Author: HOAGOV

The LA Times article by  Donie Vanitzian on property rights and HOAs (The time to protect your real property assets is before any HOA litigation) is excellent!

 “Each titleholder’s real property in a common-interest development may be pledged as collateral for any association loans, which may be obtained without approval from owners. That leaves titleholders to pay the mortgage bill through special assessments or homeowner dues. These assessments are in essence a lien, levied against each property until the association’s loan is paid off. When owners sell their property, the buyer either accepts the lien with the sale or the seller has to pay the lien off before the sale. That’s just one complication.”

It is another in a long series of invaluable information provided to help homeowners and not the HOA corporation that has its own attorney.  The Vanitzian column in the LA Times fills a void in full disclosure that the pro-HOA special interests with their paid lobbyists avoid and fall silent.

Did any of those CAI HOA surveys ask respondents how they felt about these HOA powers?  I wonder.

We are all aware of the reported incidents where developers have failed to meet their contractual obligations and fiduciary duties to the HOAs that the created.  Failure to maintain the development, poor and non-existent records, and developer appointed boards, etc.

Well a federal bankruptcy court judge in Miami, Florida came down hard on such practices that forced an HOA into bankruptcy.  “The court ruled that D.R. Horton, America’s largest homebuilder, engaged in deceptive and unfair trade practices and breached its fiduciary duties.”

Read the article, “Judge says ‘greedy corporate giant’ must pay $16.3 million to Miami Gardens condo.”

As an important aside, I’m waiting for someone or some organization to sue for misrepresentation, false advertising, and fraud in the selling process.

Ward Lucas reported in his Neighbors At War site (HOAs Getting Into The Credit Reporting Business) that consumer credit card reporting businesses were starting to report delinquent HOA assessments.  He references Keep Condo Fees Out of Credit Reporting by Patrick Brady and Mark Einhorn reporting that Equifax will start reporting delinquent HOA assessments. Must read!

The article covers with the gross injustices that homeowners will suffer as a result of major problems in the reporting of delinquent assessments by HOAs. Read the article and see how slipshod HOA reporting and inaccurate documentation of delinquent assessments can harm the HOA itself.  Of course, it relies on the homeowners not being knowledgeable about their rights and the obligations of the HOA that are being abused, which sadly, is the norm.

I cannot rationalize why Equifax, or any other credit agency, would allow itself to become part of a gross injustice against homeowners living in HOAs.  Especially when the homeowner cannot stop the action of the HOA, like in any other credit transaction by sending a certified letter that prevents the HOA from taking any action until resolved, if disputed by the debtor.  It is another device to intimidate and punish owners without due process protections. Equifax is now involved in the HOA quagmire.

Federal legislation is necessary to protect the homeowner in an HOA from such abuse by unregulated HOA private governments.  Allow the same credit protections as with other credit card delinquencies and stop credit agencies from reporting HOA delinquencies.

A recent article by KHON2 news reported a controversial aspect of HOA life that homeowners were never told or explained when they bought their HOA controlled home.

“Residents upset over extra homeowners fee to cover hundreds who defaulted on dues.   So how is this allowed to happen and is it legal to make the others pay?”

Those members who have paid their assessments are outraged and argue that it ain’t fair.  It’s not a question of fairness, but of the adhesion CC&Rs contract and legal structure of their HOA corporation.  In short, the HOA is like a small, private business whose income comes from its mandatory members, and when assessments fall short it has the right, under contract, to assess the shortfall to make up the difference.  All buried within the governing documents, but never explained to the membership.

And the  members are all deemed to have given their agreement to the CC&Rs with full knowledge and nothing kept  from them.  “Say it  ain’t so, Joe.”

YES, it’s called joint and severable liability where each member is responsible for other member shortfalls.  But, CAI, that alleged national educational expert organization, does not tell the world that this is the legal structure of an HOA.  Shame on them!

And the other lunacy argued by CAI: foreclose on them. That’s like getting blood from a turnip.  Ludicrous!