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An Article
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Two lawmakers push twin bills to tax homeowners in California homeowner associations
SB 551 and AB 770 will tax homeowners to provide government education but not enforcement of homeowner association laws
April 08, 2005
By
AHRC News Services
Copyright AHRC News Services
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| Sacramento, California - On February 29, 2005 Senator Lowenthal and Assemblyman Mullin introduced two placeholder (spot) bills SB 551 (Lowenthal ) and AB 770 (Mullin )
On March 29, and 31st, 2005 both bills were amended at the request of the California Law Revision Commission into two twin bills that will create a new tax on the 7,000,000 Californians who live in homeowner associations.
Brian Hebert of the California Law Revision Commission says that the California Law Revision Commission members voted unanimously to request legislation to create an educational ombudsman for homeowners who live in homeowner associations at their March 17, 2005 meeting.
The Law Revision Commission members ignored the requests of thousands of California homeowners and catered instead to the requests of the homeowner association foreclosure lawyers and managers.
The current California Law Revision Commission consists of five lawyers.
Political appointees by Governor Arnold Schwarzenegger:
Frank Kaplan - lawyer
William Weinberger - lawyer
Ed Regalia - lawyer
Legislative representative
Bill Morrow - Senator - lawyer
Legislative Counsel representative
Diane Boyer-Vine -lawyer
Twenty years ago, CAI lawyers wrote the Davis Stirling homeowner association laws and created the lawsuit foreclosure tsunami. Since then , homeowners have been flooding the lawmakers with stories of fraud, racketeering and extortion by homeowner associations and their lawyers and demanding enforcement of the laws.
These lawyers and managers have been financing the politicians and lobbying for an "Educational Common Interest Development Ombudsman Commission", giving them more power and money from within government offices.
Homeowner association lawyers such as Sandra Bonato(ECHO), Burford(ECHO), Beth Grim CAI) and Karen Conlon(CACM) were present at the Law Revision Commission meeting to ensure that the Commission would pass the no-enforcement educational ombudsman bill.
The Commission ignored the fierce opposition from homeowners and gave the industry what they lobbied for. Brian Hebert of CLRC had Senator Lowenthal and Assemblymember Mullin amend their spot bills, SB 551 and AB 770, (identical bills, one in the senate and the other in the assembly) to push for the ombudsman proposal of the Commission and their industry patrons.
On Apil 5, the Senate Transportation and Housing Committee passed SB 551. The Democratic members voted "Yes". and the Republican members voted "No". It will go to the Senate Rules Committee and later to the Senate Juiciary Committee .
AB 770 will be heard in the Assembly Housing Committee on April 13, 2005. Letters of support or opposition should be sent to Assembly Housing Committee bill analyst Lisa Engel by April 8, 2005.
Click here to write the Assembly Housing Committee bill analyst Lisa Engel and Committee Members
What AB 770 and SB551 proposes
What Homeowners Give To Government
1 New tax on homeowners who live in homeowner association of -$10 every two years ($5. per year)
2. Requires homeowners to go through a beaurocratic maze until 2011
3. Gives ombudsman power to select and pay per diem an "advisory committee" of his choice
4. Gives ombudsman power to contract outside mediation businesses on behalf of the homeowner
What the Government - Ombudsman Gives Homeowners:
1. "Mediation" - very limited non-binding informal "mediation" for $25. and has power to refer cases to to outside mediation businesses
2..Data collection - tabulates number of requests for assistance, type of requests, staff time taken on each
3. "Education" - sets up a website gives printouts for a fee.
4. Recommend legislative changes and by January 1, 2009 tell the legislature if:the ombudsman should:
i:.. Be given power to enforce CID laws
ii:. Oversee cid elections
iii: require the director or managing agent to do more or less than telling the ombudsman they have read the corporate declarations and bylaws
A sample of homeowners & advocates responses to paying more fees/taxes for a Homeowner Association Ombudsman
"California homeowner association laws stole property rights and constitutional rights, and subjected homeowners to double taxes and unlimited litigation liabilities. SB 551 and AB 770 will create another tax burden to finance industry lawyers " American Homeowners Resource Center.
"..appalling..stupid to pay more fees to finance an ombudsman with no enforcement powers.." Sharon Bush , Pro-homeowner lawyer
"Stupid, ridiculous and a waste of money"...Melissa Colburn - San Diego foreclosure victim who settled a rackeering lawsuit against her homeowners association, Merit Property Management and Peters & Freedman
".. just a maze with no exit..a stone wall so you can't go to court.." Phil Testa - Justice for Home & Condo Owners - Nevada
"..association homeowners do not need an ombudsman without enforcement powers.... they should not be asked to pay any more assessments or taxes." Mary Horton - Realtor - Director - HOA Institute - Upland, California
"We don't need education..We need enforcement. ADR (.Alternate Dispute Resolution or mediation) is relinquishment of a citizens's constitutional right to judicial review." William Tezak - paralegal
"If this is a new tax on homeowners, we would support your opposition." Jon Coupal - President - Howard Jarvis Taxpayer Association
"Preposterous to write more laws without enforcement. Enforcement of violations of laws by lawyers who engage in fraud and deceit by Bar Association is also needed.". Eric Bennett - Broker
Another law for lawyers to shift more liability on the already overburdened California taxpayers Marie Anderson - a homeowner |
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