I get email every day from frustrated homeowners who are being bullied by out-of-control HOA boards. I only wish I could tell all their stories.
The advice I consistently give is for people to recognize that by moving into a Homeowners Association you have essentially bought shares in a corporation where you have no rights under the U.S. Constitution. You have essentially put your net worth and the equity of your home up as collateral against all debts, legal judgments, and legal expenses racked up by your board members and its management company. You’re legally and financially responsible for paying expenses related to embezzlement and racketeering activities by board members. We saw that in Las Vegas over the past few months with the forty or so federal convictions of HOA thieves.
I tell people over and over again, learn what you’ve gotten yourself into. Educate your neighbors. Learn what and who the Community Associations Institute (CAI) is. This organization is one to be despised since it turned in the early 1990s from a homeowners’ informational group into a perverse lawsuit referral machine. Still, CAI testifies before state legislatures that it’s benign and “represents all homeowners.” It’s a blatant lie. Even one of its founding fathers, Lincoln Cummings, has some dismay about the direction his organization took.
Cummings was interviewed by Shu Bartholomew about the origin of this organization.
Suppose you’re an older couple planning on the peaceful retirement life in a maintenance-free neighborhood. You take your entire nest egg and pay off the mortgage. Your new townhome, condo or single family residence is now yours….forever.
Oopsie! You learn that a developer wants to tear the whole thing down and build something new. You don’t want to move from your retirement home, but the developer gets a ‘majority’ of the residents to take his low ball offer to clear out. Not you. You want him to pay you fair market value. But because a ‘majority’ of your neighbors have moved out, what’s your fair market value now? It’s a heck-of-a-low lower than the others were paid. In fact, your quarter million dollar retirement home is worth ten cents on the dollar. Now the developer can get you tossed out by the courts and pay you nothing.
With your permission, I’d like to take you on a video tour of what has to be the most gorgeous Homeowners Association in the world. The views are spectacular, tourists come from around the world to see it. The people get along with each other, no arguments, no liens, no lawsuits, no angry homeowners carrying guns into board meetings and mowing down board members. No lawyers, it’s Heaven on Earth.
Oh, a few things I should mention: the air and water are pretty polluted, in fact, one of the most polluted on Earth. The people are dirt poor, medical care is almost non-existent, but there’s virtually no auto traffic. Ah, and I should mention that the government is Communist China. Communism, where the whole American HOA movement is heading. Communism puts the commune in community. Still, enjoy the video.
Yep, that’s the quotable quote emerging from an HOA scandal in Anne Arundel County, Maryland.
Residents of the Russett Community Association voted to throw out the top two board members who homeowners claimed were misusing HOA funds. True to form, the two board members voted that the recall elections weren’t valid because they weren’t approved by the board. Then they fought the recall election in court, and of course they spent neighborhood dues money to pay for their own defense. It happens in thousands of HOAs across the country!
In this case, though, a judge ordered that the two board bullies step down from their positions. They’re not going easily, though. They’ve squandered anywhere from 80 to 100,000 bucks and more in dues money to fight the homeowners in court.
Those of us ‘in the know’ just shake our heads in wonder.
It’s all about the news media, folks. It’s all about publicity. P.T. Barnum was once rumored to have said, “There’s no such thing as bad publicity, it’s all publicity.”
Five years ago I wouldn’t have believed it possible, but now anti-HOA stories have almost gone mainstream. Our misery as HOA homeowners really is getting out there and prospective home buyers are paying attention. Does a Homeowners Association really protect your property values? Well, your property is only worth what someone is willing to pay. So if a growing number of people are saying they’ll never buy an HOA property, doesn’t that mean your HOA is actually hurting your property values?
