Category Archives: racketeering

Tragic Loss Of Personal Rights

On this blog we rant and rave about the alarming loss of Constitutional rights in our covenant controlled communities. 65 million people have moved into these neighborhoods having no idea how arbitrary and illegal these petty dictatorships can be.

In tonight’s blog and link I’m going to stray way, way over the line and suggest that anyone concerned about the dramatic loss of our 240 year old Constitutional Republic watch a documentary that was published on YouTube a year ago.

As a lifelong journalist, I’m not much of an alarmist. Yes, I watch and read material from the left and the right, the liberal media and the conservative. And I am usually thoughtful as I mull it all over. But I’ve always been more of an observer than an activist.

That being said, somehow I missed the documentary linked below. It pulled material from FOX News, CBS, ABC and various liberal and conservative commentators and sources. It looks at the loss of personal rights over the past ten years. In the name of terrorism a massive bureaucracy has emerged which is doing things that would have been incomprehensible fifteen or twenty years ago. Technology has essentially made privacy and personal rights obsolete.

Be forewarned, if you’re timid this may cost you a few hours of sleep.

(link to documentary on government overreach)

 

You’re A Brave Man, Greg Chumbley!

You’d think that a prospective homeowner would be allowed to see the community financials when he’s buying a home, especially if it’s in the neighborhood covenants and ingrained in state law. But as I’ve long said, most HOA boards feel they’re above the law. And usually they’re right. Challenge them and they’ll take you to the cleaners.

That’s what’s happening in a developing story in Florida. The Village Walk of Naples has 850 homes behind its private gates. It employs eight people including the ‘town manager.’

When new homeowner Greg Chumbley asked the board of directors to show him the HOA’s financials they basically told him to take a hike. All Chumbley wanted to know is how much of his dues were going to pay for those eight employees.

The board claims that giving the public any record of its expenses might lower property values in the HOA. Really? That’s the kind of thumb-in-mouth attitude that makes a majority of Americans despise those gated communities. With all the tens of thousands of cases of neighborhood embezzlement, bribery and extortion that goes on in HOA Amerika it also raises a whole lot of understandable suspicion. “Light (truth) is the best disinfectant,” said a famous Supreme Court Justice.

Chumbley has now filed a lawsuit demanding that his HOA obey the law. The first hearing is December 1st.

Chumbley is a brave, brave man for a host of reasons. Not only is he “slapping this mule upside the head,” he’s doing it very publicly by releasing his phone number and ‘share button’ on his website.

Greg, you can’t imagine the number of admiring fans you have across the country. Please let us know how your case turns out.

Contact: Greg Chumbley,  239-300-6169

(link to press release on Chumbley’s lawsuit)

 

CAI Law Firms Fight Back

CAI lawyers in Florida (and most likely elsewhere) are whining about one of the few court decisions that ever favored a homeowner against an HOA. It’s a case where the homeowner wrote a check for $840 with the notation, “in full and final satisfaction (of disputed amount).” The homeowner included a letter with the same basic language.

The HOA attorney instructed his clients to cash the check, but only apply part of it toward the original disputed amount. An Appellate Court has now ruled that since the check was cashed, the HOA cannot go after the $38,000 in additional fees it claimed was owed by the homeowner.

This is another one of those trashy HOA scams that have given the industry such a horrible reputation among American homeowners. If a homeowner claims, rightly or wrongly, that an HOA fine was improperly assessed, the HOA immediately begins tacking on late fees, fines, attorney’s fees, collection costs and interest. Florida law forces the homeowner to pay the most recent fees first. In other words, interest, collection costs, lawyers, fines, late fees, and only then can the homeowner ever repay the original debt.

It’s a beautiful system which has worked well for generations of Mafia families and for low-life debt collectors. While the debtor desperately tries to pay his original debt, the associated fines and interest keep rising, as do legal fees and collections. It’s a daisy chain that’s impossible to break. It’s a massive money maker for lawyers and collections agencies who, while doing absolutely no work, can raise their charges indiscriminately and perpetually until the homeowner is broken. Of course, the HOA prances in and seizes the home which it promptly puts up for auction. The lawyers then begin picking through the estate of the bankrupted homeowner. The system is fundamentally unfair to the individual homeowner who never has a chance to plead for his own day in court.

So in this rare decision where the Court ruled in favor of the homeowner, the tears and gnashing of teeth are being heard throughout the CAI community.

(CAI firm’s warning to the HOA industry)

 

Outrage of the Week: Object to Development, Get Sued by Developer

guest blog by Deborah Goonan

Add another shady, abusive tactic to the HOA playbook. When taxpayers show up at the planning commission meeting, and speak out against development of yet another HOA or Condo project, if you’re the Developer, just give your attorney a call. Then threaten a lawsuit.

When a Planning Commission denies a Zoning change, or the two parties cannot agree on a development plan, it is quite common for the Developer and Landowners to file a suit against the government, hoping to arrive at a reversal of the Zoning decision or at least a mutual compromise.

But for developer John O’Flaherty (through law firm Ungaretti & Harris) to sue 22 concerned citizens and activists, who publicly objected to the proposed development plan, is stepping way over the line. Legal experts are calling this maneuver nothing more than a SLAPP suit, (Strategic Law Suit Against Public Participation), aimed at intimidating private citizens – who have no power to make Zoning decisions – from expressing their opinions in accordance with free speech under the First Amendment of the US Constitution.

Taxpayers and homebuyers are increasingly learning of the risks and pitfalls of covering every empty plot of land with yet another privately governed HOA.  FHA has balked at financing condominium projects for the past several years. That is no secret. Even if you’re not apt to buy a condominium for yourself, as a taxpayer, why should you favor your local government allowing development of another potentially risky mixed-use project? What is the potential long-term tax revenue, weighed against hidden costs and non-tangible social costs of a housing model that is failing all over the state of Illinois and the country?

What’s next? Maybe developer’s attorneys will start to sue news reporters, bloggers, and consumers who tell their Realtor, “Don’t show me any condos, and no HOAs!”

(link to Chicago Tribune story on Park Ridge)

Don’t Be Gay In A Texas HOA

One of the most fundamental problems with the American HOA system is that it actively encourages apathy among its residents. In a hostile neighborhood, homeowners are afraid of being targeted for public shaming or humiliation. It makes neighbors paranoid of each other, afraid to be activists. After all, most of us want to live in private homes in a human quest for peace and quiet. That, in turn, makes people unwilling to participate in the governing process. Stay home, don’t make waves, don’t stand out from the crowd. Beyond all else, don’t show up at HOA meetings.

Bam! That’s the dynamite!

Once you remove a majority of the neighborhood from the governing process, small-minded power-hungry dictators are free to threaten, defame, cheat, steal, and embezzle with pure abandon. It’s hog heaven for human swine. With tiny majorities behind them they rise to the top where they create neighborhood havoc, usually by finding and tormenting a handful of targeted ‘unwanteds.’ An unwanted homeowner can be anything from a single mom to a family with a Down’s Syndrome child, to unmarried couples, black families, Jews, gays, lesbians, essentially anyone the dictator on the board thinks can be easily targeted. It’s fundamentally good war strategy. Don’t give the enemy a reason to fight back, turn the enemy against itself. Churn up chaos and drive homeowners further behind their shield of apathy.

That brings us to a crazy situation in the Gilbert Homeowners Association in Dallas. A single man owned a condo for years but his domestic partner is not listed as an owner. He’s deemed by the HOA to be “a guest.” The HOA board in its lawsuit against the couple said, “Ken Ray (the guest) is not an owner of the condo….under current Texas law he is, therefore, not a member of the Association.”

It gets a whole lot crazier. The two men claim they tried to get the association to repair a leaking sprinkler back in 2008. The repair never happened. The two domestic partners began to get a little more aggressive in trying to get the HOA to fulfill its obligations to repair the damage. One of the men discovered the contractor who was supposed to do the repairs was a daughter of a board member. The homeowner demanded to see the HOA’s financial records.

That’s when the proverbial “ship hit the span.”

The two domestic partners claim they were indirectly threatened with “use of a firearm.” Their sprinklers were purposely turned off damaging their landscaping. The front gate entry code was changed so that the buzzer went to the management company, not to the mens’ condo. Threats were made to physically remove “the guest” from HOA property. The men were prohibited from hiring their own contractors to repair damage caused by the board’s neglect.

The lawsuits and counter-suits mean the eventual legal bills will stretch into the hundreds of thousands of dollars. A jury verdict against the HOA could conceivably stretch into the millions.

If so, one more American HOA could be forced into bankruptcy. It’s happened before.

“I see stupid people. They’re everywhere. They walk around like everyone else. They don’t even know that they’re stupid.”  -slight rewrite from The Sixth Sense, 2007

(link to Dallas Observer story)