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AHRC

An Article      
THE LEGALISTIC RUSE OF HOMEOWNER ASSOCIATION GOVERNING DOCUMENTS

They will indeed get you!

April 05, 2006

By Lee Lambert (View author info)



Page # 1 2
12. Why would these Paloma del Sol board members hand out $30,000. to a foreclosure lawyer (Peters & Freedman) to rewrite their CCR's contract?  
  " David M. Peters is our attorney, Records and being withheld from certain board members and Peters & Freedman is rewriting the CCRs at a cost of $30,000. to the homeowners. - August 7, 2006"

Who are these Paloma del Sol Homeowners Association board members?

Why would these Paloma del Sol board members hand out $30,000. of their homeowners maintence dues to foreclosure lawyers Peters & Freedman to rewrite their CCR's contract?
Posted Aug 29 2006 3:37PM CEST
 
  Username withheld
, California
 
11. Wanted: CC&R and By-Laws for Homeowner Associations that frees homeowners from all the madness and abuses of CAI vultures  
  Wanted: CC&R and By-Laws for Homeowner Associations that frees homeowners from all the madness and abuses of CAI vultures - We still need to retain a viable framework for managing the common areas and collecting assessments
Posted Aug 29 2006 3:28PM CEST
 
  Username withheld
, California
 
10. A Southern California board president moves to Northern California and is again involved in recording illegal CCR amendment  
  What does Palacio del Mar Homeowners Assocaition in Southern California and Bryan Ranch Homeowners Association, in Northern California now have in common?

1. Illegal CCRs amendments
2. Same board president - Tim Alman, a former car loan salesman, now a home loan salesman
3. Even though Peters & Freedman are 400m miles away and do not have a presence in Northern California, Alman hires and pays them thousands of dollars to "aggressively" sue a Bryan Ranch homeowner just as he did in Palacio del Mar

Palacio del Mar CCRs were changed by Peters & Freedman to take away the culmulative voting rights and keep the board clique in secure control of the board and bank accounts for their mutual benefit.

Alman, without informing all of the board members and owners of Bryan Ranch Homeowners Association, recorded illegal CCRs to limit the sizes of homes to 10,000. square feet to prevent David Duffield, the founder of People PC from building a 17,000 square feet home on Duffield's 21 acre property.
Posted May 20 2006 4:20PM CEST
 
  Username withheld
, California
 
9. Has anyone else documented CCRs rewrites that are detrimental to the owners and profitable to homeowner association vendors?  
  A Las Vegas homeowner posted this about Angius & Terry - another lawfirm helps board rewrite CCRs, do collections and lawsuits against vendors and homeowners.

Homeowner association lawyer rewrites governing documents to get around laws that prohibit foreclosures for fines - He lumps fines and penalties into "Special Individual Assessments"

The attorney who wrote an intemperate defense of the proposed new CC&R's was William Wright of the law firm of Angius & Terry.

Has anyone else documented CCRs rewrites that are detrimental to the owners, profitable to homeowner association vendors and possibley helpful to allied boards?

Please use Comments to advise homeowners. Include the name of the homeowner associations, the names of the vendors and the board members.

Thanks to everyone who have taken the time to share information about CCR changes.

We need to keep a close watch and inform all our members on what the board members, lawyers and managers do to take our home equities in our HOAs.
Posted May 14 2006 6:52AM CEST
 
  Username withheld
, California
 
8. Nevada, State law does prohibits foreclosure based on fines and penalties so the lawyers rewrite the CCRs to override laws  
  My homeowner association of Escondido Estates, in Las Vegas, Nevada, recently tried an almost identical gimmick in proposed new CC&Rs. It is essentially the same thing as you mentioned except that they called it "Special Individual Assessments" and thye lumped fines and penalties into the category of "Special Individual Assessments".

In the case here in Nevada, State law does prohibit foreclosure based on fines and Penalties (except for certain rare circumstances) and the language of the proposed CC&Rs stated that this new category was enforceable by foreclosure and sale. When my attorney called attention to the situation and stated that the new documents were trying to "get around" state law, the firm that prepared the documents threatened to sue if my attorney does not retract.

The opposing attorney was apparently offended at what he viewed as an implied insult to his integrity. It seems to me though, that there is at least an appearance of "trying to get around" state law. Although the opposing attorney could have offered some other explanation for the use of this unusual device he did not.

I will report more as the matter develops. I have a feeling that the opposing attorney will not make good his threat to sue.
Posted Apr 28 2006 6:52PM CEST
 
  Robert Holloway
, Nevada
 
7. You have made me aware of the shortcomings of being too close to the process.  
  To User Name Withheld:

I accept your criticism and will be more careful in the future. No one is perfect and you have made me aware of the shortcomings of being too close to the process.

I absolutely was not inferring that any homeowner was paranoid. As far as I'm concerned, homeowners can't be paranoid enough. You may not have understood my cynical humor, but I absolutely believe homeowners should keep their eyes open for all possibilities.

Bill Mills
Service 1st Mediation & Ombudsman Services
San Clemente, CA
Posted Apr 21 2006 12:29AM CEST
 
  Bill Mills (View Profile)
San clemente, California
 
6. Rewriting CCRs and relabeling "fines, dues, costs" as "assessments." to facilitate foreclosures for legal fees..  
  Re:: Bob Mills statement:" You may have a very valid point. If so, I'm glad you mentioned it, because I over looked it.

Your point is, why have all "fines, dues, costs" been re-labeled as "assessments." Good question, and I don't know the answer. I know that all the management companies I've talked with are using it, but I don't know why.

The reason may or may not be nefarious. The bottom line is that just because you're paranoid doesn't mean they're not really after you. I know of no generalized plan that involves the use of the word "assessment. However, just because I don't know about it doesn't mean that it doesn't exist."


RESPONSE:

Collecting "training" alphabets and your close association with the CAI-ECHO_CACM homeowner association foreclosure industry has had a desensitizing effect on your thinking processes.

Why do you classify experienced, knowledgeable and articulate homeowners who pay attention to language lawyers slip into contracts "paranoid". Homeowners are paying you to look out for their interests. Are you... when you don't pay attention to language lawyers and managers working to take homeowners' equity is slipping into their liability contracts?

As you know these same CAI - ECHO lawyers who are rewriting CCRs in the various homeowner associations wrote the loopholes into the Davis Stirling Act to take homes for dues and assessments..

In 1993 they tried to pass AB1793 to take homes for fines. They were already illegally doing this in many cases e.g. Mark Kompa by Marquis Management.

Because CAI lawyers and managers were unsuccessful in getting a bill passed to foreclose for "fines and costs" they have been rewriting CCRs and relabeling "fines, dues, costs" as "assessments." to facilitate foreclosures for legal fees..

THE LEGALISTIC RUSE OF HOMEOWNER ASSOCIATION GOVERNING DOCUMENTS - They will indeed get you! - April 05, 2006 - By Lee Lambert is a good article for all homeowners and board members.

Every owner should be involved in the contract and liability rules that they are being obligated to. It does not cost much to use open discussions on the web and printouts of these discussions to all residents.
Posted Apr 21 2006 12:09AM CEST
 
  Username withheld
, California
 
5. Why lawyers and manager re-label "fines, dues, costs" as "assessments." may not be nefarious.  
  To Michael Doyle,

You may have a very valid point. If so, I'm glad you mentioned it, because I over looked it.

Your point is, why have all "fines, dues, costs" been re-labeled as "assessments." Good question, and I don't know the answer. I know that all the management companies I've talked with are using it, but I don't know why.

The reason may or may not be nefarious. The bottom line is that just because you're paranoid doesn't mean they're not really after you. I know of no generalized plan that involves the use of the word "assessment. However, just because I don't know about it doesn't mean that it doesn't exist.


Bill Mills
Service 1st Mediation & Ombudsman Services
San Clemente, CA
Posted Apr 20 2006 9:56PM CEST
 
  Bill Mills (View Profile)
San clemente, California
 
4. The California Homeowner Association laws - the Russian Roulette of CAI lawyers  
  The California Homeowner Association laws are like a Russian Roulette into which CAI - ECHO foreclosure lawyers and politicians are snaring all property owners.
Posted Apr 20 2006 9:21PM CEST
 
  Username withheld
, California
 
3. Why the need to change the simple English word "fine" and give it a new legal name (that no one except the lawyers understands) like "enforcement Assessments".  
  I would like to ring in on this matter because I think the author is trying to make it clear that something may be going wrong with the creation of his CC&R's. I especially note the changing of the word "fine" to "enforcement Assessments". While the respondent (Bill Mills) side steps the word play, I believe as the author does that this is a very dangerous play on words that could affect every homeowner in his HOA.

Anytime you play close to the swords edge (that being the simple word "Assessments" in a common interest development) it may be setting up a "non-judicial foreclosure" policy for the unsuspecting homeowner. Anything to do with an "Assessment" should indeed raise the flag and ask the question of why the need to change the simple English word "fine" and give it a new legal name (that no one except the lawyers understands) like "enforcement Assessments".

This homeowner has a right to ask for an explanation and say "wait just a minute here". The law is clear on what an HOA can do about collecting a "Fine" and the law is also clear about what an HOA can do to collect any kind of "Assessment".

I would also like to add that I have read another of the Sam Mills articles concerning his Ombudsman practice. I am a proponent of a State sponsored Ombudsman. I have fallen prey of an unjust Board and received a rather tough outcome in the Courts. I believe that an Ombudsman can level the playing field.

I continue my efforts to help make changes to laws that will give the homeowners, who live in deed restricted common interest developments, a chance against unfair Boards and the threat of loosing equity in their homes. I think that the comments by Mr. Mills can be of benefit to all of us and would like to see more articles of his journey on solving disputes between homeowners and their HOA as an Ombudsman. It sure sounds like he is saving his association a lot of legal grief. Let's here about the many problems he has solved before going to court and how much an Ombudsman service has saved countless thousands of dollars for both the homeowner and HOA. Settlement success stories could benefit all of us.

Yours truly,
Michael Doyle
San Clemente, CA
Posted Apr 20 2006 6:50PM CEST
 
  MICHAEL DOYLE
SAN CLEMENTE, California
 
Page # 1 2
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