Hi Gang,
Since you’re all part of what’s getting our message out there, here’s an end-of-the-year look at website numbers.
A record 514,000 logins were recorded in 2014. And 4.8 million pages of material were either downloaded or read.
When you submit a guest blog here, just know that you’re having an impact.
Happy New Year!
I hoped In time, just like in the Christmas Carol, written by Charles Dickens, each board member and the pond-scum attorneys who represented Andover Forest Homeowners Association would receive a visit from one of Dickens’ghosts.
Well whoever said that dreams don’t come true, and that Santa isn’t real, must have not seen the new lawsuit just filed by the United States of America vs. Andover Forest Homeowners Association, and their management company EMG Management Services, LLC. Seems like the ‘Ghost of Christmas Past’ is paying some folks a visit down in Lexington.
Yes, Cooper, there is a Santa Claus, and he’s fixin’ to put some reindeer hoof prints on those board members’ foreheads who took away your little therapy house.
Last week the Orlando Sentinel published an excellent but concise article about the decrease in homeownership rates in Central Florida. The Sentinel reports that homeownership rates have slipped from 77% a decade ago to 66% in 2014, and at only 59% in newer neighborhoods built in the past decade.
Florida, and the Orlando Metro area in particular, suffered some of the highest foreclosure rates in the nation. So naturally, a lot of former homeowners with poor credit have now become renters. Large real estate investment firms have snatched up distressed homes at bargain prices, and turned them into rental properties. Owners interviewed for the Sentinel article lament the fact that their neighborhoods have seen a substantial influx of out-of-state landlords leasing to transient renters, and a decline in yard maintenance and property values. Large real estate investment firms have no problem paying fees for various code violations, as they collect healthy rental income.
Long-time permanent residents express concern over the lack of community cohesion, brought about by the stark decrease in homeownership rates – in some communities, reportedly as low as 37%.
Unfortunately, no public entity bothers to collect vital data specific to HOAs. Data encompasses homeownership in general.
But since the vast, vast majority of homes in Florida are in some sort of HOA – particularly anything built in the last 30 years – might we safely assume a correlation between a high percentage of HOA properties, higher than national average foreclosure rates, and lower home ownership rates in “newer” communities? You make the call.
(link to Orlando Sentinel article, homeownership fades in Central Florida)
Followers of this blog and anyone that follows real estate news will quickly notice that reality stands in stark contrast to Community Association Institute (CAI) rhetoric.
For readers who are unaware, “community association” is CAI’s official terminology for what the rest of America knows a Homeowners’ Association (HOA).
Time to debunk some proclamations made in CAI’s 2013 Statistical Review (link below), and repeated annually in their publications that tout “How and Why Community Associations Work.”
Let’s start with this one:
“Expanding Affordable Homeownership. There has been a persistent effort to increase homeownership in America, especially in underserved groups, such as minorities, women and immigrants, and in specific locations, such as urban areas. Almost from their inception in the 1960s, condominiums have tended to serve as lower-cost housing, especially for first-time buyers. This was especially true of early condominium conversions, in which apartment buildings were refurbished into condominiums. Without the construction and operating efficiencies inherent in association development and operations, affordability would be an even greater problem.”
Really? But here we are in 2014, with regional and national homeownership rates back where they were a decade ago. Most buyers cannot afford homes at current prices. If you have been following the blogs here on Neighbors at War, then you know that Florida, only high-end condos priced at approximately $500,000 and up, are under construction – most of them are snapped up by foreign investors in cash sales. Another 235 or so condominium projects have failed and have been terminated, most converted to rental properties, kicking over 17,000 condo owners to the curb after forcing most of them to sell at a fraction of what they paid for their units prior to 2007. You also know that lenders now avoid underwriting mortgages for condos and HOAs, due to high rental to owner percentages, underfunded Association reserves, and, in some states, the fact that mortgage holders risk losing their entire mortgage interest due to super priority lien status for HOAs.
All of these factors have eroded any temporary gains in affordability for buyers. When you add to the mix the fact that HOA assessments have increased significantly in recent years, well, that just decreases affordability of “community association” living even more.
And how about this bit of marketing hype and political puffery?
“Building a Sense of Community. We are, for better and worse, a highly transient society. Americans follow professional opportunities and other preferences from state to state. By their inherent nature, community associations bring people together, strengthen neighborhood bonds and promote a sense of community and belonging—attributes that are often overlooked. Many residents take advantage of community-sponsored activities, such as holiday events, social clubs, athletic and fitness activities, pool parties and more. These activities help residents get to know their neighbors and forge new, supportive friendships. Social opportunities exist even in smaller associations that don’t have the resources or critical mass to sponsor formal activities. Many Americans make enduring friendships by serving on association boards and committees and volunteering in other ways.“
If you follow national or state HOA news and issues on social media – or read print media, or watch television media – it becomes clear that there is a great deal of conflict in many “community associations.” We’ve blogged about unfinished subdivisions, abandoned condominium projects, and the growing percentage of absentee owners and renters that hardly result “neighborhood bonds” or “enduring friendships.” No doubt you have read about lawsuits and foreclosure threats over a flag in a flowerpot and access to financial records, disputes over lawn ornaments or service dogs for the disabled, threats and physical altercations at Board meetings, tens or hundreds of thousands of assessment dollars being embezzled, tenants and owners having their vehicles towed from city streets. It is common knowledge that many HOAs cannot find anyone willing to serve on their Boards. The list goes on and on.
Additionally, the NJ Supreme Court has acknowledged that CC&Rs do not protect First Amendment rights. And FHFA has objected that HOA super-priority liens divert taxpayer dollars to private communities.
Are HOAs really working to improve housing affordability and quality of life in American communities? Do they benefit American taxpayers in general?
Or are increasing reports of the struggles and strife of HOAs making a mockery of CAI’s glowing self-evaluation?
You be the judge.
How and Why Community Associations Work (Community Associations Institute Factbook)
Many of our founding fathers believed so strongly in Freedom of Speech that there was no question it would be first in the Bill of Rights. Curiously, protection of religion was listed first, however I have to believe there were loud arguments that protection of speech should be listed first. For without Free Speech, there would be no religion, no right to peaceably assemble, no right to petition for redress of grievances. Free Speech was so incredibly important it’s doubtful that any other form of government could have come about without it.
Obviously there are limits. Speech must not be used to cause physical injury to others or for sedition or incitement to riot. Even so, the Supreme Court has never been clear on exactly where the limits should be set. One example is pornography. What some see as clearly evil others see as art. One of the earliest attempts at creating a motion picture using an 1880 zoopraxiscope involved a naked lady video that could have tested the bounds of free speech.
My point is this: One of the things demanded by the homeowners’ rights movement is to stop Homeowners Associations from restricting free speech. It’s is a very real problem when HOA officials refuse to allow political signs, bumper stickers, any material that advocates for candidates who are not on the ‘approved’ HOA candidate list. It’s problematic when HOAs pass rules that a Christian may not hold Bible studies in his home. It’s more than annoying when an HOA president can have a birdbath featuring a nude woman, but that same board official outlaws religious statuary.
HOAs were created, among other things, to control bad taste. But if the U.S. Supreme Court is incapable of deciding what’s in bad taste, how is a typical HOA board member any wiser? The HOA gets away with governing taste by claiming it’s a private club or corporation where taste can be anything the board says it is.
Homeowners rights advocates are gradually winning a few 1st Amendment battles here and there. We might even see more such victories in the future. But as we keep increasing our volume alerting legislatures to the outrages of abusive HOAs, and as a tiny segment of our society takes advantage of the chance to be outrageous and obnoxious to neighbors, we’d better get ready to answer a question the U.S. Supreme Court could not: “What are the outer limits of bad taste?”
(the nation’s nastiest neighbor)
(zombie nativity scene barred)
(university outlaws Christmas decorations in the name of diversity)
($500 fine for too many Christmas lights)
(salvation army banned from public property)
