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An Article
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The abuses in the homeowner association governed community
A private party capable of "fining" you unlimited amounts, the ability to foreclose for trivial, disputed amounts and the "priority of payment" scam
October 28, 2006
By
Bill Davis
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| Austin, Texas - Bill Davis from Texas wrote "The abuses in the homeowner association governed community " in response to Joseph Cole - Southern Village Association board member's Comment 1. The communities that turn over the fastest are those with Homeowner Associations by Joseph Cole, North Carolina
The abuses in the homeowner association governed community
What a crock!
Apparently you have not been exposed to the abuses in the HOA governed community - or perhaps as an officer you are immune from fines, accountability for assessments, etc., etc.?
I would be open to a discussion on foreclosure as it related to regular assessments, if there was financial accountability and adequate financial reporting relating to the collection, need, and distribution of such funds.
However, the ability to foreclose for assessments creates a different problem when combined with the ability to fine.
One party to a contract should never have the ability to unilaterally fine the other side. The ability to fine has been abused in conjunction with the ability to foreclose for assessments.
Were you aware of CAI's push to recharacterize assessment payments so that they first get applied to fines, collection fees, and attorney fees before being applied to assessments?
Do you understand that they typically have the right of the HOA to collect assigned to them in the course of the management agreement or representation?
Is this revenue neutral for the HOA? Of course not.
Were you aware of CAI's ongoing attempts to prevent the federal Fair Debt Collection Practices Act from applying in the HOA context?
Why do you think that is?
Do you think they are really interested in the "health" of an association or the ability to bilk its members out of the equity in their homes?
Also you have improperly assumed that the choice is either HOA's or real estate subject to no restrictions whatsoever.
Cities and counties do have zoning, you know. The problem is the level of "private zoning" in some of these subdivisions.
Of course, similar organizations attempted to zone out people of different ethnicity, race, color, religion, etc. but those were finally declared unconstitutional. There are contract terms that are not enforceable and for good cause.
The CCRs are not bargained for nor are they reviewed for any type of compliance with the current state of the law or even public policy.
They were written primarily to benefit the developer up front and then the various vendors that feed off the association - not for the homeowner.
In your own subdivision, it appears that you only approve 4 Sherwin Williams paint colors.
Interesting - was anyone informed that purchasing of real estate was going to tie them to purchasing an unrelated product from a specific supplier?
Have you ever looked at any of the other restrictions before you realized that many of them were merely a pretext in the name of "aesthetics" but in reality served to ensure an unregulated monopoly for telecom, cable, gas, water, etc.?
Also, exactly what evidence do you have to prove that home values in HOAs are rising faster than homes not in HOAs?
That is certainly the claim made by many in the industry, but I have yet to see support for it.
Even if it were, that is no reason to mandate the creation of and mandatory participation in HOAs for homeowners who own property free and clear of any such beast like what they are trying to do in Texas.
I submit to you that having a private party capable of "fining" you unlimited amounts without any recourse and the ability to foreclose for trivial, disputed amounts as a result of the "priority of payment" scam is hardly a value preservation move.
Bill Davis
Texas
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The communities that turn over the fastest are those with Homeowner Associations
Joseph Cole
North Carolina - October 23, 2006
It is nothing more than common sense, that an HOA will have rules that one agrees to follow when a lot or home is purchased in such a community.
I am living in my forth CC&R community since 1988. I am an executive that had been transfered around. Chosing to live in a CC&R restricted community was a choice, no one twisted my arm. The whole aspect of a CC&R community is that there are Covenants, CONDITIONS and RESTRICTIONS under which one agrees to live, when the ink drys on the CONTRACT to purchase.
I suppose, if you want to live next to a home painted bright yellow or orange with purple trim; have a semi trailer truck parked next door;smell a pen fulll of pigs; be able to store 10 cars in your yard in various states of repair; then, an HOA goverened community is not for you.
On the other hand, if you view your home as the most major purchase that you will make in your life; an investment if you will. Then, an HOA is well suited for that. If you desire to have that investment remain stable in value; OR INCREASE, then an HOA is well suited for that. If you want as many prospective buyers possible to be interested in your home when it comes time to sell; then an HOA commnity is very suited for that.
It is a fact that in any given area of the nation, the communities that turn over the fastest are those with HOA's. The reason: We are a mobile society, people are transfered around the nation by their corporations 12 months a year. Those people seek attractive communities with well maintained homes that can be sold quickly,when the transferee is transfered again; usually in 2 to 5 years. Trashy yards and pooly maintained homes do not appel to a great majority of buyers.
If you are an owner of a home in an HOA and you don't pay the dues or assesments, you are causing your neighbors to carry your responsibility to help maintain your neighborhood; your a cheat.
The bottom line is that when one agrees to purchase within an HOA community it is a contract, a covenant, with your new neighbors and all contracts have conditions with which the signer agrees to abide by.
Joseph Cole
North Carolina
PROFILE: Resident of Southern Village in Chapel Hill; Vice President of the SV Homeowners Association;Web-Master of the Community Site; Interum Architectural Review Board Member. |
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