Category Archives: racketeering

Wilbur Wins!

guest blog by Nila Ridings

I am so happy to share this wonderful news from Rori Halpern. She is the mother who fought long and hard to keep the family’s pot-bellied pig for her sons.

“Long day for all involved. We are beyond elated to say Wilbur Bacone will remain forever in our home, continuing to bring joy and happiness to all. Due to confidentiality agreements between both parties we cannot share details. The only thing that matters is that we can keep our boy without anymore worries. Thank you from the bottom of our hearts to all who came forward in support of us. We love you all.”

It is no surprise that the notorious HOA “gag” order has been placed on the Halpern’s. Typical HOA style when they lose a legal battle. We know in this case they did lose because Wilbur is staying put. I sure hope the judge awarded the Halpern’s reimbursement for their legal bills and punitive damages for their pain and suffering.

Who wants to take a guess at how long it will be before the next HOA sues a homeowner over a pot-bellied pig? My guess: at least one more before the end of the year!

(link to Wilbur’s story)

 

Candidate For Congress Is Listening!

guest blog by Nila Ridings

Over the past week I have been emailing back and forth with Andy Ostrowski. He’s hoping to become the newly elected member of Congress from Pennsylvania. Tuesday, November 4th is the critical day that will decide whether his goal has been achieved. Please get out and vote regardless of what state you live in. If you live in Pennsylvania give your neighbor, church friends, golfing buddies, yoga sisters, or the freshly registered voter from the college campus a ride to the polls!

Somebody out there in HOA Land put a ‘bug’ in Andy’s ear about the abuse and suffering home owners are dealing with in condos and HOAs. He had no idea how bad it really is. He had friends a while back who had problems with their HOA, but that was where his exposure to the insanity stopped. Our emails have ping ponged back and forth and most of you know I don’t candy-coat my words. Andy knows we need a hero. He knows we need a legislator who will work across party lines. And he knows we don’t need any more politicians in bed with the CAI! He gets it!

You’ll find his website at the bottom of this blog.

And now a message from Andy Ostrowski-

Homeowners’ Associations – A Need for Congressional Action

“During my run for Congress, I have met many people with many unique needs for assistance, and government action. None has been as compelling as those Americans who are involved in property ownership in Homeowners’ Associations (HOAs).

I was surprised to learn that some 60 million Americans own property subject to HOAs, and have heard many horrific stories about the abuses that they suffer.

Home ownership – the right to own property, and use it for the purposes of raising a family, and providing solace for all of our private affairs, is a core value in our constitutional republic, and, in many ways, is part and parcel to the “pursuit of happiness.” These HOAs, however, are creating the pursuit of misery.

I have a lot to learn, but have heard enough, and understand enough to know that this is a widespread problem across this country, and something that may require Congressional action to address.

The Community Associations Institute (CAI) is a trade organization that passes itself off as an educational organization designed to promote “professionalism, effective leadership, and responsible citizenship,” but is, in reality, a lobbying group backed by builders and developers, and bent on getting their access to legislators across the county to create a legislative field tilted heavily in their favor – and they have been successful.

HOAs, and their Boards, serve public purposes traditionally reserved for governments, and elected officials, and this reveals one of the true hearts of the problem – there is no accountability to oaths of office to uphold and defend the constitution. People who try to sue these HOAs are told that they are not government entities, and do not have the same responsibilities and duties as do their governments. They are creatures of corporate law, and planned development acts.

Individuals unknowingly give up core constitutional rights to private entities created under the authority of law, and subject themselves to foreclosure actions, fines, forced entries, and evictions without the protections of law otherwise available. It is the lack of accountability that we at least theoretically can demand from our government, through, at the very least, the right to vote, that is the source of the true harm in this area – one that affects the lives of 60 million Americans – this needs to change.

To tie this in with my particular expertise, these HOAs are often then protected by the courts, which are subject to the same crony influences that the legislatures are often subjected to, and is further evidence of how the system is tilted in favor of the big banks, and corporate and monied interests, and away from the rights of the individual.

There are many proposals around among the individuals being hurt and harmed, and I will be studying and considering them all. The AARP, for example, has recently voiced concern that homeowners associations pose a risk to the financial welfare of their members. They have proposed that a homeowners “Bill Of Rights” be adopted by all 50 states to protect seniors from rogue Homeowner Associations. This bill of rights should apply to all homeowners and Constitutional protections should also be restored for a fair and balanced playing field.

The plight of the individuals whose pursuit of happiness is being obstructed, and whose lives are being ruined, is one area that needs specific focus.

This is a true civil rights issue as it involves legislatures across the country enacting laws that cut off constitutional rights, and access to courts for millions of Americans, and I will fight to give government back to the people by fighting for the rights of these individuals.”

Website for Andy Ostrowski for Congress:

(http://andyostrowski.com)

 

Open Letter On HOAs To All Policy Makers

guest blog by Deborah Goonan

Although HOA horror stories and reports of financial failures of common interest developments are reported daily in the media, industry proponents claim these are “isolated” incidents, that most people are happy under government by CC&Rs, and that buyers actually want more of the same.

When I or others attempt to discuss realities from the HOA resident’s perspective, we hear “HOAs aren’t for everyone,” “move if you don’t like it,” and “stop whining and complaining.”We are told our democratic proposals for reform are “fantasy” and “unrealistic.” Tell me, when did Democracy become taboo?

Today, in response to this arrogant drivel, I was inspired to write the following Open letter to CAI, State, and Federal Policy makers:

For more than a decade, HOA homeowner advocates have proposed many solutions to problems that vex HOAs: one vote per resident, ballot voting for elections, increased government oversight, better buyer disclosure, reforming laws that are skewed in FAVOR of the HOA corporate entity to eliminate the power imbalance it creates for owners. But we have faced consistent opposition every step of the way, not from fellow owners but from special interest groups: notably developers, real estate investors, Real Estate BARs, and management companies – including CAI. In all fairness, it is becoming increasingly apparent that even CAI members and attorneys disagree on policy matters, to include “eminent domain for condos.”

You may think that dismissing those of us that have the audacity to speak out against injustice and bad policy as “whiners” is an effective strategy to silence us. But all that does is prove the arrogant, dismissive attitude that prevails in the industry and our state Legislature that backs the special interests.

I recognize that Florida’s condo takeovers – a seven-year-old practice that is just beginning to get national attention – are a result of their financial failures. I do not object to their dissolution. What I object to is the injustice that results – kicking folks out of their homes, often forcing them to take huge financial losses, and with no effort to make these people whole. It was an injustice to sell those condos at artificially inflated prices in the first place, not to mention all the bad mortgages that resulted in many thousands of foreclosures and personal family tragedies. It was bad policy and greed that led to the failure of many condo and HOA communities.

And at the same time in Florida, millions of dollars are being invested in brand new high-end luxury condos. The folks in the middle and lower income ranges are merely collateral damage. And you can bet that the loans for all those displaced condo owners will become non-performing mortgages. No wonder the banks balk at financing for condos.

Other states also experience similarly owner-unfriendly issues, including local elected officials that seek to relax building codes, and reduce construction defect liability for Developers.

Furthermore, the financial and social model of common interest developments is unsustainable, which will ultimately lead to increased costs for local and state governments as these HOA communities mature. We are already seeing increased evidence of condemnations and HOAs that must appoint receivers because no one wants to serve on the Board of a failing community.

I am thoroughly disheartened by discussing HOA issues with people who refuse to acknowledge the truth and simply do not care about homeowners, tenants, or taxpaying citizens that do not toe the line and conform to the HOA corporate agenda.

I call upon reasonable, responsible, and compassionate State and Federal leaders to recognize that corporate communities are incompatible with American values of Democracy and Equality, and that HOAs exist primarily for the benefits of Real Estate interests. Americans must not be expected to relinquish their rights, freedoms, and financial stability for the sake of increasing the property tax base with high-density development.

Thank you.

 

HOAs & Owner Involvement: An Oxymoron? (part 1 of 3)

guest blog by Deborah Goonan

Let’s get real!

One of the most common laments of HOA industry professionals is this: “Owners are apathetic. No matter what we do, we cannot get them involved in governance of the community.”

I have previously blogged, tongue-in-cheek, about the tendency of Boards to cultivate apathy. Today I will explore the issue in more depth.

Is it realistic to expect widespread participation?

Historically, few people actively participate in city, town, or county government, so what makes anyone believe that there would be a higher participation rate in HOAs?

Consider that HOAs (and especially condo associations) are marketed as carefree, low-maintenance lifestyles, often including amenities that owners do not have to personally maintain. HOA homes are not explicitly disclosed as what they are: shares in real estate investment, almost always part of a corporate entity. And, even if we could enlighten buyers and owners about the need to protect their investments in their HOAs, how many would take active roles? After all, most people with retirement accounts tend to put their money into funds managed by financial professionals – few actively monitor their funds.

Does HOA governance structure encourage or discourage participation of residents?

Some critics of HOA governance have suggested that Boards should allow residents to actively participate at meetings, with the ability to present ideas, make motions, and vote on resolutions directly affecting them.

But I doubt we will see such change, because CAI – and most governing documents written by attorneys for developers – promotes policies that give the Board broad authority to act on behalf of the association.

Refer to page 30 of Community Association Living: (Emphasis added in bold)

“Board members and committee members are volunteer leaders who meet regularly to discuss pertinent details about running their community. A board meeting at a community association is comparable to a town council meeting of a municipality. The basic authority in a community association lies with the owners. However, the owners elect a board of directors to act on their behalf. Usually the governing documents delegate almost all of the association’s decision-making powers to a board. This leaves the owners with very few direct powers. Typically, owners have only the voting power to:

  • Elect and remove directors
  • Amend any of the governing documents, except board resolutions

Occasionally, owners will approve the annual budget for their association. But all other decisions are usually left to the board. As a result, if owners are unsatisfied with a board decision, they usually do not have the direct authority to “veto” or “undo” its action. Under such conditions, their only remedy is to elect a new board to represent them.”

Clearly, the status quo discourages active participation of owners, exacerbating apathy. See Part 2: Reality Check

 

Bribes, Kickbacks & Other Forms of HOA Honesty!

It’s not even an open secret that the typical HOA board member and common area maintenance company probably gets kickbacks from vendors. THEY GET KICKBACKS FROM VENDORS! Get over it. Don’t even question it. It’s about as common as worms on a sidewalk after a spring rain.

Since HOAs make their own laws and since government oversight over such things as kickbacks, bribery, extortion and embezzlement is approximately zero this kind of nonsense will continue indefinitely.

Jan Bergemann, one of the heroes of our movement just posted something unbelievable on his website. Actually, it’s not unbelievable. It’s just sad.

http://www.ccfj.net/CCFJCAMBribe.htm