WHO'S RUNNING YOUR HOA (and why does it matter)??? -Part II- CLICK ON TITLE LINK FOR MORE!
Ever ask yourself who our SPRAI (HOA) board is here in Sienna Plantation (Missouri City, TX --- Sienna Plantation Residents Association, Inc.)? The simple answer is 3 employees of Johnson Development Co. of Houston. Are these homeowners, taxpayers or even residents of this subdivision? No, of course not. Were they voted on by the 9-10K residents who pay almost $3 million a year into this association? No, of course not. Do they pass covenants without our approval or input? Yes, of course they do.
Why is any of this important to a homeowner who lives in this neighborhood or potential purchaser? Because this group of individuals decides who your community manager is and which attorneys represent the HOA (among just a few minor items). How can this impact you as a homeowner/taxpayer/resident?
Maybe some recent articles on HOA foreclosure abuse (by CAI affiliate & industry attorneys) will help:
Background-
http://www.hobb.org/index.php?option=com_content&task=view&id=299&Itemid=317 -- Major builder scam reported by HOBB.
http://www.ahrc.com/new/index.php/src/news/sub/legis/action/ShowMedia/id/371 -- related article.
http://pages.prodigy.net/hoadata/ -- Hard data on HOA foreclosure filings and the impact on owners/members of these associations (just in Harris county alone).
http://pages.prodigy.net/hoadata/attyrank.html -- see if your association lawyers are on this list of most active HOA foreclosure-related attorney filings.
http://pages.prodigy.net/hoadata/fee.html -- how do these high filings impact home value? Check this data out.
http://www.ahrc.com/new/index.php/src/news/sub/article/action/ShowMedia/id/2845 -- related article.
Is our resident manager involved with this industry and/or our HOA attorney? The SPRAI (Sienna HOA) manager, Sandy Denton, is soon to be past president of CAI (Community Associations Institute), which is listed prominently in the AHRC article above and on the affiliated Texas Homeowners Association site. What about our HOA attorney? As of last year Marc Markel (of Roberts, Markel & Guerry, P.C. of Houston, TX) became our association legal consultant and he is listed twice on the “Houston Area HOA Foreclosure-related Filings” all time list of lawyers involved with this type of work. See the hoadata link above for Harris County filings and search his work here in Fort Bend County through court connect at (or click the title link above):
*** http://courtcn.co.fort-bend.tx.us:80/pls/public/ck_public_qry_cpty.cp_personcase_details_idx?backto=P&soundex_ind=&partial_ind=&last_name=&first_name=&middle_name=&begin_date=&end_date=&case_type=&id_code=V12986850 ***
*** http://www.chron.com/disp/story.mpl/front/1297991.html ***
Ask yourself why is any of this important? Why should you have a real voice in your HOA, not just non-voting village reps? I think you will agree that the answer to these questions are contained in the multitude of sources above (please read carefully and consider).
Related Pieces on this:
http://www.chron.com/disp/story.mpl/front/1297991.html
http://www.bizjournals.com/houston/stories/2005/04/25/story8.html
http://www.ahrc.com/new/index.php/src/news/sub/legis/action/ShowMedia/id/371
http://courtcn.co.fort-bend.tx.us:80/pls/public/ck_public_qry_cpty.cp_personcase_details_idx?backto=P&soundex_ind=&partial_ind=&last_name=&first_name=&middle_name=&begin_date=&end_date=&case_type=&id_code=@3129
If you have any questions about this opinion piece then feel free to contact responsible_dvlpmnt@yahoo.com or visit the related http://missouricitychatter.blogspot.com website or FortBendTalk.com.
Stay informed and keep in touch!
posted by responsible_dvlpmnt at Friday, June 23, 2006
13 Comments:
This comment has been removed by a blog administrator.
Related article (from http://www.ahrc.com/new/index.php/src/news/sub/article/action/ShowMedia/id/2845):
HOMEOWNER ASSOCIATION COMMUNITIES: DYNASTIES OF DYSFUNCTION
April 29, 2006
By Donie Vanitzian (View author info)
Copyright Donie Vanitzian, BA, JD
Los Angeles, California -
In centuries past, an emperor could decide the fate of an entire community with nothing more than a nod of his head. Some believe a similar system exists today, but instead of one emperor there are boards of emperors who on a whim can decide the fate of an entire community of homeowners.
A quasi-judicial authoritarian panel is established called a "board of directors" which has an unmatched gift for political maneuvering. Directors don't need campaign contributions to stay in power because association operating funds can be plundered at will. The unchecked controls to distribute, gather, and process ballot and proxy votes ensures the imperial board continues its reign. Like dynasties of old, homeowner associations can fall prey to a debauched mistreatment of its owners.
MANAGERS OF MODERN TYRANNY
In the face of crumbling individual rights, censorship is encouraged and laws are passed that further prejudice homeowners. Not unlike feudal systems, boards delegate their authority to handpicked aiders and abetters who carry out their demands. Rebels, dissidents, and rivals of those in control are easily silenced or alienated from the faithful followers. In struggling to fight their aggressors, owners are peppered with intimidating salvos delivered by modern day lackeys like lawyers, managers and industry vendors. The job of aiders and abettors in the pecking order is to push through the board's agenda. As those minions become autonomous, the result is a wholesale disenfranchisement of those who are not part of the "chosen" few.
YOUR COOKIE, THEIR FORTUNE
Confronted by aggressive sales techniques, owners are seduced into an illusionary world of affordable housing developments. Frequently, buyers are led to believe they are buying a house "and" a community. Such synthetic communities should be viewed as "commodities" that are in turn reaped by another commodity called "buyers." Of course, the ultimate commodity permeating this housing scheme is money.
Because voluntary purchases are difficult to regulate, buyer problems usually surface after parting with thousands of dollars in down payments. No owner wants to admit they failed to adequately investigate what they bought; yet buyers have been known to do just that.
Some buyers may seek to justify their bad decisions by overestimating the definition of "value." No doubt believing they are graduating from the middle-class, new owners are quick to brag to friends that they have just purchased a condo packed with amenities. Irrespective of whether the buyer uses that gym or lap pool, they still boast of it. While wanting to leave others with an impression of accomplishment, little thought is given to the maintenance, risks and liabilities of all those "extras" accompanying their purchase. Owners choosing to ignore these added financial obligations later find themselves strapped for cash and unable to make ends meet. Unfortunately, the "largeness" of a development is often mistakenly analogized to the owner's personal success. Quite the opposite is true.
HUNTER AND HUNTED
"When a man wants to murder a tiger he calls it sport; when a tiger wants to murder him he calls it ferocity." George Bernard Shaw.
Generally, community association industries are parasitic businesses, constantly blurring the line between profit and profiteering. This has resulted in the evolution of an industry that does little more than look and act indispensable. Sucking the lifeblood from owners held hostage by a defective legal system, it is an organism that has perfected taking advantage of those that are most vulnerable.
Without the legislative mandate that owners must belong to the association and pay fees, the organism feeding and growing on those laws would shrivel up. Unable to otherwise nourish itself, the industry can be found wallowing below the association's bowels eagerly living off its excess and swallowing whatever morsels it sucks from its host. It is the homeowner's personal wealth that feeds those parasites which contribute nothing of consequence to the owners' well being. Like traditional hunters, the industry's survival depends on eating their kill.
THE GREAT WALL OF INEQUITY
Beige paint and potholes aside, artificially created communities undermine the social system as non-board member owners are relegated to positions of second-class citizenry. Built into this artificial aura of community is an unspoken association ranking order that is arbitrarily decided by a few persons perceived to be oh-so-important. This ranking order frequently reflects the wishes of influential members rather than the merits of those elected to the board or the "real" majority. Such living environments promote exploitation of those under it. Here, an owner's life can become subject to power-mad rulers with the means and ability to ruin and financially devastate them.
Only the owner has a vested interest in property, yet, outside vendors are often allowed to wield their influence on directors. This leaves owners who are lowest in the social order with minimal bargaining power over their living environment and assets. Because owners essentially relinquish control of their assets to those who have been elected to the board, the owner is burdened with a double financial risk.
"The owner's financial crisis differs substantially from the association's financial crisis. An association always has 'cash requirements,' and by law it can raise cash on demand from each owner. Even with this ability, these communities can remain in a constant flux of not being able to meet its liabilities. This means that a 'gain' for the association results in a corresponding 'loss' for each owner, subjecting seniors in particular to potential personal financial distress." T.Foster Real Estate Broker and Personal Financial Planner
As almost nothing in a community setting is designed to be resolved to the satisfaction of all owners, nearly every financial crisis a board faces can keep recurring. In this oppressive regime, owners become dispensable pawns.
MULTI-HEADED DRAGONS
For all the pomp and circumstance extolling spectacular benefits of community living, it is for the most part, excruciatingly boring, repetitive, time-consuming, and expensive, all, with little or no tangible return for owners.
Owners at odds with their association are similar to a minority shareholder taking on a corporate monster whose personality is both dysfunctional and manic. Picture a five-member board of directors, each with a different personality. As the board changes, so do the personalities of its directors. The multiple personalities of each successive board serve to hinder owner autonomy.
The stakes are high for homeowners and an unintentional mistake or error in judgment can have devastating results. The owner's position is instantly prejudiced not only by statute and case law, but also by the inferior status this environment accords. His membership is contingent on restrictions and rules he may not have seen, agreed to, or know to exist. Depending on the rules of any given association, fines, liens, and foreclosures can all occur. Yet, by law the owner must subscribe in order to belong to this fictional entity.
NO TIME FOR TEA
At first it may be unclear and frustrating figuring this out, but homeowners must understand the relevance of their inferior status in relation to the association and its board of directors. Start by treating the corporate association-entity for what it legally is -- a corporate fiction created to operate a business. That business is the "association." Next, view the board of directors like any other corporate board, except here, each director is "expected" to be in a "conflicted" position because they are both homeowner and director. When approached by the multiple personalities responsible for the owner's demise one must remember it is impossible to reason with a "fiction."
Given the large turnover in such developments, accomplishing anything becomes a feat in itself. In this atmosphere, it is a challenge for the owner to merely stay on track and stick to a viable game plan for emotional, financial, and physical survival. The corporate entity's adeptness lies in creating confusion and frustrating the opposition. Owners are the opposition. "Every problem the owner encounters steals days, weeks, months, and years away from their life - none can be recovered."
THE TAO OF TERRITORIAL RULE
Each newly elected board establishes its own dynasty and conquers the membership anew. In a real dynasty, mistakes in an emperor's judgment might lead to the downfall of the regime. In an association such mistakes might systematically be ignored or recur at great cost to owners, but the board goes on.
Directors can be influenced by irrational recommendations from those who lack the skill or expertise to render advice, while others succumb to a mob psychology resulting in poor decision-making and costly mistakes. "Once the psychological investment is made, more often than not, boards are loath to back down, even if doing so is the right thing to do."
By exploiting a failed legal system, boards avoid responsibility for their incompetence and greed by blaming global economics and deteriorating infrastructures. Circumventing political disorder while ensuring control of burgeoning fiefdoms, over-confident boards take office by dynastic succession while bypassing scrutiny over an election process. In many associations each new board will consume the financial surpluses accumulated during their predecessors' term and then invoice owners for more. When the board's system of alliances proves untenable, it often plunges into a condition of internal anarchy. Actions like these can result in the indefinite rise of owner assessments and fees to replenish operating accounts in order to stay solvent. As these internal control-monopolies thrive and property is debased, each owner's emotional currency is tested in ways they never thought possible.
Boards act to benefit the association and not the owners who are responsible for bankrolling the fictional enterprise. Uprisings by owners are gaining ground because their finances and hardships are discounted and their assets are at risk. High-density over-building, concentrations of noise, water, and traffic pollutants are aggravated by population migration. With each passing year, owners watch their property-related payouts and taxes increase while their property rights are reduced.
Self-assured directors are sustained primarily by virtue of their own use and misuse of homeowner funds. This abuse is virtually unchecked because there is no meaningful statutory accountability. An owner's only weapon to dislodge entrenched directors or those managing these dysfunctional dynasties entails the constant overthrow of those in power. Abolishing a system of exploitation takes extensive planning, consistent dedication and the financial means to sustain oneself during this time.
PERVERSION OF THE FITTEST
Something happens to owners when they are in an environment like this. By virtue of nothing more than a "membership" people who might otherwise champion against civil liberty violations or other medieval actions, find themselves promoting if not dispensing toleration of unacceptable behaviors. When aiders and abettors praise an errant board's "wisdom" or propagandize their perceived successes, it is accomplished at a great loss to owners.
In general, homeowners living in communities are "followers" and most reserve a special brand of contempt for their leaders and rulers. Those playing the part of "director" routinely fancy themselves as possessing a type of scholarly acumen, when in reality they sport nothing more than a pedestrian intellect and paint-by-numbers leadership ability. Incredibly, no matter how incompetent these leaders are, owners continue to support them.
INVASIONS
Ongoing intrusions and interferences into the lives of owners consisting of meetings, hearings, violations, warnings, intimidation, and restrictions serve to distort reality. These surroundings produce an abhorrent stimulus that elicits a conditioned response by its residents all in the name of "belonging."
The intensity of living under the rule of an association has the ability to transform personalities. It deliberately impairs natural characteristics on an interpersonal level to instead value and perceive events in a certain manner in order to be accepted and fit in. This occurs even if that type of acceptance is contrary to one's own philosophical and moral beliefs.
Even in the midst of pandemonium, owners must ferret out and stockpile evidence for use at a moment's notice. Obtain and keep as much information from as many sources as possible, particularly meeting minutes.
Wanting to protect their interests, owners looking for solace by hiring an attorney may find that reliance misplaced. Cost aside, owners complain that information provided to their attorney was rejected early on, but during litigation turned out to be critical. By then it was too late to develop evidence in a meaningful manner.
The association's well-funded arsenal of legal weapons is constantly replenished. Lawyers, letters meant to frighten, restraining orders, lawsuits, fines, penalties, assessments, liens, judicial and non-judicial foreclosure are at the ready. Like emperors who killed not only their victims but also their families, boards have the ability to legally destroy any owner. Then like rats deserting a sinking ship, directors cut their losses. They KNOW what's coming down the pike -- they sell their property and disappear.
related comments:
1. Great article, and definitely is relevant to any new home purchaser as "buyer beware."
Great article, and definitely is relevant to any new home purchaser as "buyer beware."
Posted 6:18PM EDT Linda Geist Gehring
2. Tell the IRS - board Members are NOT permitted to use your/our money to BENEFIT THEMSELVES!
I was the Treasurer of my Homeowners Association here in Florida.
Once I became aware of fake/counterfeit documents that were used to BILL the other owners...I filed a Civil Suit here in Palm Beach County.
Associations have ALL the MONEY and my Association spent THOUSANDS AND THOUSANDS TO TELL THE JUDGE "THEY HAD NONE OF THE LEGALLY REQUIRED DOCUEMENTS!" '
Anyone reading this should check the IRS.gov website for "inurement and non profit tax exempt" see what you come up with to proceed!
Board Members are NOT permitted to use your/our money to BENEFIT THEMSELVES!
Posted 6:20PM EDT
Bob Ayrsman
more:
Three IRS agents told me that HOAs that have gotten out of control usually are doing so for self benefit or "inurement"
I have contacted the IRS three different time to "verify" my concerns. Each of the 3 employees gave EXACTLY THE SAME RESPONSE to my questions. HOAs that have gotten out of control usually are doing so for self benefit or "inurement" - not a good thing per IRS. Check it out!!
Tax Exempt's are supposed to be to "do good for a community/association of homeowners...not "benefit the chosen few who can and will use any illegal unethical means.
Posted 6:30PM EDT
Username withheld
4. Submit an IRS complaint.. you will get not response..it is all confidential.
Hello Linda,
Go very quickly and purchase Robert's Rules of Order Newly Revised! This is a Must Do.
Next, go to www. IRS.gov. and click on the Non profit tab at the Top of their page.
Look us INUREMENT..for non profits. Then give them a phone call, next submit the complaint..but you will get not response..it is all confidential.
Posted 6:43PM EDT
Bob Ayrsman
5. Long "lost records" have a way of surfacing when these homeowner association lawyers and board members have a need it to extort.
I spoke to an IRS staff member last Friday about certain homeowners associations using their 501(c)3 as profit ventures for board members and their lawyer. He gave me his name a email address to send the details.
The lawyers, managers and board members in my homeowners association have been lying in courts and spending hundred's of thousands of dollars to hide records, supress evidence and conceal the fraud.
Long "lost records" have a way of surfacing when these homeowner association lawyers and board members have a need it to extort.
Posted 6:45PM EDT
Username withheld
6. Very insightful - Thanks!
Very insightful! Thanks for all you have done for the homeowners.
Posted 12:31AM EDT
Username withheld
7. The ex president that lives next door to me has called the police 49 times
I totally agree with everything you have written.
It is a prison and we have people in our nieghborhood on power trips. I have been fighting them since the day I moved in 2 years ago and have won until now just because they don't even know what they are doing but abusing authority.
I had to sue 2 years ago just to fly the American Flag, then we removed the board that was off thier rockers and since then, the ex president that lives next door to me has called the police 49 times for stupid stuff to get back at me.
I help all the owners get rid of this bad leadership in hopes of a new and peaceful place to live and now the new board members will not help me to get her to stop, they are afraid of her, any help?
Posted 11:17AM EDT
Linda Martin
This comment has been removed by a blog administrator.
Here's a good one found at AHAJokes.com:
Rules for hunting lawyers
Washington state attorney season and bag limits
1300.01 GENERAL
1. Any person with a valid Washington State hunting license may harvest attorneys.
2. Taking of attorneys with traps or deadfalls is permitted. The use of currency as bait is prohibited.
3. It is unlawful to chase, herd, or harvest attorneys from a snow machine, helicopter, or aircraft.
4. It shall be unlawful to shout "whiplash", "ambulance", or "free Perrier" for the purpose of trapping attorneys.
...etc...
I wonder if this crowd would have mapped out a SLAPP-suit strategy for their clients?
http://www.gcastrategies.com/
Ck this out:
State body footed $1,000 lunch bill
08:55 PM CDT on Friday, June 2, 2006
By BYRON HARRIS / WFAA-TV
WFAA
The TRCC resolves disputes between home builders and home buyers.
Also Online
Byron Harris reports
When it comes to questionable government spending, most of us have heard of the $600 toilet seat bought by the defense department a few years ago.
Here's one from Austin that may top it - the $1,000 lunch.
News 8 has been looking into the startup expenses of the Texas Residential Construction Commission (TRCC).
The TRCC, built three years ago, is designed to resolve disputes between home builders and home buyers.
But if contractors spent money the way the TRCC did as it started up, they'd have plenty of unhappy owners.
A recent audit by the Texas comptroller found in its first two years, the TRCC spent $573,000 on public relations, including more than $90,000 for a Washington based PR firm and another $483,000 for an Austin PR firm.
get full piece at: http://www.wfaa.com/sharedcontent/dws/wfaa/localnews/news8/stories/wfaa060602_lj_trcc.491c735a.html
Look which FBN post came to life recently:
6 Dan - Jun 25, 10:03 pm
Mr Hilton,
What is the big deal about landing jets? Im from California and looking to invest in Arcola, your anti growth stance is a little disconcerning. I’m willing to guess you take a plane when heading out of town. It is ok for the Houston residents to have planes in there backyard but not yours. Im hearing alot of crying and not enough solution. Anti growth stances keep that society in the dark ages.
7 maized&cornfused - Jun 26, 07:47 am
Mr. Hilton is not anti- growth, he’s pro-residents/citizens that live in the area. He has lived and worked in this area for a long time and has the respect from his community and neighbors.
There are plenty of other places you could look into since Arcola doesn’t fit your needs. Perhaps you should look elsewhere instead of trying to change the area to suit you.
BTW, We call that carpet-bagging here in Texas.
The local citizens have made their feelings known on this issue and it is not the type of developement we want here.
8 John Armstrong - Jun 26, 08:26 am
Dan,
The ‘big deal’ was it in a nut shell… it was planned and devised with little or no regard to the people living around the neighboring areas. There was very little proof other than ‘talk’ that the airport ‘improvement’ project would generate any economic growth. Tom isn’t against growth, it’s blantant misuse of executive power under the guise of ‘growth’ that brought many people together to address issues that would have destroyed an area not brought economic growth. What type of ‘investments’ do you plan on doing in this area if I can ask?
9 Tom Hilton - Jun 26, 10:30 am
Howdy,
No, I’m not anti-growth – I’m for the RIGHT kind of growth. Arcola is a living organism, which unfortunately has a cancerous growth living inside it. This cancer keeps wanting to spread, endangering the very life of this tiny town. The cancer needs to be held in check because it is already too large for the space alloted, yet it continues to want to mestasticize. We are against the growth of this cancer, yes. Do you really believe that if Houston Intercontinental wanted to expand it’s runway right into the heart of downtown Houston, that it would be benficial to the City? Well, that is the situation that Arcola is facing.
As far as keeping people in the dark ages, perhaps you should educate yourself about the way the airport owner, Fort Bend EDC, and others attempted to rush this “Feasibility Study” through Commissioner’s Court without anyone having adequate time to study what it contained. Thanks to Sugar Land City Council, the Commissioners were forced to answer 26 questions before taking action. Guess waht? After the “facts” in the study were shown in the LIGHT OF DAY, the County was FORCED to refuse sponsorship of this boondoggle because it became clear that it was not in the best interests of anyone involved, except for the airport owner.
The fact is, that the airport owner has recently been approached by developers interested in buying his airport and the 211 acres north of it in order to develop this land to it’s true potential. Just the act of taking the airport acreage off of the +_ free County tax roles, would be an incredible financial windfall for Arcola…for example, the 77 acres that the runway sits on is probably worth close to 6 million dollars, yet is on the County tax roles valued at +_80,000 because it is a public use runway. How much tax money is this cancer sucking up that Arcola could use? Imagine what benefits would arise for Arcola if the land was developed PROPERLY, generating true jobs, sales tax, property tax, etc. etc.
I could go on, but I am just trying to bring you out of the Dark Ages Dan.
Good luck with your investments!
Tom Hilton
10 Sienna Resident - Jun 26, 11:12 am
Dan,
I’m sure the Sugar Land Airport would love to talk to you about your flying needs. They have a first class facility just down the street. No need for another in Fort Bend!
11 John Armstrong - Jun 26, 12:35 pm
Tom,
Thanks for sharing the information… sounds like some exciting plans are in store for the airport down the road… wonder if Arcola is thinking that ‘Imminent Domain’ is an option for that airport, especially if there are ‘true’ plans in the making for the area.
-------------
Comment--I wonder what's up (who's looking at the airport property)?
I guess what I find sad as far as the "Dan" comment goes is the fact that some developers feel they must exclude area residents from the discussions. Authentic attempts to involve citizens in the shaping of plans can only help insure the success of a project. Of course this approach must be genuine and not just a superficial attempt to satisfy the perception, so later they can claim real attempts were made. . .they must be willing to drop less favored aspects of a plan and even alter the proposal like some did in Lake Olympia recently. Calling taxpayers names (using terms like the dark ages, anti-growth, etc.) is not conducive to productive dialogue (system 1/closed system; Argyris & Schon).
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