If you are reading this promo or tuning into On The Commons regularly, chances are you have had a nasty surprise or two when you bought your HOA burdened house.  I often hear homeowners tell me they will never buy in an HOA again for as long as they live.  Do you suppose they would have felt that way had they known what they were getting themselves into?  Would a 2 or 3 inch stack of legal papers prepared them for life as usual in an HOA?  Do you feel you were you given all the necessary and pertinent documents about the association before closing escrow?  Did you have enough time to read and understand the contents of the package?  Were there any red flags?  What would you tell a friend and/or a relative who is house hunting to look for? What do you think should be included in a disclosure package that is not included now?  

John Cowherd joins us On The Commons.  John, an attorney in Virginia, is one of a handful of attorneys across the country who represents homeowners in disputes with their HOAs.  John is also interested in educating the public about HOAs and condominiums.  He has a widely read and discussed blog called Words of Conveyance  where he writes about cases, legislation, and how stories that have made the headlines might affect associations.  We talk to John about the Virginia Disclosure laws and whether they are doing an adequate job of informing potential buyers of what they can expect if they buy in the HOA.  We also talk about whether the 72 hours buyers are given is enough time to read through the package and make a decision of whether to not to cancel the purchase. He gives us a lot of food for thought.  

History can show us where we came from and how we got here.  History is just as valuable when looking at the evolution of residential associations.  While design and structure have played significant roles in their growth, so have enabling legislation and lack of choice.  But what about the future?  Wouldn’t history be a good tool to help us prevent the same mistakes that have led to the creation of some of the most harmful housing choices?  If we look through our crystal balls what do we see?  What is in store for American homeowners?  Will sanity, respect and dignity make a comeback or have property owners lost the right to sovereignty over their own homes? 

Bill Davis joins us On The Commons.  Bill, a Texas attorney and frequent guest on the show, represents homeowners. Along the way he has encountered some of the most interesting, weird and bizarre situations associated with the wacky world of controlled living.  Many of his cases and stories highlight the incredible absurdity of this form of housing. In addition to taking on clients, he is a frequent commentator on many public forums, discussing all things related to HOAs.  He shares some thoughts about the new White Paper put out by CAI.  We’ll find out if they are looking through the same crystal ball that Bill consulted.  

What a concept!  Build homeowner associations to give municipal governments a sneaky underhanded way of collecting what amounts to free tax money.  This sleight of hand is also known as double taxation.  It works very nicely for local governments – not so well for the homeowners involved.  Developers increase density thus increasing profit margins.  Housing consumers are told that this scheme will protect property values and allow them to enjoy greater control over their immediate surroundings.   To add insult to injury, real governments have adopted a hands off approach, claiming it is a civic matter.  State legislators have enacted legislation empowering associations while  special interest groups reap the benefits.

While the carnage continues, those in a position to prevent these atrocities have front row seats to the modern day Gladiator Games.

Julio Robaina joins us On The Commons.  Julio is a former Florida State Representative who, during his term, toured the State with a task force talking to home and condo owners.  The stories he heard from the owners convinced him that something had to be done to stop horrors.  He introduced legislation that would provide oversight through the Florida Department of Business and Professional Regulation, but subsequent legislative tinkering and bureaucratic red tape has all but rendered the program useless.  Not one to give up, Julio, who I nicknamed “The Energizer Bunny” years ago, went straight from the State House into property management where he is still working with the homeowners to put a stop to fraud and embezzlement and to ensure fair elections.  He and his partner have a web page detailing all the problems and the issues, naming names and streaming news clips.  Condo Receiver  is a treasure trove of stories and a must see for anyone who wants to understand just how bad things can get in residential America. And while the stories are about Florida, these stories are replicated nationwide.  And the Energizer Bunny is still fighting!

If you ever wonder why we are having so many problems in residential America, all you have to do is follow the bouncing ball.  The trail will lead you to a number of issues that almost every mandatory membership development in every state faces.  When you look at what is happening and then go back to what these associations were supposed to be,  and think about all the platitudes spread around the country like manure in flowerbeds, the stink will be unavoidable.  The flowers that are growing are not for the benefit of the owners but are being plucked by the special interests.

Jim Lane joins us On The Commons.  Jim is a homeowner and activist in North Carolina where he has spent time trying to educate homeowners and has lobbied to have homeowner friendly legislation enacted in NC.  His group is called Coalition for Homeowner Protection and Reform of Homeowner Association Laws  We talk to Jim about some of the issues and the problems and the current laws in NC.  One of Jim’s main concerns is that there really is nowhere for homeowners to turn for help when they find themselves in the crosshairs of the association.  He points out that although the legislature has enacted laws allowing the homeowners some access to books and records, the state has not provided an enforcement mechanism other than costly litigation.  We also discuss what needs to be done and why the HOA system, as it is currently configured, is NOT working FOR the homeowners.  

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.

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. 

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.

Millions of dollars unaccounted for, a neighborhood divided, lawsuits, shoddy repairs on some units, shunned members, bully boards, depreciating property values, lies, finger pointing and a thoroughly unpleasant place to live.  It must be a) a Bentley Little novel, b) a horror movie, c) an isolated incident or d) one of many dysfunctional homeowner associations across the country?  

If you guessed d, give yourself a pat on the back.  The stories, the details, the incidents just keep repeating themselves over and over again from the Atlantic to the Pacific and all points in between. Is it something in the water or do they clone incompetent people and put them in charge of YOUR home and your most valuable asset?  

Nila Ridings joins us On The Commons this week.  Nila has been right in the middle of a fight to save her home, her sanity and her health.  She is a frequent guest blogger and writes extensively on these issues.  She often hears from other homeowners who are having problems and looking for help.  Not surprisingly, finding someone to explain the problems and offer help is a bit like looking for a needle in a haystack.  Today Nila tells us, from her personal experience, what it is like being trapped in the crosshairs of an HOA that simply won’t let go.  She also tells us how some of our best intentions can cause those we love some serious headaches.  And she shares  some valuable advice.  

Over the last several decades, residential America has undergone a radical transformation.  Gone is the concept and practice of the owners enjoying sovereignty over their own homes.  No longer is the local municipal government the closest layer of government.  Although no one has actually signed away any constitutionally protected rights, the very structure of association housing has placed obstacles in the full use and enjoyment of those rights.  All these changes occurred without the consent of the governed.  

It was time to change that!  Association Evaluation, LLC decided to ask the very people stuck in these developments to share their thoughts, concerns and their experiences.  In a survey available online for about a month, over 300 people responded.  And how did homeowners respond to those questions?  The results of that survey have been tabulated and are available, in their entirety, no editing and no summaries, and are available for your inspection on the Coalition for Consumer Housing Policy in the Public Interest web page.

Deborah Goonan joins us On The Commons this week.  Deborah, is a prolific blogger and commentator about all things to do with homeowner associations, condominiums and co-operatives.  In addition to being a contributing writer for blogs and several online venues, she has her own blog called Independent American Communities.  Deborah was one of the people who worked behind the scenes on this survey right from the very beginning.  She explains why they asked the questions and talks about the responses they got.  Apparently not everything is as rosy and carefree in residential America as we have been led to believe.  There are some serious issues and some very serious problems.  One of the big problems is the lack of choices for housing consumers.  There are few surprises in the results.  The comments are consistent with what we have been hearing from the real people who have to live in the forced mandatory membership developments.