Information about Senator John J. Carona - Texas Senator - Associa Management Company Owner
Senator John J. Carona - Texas Senator - Associa Management Company Owner
P.O. Box 600035
Dallas, Texas 75360-0035
Phone: 800.808.4882 Fax: http://www.associaonline.com/
Trademember: CAI
Rank: No ranking.
Summary: Texas Senator John Carona: a realtor, owner of the largest HOA management company in the U S , CAI foreclosure trade group member, CAI lobbyist - he lobbies for CAI interests in the legislative hearings and committees in spite of his conflict of interest, See complaints published by Texas property owners about techniques Carona and his management business uses to foreclose on homes to skirt Texas property laws that do not allow HOAs to foreclose for fines. Senator HOA Manager John Carona - the Powerful CAI foreclosure lawyers and managers lobbyist in the Texas Legislature
• Senator John J. Carona - a real estate broker, a homeowner association management company owner, and a CAI activist, has been lobbying for Texas laws that take away the constitutional and property rights of homeowners and benefit the homeowner association industry lawyers, managers, brokers and developers. The legislation he helped shape has been very profitable for his real estate business. His website states that his management company is now the largest in America and he is now on an acquisition spree for more management companies. Comment 5. TUPCA has been gamed by CAI from day one.
• Lobbied for CAI and real estate industry interests as Texas State Representative (3 terms) , Senator (since 1996).
• Owns: Associa Management Company Purchased N N Jaesche in 2005
• involved in home construction, and maintenace
• On an acquisistion spree for America's homeowner association management companies
John J. Carona, President & Chief Executive Officer
Bradford J. Brady, Senior Vice President
W. Stephen Castle, Vice President
William Cretney, Senior Vice President & Chief Technology Officer
Ronald Duprey, Vice President
Helen V. Eden, Senior Vice President & Chief Integration Officer
Mark S. Friedman, Executive Vice President, Chief Operating Officer & General Counsel
Michael T. Hallick, Senior Vice President & Chief Financial Officer
Mark Lewis, Vice President
Bernard S. Meyer, Senior Vice President - Business Development
Marjorie Jean Meyer, Vice President - Dean, Associa University
Vicki Ward, Vice President
In response to Richard Craig of San Antonio TX on John J Carona and Associa Insurance Techniques:
It appears that John J Carona and Princip[al Management Group self-insure. I was a Treasurer then later became a President of Bear CReek HOA in Euless TX. (District 12 Jane Nelson - probably a bought and paid for protege of Carona or Pulte.)
Being the first President to get records out of storage in 12 years of existance I noticed how every service turned into a profit center for Carona using a back drop of business names or simply keeping the service, but remaking the billing procedures to make it appear as PMG was actually completing a task.
I was removed MINUTES BEFORE the required annual general membership meeting of April 2005 by the Pulte or CAI bought and paid for members. Four (4) total. A 219 member community with 215 in the PMG contract.
Three seperate reports to the Tarrant County DA yielded complete indifference and an attempt to ignore discrepancies of unit count in the contract and use of Non-FDIC insured banking for HOA funds.
Filed conflict of interest complaints to the Texas Ethics commission about Senator John Carona's vote on HOA legislaion - he is CEO of the largest Homeowners Association Managment firm in the United States (Associa), by voting on what is now property code 209, he committed a crime.
Outrageous management contract provisions that any HOA should refute:
1) Insurance claims -
expects to be awarded 10% in the event that a claim is paid for loss under the HOA property and casualty policy (e.g., clubhouse burns down). Even more amazing they really push HOAs to switch insurance coverage to another Carona affiliate from which they receive an undisclosed compensation.
The conflicts here are overwhelmingly suggestive of an intent to defraud. Their time can be compensated for by an hourly rate, if any is required at all. They are not licensed insurance aduster, builders, etc. Also it is rare that an insurance company would pay beyond the cost of damages. This paragraph suggests that the management company is being compensated for trying to submit a claim for damages that exceeds the damages and is being rewarded for same. Or alternatively, that the management company would contract with individuals to restore the property using inferior services and materials in order to ensure that 10% was left over to pay them. In short, it would appear to me that the clause encourages insurance fraud upon either the insurance company or the insured.
2) Liquidated damage clauses and automatic renewal - expecting a year's worth of fees if the HOA doesn't terminate the agreement prior to 10 days before the end of the annual term. Provides for "automatic renewal" in the event HOA does not affirmatively request their services. They should be paid for the services as delivered including payment at the agreed upon hourly rate to wrap up. There is no need for liquidated damages here.
3) Privacy policy - The management company sells the services of yet another Carona owned company for web services. The web site is touted for providing community services such as copies of declarations, bylaws, etc. In order to get access to the individual community sites, one has to agree to Carona's "privacy policy" which is actually a release of all personal information and agreeing that Carona can sell your information to whomever he wants. None of this is disclosed when contracting with his management companies. When the association demands changes, the management company simply responds that "this is a policy of our parent company" (i.e., Associa).
4) Document security policy - Residents are surprised to find that the governing documents of the HOA that are posted on the management company website have been deliberately "print protected" by the management company to prevent them from being able to print out and read the documents. Again, confrontation with the management company results in "this is a policy of our parent company". There is no legitimate reason to obstruct the contents of the documents in this fashion. Any prospective purchaser as well an any homeowner, title company, mortgage company, etc. is ENTITLED to a copy upon request. The management company "relieves" the HOA from providing that service, but they aren't exactly providing the service are they?
5) Document retention policy - although hired to be custodians of HOA records, we found that much of the records were not being maintained. Worse, many of them were simply deleted without any notice to the HOA that the records would be deleted. Architectual control committee-related records were particularly important for both applicants and the other HOA members. Of course, any chaos in this area serves to reward Carona again.
6) Loan points-
Why should the management company collect a percentage of a loan for "helping complete the paperwork". They should be compensated only for the additional time spent and that is already agreed to. Moreover, the HOA has already paid the management company for preparation of the types of documents required for a loan application (i.e., financials). Why should the management company be getting a windfall of the percentage of the loan?
7) Expecting to be a named insured on the HOAs policies.
This is designed to interfere with the HOAs ability to go after the management company for malfeasance/nonfeasance. There are few instances when a professional expects to be named on their client's insurance policy. Let them get their own insurance policy since they are supposed to be professionals.
8) Indemnification/removal of any liability
The management company expects to not be accountable and there is considerable language regarding indemnification. This is not consistent with their role as agents of the Board which owes a fiduciary duty to its shareholders. In fact if doctors, lawyers, or other professionals attempted to contract out of liability for their professional services in this manner they would be sanctioned and at risk of losing their licenses to practice.
9) Backcharge provisions -
Designed to enable the management company to go after the individual homeowner in a failed collection attempt. In short, if you go to court and win, the management company wants to be able to hit you up for their failed collection efforts. The homeowner should not be paying "damages" self-inflicted by the management company. I suspect this is more typically used to extort money for collection fees since the threat of 1) losing your home and 2) having to pay both sides of any legal battle is used to reach a quick settlement.
These are just a few of the troubling aspects of Carona's contracts.
For many years John Carona as a Texas House Representative(3 terms) and as a Senator (since 1996) has been protecting the interests of the CAI foreclosure lawyers and the real estate industry He is a broker and a management company owner.
Texas homeowners who have been losing their home equity and homes to CAI lawyers have found it impossible to get any laws passed to protect them from abusive lawsuits and foreclosures by CAI lawyers and managers because of lawmakers like John Carona.
Industry banner showered on Carona include "Legislator of the Year" from CAI lobbyists and, "Legislative Hall of Fame". from the realtor lobbyists.
The homeowner association laws that Carona lobbied has been lucrative , not just for the foreclosure lawyers and realtors, but also for Carona's own management business.
His company Associa now only manages condos and homeowners associations. With this shift in focus, Carona has been aggressively acquiring management companies around the country, and now claims to be the largest homeowner association management company in the States.
Last year Corona purchased N.N. Jaeschke, a San Diego County management company owned by Nora Jaeschke.
Disclaimer: AHRC is an interactive information WEBSITE. The information contained here is that of the users.
It is not the opinion of AHRC.
AHRC does not WARRANT the accuracy, reliability or timeliness of any information
and shall not be liable for any losses caused by such reliance on the accuracy, reliability, or timeliness of such information.
