Mike Schneider

This is a rebroadcast of a show first recorded in 2014 but the case is still ongoing.

Senator Mike

When the scene is set for fraud and abuse, the crooks, criminals and villains will come by the droves.  Residential associations, be they condos, homeowner associations or cooperatives, where membership is mandatory, the power and authority is in the hands of a few and there is an enormous industry that feeds off these housing schemes and more importantly, the owners have been left pretty much defenseless, is an open invitation to all those who conspire to do wrong.  Just how much corruption goes on every day is unknown.  Even in Las Vegas when it became apparent in 2008 that the FBI was investigating wrong doings by board members, managers and HOA industry attorneys, the full extent of what went on is is still largely unknown.

Nevada State Senator Mike Schneider joins us On the Commons this week. Senator Mike, as he is known to his constituents, joins us to talk about the FBI investigation that became apparent in 2008 and is still ongoing.  The problems and the scams are incredible, ranging from election fraud to construction defect lawsuits.  There have been many indictments, many sentences handed down and many more mysteries and unanswered questions that still hound this situation.  There are sealed records, gag orders, four  alleged suicides, at least one attorney beaten to a pulp, kneecaps smashed with a baseball bat and left for dead, stark naked on the streets of his neighborhood.  As Mike says, “dead men can’t talk”.  Were they suicides?  And if they were, what could be so bad that it is preferable to take ones own life than face the consequences?  It also begs the questions of why sealed records and gag orders?  What else are they hiding?   And just how pervasive are these practices?  We all know that that what goes on in  Las Vegas really doesn’t stay there and that the same things is being replicates across the country.  The FBI just hasn’t managed to get to them all.  Will they or will everyone else simply get away with it while our legislators blindly ignore the problems?

 

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Martha Boneta

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We all dream of a safe, happy and healthy home in a safe, happy and healthy neighborhood.  We all need and want the security that comes with a real “community”  where we can raise our families, spend time with our friends and families and retire to when we want to shut the rest of the world out.  Unfortunately that ideal of “home” seems to have been lost in a quagmire of a legal morass. whether in a residential association or out in the countryside.  Gone are the days of a simple and peaceful life where neighbors were friends who looked out for each other.  Sadly nowadays the people watching are not doing so to be helpful but instead looking for ways to destroy their neighbors and take their property away their property.

Martha Boneta joins us On The Commons this week.  Martha, an organic farmer followed her dream and her passion for growing good wholesome food to feed her family, friends and neighbors.  She soon discovered that not all her neighbors were pure of heart.  Over the past 10 years they have sought to take her farm away from her.  They have been abusive, underhanded and plain obnoxious. Throughout it all, she has stood firm, fought back and inspired many people to step forward to “Stand with Martha”.  No matter how bad things get,Martha always has a kind word and a radiant smile .  Her story and her positive attitude in the face of adversity have attracted people to support her.   Legislators so outraged by how the laws are being abused by government agencies and appointed commissions have carried bills for her to try to right so many wrongs. Movie and documentary producers followed her battle for years releasing an award winning documentary earlier in the year called “Farming in Fear”. Martha also has a website,  In Martha’s own words, “Today will never come again.  Be Humble. Be Compassion. Be Love. Be Light”.

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Bill Davis

 

Pink Elephant

From an early age, we give children coloring books and a box of crayons and teach them to “color inside the lines”.  We also “help” them pick the right colors.  Pink elephants?  Oh my!  Blue hair?  You can’t do that!  Here is a nice bright yellow crayon instead.  

When my daughter was little I used to buy her un-coloring coloring books.  These books consisted of stories with just a few lines, or part of a drawing and encouraged children to complete the picture and add to the story before coloring it.  Looking back I wonder if those coloring books contributed to my daughter’s rebellious nature?   I also whether we are training our children, from a very early age, to “conform to accepted norms”?  If we won’t encourage our children to think outside the box, will they be able to do just that as adults or will they continue to stay safely within the lines?  

Bill Davis, for whom boxes and lines just don’t exist,  joins us On The Commons.  From the day Bill, a Texas attorney, switched his practice to representing homeowners in HOAs, he has been busy with some of the most interesting cases.  We talk to him about several of his cases, marvel at the incredible gall some “neighbors” have, listen to some of the crazy and whacky stuff that goes on in HOAs.  Through it all we hear stories of real people, find humor and horror.  Bill entertains us and instructs us.  He explains the legal issues, talks about Texas law and points out the nuances.  And by refusing to stay inside the lines drawn by the HOA industry, he manages to come up with some unique and creative strategies to protect his clients’ property and their rights.  Be sure to tune in and listen to the show and if any of the cases Bill discusses sound a little too familiar, make sure your attorney also listens in.  

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Nancy Hentschel

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Those darling dinosaurs, happily grazing in a Texas yard brought smiles to the faces of children of all ages.  The grumpy board members of the inevitable HOA, not so much.  They decided that the dynamic duo had to leave “or else….”  Well, you know what they can be like – a little power and they lose their heads.  But this story really is all about the power of the people, the ability of the neighbors to appreciate a couple of beautiful sculptures that  give such joy to the folks next door and across the street.  Notwithstanding the grumpy ones, the residents of this neighborhood all wanted a pair of dinosaurs of their own – at least for a while.  And thus began an amazing journey and a lesson for all of us, including the grumpy group. Are you listening?

By the way, you do not have to be a board member to be grumpy and not all board members are grumpy. 

Nancy Hentschel joins us On The Commons to give us an update on her ingenious plan to share her dinosaurs with her new friends in the neighborhood.  She explains how her generosity is helping make money for the charities.   The plan is simple and brilliant.  Any neighbor who wants to have the dinosaurs spend a little time in their front yard will have to make a $50 donation to the charity of their choice.  Charities are getting much needed money, especially at this time of the year.  Smiles, grins, joy and photo ops  these big prehistoric beings bring continue.  It is a win win for all.  Although Nancy is in the process of moving to a saner, kinder neighborhood where grumpy people are not allowed, she is generously allowing her dazzling dinos to remain behind.  They are defying the traditional HOA wisdom about uniformity and conformity protecting property values and proving that a little fun can go a long way in making a happy community.  Talking to Nancy I was reminded of a short story I read online called A Flock of Lawn Flamingos .  Nancy, thanks for reminding us of what is really important in life.

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Gary Solomon

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Ladies and gentlemen, I have news for you, if it hurts it is NOT good for you.  The only people who would have you believe that nonsense are those who are out to take advantage of you and to harm you.  One of the biggest scams that has been harming Americans for the past several decades is residential associations.  If these associations are such a great deal, why not provide housing consumers with honest, truthful information about what they are buying into? However, that disclosure will have to include all possible risks to their homes, their wallets, their health and the health and well being of their children.  It is not about pools, tennis courts, community centers and all the glitz, but also about harassment, fines, being put under the microscope, special assessments, foreclosures, and all the abuses for such ridiculous alleged infractions, such as children’s bikes that are visible, basket ball hoops, hopscotch on the sidewalk.  It is about living, living as a family without fear, raising happy healthy children instead of couch potatoes with weight problems and a lifetime of health problems.

Dr. Gary Solomon joins me On The Commons this week.  Dr. Solomon has dedicated the last several years of his life to to educating the public about the health risks of living in an HOA.  He has written one of the most creative and comprehensive e-books called HOA:Crisis in America which he has made available online free to everyone.  You can read the book, listen to it or watch video clips.  It is book that everyone should read, whether in the hallowed halls of our State and Federal Capitols, academia and especially his colleagues in the medical world.  The medical practitioners who have the task of healing and curing their patients need to understand the root cause of the problems their patients are suffering.  Every time I talk to Dr. Solomon, I learn something new and I get to know the man a little better.  He is definitely a man well worth getting to know.

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Let the children play in HOAs.  They deserve a normal childhood and will not devalue property.

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Vicki MacHale

“If it hurts, it must be good for you” or so the saying went for years.  Fortunately that myth was debunked when cooler heads prevailed and proved that pain was not a good thing. Along the same thinking, and with no conclusive evidence to support their claims of protecting property values, we watched as more and more restrictions, rules and covenants were added to the already long list of what homeowners could not do in their own homes.  This canard was repeated often enough so many people started to accept it as gospel. Well, it appears the pendulum may be swinging back the other way.  New legislation is prohibiting HOAs from banning such things as clotheslines, solar panels and flags.  These were the iconic red flags that were said to lead to “ghetto living”.

Vicki MacHale joins us On The Commons this week.  Vicki has 22 years experience in property management in California.  She recently wrote an article about the laws stripping HOAs of some of the powers they had.  She very accurately titled her article 

 “The Sky is Falling”.   She writes about the reactions from fellow colleagues and board members to the new laws as they are enacted and assures them that the sky really is not falling. Over the years, she has watched as choice in housing has been eliminated.  No longer do housing consumers get to decide how to live.  Vicki calls this the beige-ing of America. We’ll talk to Vicki and understand  what she means by the beige-ing of America and we’ll learn about some of the laws enacted in California removing powers from HOAs.   We’ll find out if the world really will come to an end or will this trend will lead to building real communities instead of war zones. 

MacHale

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Bill Davis and John Cowherd

If you live in an HOA, and who doesn’t these days?, you are required to pay your share of the common costs in the association.  That is only fair.  And it is also only fair that you be told how your money is being used.  Unfortunately part of the common expenses will sometimes include some pretty hefty costs for litigation.  The association may end up in court, and the members of the association will have to cover those costs.  But none of this is news and in fact attorney fees should be budgeted for.  What appears to be more prevalent these days, is that as part of a settlement agreement, there is a confidentiality clause.  Here is how this tends to work; the HOA Board is sued, ends up settling the case and as part of the settlement they agree to pay a sum of money as long as the homeowner agrees to a gag order.  The owner is not allowed to talk about the terms of the settlement, if they do, they have to repay the money and start all over again.  I have heard of some really nasty conditions. The owner agrees thinking they’ll get that monkey off their backs and be able to get on with the rest of their lives. The problem is that the settlement doesn’t always end the dispute.  But beyond that, the association is using your dues to cover up their misdeeds and you are not allowed to know about it or any of the details.  The money you paid them to fix the roof is now buying your neighbor’s silence.

Bill Davis and John Cowherd join us On the Commons this week. They are both attorneys who represent homeowners against in litigation against their HOAs. Bill, from Texas, has been on the receiving end of the HOA litigation so understands what to os like to be in the crosshairs of an out of control board.  John, a Northern Virginia attorney, switched his practice where he worked in real estate law to representing homeowners.  John also has a blog called Words of Conveyance .  His latest post is on point for this week’s show topic.  We talk about gag orders, why they are used and whether they should be used.

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David Kahne

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It was all so simple in the beginning. Build new houses in a residential association, give the HOA  the authority to tax the homeowners and the responsibility of providing the services normally provided by the municipal government.  The local municipality still collects the full tax but no longer provides the services.  Is it fair?  Is it right? Probably not but it was simple.

Was it then necessary to take what was once an easy to read one or two page “contract” known as the Declaration of Covenants, Conditions and Restrictions and just keep adding more covenants, more restrictions, more conditions and empowering association boards and managers to become more intrusive and more abusive?  When the world was given a mere 10 Commandments that covered everything they needed to lead a good life, why do American homeowners need a tome of do’s and don’ts on how to live in their own homes? Haven’t we gone too far?  

David Kahne joins us On The Commons this week.  David, an attorney in Houston, Texas has represented homeowners in their legal battles with their homeowner associations.  He has been active in trying to get homeowner friendly legislation enacted in Texas.  He has presented in numerous homeowner sponsored conferences.  The most recent conference held in Houston was just a couple of weeks ago.  Participants discussed the issues and talked about possible fixes.  We’ll talk to David and learn about the conference, legislative successes from the last session and we’ll find out what is on the agenda for next year’s session.  One of the greatest benefits of meeting as a group is the benefit of brainstorming.  We will hear about some very interesting ideas and comments that came out of this conference. 

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Don DeBat

Don DeBat

There is a rumor that condominiums are carefree living at their best.  No lawns to mow, no snow to shovel (in areas where it snows) no maintenance, all an owner has to do is pick up the phone, call the manager or a friendly board member, report a problem and poof, as if by magic, the problem is taken care of.  Right?  Well, if you believe that I have bridge to sell you.  No one tells you about your responsibilities as an owner or the hours “volunteers” donate to the association. There are other misconceptions associated with condo living, carefree living is the least of them.

Don DeBat joins us On The Commons this week.  Don is a long time reporter, a newspaper columnist who has written hundreds of newspaper columns on condominium and homeowner association living.  He is a Pulitzer Prize nominee for a series he wrote on shoddy home repairs, He has authored a number of books, including co-authoring “Escaping Condo Jail: Navigating the Risks and Surviving the Perils of the “Carefree Community Lifestyle” with Sara Benson.  The multi talented DeBat wrote the press release for the new homeowner satisfaction survey conducted recently by the Coalition for Community Housing Policy in the Public Interest (CHPPI) We talk to Don about his career as a Real Estate reporter, his research for his latest book and we find out how he managed to get his nickname, Batman.  Tune in for a fun interview.  

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Adam Buck

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Community – that wonderful word that conjures up images of people who have interests and ideals in common, people who live in a neighborhood where they become friends and family.  It takes a while to build a community, to build trust and to get to know each other, to learn to overlook the petty and silly stuff and focus on the good things about the “community”.

But in this fast paced, modern world of ours where “community” is manufactured, an outsider is hired to ensure uniformity and compliance and tolerance, acceptance and individuality are frowned upon, the only things owners have in common appear to be the duty to pay whatever they are ordered to pay and to “obey the orders”.  In these artificial “communities”, the descriptive words that more readily come to mind are “war zones”.  When the problems are petty and ridiculous, as they often are, a more sensible approach to dealing with them may be some form of adult supervision.  

Adam Buck joins us On The Commons this week.  Adam is an attorney in Scottsdale, Arizona who has started a new company called Homeowner Legal Services.  Adam says he has represented both homeowners and associations in disputes that have gone to court.  His new company is a membership based dispute resolution venue.  The association signs on and agrees in the event of a conflict, to mandatory, binding arbitration.  This membership extends to the members.  Everyone agrees to appear before a retired judge and abide by his or her decision.  We talk to Adam about the details of how this would work.  We also discuss time lines.  For some of the pettier and sillier “disputes” where “common sense” might suffice for a reasonable resolution, this may well be one answer.  

The views and opinions expressed in this interview are those of the guests and do not necessarily reflect the official policy or position of On The Commons.

Opinion:  It is my belief that much of what goes on in associations is petty and stupid.  However, there are some very serious problems in associations that need to go beyond “common sense” solutions and set legal precedent for how to protect the rights and property of the owners.  In these instances binding arbitration should never be used.  Shu.

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News and Views About Homeowner Associations