FOR MORE THAN 45 YEARS, I HAVE CONDUCTED MY PERSONL BUSINESS. BUYING AND SELLING OUR HOMES, ADMINISTERING MY BANK ACCOUNTS, CHARGE CARDS, UTILITIES, AND ALL THE NORMAL EVERYDAY BUSINESS THAT WE HAVE TO CONDUCT EVERYDAY OF OUR LIVES.

IF ERRORS OR PROBLEMS OCCURED, A COUPLE OF TELEPHONE CALLS OR A VISIT TO THE BUSINESS INVOLVED, ALWAYS RESOLVED THE PROBLEM IMMEDIATLY.

THEN IN 1987 I MADE THE BIGGEST MOST COSTLY, STRESSFUL AND ALL CONSUMMING MISTAKE OF MY LIFE, THAT TOOK SIX YEARS TO RESOLVE. I BOUGHT A CONDO THAT CAME COMPLETE WITH A HOMEOWNERS ASSOCIATION, A BOARD OF DIRECTORS AND A COMPLETELY UNREGULATED MANAGEMENT COMPANY.

OH I WAS A SAVVY BUYER, I CHECKED THE FINANCIAL STATEMENTS, READ THE CCR'S, THE BY-LAWS, AND THE ARTICLES OF INCORPORATION. ALL THE DOCUMENTS SPELLED OUT PLAINLY AND CLEARLY EXACTLY WHAT MY RESPONSIBILITIES WERE TO BE. THEY ALSO CLEARLY SPELLED OUT WHAT WAS EXPECTED OF THE BOARD OF DIRECTORS AND THE MANAGEMENT COMPANY. I HAD NO PROBLEM WITH ANY OF IT. I AM A BORN RULE FOLLOWER.

BUT VERY SOON THEREAFTER, I FOUND THAT AS AN INDIVIDUAL HOMEOWNER, THE RULES COULD BE STRICTLY ENFORCED AGAINST ME, INCLUDING FORECLOSURE OF MY PROPERTY WITHOUT JUDICIAL RECOURSE, BUT ON THE OTHER HAND, I COULD NOT MAKE THE BOARD OR MANAGEMENT COMPAMY COMPLY WITH THOSE RULES OR RESPONSIBILITIES THEY HAD TO THE HOMEOWNERS.

MY PROBLEM STARTED WITH A $20.00 CHARGE ON MY FIRST STATEMENT, TWO MONTHS AFTER ESCROW CLOSED. ALL FACE TO FACE ATTEMPTS TO FIND OUT WHY I OWED THE $20.00, MET WITH AVOIDENCE. THE TELEPHONE BECAME THE ONLY MEANS OF COMMUNICATION.(HOMEOWNERS ASSOCIATIONS MANAGEMENT COMPANIES CAN SET UP SHOP, WITH NO MORE THAN A TELEPHONE AND A MAILBOX). THIS ALWAYS RESULTED IN A VERBAL SHOUTING MATCH.

IN THE COURSE OF THREE YEARS, THE MANAGEMENT COMPANY WOULD NOT PROCESS MY CHECKS IN A TIMELY MANNER, THEREBY CREATING LATE CHARGES. WHILE THE MANAGER NEVER ACTUALLY ATTMPTED TO FORECLOSE, SHE OFTEN TAUNTED ME - SAYING SHE COULD TAKE MY HOME ANYTIME SHE WANTED TO. I GUESS SHE GOT HER KICKS BY HARASSING ME THROUGH THE STATEMENTS.

IN EXASPERATION, I ASKED THE BOARD TO PLACE A LIEN ON MY PROPERTY, BELIEVEING THAT WOULD GIVE ME DUE PROCESS. MY MISTAKE WAS TO THINK THAT THE BOARD WOULD AGREE TO HEAR MY SIDE OF THE STORY. I SOON FOUND OUT THAT THEY DID NOT HAVE TO HEAR MY SIDE OF THE STORY, AND ON THE ADVISE OF THE MANAGEMENT COMPANY, THEY DID NOT. THEY WOULD NOT TALK TO ME EVEN WHEN WE MET IN THE CONDO HALLS.

I THEN DECIDED TO HIRE AN ATTORNEY. I CALLED APPROXIMATELY TEN DIFFERENT LAWYERS WHO SPECIALIZED IN HOMEOWNER ASSOCIATIONS. ALL OF THEM TOLD ME THE SAME THING, THEY REPRESENT HOMEOWNER ASSOCIATIONS, BUT NOT INDIVIDUAL HOMEOWNERS.

ONE LAWYER WAS VERY NICE AND HONEST WITH ME. HE TOLD ME , "LOOK, YOU ARE TRYING TO FORCE COMPLIANCE, AND YOU WILL NEED AT LEAST $40,000.00 UP FRONT FOR ME TO TAKE YOUR CASE". TO ME HIS STATEMENT UNDERLINED THE PROBLEM. AN INDIVIDUAL HOMEOWNER HAS NO RECOURSE AGAINST UNJUST AND UNFAIR MANAGEMENT COMPANIES, AND OR HOMEOWNERS ASSOCIATIONS WHICH ARE CONTROLLED BY A FEW.

THREE YEARS LATER I FOUND OUT THE MANAGEMENT COMPANY HAD MADE THE ERROR.

I WOULD LIKE TO CALL YOUR ATTENTION TO THE RECENT NEWSPAPER ARTICLES THAT HAVE REPORTED THE DANA POINT EMBEZZLEMENT AND THE NARQUIS GROUP BANKRUPTCY.

IF I, AS A INDIVIDUAL HOMEOWNER HAD SUCH A DIFFICULT TIME WITH MY PROBLEM, AND I COULD NOT GET RECOURSE THROUGH EXISTING SYSTEMS OR THROUGH ATTORNEYS, HOW WILL THE HUNDREDS OF INDIVIDUAL HOMEOWNERS BE IMPACTED BY THE DANA POINT EMBEZZLEMENT OR THE MARQUIS BANKRUPTCY? WE MUST KEEP IN MIND THAT THE MONIES EMBEZZLED OR LOST THROUGH BANKRUPTCY DID NOT COME OUT OF THE BLUE. THESE FUNDS WERE PAID BY THE THOUSANDS OF HARD WORKING INDIVIDUAL HOMEOWNERS, WHO HAVE NO CONTROL OVER HOW THEIR ASSESSMENTS ARE USED OR MISUSED.

I IMPLORE THIS COMMITTEE TO INTRODUCE LEGISLATION THAT WOULD GIVE THE INDIVIDUAL HOMEOWNER DUE PROCESS WITHOUT HAVING TO HIRE A ATTORNEY. SOME TYPE OF REGULATORY AGENCY SHOULD BE CREATED TO OVERSEE THE FAIR CONDUCT AND COMPLIANCE FOR ALL PARTIES INVOLVED.

RESPECTFULLY SUBMITTED
LOUISE A. LEFTIGE