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You can vote in China, and in your HOA

In addition to my oft repeated “you can vote in China, and in your HOA” to illustrate that democracy is not measured solely by the right to vote, here’s another similarity:

“In China, we hold the welfare of the state above the rights of
the individual” (from the movie, Red Corner, 1997),

which is another of my favorite observations about the New America of HOA-Land.

But most people don’t care about democracy. Until they fall from power or face the anger of the political machines that run their beloved HOA.

AZ CAI’s reaction to the “new era of regulation” of HOAs

In his Sept. 15th seminar, Best Practices for Meetings in an Era of New Regulation, Arizona CAI attorney Scott Carpenter realizes that HOA abuse can no longer be denied or hidden from advocates and from the internet. He asked HOAs to stop activities that will bring further regulation of HOAs, repeatedly using the phrase, “They know us.”

At the very start of the seminar, Carpenter stated that his purpose was not to get around loopholes in the law, or to get around the law, but to show how to “adjust to the new laws.” He then proceeds to play the same “redefine game” that he cautioned HOA boards to avoid — holding workshops rather than meetings because the statutes say nothing about workshops, or not to hold regularly scheduled committee meetings since they are restricted under the statutes. His recommended “adjustments to the law” read like plain, old “finding loopholes in the law.” For example, his advice included:

law doesn’t require you to meet monthly.”

don’t discuss everything – it may go viral on the web

always use closed meetings

restrict the publication of board videos by homeowners

don’t fear emails, but don’t overuse it — will lead to more regulation

hold non-regular committee meetings

use unanimous consent to avoid meetings — just have all board members sign off on the actions — but with care to avoid more regulation

The above is definitely not in keeping with the intent of the Legislature. Carpenter, as a self-promoted expert in HOA law and experienced lobbyist for CAI, denies knowing the meaning or purpose of these “It is the intent of the Legislature” sections included in several of the new bills. An experienced attorney knows well that statute and contract interpretations and clarifications often involve the court looking into the intent of the drafters. He is letting the HOA boards know how to “get around the laws” and the intent of HOA reform legislation, raising the question of good faith conduct by HOA boards if they pursue these loopholes.

And finally, one last point, Carpenter is feeling the heat of the activities by homeowner rights advocates. He laments,

It is the homeowner advocates who say they are on the homeowners side who gave the feedback, the evil conduct of the bad boys of the management companies [no mention of the attorneys]. They’re the ones who have drafted this type of legislation.

This only creates more “us agin them” hostility. It should be noted that he did not deny that abuse goes on in HOAs.

AZ CAI attorney Carpenter admits CAI is no longer in control

An advocate questioned the sincerity of CAI attorney Carpenter’s repeated use of the phrase, “They know us,” in his Sept. 15th seminar, Best Practices for Meetings in an Era of New Regulation. In response I wrote,

Earlier this year I wrote that the victories of Arizona’s HB 2441 (defeated), CAI soundly thrashed by Arizona Senate, and SB 1148 (passed, overcoming Carpenter’s DFBLS/OAH court victory), New Arizona laws for 2011 session — thanks to the legislators, signaled a major defeat for CAI in the power politics game at the Legislature. The tone of Carpenter’s remarks in the seminar only reinforces my view that a major setback took place at the Legislature for CAI. All as a result of the efforts of advocates, the real homeowner rights advocates, to get involved and expose, challenge and confront the CAI propaganda. It’s working!

I will just mention a few points from the seminar. First, Carpenter laments the new age of regulation, meaning a loss of CAI influence on HOA boards.

Second, his advice on what not to do is given with cautionary remarks that his, and the boards’, statements will go viral on the web (internet), like now. And he realizes that he is helpless to stop it. So he cautions the boards not to play “redefine” games — calling a meeting a “workshop” —which will only result more regulation when a homeowner (Sally was his example) runs to the legislature to stop some HOA evil. He further advised the attendees to shut up and not be recorded for the internet distribution. In fact, he suggested a reasonable rule, in his view, that would restrict a homeowner’s right to publish his taping of the meeting on the internet.

Third, he sought to confuse issues by identifying the management class of HOA members, the directors, as the true advocates because they are fighting for “what the members signed up for.” This serves to confuse the meaning and purpose of the bona fide “homeowner advocate” label.

In short, CAI is reacting to our issues and no longer controls the playing field. Congratulations everybody!

For legislators: poster-child case of HOA extortion of homeowners

This Florida case is the poster-child for the “standard operation procedures” by rogue HOA boards. The situation heard too many times by this advocate, and amounting to legalized extortion because most homeowners cannot afford to go to court for justice. And the HOA, its management firm, and its attorney all too well know this!

The “see no evil, hear no evil, speak no evil” attitude of state legislatures and their misguided belief that the HOA, like any other business are angels can do no wrong — and will protect the rights and freedoms of its members — must cease right now! This is another example of “us agin’ them” and the destruction of trust and social capital within HOAs.

The appellate court quoted,

“The trial court found that the complaint to foreclose the lien was premature. Agreeing with the trial court, the Third District noted, ‘Had the Association accepted and applied the tendered payments, the dispute would have been reduced to an inconsequential amount, and the Association’s attorneys could not in good faith have filed to foreclose the miniscule claim remaining.’ Ocean Two Condominium Ass’n v. Kliger, 983 So.2d 739 (Fla. 3d Dist. App. 2008).”

The court held,

“What can be gleaned from this record is that the association and its accounting methods were woefully inadequate to correctly ascertain and give notice of the amounts claimed to be due. Because of this imperfect record-keeping, the association did not make a proper claim of lien, nor did it give sufficient notice in its complaint of its claim. Had it done so, in all likelihood this case would not have even been filed. Saar showed that she consistently made the payments required and had detailed records to support her payments, many of which were not properly credited by the association. She paid all sums due in accordance with the notices and claim of lien.”

SAAR v. WELLESLEY AT LAKE CLARKE SHORES HOMEOWNERS ASSOCIATION, INC.

HOAs and the decline in community social capital

In a direct reference to HOAs and social capital, Craig Walton, speaking of conditions in Southern Nevada, comments on Rothman that the developer’s planned community [HOA] subdivision “created living that was intensely private” and reflect “the community’s preoccupation with the self.” Craig continues,

Rothman reflects on the need for public spaces and their recent decline “Parks and libraries offered shared space and commonality of values, civic interaction and socialization. They combined education, relaxation, and social cohesiveness, all desirable traits in a growing community. They were crucial building blocks, pieces of the puzzle of quality of life that served the community and enhanced its reputation. . . .This dire warning is rooted in the absence of social capital in southern Nevada, because the power of developers to obtain and use land for increasingly expensive housing goes unchecked by elected and appointed public officials.”

These associations do not create positive social capital consisting of social networks and connections with reciprocal relationships, social interactions, trustworthiness and mutual obligations between the powerful boards and the rank and file homeowners. Rather, HOAs are a major cause of the destruction of social capital within the subdivision community. And as HOAs have become institutionalized — being accepted without question as “that’s the way it is” — they have made a substantial contribution to the decline in social capital in America.

Read the complete paper, The Effect of Homeowners Associations on Social Capital in Communities