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An Article
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The Homeowner Association Racketeering Scam Has Played Its Game On You, My Friend
Tom Radcliff, you are a victim of the largest organized crime gang in the United States
January 25, 2004
By
Richard Craig
(View author info)
Copyright Richard Craig
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Great article,Rich!
This comment is to make people aware of serious problems confronting "homeowners" in mandatory homeowners associations in Polk County, Florida and all over the USA.
In our mandatory HOA known as Bentley Oaks Subdivision Homeowners Association, Inc. consisting of one hundred single family homes with county roads and county street signs, NO amenities of any kind, "common areas" so small that no property taxes are billed, our HOA "association fees" or "dues" have increased over 250% since 2001, and were increased 70% from the 2006 "dues" to the current 2007 "dues."
These outrageous increases (of which failure to pay will result in a lien with subsequent foreclosure) stem from a volunteer and/or appointed board of directors heavily influenced by "World of Homes" management company in Orlando, FL and the well known 'Community Association Institute' law firm of Clayton & McCulloh in Maitland, FL. In addition to them, another law firm in Longwood, FL is handling collections for this mandatory HOA industry enterprise.
The irregularities and discrepancies contained in the HOA "budgets" and "financials," inflated charges and "fees," etc. are unbelievable and too numerous to mention here. As "homeowners" we find ourselves in a situation where we have no voice in or control over this "professionally managed" HOA with a yearly "membership meeting" facilitated by the association lawyer and the "World of Homes" LCAM - real estate broker.
This outrageous and expensive situation is compounded by the fact that no Florida statutes are in place to effectively protect mandatory HOA "homeowners" from financial abuses, malfeasance, and growing inflated HOA assessments and fees. The Florida statutes regarding these 'legal creations' appear to be written by and for the benefit of developers and the HOA Industry.
We have documentation of false statements and misrepresentations by HOA management et al to justify the huge increases in HOA assessments. This is a growing industry created to "harvest" unsuspecting and naive home buyers as well as existing "homeowners" in Florida and the rest of the Country.
In addition to these facts, we are required to pay the legal fees of HOA attorneys to perpetrate these abuses against us, as well as paying our own attorneys if we want to fight back or protect ourselves.
We must pay exorbitant premiums for HOA insurance to protect the board in this case,since there are no buildings or amenities here to insure other than the roadside ornamental wall with the "community" name on it.
Something must be done by our Florida County and State representatives to remedy this anti-democratic and financially draining situation that is being perpetrated on Florida "homeowners" by mandatory HOAs along with collusive industry vendors. Given that the Urban Land Institute, the National Association of Realtors, and the National Association of Home Builders were instrumental in creating and setting up mandatory HOAs in the first place, how do we counter such powerful organizations? Not to mention CAI.
How can we effectively persuade our "representatives" to help us remedy this growing and expensive HOA industry problem? Do we really live in a democratic "free society" or a republic where we are represented by elected leaders? Any ideas?
Posted Mar 8 2007 4:15AM CET
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Koreen Lorozco
, Florida |
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I agree with you 100%.
My Homeowners Association, has closed votes for new officers, closed meetings to deal with issues that the homeowners are interested in and should be a part of.
Last year without a 75% affirmative vote as it calls for in the covenants, the raised our dues $20.00 per household and gave us less than ten (10) days notice to pay it. I paid on the very last day and they tried to hit me with attorney fee's and court cost.
I wrote them and told them if they could provide documentation to me that they had been billed by the attorney for work done on behalf of the Board on my particular house and could provide me proof of service or proof that any filing fee's were paid to the court that I would be glad to pay the difference. I never heard from them again.
Instead of dropping off my dues, I went directly to the Treasurer of the Board of Directors home, rang his doorbell, when his wife called him to the door, I handed him my envelope and told him, "Here is your extortion money", put it into his hands and waited for him to say something back, I guess he could see the anger in my eyes so he cowardly slammed the door in my face.
I have lived in this subdivision since 1999 and have only received notice of an open meeting to elect new Board of Directors one time. I have never received any notice of when or where to vote.
Their financial statements are a joke, it looks like a five year old did a spreadsheet on a home computer and just made up figures for items that did not make any sense. The money they show left over and on deposit is not in the bank they claim it is in.
I am a former Paralegal and checked with the Bank and they could find no such account under the name of the Association or under the name of a Board member. I have been in the homes of some of the people on the Board and have been astonished at what I have seen. You can tell that each of their houses have been completely upgraded compared to the rest of the average homeowners in this neighborhood.
Some of these people are common laborers making less than $10.00 an hour, how could they afford to lead such lavish life styles is beyond me. We need a concentrated effort from Homeowners across the country that are being treated as if we have no rights and our constitutional rights have been violated as well to come together and do whatever it takes to get the HOA's out of business or have a homeowners bill of rights drawn up and passed in to law by congress, the senate, the President and all of the Governors in all the states.
I am ready to resort to tactics that cannot be ignored or pushed aside by the lobbying power of the HOA's. I think we should start with a million or more homeowner march on Washington. Put the message out to your congressmen, senators and governors that you will not vote for them for re-election unless this issue is a priority.
In my opinion and some of you may think that this is a little over the top, but what these HOA's have been getting away with for years ranks right up there with with the slaves that were formerly under the control of Saddam Hussein.
This country is supposed to be a democracy, it is falling toward Socialism every day and it is because people like us, your average United States citizen sit on our butts, write responses like this but do not do anything to really catch the eyes of the Politicians running the country.
The illegal aliens, we have heard so much about in the news lately are stealing our thunder, at least they have the attention of Washington and the lawmakers and right now all we have are angry homeowners being stripped of our Bill of Rights as human beings and citizens of this country and are the last thing on the minds of the Politicians, we have to make a change.
Posted May 8 2006 7:54PM CEST
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Michael Cooper
(View Profile)
Lawrenceville, Georgia |
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The homeowners association should be unilateral in application when concerning bylaws and the DCCR's. It is also frustrating when seeking public assistance, from city officials, with schools or infrastructure in or around our community, for the safety of our children, and each wants to point to the other!
Our development has been in existence since approximately 2001. The streets are crumbling; plus, many are below city code in width requirements, of 28 feet. According to the City of Fort Worth Fire Department they need a minimum of approximately 20 feet for the larger fire trucks. In addition, the deed restrictions address parking on the already crumbling, narrow streets; however, we are told the bylaw restricting such can not be enforced? Okay, then can we work with the city to minimize parking? Since we are a PUD area, the city request our developer or management company request restricted parking. To date, since 2003 neither restricted parking nor a request for restricted parking has occurred. Until the streets are addressed and repaired our availability to quickly exit in case of a fire diminishes.
In addition, the surrounding streets are 2 lane country roads, which are also in need of repair. According to sources, our developer has allocated funds for repair of said roads; but the city does not have the funds to fund the difference. So why can't the developer and the city work together to ensure the streets surrounding the community are in sufficient repair to accommodate the traffic and schools?
Lastly, it was explained to homeowners that the city and development had chosen one homeowner to be the liaison for our community. The information was not be funneled down to the homeowners, allowing them to actively participate. Furthermore, when homeowners approached city officials to discuss community issues, we were directed back to the appointee liaison. What? Yep, you guessed it. Our city officials directed us to speak with the mutually appointed liaison appointed by each. Keep in mind that person was not elected or appointed as a city official; but was a community volunteer. Or so many said?
In addition, our development has many homeowners choosing not to pay their dues. Yet, they are still permitted access to the amenity centers. Seemingly enough, some have NEVER paid taxes since first purchasing their home, years ago! Plus, they participate in our voting processes! If one does not pay their dues but continues to enjoy the perks of living in an HOA, what are the consequences, or penalties, for not paying?
Over 75 people have requested the financials, even after seeking intervention from an attorney. The original request was made in 2005; to date we still do not have all the documents requested. That is an ongoing request.
To top it off, a homeowner by the name of James W Smith is being sued by our HOA for something he requested approval for and received approval for. The case is posted on this website for review. So the question remains, will the dues be used to fund this lawsuit? If so, why should any homeowner be required to pay or be allowed to be sued when he following the ACC instructions given for applying for an improvement or construction?
So to agree with you, it is very frustrating! If we had known then what we know now, we would have chosen to live somewhere else.
Posted Apr 20 2006 4:33PM CEST
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Mrs. Fletes
, Texas |
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If your HOA Board is out of control, taking action is the right thing to do. But geez ... saying that ALL HOAs are a "racketeering scam" is like saying that all dogs are vicious.
ACCOUNTABILITY is the word!
As President of a 76-member HOA, I'm gracious and proud to say that even after 3 years as administrator, my approval is nearly 100%. It doesn't come easily, and it's no accident.
In each monthly newsletter, we give a detailed accounting of what we took in for the month, what we spent and where we spent it, and even publish the minutes of the meetings for all to see.
Our homeowners know our actions and are not afraid to tell us when they don't like something. We either adapt our practices to meet the wants of our homeowners, or we show proof of why we can't do it differently.
I'm not by any stretch of the imagination implying that ALL HOAs are run in the same manner that I'm proud to say that mine is, but let's tone down the riot a little so that you don't lose credibility for your witch hunt.
This article sounds a lot like a Warren Commission to me.
Posted Oct 12 2005 3:54AM CEST
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Brian Hansen
(View Profile)
Oklahoma City, Oklahoma |
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I completely agree with you on this! I wish more people would put up a fight.
It is really wrong to let Homeowners Associations continue to get away with this.
Thanks
Posted Apr 14 2005 5:50PM CEST
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Username withheld
Houston, Texas |
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If you call those 'legal' HOAs as "a racketeering scam", what would you call THIS local HOA?
For more information and facts, you can contact me or visit these websites:
http://my-campusglenfw.tripod.com/
(mirrored: http://hoa-integrity.brunnerweb.net/)
Any suggestions are truly appreciated.
Posted Jun 8 2004 5:42PM CEST
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Gia Tran
(View Profile)
Federal Way, Washington |
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This is a valued article with many fine points. My experience proved that the majority of individuals who join these boards are strickly for "self-interest". Truthfully, I never meet a lower class of individuals from the point of view of ethics than my board experience.
As to Management companies, you are exactly right. After basically getting myself a new management company on board after a bad experience with our prior management company, I found more of the same.
After two months (with a new board in place and a new management company in place), the only thing done for my twenty year community is the back common area of one of the board members is having thousands of dollars of association money spend on it.
My two years in my association and almost a 1,000 hours invested in my last year on the board seems to have been a total waste of my time. What money I may have saved the association because of questions on my part, is now being spend on additional and new "self-interest",lack of service from another management company and the same lousy service from our landscape company.
Other than doing away with HOA's in the future, the possible solutions to this problem is that Board members must commit in writing to so many hours of involvement in their association plus undergo a "background investigation". I have found generally folks without any real ethics, do not wish to spend any amount of time in their game playing.
Additionally, generally, "flakes" do not pay their bills on time and have a history indicating poor character which could show up as the result of a background check on an individual seeking a Board position.
Posted May 15 2004 6:54PM CEST
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Ex-HOA Board President in Texas
(View Profile)
, Texas |
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I absolutely loved your article. I thought that I was alone in my feelings on HOA's, and it's refreshing to find that I am not.
Ever since their introduction, I have felt that they were just another form of extortion. I do not need a swimming pool or tennis courts, or those other things that I don't use. All I wanted was a house, but it's nearly impossible to find one of those in Atlanta any more.
It really irks me to have someone telling me what to do with my own home, when I'm the person paying for it.
Anyway, you wrote a very good article. And, I applaud you for it. It's time we took our homes back.
Posted Mar 21 2004 3:51PM CET
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Paula Johnson
, Georgia |
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Take over your board. We did. We got rid of a bad board and learned all about HOA Management aka Organized Crime in a three piece suit. We've been through 3 management companies in 8 years and all they play the same game. We've been fighting our current one at every turn against every stupid foreclosure, but it has become a full time job for the entire board. They pay invoices we never approve for services we can't account for, we ask month over month for explanations and refunds that they make up excuse after on. They lie to members and blame the board when items are not repaired, omitting that they neglected to get more than one bid on non-emergency work that costs thousands. They rape us on emergency work because we're at their mercy. They've almost bankrupted us twice and what's their remedy? Get a loan.
The management company's game is well rehearsed and they are experts at wearing board members out. Members must get involved, but they don't seem to care until dues go up, a special assessment gets issued or worse. HOA Management is a racket, you nailed it. Ever ask yourself how they can survive on that tiny monthly fee you pay them?
We need boards, but we need good boards. We have had people come in and tell us they are not paying dues simply because they don't want to. That mentality gets lights turned off. We've had people damage property - is it fair for all the members to pay for someone else's negligence - no. We voted that the board has the right to take judicial action instead of foreclosure. The management company went off the deep end, but we're not budging.
Members have to band together. Boards cannot do it all alone, members have got to help. It is clear that we either play ball with the management company or they'll either wear us out, replace us with those who will go along with their game or we find a non CAI management company. We're opting for the latter. Are their any NON CAI management companies left in Orange County?
As a board member I will tell you that the only people who should not be afraid of the HOA management industry are those who don't live in an HOA.
Posted Feb 4 2004 12:23AM CET
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Username withheld
, California |
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