Category Archives: HOA

Seeing Through The Excuses In South Carolina

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guest blog by Nila Ridings

Communication and documentation. Key words in the business world.

Here’s a case of a contractor who sold windows to the HOA. He became ill and unable to perform as promised. He also stopped communicating. Why didn’t he call the contact person and explain he was ill and would be back on the job? Why did he spend the money that was supposed to pay for the windows? Why didn’t he refund the money immediately and apologize for not being able to fulfill the agreement?

As I see it, the HOA paid too much money up front. Why didn’t she get a surety bond to guarantee the work would be done? Why didn’t she require the money be put in an escrow account and withdrawn as needed to pay for the windows and then the labor? Did she talk to other customers of this company? If not, she should have. Did she do an internet search for lawsuits, past and pending?

The loss could have been much greater. Hopefully, the windows will arrive and the contractor will get them installed and all will be well. But if they aren’t this HOA will be in court trying to recover its money and the cost of litigation will more than likely exceed the recovery.

Another lesson learned about board members who lack the experience of negotiating contracts and operating on trust instead of logic. Amateurs managing an HOA? Always a formula for disaster. We’ve seen it happen all across America. And there are times when the best of people with massive business knowledge still get taken.

Who ever thought the HOA concept would ever work must have been out of their minds!

(link to story about HOA mistake)

 

HOA House Pretty In Pink At Lake Conroe!

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guest blog by Nila Ridings

When will it end? The battle over a pink house rises again!

Bella Vita HOA on Lake Conroe, Texas has declared a legal battle with Frank and Anna Manzo. The Manzo’s dream home has a shade of pink that was added after the basic HOA beige was approved. Oh my gosh! You would think the color of the house was going to cause the lake to dry up.

One of the neighbors, Julie Dunaway Williams loves the house and she is standing up for the Manzo’s by creating a gofundme account to help pay their legal bills. The Manzo’s house is valued at $600,000. But as we all know, legal bills in an HOA battle can run into the hundreds of thousands because the goal is always to bankrupt the homeowners.

I’ve written about a pink house in my old non-HOA neighborhood before. I sent a copy of that blog to the owner. He located my number and called me. We had a wonderful chat about his pink house. It was his parent’s house and it was pink when he and his now deceased wife purchased it from his parents. The last time it was painted he asked his wife if she wanted to try a new color? She responded, “This house was born pink and it’s going to die pink!” And so, as long as he owns the house it will always be pink. And the value of the houses in the neighborhood all around it continue to rise.

I recall another pink house story. In my hometown, a plumbing contractor and business partner of my dad’s had a pink house, pink Mustang, pink Cadillac, and a fleet of pink trucks. Everybody in town knew and loved the Rinas family. Their trademark pink was a trademark that nobody forgot. And when they needed a plumber they knew to call the one with the pink trucks. They lived in a lovely neighborhood and to my knowledge no one ever complained about their pink and brick ranch style home!

I think it’s past time for the HOAs to stop with their “pink” phobia. It’s paint. It’s just paint. Get over it. If I ever escape this nightmare HOA I’m living in I hope to live with brightly painted houses all around me. I’m completely sick of the depressing HOA beige!

(link to ABC-13 story on the Pink Stink)

https://www.gofundme.com/2fgwarw

You Can’t Say We Didn’t Warn You!

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guest blog by Dave Russell

I was recently interviewed by the Kansas City Star, for their series, HOAs from Hell. While the story about my HOA was flattering, please don’t think for one second that I actually encourage folks to move into these Associations.

I’ve said it millions of times, and I’ll say it again: “You are just one board member, manager or management company away from insanity.” Really, you are.

Sure, I was very flattered that the Kansas City Star selected my community as the one HOA that actually does it right. While our four swimming pools now sparkle, our roofs are sound and my HOA lives up to its original brand, ‘Welcome to Resort Style Living,’ this wasn’t the case seven years ago. And if you really think about it, in a few years from now, my HOA could easily fall once again into the abyss.

I could tell you stories about now-sparkling pools that were once literally swamps, leaking roofs and enough crime that the City of Mesa, Arizona actually had a strategical and tactical plan for our HOA.

I could also tell you stories about our completely dysfunctional former board members, who collectively had an I.Q. of three, who once attempted to manage my neighbors’ financial affairs. But I’m sure you have all heard these stories before.

Now that you have heard all of the HOA horror stories, have read and watched the series, HOAs From Hell reported by Judy Thomas, and you are still considering purchasing a home within an HOA…you can’t say that we ALL didn’t warn you about the pitfalls of owning or renting in a Homeowners Association.

http://www.kansascity.com/news/special-reports/hoa/article93272412.html
(EDITOR’S NOTE: The above link is to an on-camera interview with Dave Russell)

“Fire That Reporter, Judy Thomas!”

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All anybody on our network is talking about right now is the amazing series of stories in the Kansas City Star. Today’s paper featured an extensive story on the abuse and criminality going on in America’s Homeowners Associations. Well-researched, well-documented, and well-reported the Star again sets a national standard upon which all HOA stories should be based. This is not to diminish my respect for the Las Vegas Review-Journal which has long reported the organized criminal activities among Nevada HOAs and the corrupt public officials who oversee them. But reporter Judy Thomas has broken new ground with her story on the national HOA scam.

The industry’s reaction is predictable. They’re already accusing the paper of not being fair. They’re complaining that the paper didn’t seek out the other side, and that the investigative series was biased.

Next, the Community Associations Institute, that ethically challenged, dishonest multi-billion dollar outfit will put together a committee of famous people to descend on the management of the Kansas City Star demanding that reporter Judy Thomas be fired. And Judy will be called into her boss’s office to listen to the harangue.

How do I know? Because it’s pro-forma. The same thing happened to me. More than twenty years ago I did an extensive investigative series on mid-west meat packing plants and the kind of filth that’s sold to American consumers every day. My sources? None other than a number of FDA inspectors and managers of several meat packing plants. The most prominent meat packer in Colorado took offense, and the day after my story aired he and a United States Congressman were in my boss’s office demanding that I be fired. After an hour of ranting at me and demanding I be immediately put out on the street my boss told me, “Geez, I’ve never had a U.S. Congressman demand that I fire an employee!”

That Congressman was later rewarded with re-election, then election as a U.S. Senator, and finally an appointment as president of the University of Colorado.

Get ready, Judy. Just keep a smile on your face. Your story is beyond amazing and it should win some prestigious journalism awards. It makes me very proud of the courage of the management of the Kansas City Star.

(link to HOAs From Hell, Kansas City Star)