Category Archives: racketeering

Now, South Carolina

      3 Comments on Now, South Carolina

Slowly, but surely state legislators are hearing from bullied homeowners that the national HOA scam is ruining lives. And more news agencies are doing stories on out-of-control boards. The story linked below is from South Carolina which has a growing number of homeowner complaints.

Legislators tell themselves, “Of course, we can pass some laws.” Only problem is they can’t. The U.S. Constitution guarantees the ‘right to contract.’ And you certainly can sign a contract to give up your constitutional rights. That’s the rub. Florida’s Deborah Goonan has it right when she says at least we can license HOA management companies. That’s a good start. But it won’t end the nightmare of board members who feel entitled and empowered to throw their weight around.

Still, the more people who complain to legislators, the better. Ultimately, though, the solution has to come from the courts.

(link to homeowner complaints in South Carolina)

 

 

Arizona HOA Law Firms Are Whining

      1 Comment on Arizona HOA Law Firms Are Whining

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.

(link to column by the HOA Institute)

 

Second Arrest in HOA Embezzlement

      3 Comments on Second Arrest in HOA Embezzlement

They got him! A couple of days ago a longtime HOA manager in San Mateo, California was arrested and accused of stealing 2.8 million dollars from the Woodlake Homeowners Association. Now they’ve arrested her partner, a man who allegedly wrote fake invoices for construction work that was never done. It sure sounds like a copycat of the decade-long swindle of homeowners in Las Vegas.

And it sounds a lot like the multi-million dollar organized crime racketeering swindle of Homeowners Associations in Colorado.

And Homeowners Associations in Florida.

In Alabama.

Virginia.

Texas.

And every other state.

Still, you keep hearing from Realtors, and Congressmen, lawyers, city officials and state representatives that this kind of swindle is extremely rare. What are these guys smoking, anyway?

(link to arrest story in San Mateo Daily Journal)

 

Corruption in Hotel California

      No Comments on Corruption in Hotel California

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.

(link to story in the San Diego Reader)

 

To Counter-Act C.A.I. Disinformation

      3 Comments on To Counter-Act C.A.I. Disinformation

The Community Associations Institute (CAI) is famous for testifying before state legislatures that it represents all homeowners living in HOAs. Absolute nonsense. In the beginning it probably did. But in the early 1990s a conscious decision was made to turn the organization into a referral group, sending high-dollar referrals in HOA disputes to its member lawyers, property managers and contractors. Under its phony non-profit shield it sent out surveys on how satisfied Americans were with their Homeowners Associations.

Whoa! Any legitimate, honest survey of homeowners living under the HOA yoke should have told a far different story. Finally, some in the anti-HOA movement are releasing studies which appear to be far more legitimate than the pablum being spread by the CAI. It’s hard to get legislators to pay attention to what they see as a non-issue. But surveys like the one linked below tell a more interesting story about homeowner dissatisfaction and abuse.

(link online survey of homeowners, real estate professionals and homeowner associations)

Also, housing consumer advocate Deborah Goonan was interviewed about this story today by Shu Bartholomew, host of OnTheCommons.net. It really is worth listening to.