Category Archives: racketeering

Update: Justice served for one Florida Condo Association

guest blog by Deborah Goonan

After Bob Norman of Channel 10 news brought media attention to Board member misconduct at Georgian Court North Condo Association last fall, former President Ed Ryan entered a guilty plea on criminal charges of practicing community association management without a license.
The Judge sentenced Ryan to 3 months probation and 25 hours of community service. Ryan was also ordered to return his ‘borrowed’ car to the Association and resign from the Board. The judge did not order financial Restitution.

The Attorney General opened the case following an investigation by Local 10 News in September.

The media really can be effective in resolving problems for homeowners. The Association is now pursuing a civil lawsuit in an attempt to recover hundreds of thousands of dollars that Ryan paid himself over ten years.

http://www.local10.com/news/condo-president-admits-wrongdoing-in-court-after-local-10-investigation/32561836

 

Dallas HOA Still Affected by Internal Strife

guest blog by Deborah Goonan

A few months ago, a County Judge dismissed a case brought by Highlands of McKamy HOA against the Toras Chaim congregation. The small Orthodox Jewish congregation thought its battle was over, and then the City of Dallas sued the congregation over permit violations. That case is still pending.

Now, the same HOA community is back in the news, this time regarding a dispute between a homeowner and the Association over a brick wall that was inexplicably torn down, without notice, from the rear border of his yard. That left the affected homeowner’s back yard wide open to a busy road and nearby railroad tracks, significantly increasing noise levels and eliminating privacy.

It seems the brick wall was in need of repair, and the Board, led at the time by former President David Schneider, made the hasty decision to tear it down, rather than attempting to shore it up.

Kind of a metaphor for how all disputes were handled by Schneider and his allies.

The affected homeowner had been trying to sell his house, but that attempt was unsuccessful. Perhaps the gaping hole in the barrier wall is the primary reason the house remains unsold?

According to the report in the Dallas Observer, before a majority of homeowners recalled Schneider from the Board, they also forced a $10,000 cap on the budget, in order to limit the HOA’s exposure to legal expenses over the unpopular decision to sue the Toras Chaim. That led to a lack of funds to replace the wall after it was torn down nearly a year ago.

In the meantime, the City of Dallas was about to levy fines because the wall has not yet been replaced. Fortunately, the Dallas Observer reports that the new Board has authorized an emergency repair, and the wall will soon be rebuilt.

Once again, we are reminded that one rogue Board member and a few allies can wreak plenty of havoc in a once peaceful and harmonious HOA community. Even an HOA with minimal common areas and low HOA assessments can run into trouble and considerable expense. A personal dispute that should have stayed between neighbors of two residences has become a source of ongoing strife for the entire HOA. A contentious and questionable election led to a recall that divided the community.

Every member of the Highlands of McKamy Association had to pay for legal expenses for what amounted to a frivolous lawsuit aimed at denying First Amendment rights and religious freedom. Now the HOA also has to pay to replace a 9-ft. tall brick wall that might have been saved rather than torn down. Oh, and yet another homeowner has just filed suit against Schneider’s former HOA Board, claiming the Board violated its bylaws by awarding a contract to demolish the wall to a single bidder, with no competitive bids.

Please explain to me once again, how do HOAs enhance and improve property values?

(link to continuing saga at McKamy HOA)

Disaster Relief for HOA Members? Ha!

I’m linking to the CAI site only for the purpose of backing up a previous blog.

If you are living in a Homeowners Association which experiences a weather or earthquake disaster, don’t count on getting federal help of any kind. An HOA member hit by a flood is not considered a homeowner, but an investor in a corporation. When 20,000 homes were damaged in the Boulder flood two years ago, many homeowners discovered they were flat out of luck. Those inside HOAs found that FEMA wouldn’t help them and they couldn’t get federal loans. They couldn’t buy federal flood insurance either because they didn’t live inside recognized flood zones. Who knew Boulder Creek could ever launch that big a flood?

We learned recently thatĀ if HOA boards in California don’t buy earthquake insurance for the whole community, then individual homeowners can’t get coverage either.

CAI reports that a couple of Democratic Congress members have made some progress in getting the feds to help Homeowners Associations badly hit by Hurricane Sandy.

CAI’s press release is about as dishonest and disingenuous as they come. What they should really be talking about is not about federal exemptions, but about the fact that the very membership of an HOA in CAI is a red flag to the feds. You HOA members are investors, NOT HOMEOWNERS!!!

(link to CAI press release)

 

More Money Down The Drain

guest blog by Deborah Goonan

Yet another case of shoddy construction, this time a failing storm drain and a sinking retention pond in Michigan. Over several years, homeowners of Windridge Estates HOA have experienced cracked foundations and basement windows, shifting soil in their back yards, and movement of retention walls, as the shoreline of the nearby pond crumbles into the water.

The HOA lacks the means to make the needed repairs, so the City of New Baltimore has agreed to “help” by setting up a special assessment district, in order to collect $1.45 million from homeowners over the next 10 years. Each lot will ultimately be taxed roughly $6500.

That’s in addition to any regular HOA assessments and property taxes they have paid all these years the problem has gone unaddressed.

The HOA Attorney argues that the City should pay at least 18.5% of the cost, since City roads drain into the pond when it rains. In this particular HOA, the City maintains the roads and easements, but not storm drainage. This illogical arrangement is amazingly common in HOAs.

Several questions come to mind.

First, how did this storm water system get approved by the City Inspector? Second, why isn’t the developer on the hook to pay for these repairs? Third, how much will this end up costing City taxpayers who do NOT live in Windridge Estates?

Local governments have been abdicating responsibility for maintenance of major infrastructure for decades. But retention ponds and underground stormwater pipes are notoriously difficult and expensive to maintain and repair, even when they are constructed properly. Repairs almost always involve precise engineering design, heavy equipment, and moving around large amounts of soil. How do local governments justify dumping this responsibility on a volunteer Board and the disproportionate expense on unsuspecting homeowners?

In the meantime, one unfortunate recent buyer just got a fine welcome to the community. The seller hadn’t disclosed problems with the pond, and now the buyer is on the hook for his share of the cost. Just goes to show how affordability of your home in an HOA can be wildly unpredictable.

Oh, and as I’ve mentioned before, but it bears repeating: a lot adjacent to a retention pond is NOT a “lake view” or “water view” for which a buyer should pay a premium.

(read the story, check out the photos, here)

 

Simple Explanation

guest blog by Nila Ridings
HOAs! I am 100% convinced that is the answer to the mystery (no mystery to me) of the article linked below.Originally created to make neighbors with commonality friendly and social. But the HOA concept failed when the structure was established for neighbor to rule neighbor. Even to the point of being able to fine, lien, and foreclose on their home. With that being allowed to happen the trust is gone and the fear antenna goes up while the boxing gloves sit waiting by the front door to go on.

In multiple ways HOAs are destroying human life!