Tag: South Carolina

Misinformation & disinformation in HOA-Land

“Mirror, mirror on the wall who’s the dishonest most of all?  My owner, you are dishonest here so true,  but the CAI clique is a thousand times more dishonest than you.”

The above paraphrasing of the Brothers Grimm fairytale, Snow White, sets the framework for this Commentary, which is the spread of misinformation and disinformation about HOA-Land. “Misinformation”[1] is misleading or false statements of the facts made innocently by the author.  On the other hand, “disinformation”[2] is  intentional misleading or false statements of the facts issued to advance a special interest agenda.

My reference to owner misinformation is based on countless posts, not all posts,  on social media in which only part of the facts is revealed. Obviously, those the writer wishes to be made public, but hide material facts to permit an honest and objective evaluation of the content of the post. They create a harmful and damaging image of just bellyaching and gripes and not advancing a cause for reforms.  I am disturbed by their unsupported allegations and cries — they lied, were not fair, judge is biased, etc.

There are also social media distributor/publisher websites that  carry misinformation and often publish links that have been created to provide disinformation. These websites provide misinformation since many do not examine the content of the link.

The CAI “clique” — CAI chapters, the Research Foundation, the numerous lawyer advocates websites, shill associations like ECHO or CALL, and supportive HOA websites — provide outright disinformation that goes unopposed by homeowner rights advocates. As simple examples of its communications, the CAI clique continues to advertise that it represents homeowners and associations, that its primary function is education and not a trade group, to legislatures, the courts and the public.  Disinformation is intentional misrepresentation! 

. . . .

In general, nationally, disinformation can be found almost anywhere, and in particular in national  politics. The national dynamics causing the spread of disinformation is explained by the author, Lee McIntyre; the causes hold  true to disinformation in HOA-Land an important segment of our society.

“McIntyre explains how autocrats wield disinformation to manipulate a populace and deny obvious realities, why the best way to combat disinformation is to disrupt its spread. ‘On Disinformation’ lays out ten everyday practical steps that we can take as ordinary citizens—from resisting polarization to pressuring our Congresspeople to regulate social media—as well as the important steps our government (if we elect the right leaders) must take.”[3]

For advocates, the way to stop the disinformation is to educate first the advocates so they can educate the legislators and the public. The Findings, Section II, Education for Homeowners Associations and Board Members, of the South Carolina HOA study report (2015) to the SC 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]

In 2021 I argued for the need for HOA-Land education by advocates.

“HOA Reformers are needed as educators to spread the facts about HOA-Land to the public in general; especially to the legislators, the media, the HOA boards, and to the universities and high schools. . . . The Plan first requires addressing the attitudes and views of BODs, the members, and the public in general.  The conditioning and indoctrination by the biased views of the national pro-HOA special interest entity must be de-conditioned by a program of reorientation.”[5] 

References

[1] Foundation  for Individual Rights and Expression (FIRE).

[2] Id.

[3] Lee McIntyre, On Disinformation: How to Fight for Truth and Protect Democracy (2023).

[4] “Study On Homeowners Associations”, Luke A. Rankin, Chair, South Carolina General Assembly (December 18, 2015).

[5] HOA Reformers needed to educate (2021).

So. Carolina HOA study committee misses the point

As a follow up to my “State legislature not concerned” commentary, the SC HOA Study Committee released its recommendations on HOA legislation.[1]   On the issue of, “Education for Homeowners and Board Members,” a committee member recommended CAI as a source for HOA education in general. Apparently, with all due respect, he is not fully aware of CAI’s history and its views on maintaining authoritarian private governments.

This property member representative offered, “Education is already available. According to one source, “CAI (Community Associations Institute) webinars offer specialized, professional training without leaving your home or office. . . . Homeowners should have reasonable access to an organization such as Community Associations Institute (CAI) or a knowledgeable State agency to obtain unbiased, accurate information.

Fortunately, the recommendation was not to have a private entity, including CAI, provide HOA education.

“While the Community Association Institute (CAI) and other private entities offer educational resources to homeowners and managers, state government cannot place the sole responsibility of educating homeowners and board members on a private entity.”

The committee recommended that several state agencies “to seek reliable and unbiased information available from private entities” and to publish and make such programs by private parties available online. So, the door is still open for CAI biased influence given the current climate that CAI is the only source and has no self-interest.

There is an abundant supply of information to inform the legislators of the true nature of CAI, its 42 year history of failure, and its policy to keep HOAs as authoritarian private governments.[2] But the problem is is to first educate the legislators in line with HOA Common Sense: rejecting private government. This requires a source to provide alternate perspectives on HOA governance: civil government, local government, constitutional law, and city managers.

A simple HOA bill would just have to say,

The association hereby waives and surrenders any rights or claims it may have under law and herewith unconditionally and irrevocably agrees 1) to be bound by the US and State Constitutions, and laws of the State within which it is located, as if it were a subdivision of the state and a local public government entity, and 2) that constitutional law shall prevail as the supreme law of the land including over conflicting laws and legal doctrines of equitable servitudes.

There is much to be accomplished in order for meaningful HOA reforms to occur. If advocates continue to fail to speak out and ignore, as I have urged, the principles of constitutional government as applied to HOAs, the outcomes over the years will also continue.

 “We must continue to provoke until they respond and change the laws.” Gandhi.

 

References

[1] STUDY COMMITTEE ON HOMEOWNERS ASSOCIATIONS, Dec.18, 2015 (http://www.scstatehouse.gov/CommitteeInfo/HomeownersAssociationStudyCommittee/HOAStudyCommitteeFinalReport12182015.pdf).

[2] See Will the real CAI standup: its contradictory beliefs, pronouncements and goals and CC&Rs are a devise for de facto HOA governments to escape constitutional government. In general see, Unconstitutional delegation of power to HOAs, HOAs violate local home rule doctrine and are outlaw governments; and Privatopia: Homeowners Associations and the Rise of Residential Private Governments, Evan McKenzie, Yale Univ. Press, 1994; Community Associations: The Emergence and Acceptance of a Quiet Innovation in Housing, Donald R. Stabile (Greenwood Press, 2000).

 

HOA foreclosure ratio of 36 times violates the 14th Amendment against cruel and unusual punishment

Matt Tomsic wrote an important article in the Charleston Region Business Review on HOA foreclosures with some revealing statistics.  SPECIAL REPORT: YOUR HOME, THEIR RULES.  For example, 68% of the foreclosures were for $5,000 or less in Charleston County, SC.

I wrote the author for some additional statistics. What he had available was just median values for debt owed the HOA and home value, which were $4,500 and $160,000, respectively.

 

That amounts to a punishment of 36 times the debt owed. The US Supreme Court in State Farm v. Campbell, 538 U.S. 408 (2003) set criteria of punitive damages exceeding 10 times actual damages constitutes a violation of the 14th Amendment against cruel and unusual punishment. In the jargon of today, HOA foreclosure is the iconic instance of cruel and unusual punishment. And the HOA did not advance any hard cash like a bank to justify foreclosure rights.

 

BUT, your elected representatives see no evil and continue to support the real estate industry’s business interests, with the people being the pawns and “marks” in the con game.