners Association

 

Tiny Mice Gang Up On Big Rats in California

Homeowners usually get the raw end of the deal when they try to fight the “Bigs” in the HOA industry. Some Homeowners in California are trying to turn that trend around. An HOA in Riverside County has sued three former property managers for “fraud, conspiracy to defraud, breach of contract, and breach of fiduciary duty.”  They had employed the management companies for eight years.

Canyon Lake Association then sued its own law firm, Fiore, Racobs & Powers, accusing them of “fraud and malpractice.” They say a lengthy investigation found “no cash management, no separation of accounting duties, credit card abuse by employees, employee salary increases that were not approved by the board.”

The lawsuit further claims that three HOA managers “created and concealed a secret, systemic pattern of conversion and theft of (HOA) assets and funds…and made representations to the board that were not true and were a cover up designed..to delay discovery of the cover-up.”

One final thought comes to mind here.  We haven’t heard much from the federal investigators in Las Vegas. We hope the widespread corruption they found in the Vegas HOA industry hasn’t depressed them to the point that they want to throw in the towel. Actually, we hope the opposite is true.  We hope they take a look around the country and discover that the legal scams in Las Vegas are as identical and numerous as the legal scams in Riverside County, and Modesto, and Weld County,  Colorado. and Dallas and Houston and Miami, and North Carolina.

If you don’t think it’s happening in your own community, you are either naive or dumber than a box of rocks. When we signed those CC&Rs, we stepped into an entirely new form of government with no checks and no balances. We essentially told law firms and property managers, “It’s OK to steal from us.” And then we whine when they steal from us. What gives?

Ward Lucas, author of Neighbors At War! The Creepy Case Against Your Homeowners Association

PUBLISH TIME IS GETTING CLOSER!

After all sorts of hiccups and more layers of editing than I ever dreamed possible, my book, Neigbors at War! goes to the printer this week.  That means sooner or later I’m going to be moving this blog to a new site.  I think you’ll like it. It has a lot more flexibility, more features, and more chance to interact with others in the HOA business.  I’ve also included the Table of Contents and a couple of sample chapters. Most authors won’t do this, but I’m putting my index on line as well. This way, researchers don’t have to type in every chit and chad in a hyperlink, they just be able to click on the link and have immediate access to the resource. Any and all suggestions will be considered.  It’s a sales website, of course, but I’d like to keep it a community resource as well.

Ward Lucas, author of Neighbors At War! The Creepy Case Against Your Homeowners Association

Creepy, Creepy, Creepy!

Mosquito DroneI don’t want to creep my friends out too much before our new week begins. But controversial news items keep piling up in my in-box, and they have to be cleared out sooner or later.

ITEM: 30,000 military drones are on their way to law enforcement outfits in America. It won’t be too long before extremely inexpensive drones are available to other government agencies to do aerial inspections of zoning violations. Now the Air Force is developing drones the size of a hummingbird, or even a mosquito. It’s not hard to imagine a mosquito flying through an open door or window and grabbing a microscopic piece of your DNA from bedsheets or clothing.

ITEM: New York City is first on the list to buy a sky full of the new drones. New York is also working with the Microsoft Corporation to develop a 30 million dollar computer/camera system that keeps track of everyone in New York ALL the time!

ITEM:  Gary Harrington, of Medford, Oregon, has just begun serving a 30 day jail sentence. His crime? Collecting rainwater and snowmelt that fell on his property. Oregon says it’s illegal to divert streams. Harrington’s argument that “diverting rainfall was not the same as diverting streams” fell on deaf ears in the courts.

ITEM: Martha Boneta owns a 70 acre farm where she grows vegetables. She has a permit to sell from a little farm store on her property. Her mistake is that she sells some souvenirs and trinkets and occasionally has pumpkin carving events and an occasional birthday party for her friend’s kid. But now she’s facing a $5000 fine for selling non farm items and not getting a permit for the birthday party.

CONCLUSION: Government is becoming more and more intrusive. Does it take any kind of imagination to see the day when HOAs can send drones over your property and in through the windows of your home looking for covenant violations? There’s already a case in Texas where an HOA president used a helicopter to photograph a resident’s back yard! Theoretically, we have a Constitution that prohibits unlawful searches of your property and belongings. But HOAs involve private contracts with homeowners. Your HOA doesn’t have to respect the restrictions in the Constitution.

Am I nuts about all of this? Not according to the link below.

http://washington.cbslocal.com/2012/08/10/domestic-spying-mini-drone-can-watch-neighbors-from-above/

Ward Lucas, author of Neighbors At War! The Creepy Case Against Your Homeowners Association