We haven’t heard much lately about the Las Vegas Homeowner Association scandal and the federal investigation which has already obtained ten guilty pleas against public figures for corruption. But, we may as well do this blog to keep Las Vegas criminality in the headlines.
The Mountain’s Edge Homeowner Association is being sued by investors who tried to snatch up foreclosed homes in the Vegas area. In the mortgage collapse, investors have taken a huge risk in trying to buy up homes which were abandoned by bankrupted homeowners. Those investors are just about the only financial thread keeping entire neighborhoods from going under.
Washington State is such a pretty place to live. They call it “The Evergreen State.”
And a boat-load of Homeowners Associations were all going to help protect and preserve property values for all those new owners. Well, it’s not working out so well for folks in the Hazel Dell Townhomes, part of the Timbers at Town Center HOA in Vancouver. About six years ago, crowds of real estate agents dragged their clients in to buy some of those ritzy new townhomes. Now, HOA dues are going unpaid, a lot of personal wealth has been shredded, common areas are uncommonly unkempt. At this point, a townhouse owner probably couldn’t unload his property in a bad poker game.
With several dozen Las Vegas Homeowner Associations mired in the muck of a federal corruption investigation, members of one association have learned they may be targeted by huge IRS assessments and fines.
Sun City Summerlin Community Association is not one of the Nevada HOAs where investigators have found corrupt cops and judges and lawyers. But this HOA’s accounting practices are attracting lots of federal attention.
What if your HOA suddenly passed a rule that no member could ever convert his home to a rental?
Homeowners rent out their homes for many legitimate reasons: to stall for time until sales values go back up; to bring in some money while Dad’s is relocating to a job out of state. Some parents invest in homes near a college so a child can decrease living expenses by taking in a roommate.
Poorly maintained rental property certainly brings down values of nearby homes. But well-maintained rentals harm no one.
So, what’s the harm in outlawing non-owner occupancies?
Well, at least it sounded cool, but I didn’t have the guts to say that to my publisher. I actually did want to hold off for a couple of weeks on my new book, Neighbors At War: the Creepy Case Against Your Homeowner Association. With all the embezzlements from HOAs, I’ve got a last minute update I’d like to make. I want to slip into Chapter 14 a $1000 challenge: a reward for the reader who can compile a verified list of the largest number of Homeowner Association embezzlements.
