Category: Podcasts

HOA issues

Landmark FL HOA law imposes criminal conduct

FL Session Law, Ch. 229 (2023), “Homeowners’ Associations  Bill of Rights,” adds the following section imposing misdemeanor charges against certain violations for fraudulent elections.

FL § 720.3065. “Fraudulent voting activities relating to association elections; penalties.—Each of the following acts is a fraudulent voting activity relating to association elections and constitutes a misdemeanor of the first degree, punishable as provided in s. 775.082 or s. 775.083”

This is a landmark bill that imposes criminal penalties on the conduct of the HOA and all persons involved in fraudulent HOA elections.  Recent court decisions have held the private government HOAs are public entities with respect issues concerning the governance of the HOA.

Criticism of the board’s conduct is subject to the constitutional protections of free speech. The Nevada Supreme Court opinion in Kosor ((Kosor v. Olympia Companies, NV No, 75669 (Dec. 31, 2020))  held that HOAs are public forums and referenced several California opinions serving as legal precedent.

 “[A] unit owner’s association or a planned community association (association) may not prohibit a unit owner or member (member) from peacefully assembling and using private or common elements of the community . . . legitimate and valid criticisms of your HOA and its president and board are protected from HOA lawsuits of defamation and libel.”

I find it incredible that there are homeowner rights advocates who find it difficult to see how challenges of constitutionality apply to private government HOAs. The 14th Amendment, Section 1, in part, “No state shall make or enforce any law which shall abridge the privileges or immunities of citizens of the United States.”

Is CAI a coercive monopoly? Definitely YES!

Consider the FTC’s lawsuit that Amazon is a coercive monopoly.

The US government and 17 states are suing Amazon in a landmark monopoly case reflecting years of allegations that the e-commerce giant abused its economic dominance and harmed fair competition. Because of Amazon’s dominance in e-commerce, sellers have little option but to accept Amazon’s terms, the FTC alleges.

Amazon is “squarely focused on preventing anyone else from gaining that same critical mass of customers,” FTC Chair Lina Khan told reporters Tuesday. 

In a release, Khan accused Amazon of using “punitive and coercive tactics” to preserve an illegal monopoly. “Amazon is now exploiting its monopoly power to enrich itself . . .  Today’s lawsuit seeks to hold Amazon to account for these monopolistic practices and restore the lost promise of free and fair competition.”

These charges of monopoly and coercive tactics can be applied to the Community Associations Institute’s (CAI) long pattern of conduct with respect to the domination of the homeowners associations industry. In my 40-page complaint to the DOJ in January 2023 I laid out the case that CAI must have its conduct curtailed in the interest of free competition in Housing and in educational services used to maintain its monopoly.

 My recommendations to regulate CAI’s activities to allow for the voice of others to be heard, especially from owners of HOA homes who suffer under the monopoly, as included in my complaint, are listed here:  The need to regulate CAI monopoly.

“A. Regulations on CAI’s monopolistic activities

“B. Regulations on HOA activities in support of CAI monopoly”

What is needed now?  Support my anti-trust complaint against CAI!

Legislative proposals and research memoranda

Many homeowners have become alienated from the political process both within the HOA — board of directors, president, community managers (CAM), and the HOA attorney; and  within state government – the legislature, judiciary, and elected officials.  The news media has failed to tell the truth and to ask the hard questions, as they commonly proclaim to their audiences, with respect to the HOA legal scheme, questions of constitutionality, and misrepresentation in the selling process; thereby giving a false message and spreading misinformation in support of the special interests.

They feel that their voice doesn’t matter and that the special interests control the policy decisions affecting their lives.   VCL-HOA assures that homeowner influence is brought to bear on the decisions made by politicians and state legislatures and agencies, including on the HOA political community as  well.The Valley Citizens League – Homeowners Association Research is a national, member-based  community organization performing research on HOA problems and issues through a study process, rather than by opinion polls, surveys or focus groups.

Important information: View full document, VCL-HOA, Sample case analysis, Sample legislative memo

Disclaimer

The information contained in this written or electronic communication, and our associated web sites and blog, is provided as a service to the Internet community, and does not constitute legal advice. We try to provide quality information, but we make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this web site and its associated sites. As legal advice must be tailored to the specific circumstances of each case, and laws are constantly changing, nothing provided herein should be used as a substitute for the advice of competent counsel. No person associated with AHLIS or Citizens for Constitutional Local Government, Inc. is an attorney nor is employed by an attorney.

HOA advocate credentials are lacking

Should the FEDS get involved in HOA-Land abuse even though HOAs are controlled by state laws?  It would need to come under the approach that state laws are so varied that uniform laws must be adopted, and not by ULC that is steeped in the past and promotes more bad laws. This “what state are you in and that’s the law” has been a general argument for federal law and is a reason for federal intervention in the courts.

With all due respect for the hard work of several reform social media groups, getting the attention of state legislatures and DOJ/FBI depends upon the credentials of advocates. Can they make arguments at the level where the courts and lawyers will stand up and take notice? This is a longtime failure of HOA reform efforts even though they have obtained important reforms here and there over the years.

These reforms, for the most part, are rooted in “operational” reforms that affect the laws now on “the books” —  the overwhelming bad laws dealing with day-to-day operations and functions of the HOA. This reform legislation is needed to bring  a fair and just treatment under the constraints of the HOA legal scheme until reforms of substance are adopted.

Allow me to explain with an example.  There are many “good” laws that are designed to protect the homeowner and his rights, and put restrictions on the HOA. They may even have strong enforcement provisions with criminal violations.  Great? On the surface yes because enforcement is still the task not of the state, but the homeowner who has to bring such charges. The state – district/county attorneys and attorney generals — are not obligated to act. BUT, by definition, a crime is an act harmful to the state beyond one person. “Crime is “the intentional act usually deemed socially harmful or dangerous . . . prohibited and punishable by law.”

This “not my job,” hands-off posture constitutes an error of omission by the state that, under the obligations of the Constitution.

“We the People of the United States, in Order to . . . establish Justice, insure domestic Tranquility . . .  promote the general Welfare . . ..”

Stay with me.  What is necessary is to rewrite the CC&Rs that is based on The Homes Association Handbook, as the Founding Fathers did when they threw out the Articles of Confederation for the US Constitution.  There has been and is little support for this approach, which I believe is the result of a lack of understanding and a fear that their HOA would be abolished —  a very successful fear mongering by CAI. And that includes a fear of CAI.

Over the years I filed an IRS tax-exempt complaint against CAI for having the customers of its members also a member of the business trade group in violation of its tax-exempt status. In 2005 CAI had to drop HOAs pe se from membership. Earlier this year I filed a 40-page complaint with the antitrust division of DOJ arguing that CAI was a monopoly, and has acted to thwart competition and the free entry into the HOA education market. 

Recently I asked for support of my appeal to the Federalist Society  to encourage and promote dialogue on the constitutionality of and loss of citizen rights in an HOA. The Society’s mission is educational for lawyers and student lawyers, and has a national  program of local law school chapters to debate issues. (Notable attorneys and government officials attend these meetings. My grandson had the opportunity to meet the Governor.)  I argued that new lawyers sally forth lacking the truth about HOA-Land serving to perpetuate the unjust laws.

HOA reformers and groups must present themselves as knowledgeable advocates, united nationally, who understand the law and the judicial process.  Reformers need to be able to stand up before CAI, the courts, and state legislators and win!  As I posted elsewhere, I am still waiting for an answer to my 2006 challenge to debate the CAI “elite” lawyers who are members of CAI’s CCAL.

As the renowned international management consultant Peter F. Drucker made clear, “A mission statement has to be operational; otherwise, it’s just good intentions.“

FYI — upgraded this site

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