CAI response to HOA COVID-19 payments

The following is the form letter CAI HQ is urging everyone to send to Congress to oppose a federal bill granting exclusions for HOA assessments.  HOAs “uber alles.”
“I am writing to strongly oppose legislation like H.R. 6423 and S. 3565 that impose a national moratorium on debt collection during the COVID-19 national emergency.
This legislation is too broad and will harm the financial interests of households in homeowners associations, condominium associations, and housing cooperatives (collectively, community associations).
. . . .
“When one homeowner is unable to pay assessments, these costs are passed to other homeowners in the community. This increases housing costs, spreading financial distress to other community households. [Part of the HOA contract is the implication of a joint and severable liability by the homeonwers. Didn’t you know this???]
“Community associations are working with homeowners suffering from the economic impact of the COVID-19 national emergency. A recent survey by Community Associations Institute indicated a 20 percent increase in requests for forbearance or payment plans by homeowners who are unable to pay assessments. Beyond this goodwill, community associations are subject to state laws that require payment plans for delinquent assessments.  [Not clear whether or not HOA honored them].
CAI logo
“I ask that you oppose extreme legislation like H.R. 6423 and S. 3563. Thank you for considering my views and I look forward to your reply.”

Pres. Obama speaks of American mindset operational in HOA-Land

The following comments by Obama well describe the mindset in operation in the HOA-Land Nation. It explains the conduct and behavior of the vast majority of HOA members who completely support the acts, actions, views, and values of their board of directors no matter what.[1]

In a recorded private call[2] in regard to the dropping of charges by AG Barr against Flynn, President Obama had this to say, “That’s the kind of stuff where you begin to get worried that basic — not just institutional norms — but our basic understanding of rule of law is at risk.”

Furthermore, President Obama made the following observations about the dramatic change in American values.

“What we’re fighting against is these long-term trends in which being selfish, being tribal, being divided, and seeing others as an enemy — that has become a stronger impulse in American life. . . . It has been an absolute chaotic disaster when that mindset — of ‘what’s in it for me’ and ‘to heck with everybody else’ — when that mindset is operationalized in our government.”

As for HOA-Land, “What’s in it for me” applies to maintaining property values and “to heck with everybody else” applies to failing to defend member rights of due process protection and the equal protection of the law. The means justify the ends – protecting my property value.

Notes

[1] See in general, “Part 1, social and political dynamics,” in The HOA-Land Nation Within America at Amazon.com).

[2] Obama private call, Michael Isikoff, YahooNews.com (May 8, 2020).

 

HOA beliefs, passions vs. facts

I have written extensively on the mindset, points of views and beliefs of the vast majority of homeowners in HOAs and of those of the media and legislators across this country.[1]

As part of my Plan[2] I made reference to Plato’s cave allegory[3] on educating persons to a new view of life. In short, his dialogue speaks of people seeing only shadows within the cave where they dwell who attempt to come into the light to see reality. Here is a shorter, more understandable argument from John Adams.

“Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence.”

Unfortunately, the difficulty in any reeducation or reorientation program lies in the reality that most people “can’t handle the truth.”

Notes

[1] See Part 1, social and political dynamics, in The HOA-Land Nation Within America at Amazon.com).

[2] See Plan Toward the Restructuring of the HOA Model of Governance.

[3] See “The Allegory Of The Cave”, Plato, Republic, VII 514 a, 2 to 517 a, 7 (trans. Thomas Sheehan).

HOAS as good corporate citizens & covid-19

David Kahne, a Texas attorney fighting for homeowners who had authored the AARP member Bill of Rights policy statement,[1] is seeking just treatment for homeowners in HOAs with respect to covid-19. Kahne seeks a reduction in assessments like the state and local government are doing, “Kahne believes HOAs should refund homeowners part of their dues.”[2]

covid-19With state mandated closures and loss of income to members just like many other non-HOA persons, what is your HOA doing to be a good corporate citizen? The plea from HOA boards is that they need the money and how can the HOA survive as if it warranted special dispensation. Of course, most members fail to realize that in between all that legalese in their CC&RS or declaration, they have pledged their homes as security for payments to the HOA.

Now what about all those lofty covenants about “in the general interests of the members” and “to provide for the health, safety, and welfare of the members”?   Seems empty to me if they do not act accordingly and reduce assessments like a good government should in a crisis like covid-19.

Notes

[1] A Bill of Rights for Homeowners in Associations, AARP HOA Bill of Rights, David Kahne 2006.

[2] Homeowners want HOA dues refunds for amenities they can’t use”, Beanie, HOA Reform Coalition (May 2, 2020).

HOA constitutionality Plan supplement – BOD education

The Plan Toward Restoring the HOA Model of Governance[1] called for both a systemic restructuring of the HOA legal scheme and the need to reorient the BODs and legislators. The long ignored and inexcusable questions of constitutionality that continue to harm members and the greater communities across this country must be exposed, understood and accepted.

hoa-const.jpg

The above picture reflects the rewrite of the Preamble to the Constitution as applied to the HOA-Land nation. It reads,

“We the people of a private HOA, in order to protect property values, insure domestic tranquility, promote the general welfare, and secure the blessings of increased property values to ourselves and our posterity, do ordain and establish this Declaration for the United HOAs of America.”

Why is there a need for board of directors education on HOA constitutionality? Why? Because:

  • HOAs are a form of local government not subject to the Constitution, and have created divisiveness and a separation from the greater public community resulting in member confusion regarding the law and their constitutional rights and protections;
  • the national lobbying entity, CAI, has indoctrinated the legislators, the courts, and the public with its CAI School of HOA Governance program that contains just lip service to constitutional questions, for example,

“A global nonprofit 501(c)(6) organization, CAI is the foremost authority in community association management, governance, education, and advocacy. Our mission is to inspire professionalism, effective leadership, and responsible citizenship—ideals reflected in community associations that are preferred places to call home.”[2]

while opposing the application of the Constitution in its numerous amicus curiae briefs to the courts, for example,

“In light of these statutory, contractual and common law standards protecting the interests of community association members, they need not claim constitutional protection from the conduct of governing boards to exercise their rights with respect to the associations.”[3]

  • The Findings, Section II, Education for Homeowners Associations and Board Members, of the North Carolina HOA study report to the NC General Assembly recommended,

“In order to provide accurate and readily available resources to educate homeowners, board members, and interested persons about the duties and responsibilities of property ownership in an HOA community, the General Assembly . . . to seek reliable and unbiased information available from private entities . . . and provide for published and online documents and programs offering HOA education . . . .”[4]

  • Privatopia: Homeowner Associations and the Rise of Residential Private Government, the 1994 landmark book based on the research of UIC Prof. McKenzie, and highly appropriate today, called the reader’s attention to,

“CIDS [HOAs] currently engage in many activities that would be prohibited  if they were viewed  by the courts as the equivalent of local governments.

“In a variety of ways, these private governments are illiberal and undemocratic. Most significantly boards of directors operate outside constitutional restrictions because the law views them as business entities rather than governments. . . . [They] are inconsistent not only with political theories of legitimacy but with the normal process by which governments are created. . . . Thus these ‘private governments’ may violate the equal protection clause of the Fourteenth Amendment.” (Chapter 6).

  • A Table of Authorities,[5] not all inclusive, supporting the Restoring the Lost Constitution.
  • Unanswered questions on HOA constitutionality:

CAI Common Ground Editor Durso mentioned my 2006 “‘open e-mail questionnaire to CAI’ containing four questions.”  Below is a copy of those questions initially addressed to the AZ Legislature a year earlier.  I never had any answer, either from the Legislature or CAI, nor any debate on the issues.

In a 2011 email to the North Carolina Legislature House HOA Committee I asked, “the legislators, the public interest organizations and policy makers to consider the following questions.” And I concluded with, “I await your reply, or a reply from any of the legal-academic aristocrats.”[6] Still no answer.

    • Can a legislature delegate its functions, not government services but functions, to private entities without oversight or compliance with the Constitution, as required of all government entities?
    • Can private parties enter into contractual arrangements using adhesion contracts and a constructive notice consent that serve to regulate and control the people within a territory (an HOA), to circumvent the application of the Constitution?

 A webinar is in the plans that summarizes and follows the materials – the text — comprising the HOA educational series to reorient HOA boards and the public in general. The text is available online under the collection, “Restoring the Lost Constitution to HOA-Land.” Will be coming soon.

Notes

[1] See https://tinyurl.com/sr27yq3.

[2] About Community Associations Institute, April 4, 2020). https://finance.yahoo.com/news/community-associations-institute-cai-provides-181931116.html. April 4, 2020).

[3] CAI amicus brief, Jan. 3, 2013, Dublirer v. 2000 Linwood Avenue Owners Assn, N.J. Docket 069154 (2014).

[4] “Study On Homeowners Associations”, Luke A. Rankin, Chair, South Carolina General Assembly (December 18, 2015). (http://www.scstatehouse.gov/CommitteeInfo/HomeownersAssociationStudyCommittee/HOAStudyCommitteeFinalReport12182015.pdf). April 27, 2020).

[5] http://starman.com/m…/restructureHOA/restructure-reading.pdf.

[6] See Too hot for NC HOA committee – withdraws legal-academic “experts, George K. Staropoli, HOA Constitutional Government (Nov. 17, 2011). https://pvtgov.wordpress.com/2011/11/17/too-hot-for-nc-hoa-committee-withdraws-legal-academic-experts/