Long-time readers of this blog know that the most corrupt Homeowners Associations in the country are in Nevada. We know that from the 41 or more organized crime racketeering convictions earlier this year in Las Vegas. Just as I predicted, despite the tens of millions of dollars in losses all but one of these HOA mobsters got less than 18 months in federal prison.
That being said, there are some shining lights of honesty in that area. Dr. Gary Solomon, Jonathan Friedrich, Colonel Robert Franks among others. Sadly, the corruption is so rife within the Homeowners Association movement that the system works hard to stomp out those who sacrifice to help others.
Today, Bob Franks sent out the following letter to explain to his legions of admirers why he has to step back in the fight for homeowners’ rights:
My appointment to the HOA Commission is completed. I did not request
reappointment for a normal 3 year term. So, I can now move on with the
satisfaction that CICCH Commission records show I did my best to make a
difference on behalf of unit owners.
Regretfully, the record shows that legislative and executive branch
authorities do not appear to want the CICCH (HOA) Commission to
effectively perform its statutory mission on behalf of all home
owners. It is under the tight control of industry and government
interests–to the serous detriment of unit owners and other occupants.
The record of the past decade shows that well over 95% of unsettled law
violation complaints filed with the state by unit owners against HOA
boards and licensed managers are summarily dismissed by the state. The
division does not have to show or defend the merits and results of its
secret, multi-year investigations with board presidents and their
attorneys. The division’s dismissal decisions are not subject to
anyone’s review or dispute unless high cost civil lawsuits are
initiated. This is gross injustice for unit owners. Imagine if the
courts only tried 5% of the valid complaints filed with them?
The less than half a dozen cases out of hundreds filed each year that
are actually prosecuted under the administrative statutes by the
Attorney General staff to the CICCH Commission always reflect high level
criminal violations as well. But, criminal investigations and
prosecutions never seem to get prosecuted. HOA and Condo unit owners
are losing many millions of dollars due to known criminal violations
every year and the government is failing to do anything. This knowing
and willing failure of justice for HOA owners is a true outrage for our
state.
The Real Estate Division is also not subject to any kind of outside
oversight of its decisions that almost always favor the boards and
licensed managers. This means the Division is given a blank check by
the Legislature to continue to hide its apparent misconduct and denial
of homeowner justice.
As a result, HOA owners currently have no viable paths for demanding and
expecting to receive citizen property rights protections from the
abusive industry and state/local government controllers.
Unfortunately, it now seems clear that a large, Nevada grassroots
organization and legislative caucus must be formed to represent
aggrieved property owners against the combined business and government
power blocs. The consequences of doing nothing can create a continuing
blight upon the previously attractive Nevada home markets.
East Texas, Big Woods Springs HOA is a relatively small community of 85 homes, with low assessment payments of $35 per month. They need the money to maintain their road, a small bridge, and a dam for their lake. Homeowners have just been “blindsided” by the theft of $31,000 from their HOA.
The theft allegedly occurred over a 26-month period, by their neighbor and former Treasurer, Letha Anna Thomas. Owners became suspicious when their repeated requests to see financial statements were ignored.
The new Board members vow to operate with transparency, and intend to conduct background checks on all future Board candidates.
Note that $31,000 represents about a year’s worth of assessment payments for the Association. Most of the residents are on fixed incomes.
Just because the community is small and assessments are low, don’t assume that the HOA cannot be a target for embezzlement.
7 on your side: HOA theft victims say, “We’ve been kept in the dark for years.”
Anybody who’s seen the ugly insides of the national HOA scam knows that Homeowners Associations are lawsuit machines. In most lawsuits and criminal actions Americans have access to the Due Process clause of the U.S. Constitution. In the typical Homeowners Association each member unknowingly contracts away that access. Bam! In Pennsylvania Dutch, “there goes the egg money!”
Throw away your access to Due Process and every lawyer within spitting distance knows there’s money to be had. Free money. Your money. Paint your door the wrong color and you get fined, liened, sued and you pay all the HOA’s legal expenses. Lawsuit machines. No other possible description.
In Arizona, a prominent HOA law firm is all upset by a court ruling that says lawyers can’t tack on extra legal fees they rack up trying to garnish the wages of a losing homeowner.
Rest assured, though, this law firm has a number of sneaky plans to hijack this decision. The lawyers win. The lawyers always win.
I’ve said it before, and I’ll say it in the future. When you’re investing your life savings in your home, don’t trust anybody. Don’t trust the Realtor. Don’t trust the county’s master plan, and above all do not trust your HOA. Homeowners in Chula Vista, California are learning about what all west coast residents know as ‘Californication.’
They bought into a peaceful valley where traffic was minimal, wildlife was everywhere, no smog was in the air. Life in the Eastlake III Homeowners Association was Heaven on Earth. The master plan showed their pristine way of life would last forever. But that kind of promise evaporates the minute land developers start knocking on doors. All of a sudden builders began jamming high density neighborhoods all around, packing in low quality homes like sardines in a can.
Eastlake III is no longer the promised land. The Homeowners Association is embroiled in legal disputes, recall elections, charges of corruption, violence threatened. Police are being hired to maintain the peace in HOA meetings.
Promises are like…. no, discretion says “don’t go there.” Let’s just say that promises are hollow. And promises made by a Homeowners Association are especially worthless.
Yes, that’s pretty much the new code word for Homeowners Associations: Gentrified or Gentrification. And it’s the word of the day in Denver where brand new HOAs or condo associations are trying get rid of some homeless shelters and rescue missions. The missions have been in the lower downtown Denver area almost forever. But Coors Field changed everything.
The now-famous home of Colorado Rockies baseball was built where land was cheap, right at the intersection of skid road and the nation’s central railroad hub. The rescue missions continued to do their work but suddenly the ‘gentrified’ wanted to live near the ball park. Century-old slaughter houses were turned into luxury condos. A two-bedroom setup where cows were once butchered can now cost millions of dollars.
The bums still lie around on the streets where they always did. The City of Denver issued a permit for one mission to improve its homeless shelter. But the ‘Newly Gentrified’ went nutz and took the whole mess to court. The judge issued his order this week. Gentrification is in. Bums are out.
