NEW JERSEY 1015: Are homeowners associations accountable enough to you?

By Kevin McArdle
October 27, 2015

More than 1 million New Jersey residents live in communities with homeowners associations. The top Republican in the state Senate said people pay hard-earned money in dues to these associations, and they deserve some transparency.

Senate Republican Leader Tom Kean (R-Westfield) said he is pushing to expand and update the “Planned Real Estate Development Full Disclosure Act,” which hasn’t been changed since 1993.

“This legislation focuses on accountability as well as transparency,” Kean said. “It’s time to update a 22-year-old law.”

Kean has introduced the “Association Homeowners’ Protection Act of 2015″ (S3235). The measure would require:

Homeowners associations to provide a copy of homeowners’ association insurance policies, which are needed to start personal home insurance claims processes. The association member would have to request the copy and it would have to be sent via email within 24 hours, or hard copy within 48 hours.
Homeowners associations to offer a 24-hour emergency phone number for members.
Homeowners associations to provide information including contact numbers for board members, as well as the most recent budget and all insurance information.

Read More: Are homeowners associations accountable enough to you? | http://nj1015.com/do-you-like-your-homeowners-association/?trackback=tsmclip

Neighbors at War: Homeowners Associations vs. Ham Radio Operators

By Ward Lucas
November 19, 2015

Sara Benson is reaching out to members of Congress and asking all of us to do the same. Pass the Amateur Radio Parity Act (S. 1685). National organizations that lobby to keep HOAs in business are on the opposite side. They’re telling Senators that HAM Radio enthusiasts destroy nice neighborhoods, something as ridiculous as saying that satellite dishes destroy neighborhoods.

HAM radio operators save lives when disaster hits. To forbid them from operating in a Homeowners Association is beyond the pale. When police radios and all cell phone service went down in New York during 9/11, who was getting out messages about where ambulances and rescue boats should be sent? I’d bet dollars to doughnuts it was HAM operators. Same thing during Hurricane Katrina and any number of other natural disasters. It happened in Colorado during the Boulder flood two years ago. It happened in my state in July of 1976 when a huge flood in the Big Thompson Canyon killed 143 people and trapped thousands for days. I was there. I saw it. Read more:

Homeowners Associations vs. HAM Radio Operators

MORTGAGE News Daily: …Condo Policy Changes

By Rob Chrisman

November 16, 2015

And there are recent changes in condo lending policies.

This week FHA Principal Deputy Assistant Secretary Ed Golding announced changes to the FHA’s condominium policy. Secretary Golding stated that FHA would revise the current complex recertification process and limits on the types of property insurance that is considered acceptable coverage by FHA. These revisions were released in Mortgagee Letter 2015-27. ML 2015-27 provides a notice expanding the data used to calculate the owner-occupancy percentage, an expansion of eligible condominium project insurance coverage, and revised requirements for obtaining condominium project recertification. The requirements in ML 15-27 are applicable to all Title II programs, including the Home Equity Conversion Mortgage (HECM) insurance program, unless otherwise stated and are effective immediately for all condominium project approvals, recertification applications, annexations, or reconsideration submissions submitted for review.

Recently Pacific Union Financial, LLC announced the removal of ALL Florida Condo overlays. Florida condo transactions may now follow standard Fannie Mae/Freddie Mac condo policies. In addition, Pacific Union Financial is now allowing FHA and VA Manufactured Homes in the following states: Maryland, Pennsylvania and Wisconsin.

Recently Ditech spread the word that mortgages on properties encumbered by private transfer fee covenants prohibited in the Federal Register, are ineligible if those covenants were created on or after February 8, 2011. Fees that do not directly benefit the property are subject to C.F.R. Part 1228 and are therefore ineligible. However, Private transfer fees paid to the following to benefit the property are eligible: Homeowner Associations, Condominium Associations and certain tax-exempt organizations that use private transfer fee proceeds to benefit the property.

A Citi Correspondent credit policy overlay document has been updated based on recent credit policy updates. This update involves project approvals requiring a Project Certification Form (exhibit 24), or a similar form, required on all condo and coop projects. It is no longer required for PUD projects. Read:

http://www.mortgagenewsdaily.com/channels/pipelinepress/11162015-condo-lending.aspx

TheLedger.com: Ex-HOA pres. arrested in Polk County
…charged with the theft of more than $60,000

By Tori Walker
November 6, 2015

HAINES CITY — A 66-year-old man who was president and treasurer of a homeowners’ association has been charged with the theft of more than $60,000.

Branche Jordan, 16495 Cottonwood Place in Middlefield, Ohio, had charges of grand theft of $20,000 or more, scheme to defraud and money laundering of $20,000 or more filed against him Sept. 24, said Assistant State Attorney Brian Haas.

Jordan will have his first court appearance in Polk County at 8:30 a.m. Tuesday.

Jordan was elected as the president and treasurer of the Grenelefe Country Homeowners Association in 2013, reports said.

The current president, Ed Rezek, told investigators that the president’s responsibilities include acting as the chief executive officer of the corporation. The treasurer’s responsibilities include maintaining all financial records, collecting dues, paying bills, providing financial statements to the Board of Directors at meetings or as requested and preparing all financial documents for the Board of Directors, reports said. Read more:

http://www.theledger.com/article/20151106/NEWS/151109678

Las Vegas Review Journal: Prosecutors say No. 2 player in HOA scheme deserves no prison time (because of his crucial cooperation)
They still want Priola to pay a share of $12.2 million in restitution

By Jeff German
November 11, 2015

Federal prosecutors say the No. 2 player in the massive scheme to take over and defraud homeowners associations should be kept out of prison because of his crucial cooperation.

Ralph Priola, 48, the right-hand man to the scheme’s mastermind, former construction company boss Leon Benzer, could face nearly 22 years behind bars next week under federal sentencing guidelines, but prosecutors say in newly filed court papers he deserves no prison time.

“Defendant Priola was important in untangling the web of criminal conduct that was perpetrated by those involved in the Las Vegas HOA takeover conspiracy,” Justice Department lawyers Thomas Hall and Alison Anderson wrote.

Priola was the first of more than 40 defendants to cooperate in the long-running investigation regarded as the largest public corruption case ever in Southern Nevada, and his assistance led many of the others to strike deals with the government, the prosecutors said. Read more:

http://www.reviewjournal.com/news/las-vegas/prosecutors-say-no-2-player-hoa-scheme-deserves-no-prison-time

The Columbian: States stepping in to help resolve HOA conflicts
Ombudsmen work to educate owners on rules and laws

By Jenni Bergal, Steteline.org
October 25, 2015

Has your homeowner association fined you for painting your house purple? Have you ignored requests to pay annual maintenance fees for your condo’s clubhouse and swimming pool? Has your association refused to let you see its financial documents?

These are the types of conflicts that frequently erupt between residents and homeowner or condo associations. Some can get quite heated — or downright nasty.

A small, but growing number of states are trying to tackle the problem by creating ombudsman or homeowner information offices to handle the deluge of complaints that often land at state and local agencies.

The goal is to educate residents and association board members about their rights and responsibilities under the law and help settle disputes before they wind up in court.

“You’re dealing with people and personalities and homes and emotions,” said Heather Morton, a legislative analyst for the National Conference of State Legislatures. “Having an ombudsman is a way to have somebody a little more neutral offer help and information to the homeowners and the board, and possibly mediate and bring the parties together so they can reach an amicable solution.”

Last year, Delaware and Illinois passed laws creating ombudsman offices.

Four other states — Colorado, Florida, Nevada and Virginia — already have an ombudsman or a homeowner information center. Read more:

http://www.columbian.com/news/2015/oct/25/states-stepping-in-to-help-resolve-hoa-conflicts/

NEIGHBORS AT WAR: Nevada Trash

…both military veterans… have endured two years of threats, fines, liens and lawsuits.

By Ward Lucas
November 1, 2015

There’s no other word to describe it. As the husband of a severely handicapped woman, I seethe with anger whenever I see abuse of the elderly, or abuse of the handicapped.

A lawsuit has just been filed in Las Vegas, Nevada by two handicapped elderly women, both military veterans, who are being hounded out of their HOA because they bought a van to accommodate their respective disabilities.

Board members of the Spanish Steps Lakeside – Park View Estates Homeowners Association have decided the van used by the women is an illegal commercial vehicle despite the fact that it has handicap placards. The women have endured two years of threats, fines, liens and lawsuits. Read more:

Nevada Trash!

NEVADABUSINESS.COM: HOAs, Super Priority Liens, and Foreclosures Life After SFR Investments v. US Bank

By Geoffrey Hawkins – Comments
November 1, 2015

Recently, the Nevada Supreme Court tackled two critical issues: First, whether a homeowners’ association (“HOA”) is a super priority lien on a property for up to 9 months of unpaid HOA dues; and second, whether such lien can be foreclosed upon nonjudicially. These issues were decided in the affirmative in SFR Investments Pool 1 v. US Bank, 334 P.3d 408 (2014).

In SFR, former homeowners of a property located in the common-interest community of Southern Highlands had become delinquent on their HOA dues and defaulted on their obligations to US Bank. SFR bought the subject property at the HOA’s trustee’s sale, which took place on September 5, 2012, and thereafter recorded a trustee’s deed. Meanwhile, a trustee’s sale was set for December 19, 2012 on US Bank’s deed of trust. However, days before US Bank’s trustee’s sale, SFR filed an action to quiet title and enjoin US Bank’s sale. The Eighth Judicial District Court denied SFR’s Motion for Preliminary Injunction, holding that an HOA must proceed judicially to validly foreclose its super priority lien.

Upon appeal, the Nevada Supreme Court looked at the legislative history of NRS Chapter 116 and explained that NRS Chapter 116 was a creature of the Uniform Common Interest Ownership Act of 1982 (“UCIOA”). SFR, 334 P.3d at 410. In so doing, the Nevada Supreme Court gave great credence to the comments to the Uniform Common Interest Ownership Act (UCIOA) but also compared the text of NRS Chapter 116 with the UCIOA. Notably, the Court looked to the comments of the UCIOA, which “liken[ed] the HOA lien to ‘other inchoate liens such as real estate taxes and mechanics liens.’” The Court further highlighted that the comments indicated an HOA’s “sources of revenues are usually limited to common assessments” and that an HOA’s ability to foreclose on the unpaid dues portion of its lien are essential. Read more:

HOAs, Super Priority Liens, and Foreclosures Life After SFR Investments v. US Bank

CCFJ.NET: When residents clash with homeowner associations, some states step in

Article Courtesy of The Bradenton Herald

By Jenni Bergal

Published October 28, 2015

Has your homeowner association fined you for painting your house purple? Have you ignored requests to pay annual maintenance fees for your condo’s clubhouse and swimming pool? Has your association refused to let you see its financial documents?

These are the types of conflicts that frequently erupt between residents and homeowner or condo associations. Some can get quite heated – or downright nasty.

A small, but growing number of states are trying to tackle the problem by creating ombudsman or homeowner information offices to handle the deluge of complaints that often land at state and local agencies. The goal is to educate residents and association board members about their rights and responsibilities under the law and help settle disputes before they wind up in court.

“You’re dealing with people and personalities and homes and emotions,” said Heather Morton, a legislative analyst for the National Conference of State Legislatures. “Having an ombudsman is a way to have somebody a little more neutral offer help and information to the homeowners and the board, and possibly mediate and bring the parties together so they can reach an amicable solution.” Read more:

http://www.ccfj.net/HOAFLClashStepIn.html

THE KANSAS CITY STAR: Condo association sues Aretha Franklin over unpaid fees

She believes she’s been “overcharged for years”

The Associated Press

BLOOMFIELD HILLS, Mich. Aretha Franklin is being sued over unpaid homeowner fees at a condominium in suburban Detroit.
Hills of Lone Pine Association says it’s owed more than $11,500. The Detroit News reports (http://detne.ws/1S8otNx ) that the association has filed a lawsuit to try to foreclose on the Queen of Soul’s property in the gated community in Bloomfield Hills.

The lawsuit names Franklin and two companies that hold mortgages on the $700,000 condo. Read more:

http://www.kansascity.com/entertainment/article41628846.html