On the Commons with Senator Mike Schneider
Hosted and produced by Shu Bartholomew, On The Commons is a weekly radio show dedicated to discussing the many issues surrounding mandatory homeowner associations, the fastest growing form of residential housing in the nation.
When there are no consequences to bad behavior, there is no limit to how bad people can get. That is the situation in the 300,000 residential associations nationwide. While the residents have been controlled and penalized for violating the most idiotic of rules, those adopting and implementing the stupid rules in these gulags have enjoyed free rein to enjoy their reign of terror. Attempts to impose limits on their powers and authority have been met by cries of horror, "but no one will run for the board if they are held accountable". And so communities have been transformed into developments where fear, terror and abuse are the norm.
For years frustrated homeowners have been called malcontents and been told their only remedies are to hire an attorney, toss the bums out or move. Well, the FBI has decided to look into some of the allegations of fraud and wrong doing in Nevada. Is the current scope of their investigation limited to construction defect litigation fraud? How serious are they about investigating things like election rigging, improper foreclosures, embezzlement, and all the other abuses associations are capable of? The list of complaints in condo and homeowner associations is endless. Will this investigation find many of the problems homeowners have been complaining about? Will there be serious reforms or will we still hear the same old song and dance about HOAs being a matter for civil litigation? Will property owners FINALLY assert their rights to more choices in housing, better protections under the law and more real remedies than simple placebos?
On The Commons this week we are joined by Senator Mike Schneider. Senator Mikey, as he is known, was one of the first to introduce legislation creating the office of the ombudsman in Nevada. Over the past decade or so, the oversight has gone through many changes to the point where Nevada now has an entire panel to oversee associations and provide a place for homeowners to go for help. One of the biggest problems is that this panel is made up entirely of industry members, people with an interest in protecting the status quo. Please join us On The Commons this Saturday, October 11, 2008. We'll find out how well this panel has worked and why, with so many people allegedly providing some desperately needed adult supervision, is the FBI investigating HOAs, management companies and attorneys. We'll also find out whether or not they are all members of CAI. You wont want to miss this one.
When there are no consequences to bad behavior, there is no limit to how bad people can get. That is the situation in the 300,000 residential associations nationwide. While the residents have been controlled and penalized for violating the most idiotic of rules, those adopting and implementing the stupid rules in these gulags have enjoyed free rein to enjoy their reign of terror. Attempts to impose limits on their powers and authority have been met by cries of horror, "but no one will run for the board if they are held accountable". And so communities have been transformed into developments where fear, terror and abuse are the norm.
For years frustrated homeowners have been called malcontents and been told their only remedies are to hire an attorney, toss the bums out or move. Well, the FBI has decided to look into some of the allegations of fraud and wrong doing in Nevada. Is the current scope of their investigation limited to construction defect litigation fraud? How serious are they about investigating things like election rigging, improper foreclosures, embezzlement, and all the other abuses associations are capable of? The list of complaints in condo and homeowner associations is endless. Will this investigation find many of the problems homeowners have been complaining about? Will there be serious reforms or will we still hear the same old song and dance about HOAs being a matter for civil litigation? Will property owners FINALLY assert their rights to more choices in housing, better protections under the law and more real remedies than simple placebos?
On The Commons this week we are joined by Senator Mike Schneider. Senator Mikey, as he is known, was one of the first to introduce legislation creating the office of the ombudsman in Nevada. Over the past decade or so, the oversight has gone through many changes to the point where Nevada now has an entire panel to oversee associations and provide a place for homeowners to go for help. One of the biggest problems is that this panel is made up entirely of industry members, people with an interest in protecting the status quo. Please join us On The Commons this Saturday, October 11, 2008. We'll find out how well this panel has worked and why, with so many people allegedly providing some desperately needed adult supervision, is the FBI investigating HOAs, management companies and attorneys. We'll also find out whether or not they are all members of CAI. You wont want to miss this one.
Download | Duration: 00:58:53
Great podcast. Great to hear FBI is finally becoming less complacent, less derelict. I love that they raided lawyers and property manager(s), not to mention the usually recognized suspects (developers, crook board members). Too bad the FBI doesn't step in across the country.
I'll cross my fingers they will.
What's the solution? Realize that HOA is not a full government (and should not be) since they don't have firehouses, jails, or formal court systems. So there needs to be some real accountability to their constituents as well as to and by (true) government law enforcement (as Shu recommends).
Condos have a contract --- that's a security... ripe & routine for fraud. Condo sales should require full securities-level standards at sale, resale, and forever. Any governing documents should be delivered in text format for easy analysis (and comparison to signing documents) to prevent bait-and-switch at signing time and beyond. Full disclosure + verbal promises binding. No exceptions.
However, HOAs are currently trivially abusable with crooked developers, owners, property managers, and attorneys. A stacked board is trivial for developers to setup at transition, often undetected (noone believes in conspiracy, collusion, racketeering, and/or organized crime by such nice "volunteers" right?), and virtually impossible to dislodge as incumbents when protected by developer, HOA attorney, and the all-powerful property manager running interference for them. The political playing field needs to be leveled and safeguarded for all homeowners, to fight developer appointee MUCFraud (Mixed Use Condominium Fraud) et al..
By the way, watch out making the HOAs more powerful about collecting dues. MUCFraud involves developers using dues to subsidize their commercial business via unsuspecting owners' dues. Via crooked developer appointed HOA board. Under cover of a crooked property manager. Via graft from owners to developer via crooked property manager. Via predatory HOA documents to launder dues from owners to developer commercial interests.
Also, I am uncomfortable making condo associations any more powerful. They already risk becoming (and are at MUCFrauds) a powerful form of involuntary income graft and common property piracy. I know MUCFraud routinely sets new owners up as a fixed income stream for the developer (without full disclosure, of course) and coopts their common property for commercial use (without express permission, through manufactured consent). All through (e.g.) an HOA or a mysterious Outdoor+Utilities Association.
The laws need to change to balance the power back into the individuals (not the HOA). The politics need to be full disclosure; no votes destroyed (not even ballots), so that full inspections can take place to expose any and all election irregularities. If someone needs privacy (even of their vote), don't live in an HOA. Anti-fraud measures need to take precedence over privacy/confidentiality/proprietary issues.
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