Category Archives: racketeering

Massive Explosion In New Jersey Condo Complex Leaves One Dead And Many Homeless

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guest blog by Nila Ridings 

It is too soon to know if this massive explosion was caused by a gas leak, an improperly marked gas line, or incompetence by contractors…or any other cause.  What is known is one person has lost their life in this condo explosion.  Countless others are homeless or unaccounted for at this time.
 
A fire marshall once told me this type of situation is their worst nightmare:  People in attached housing. Difficulty knowing who was in the units. And the difficulty of knowing where to begin looking for survivors.  He also mentioned many HOAs have narrow streets that make it difficult to get fire trucks and equipment to the engulfed units.  That is compounded by people parking vehicles on the narrow private streets which impedes the first responders’ access and delays response time.
 
Sadly, these owners are left with rebuilding (which I would want no part of) and making payments on a place where they cannot live.  In addition, they have HOA dues to pay on a place that is totally destroyed.  And their personal possessions are completely wiped out.  Will they all have insurance to cover the damages?  If they don’t, who pays for the rebuild?  No doubt there will be lawsuits to determine the blame and while those process through the court system the owners continue to suffer.
 
This makes me think.  If this happened in an apartment complex, victims would find a new apartment and move on to rebuilding their lives.  But in a condo you’re stuck with no say in when, who, how, or if there is a rebuild.  You’re faced with the payments, no place to live, and your life in turmoil and at the mercy of a group of board members to make a decision about your future living arrangement.
 
Lesson learned.  Condo living is looking even less desirable.  
 
My heart goes out to all of these condo owners for their suffering and loss.  Sadly, they are facing some very difficult days ahead.
 
 
 
 

Astute Analysis Of The Virginia HOA Debacle

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guest blog by George Staropoli

I thank Ward for covering the developments at the Virginia Legislature regarding:

1) the right of HOA to fine members even though the sacrosanct CC&Rs contract does not permit them,

2) making fines the same as assessments thereby allowing for foreclosure for the nonpayment of fines, and

3) overriding the Virginia Supreme Court’s holding in Unit Owners v. Gillman (1982) that fines are a government power that cannot be delegated. 

Virginia’s HB 791, the bill in question, makes use of the statutory  mandate word, shall, which can lead to claims of HOAs as state actors because they are obligated to do the bidding of the state.  “The board of directors shall also have the power . . . to (ii) assess charges against any member for any violation of the declaration or rules and regulations,” except if explicitly forbidden in the declaration.  (Sections 55-513(B) and 55-79.80:2(A)).  

Yet in Gillman the Virginia Supreme Court held, 

We do not agree that it was ever the intent of the General Assembly of Virginia that the owners of units in a condominium be a completely autonomous body, or that such would be

permitted under the federal and state constitutions. Admittedly, the Act is designed to and does permit the exercise of wide powers by an association of unit owners. However, these powers are limited by general law and by the Condominium Act itself. 

What HB 791 does is to make HOA fines legal under Virginia’s statutes. Ha!  Take that!  By fiat, by statute, HOAs are permitted to impose a draconian monetary penalty against homeowners – the right to make them homeless through foreclosure. 

The Court in Gillman went on further to say,

“The imposition of a fine is a governmental power. The sovereign cannot be preempted of this power, and the power cannot be delegated or exercised other than in accordance with the provisions of the Constitutions of the United States and of Virginia. Neither can a fine be imposed disguised as an assessment. . . . We think it clear that the Gillmans were being punished, not assessed, and hold the action of the Association to have been impermissible. 

And very importantly from a constitutional point of view (my emphasis), “A condominium restriction or limitation, reasonably related to a legitimate purpose, does not inherently violate a fundamental right and may be enforced if it serves a legitimate purpose and is reasonably applied.”  

What is the genuine government interest to impose draconian monetary penalties for the failure to pay a private organization’s penalty?  

If it is argued, but has not yet been so argued, that HOAs are vital to the welfare of the community in general and to somehow provide for the greater community’s happiness, then what we have is the HOA acting as an arm of the state.  The HOA is then subject to the Constitution as if it were a state government entity.

(UPDATE FROM WEBMASTER: even though the State of Virginia may have modified its proposed legislation, George’s point should be kept in mind because other states may begin going down the same unconstitutional path as Virginia was headed.)

 

AZ GOV Committee Burns While Chairperson Ugenti Fiddles For Campaign Funds

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guest blog by George Staropoli
 
The Arizona House Government Committee is chaired by Rep. Michelle Ugenti.  Why hasn’t she held her House GOV committee meetings for the past 3 weeks, 4 in total (just under 50% not meeting)?  
 
Here’s a copy of the latest Ugenti flyer to raise funds for her campaign   Does her personal agenda –  campaigning for re-election – come before the work of the Legislature and her committee?  Before the people?  Is she so indispensible to the Arizona Legislature that she must be re-elected?  Or is she so desperate to get re-elected in the face of past acts and actions?
          =     =    =    =    =    =    =    =    =    =    =    =
Please Join Congressman David Schweikert and Host Jim O’Connor

For A Meet and Greet In Support Of:

Representative Michelle Ugenti

 
Contributions to Michelle Ugenti’s Reelection Campaign Are Encouraged and Accepted

Registered lobbyists cannot contribute at this time

 
The maximum donation is $2000 dollars per individual and $4000 for couples with joint bank accounts. PACs can contribute up to $4000. Corporate contributions are prohibited
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Last session she attached her twice defeated HOA omnibus bill, HB 2371, in the waning hours of the last meeting of the session causing Senator Griffin’s SB 1454 to violate the Arizona Constitution and House Rules. A law suit was filed and the attached Ugenti amendments were declared invalid.  However, ARS as posted on the Legislative website, ALIS, still shows the invalid laws without any annotation as to their unconstitutionality.
 
See:  HOA SB 1454 progeny: passing SB 1482/HB 2695 would be an act of tyranny by the AZ Legislature and view the important reference links to other posts.
 

Arizona Dave vs. The Bimbo

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(Ward is on the left coast dealing with a family emergency. I’ll try to post when possible, but in the meantime the email below is hilarious. It’s from ‘Arizona Dave’ to me, but he’s given me permission to reprint. And Dave is absolutely not responsible for the Bimbo stories. I am. LOL! Not only did I score an exact hit with my verbiage, but I might have found the thinnest-skinned legislator in the country. Also, special note to Bimbo Ugenti: in politics a sense of humor keeps your head above water!)

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Hello Ward,
 
You must read the email below from Rep. Michelle Ugenti! Seems the “bimbo” is not loving Neighbors at War nor my affiliation with your website! LOL!!!! 
 
Further, she is not loving my Arizona State Capital Follies Facebook page. She sent this moments before the Senate hearing on SB 1482, the bill George and I are trying to kill. How clever and childish.
 
Regards, 
Dave Russell, CAM                                                           
Community Association Manager                                
On behalf of the Board of Directors

Circle Tree Owners Association 
461 W Holmes Ave 
Mesa, AZ 85210            

Office Phone (480) 655-0311
Fax (480) 655-8524

Circle Tree is an FHA approved community (Project ID S002462) 

 
—– Forwarded Message —–
From: Michelle Ugenti <MUgenti@azleg.gov>
To: .ALLHMEMS <ALLHMEMS@azleg.gov>; .ALLSMEMS <ALLSMEMS@azleg.gov> 
Cc: Dave Russell <davecr102@yahoo.com> 
Sent: Monday, February 10, 2014 1:34 PM
Subject: Please read regarding SB1482

Dear Fellow Members,
 
You have recently received two emails from Dave Russell (both were sent to all members except he excluded me from his first email) regarding SB 1482 the HOA omnibus, prime sponsored by Senator Gail Griffin and cosponsored by several others.  This bill is scheduled to be heard Monday afternoon in Senator Griffin’s Government and Environment committee.
 
I wanted to take this opportunity to share with all of you some of Mr. Russell’s other statements concerning me, other legislators, the legislature in general, and the Governor.  I am providing links to his Facebook page and others he participates on so you can see first-hand what he really believes and how he expresses himself.
 
Please see attachment for additional inappropriate comments.
 
Thank you,
 
Michelle
 
 
Here is a link to Dave Russell’s Facebook page –
 
Here is a sample of what is on it –
 
And here comes the magnificent trio, Blondie, the Bimbo, and now the Wack Job! The newcomer is Sen. Gail Griffin. (Wiki definition of a griffin: “a legendary creature with the body, tail, and back legs of a lion; the head and wings of an eagle; and an eagle’s talons as its front feet.” Actually, a griffin sounds like one screwed-up animal! But that’s beside the point.)

All this time I thought Republicans were smarter than this! Aren’t Republicans generally for smaller, less intrusive government? Preservation of Constitutional rights? Maybe there’s something in the water in Arizona to make Republicans stupider than the rest of the country. But this trio is something else, bringing back a fundamentally unconstitutional and illegal HOA bill, over, and over, and over.

Representative Michelle Ugenti (the cute young thing) is somehow getting her strings pulled by the powers-that-be in the HOA industry. Remember, politics is about nothing more than who gets how much of the pie. Looks like these three might be carving out a larger slice for themselves than anyone else in office. If Ugenti’s proposed law ever gets passed and signed by Governor Blondie it’ll be challenged in the courts. And once again it’ll be rejected.

 
Here is a link to Arizona State Capital – Follies website (spelled as it appears) –
 
 
Michelle R. Ugenti
State Representative, District 23
Government, Chair
Appropriations
1700 West Washington Street, STE. H
Phoenix, Arizona 85007-2844
Office: 602-926-4480
 
 

How To Dump A Homeowners Rights Activist

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Ah, dear Rancho Santa Fe. All eyes are on ye.

What happens when a board president tries to represent homeowners in a dispute over millions of bucks going into the pockets of managers? Well, you just slap her upside the head. And toss that woman off.

Incredible.

According to the story linked below, Ann Boon, president of Rancho Santa Fe Homeowners Association just wanted to raise a few questions about the unusually high salaries going to HOA managers. The salaries were approved IN SECRET by a three member minority of the seven-member board. And Boon was never included in discussions of the eye-popping salaries.

No problem. The board members protecting the management company against any questions of inappropriate behavior just voted Boon out of office. It was 5-2. Majority rules.

Egads, you would never find this kind of behavior in a traditional government institution where the public has a right to know how money is being spent. But once you’re inside of the phony ‘governments’ of Homeowners Association all bets are off.

(link to story about Rancho Santa Fe HOA)