Justice for Homeowners is “Draconian Reform” to the HOA Industry
A Personal Opinion of Beanie Adolph
BUT – What is more Draconian than Texas’ property laws that enable: Tens of thousands of foreclosure filings! Unfair elections! Fines! Fees! Closed Meetings! Closed Records! Improper restrictions! Developer control for decades! Priority of payment to attorney fees! Loopholes in the Property Owners Protection Act! And no agency for homeowners to turn to! This is the HOA “Quality of Life” that TCAA wants to preserve. This is the misery that homeowners want to end. Homeowners want CHANGE! Homeowners want CHANGE NOW!
HOAs do NOT protect property values. Home values fluctuate in HOAs as well as other areas. Researchers from the Georgia Institute of Technology and the Chicago-based Woodstock Institute found that owners of single family homes lose 0.9% of their home’s value for every foreclosed property within a city block of their residences Yet the industry insists on its “Priority of Payment” schedule where any payment a homeowner makes goes first to the attorney fees and to other fees and only lastly to the neighborhood. That does not protect property values? That is why homeowners want payments to go first to delinquent payments, then current payments. This is our “Priority of Payment” choice – our view of protecting the neighborhood.
The CAI-HOA Industry is a multi billion dollar business that exists on the backs of homeowners. The current property laws are the “enablers”. The threat of foreclosure causes many homeowners “to buckle” and pay, if possible, whatever is demanded. What a lucrative business! HOAs provide “Quality of Life” for HOA attorneys and management companies. HOAs cause HOA Syndrome in homeowners.
Contrary to Industry claim, homeowners have no choice when buying a home when most available homes are in HOAs. Very few homeowners receive the CC&Rs before the sale – and many never receive them. Also, some CC&Rs are changed by “resolutions” without member approval.
Amenities are an albatross around the necks of homeowners. Amenities are in a continual state of decline and the upkeep is an uncapped fee owners bear. Assessments are a “perpetual” lien on homeowners. Liens are usually for a specified amount and a certain time. Assessments never end and they are uncapped.
Industry claims that all must pay their fair share. That depends on who is controlling. Then when homeowners attempt to pay but are loaded down with attorney fees, this can become impossible. How can owners who suffer illness, loss of job, or other devastating problem pay their delinquent assessment when the attorney attaches ever escalating fees? The laws must be changed NOW!