A news brief post featuring reports on homeowners’ association (HOA) problems, abuses of power, lawsuits, financial challenges, and neighborhood conflicts. This post also covers relevant urban development and housing trends. In additions, some linked articles feature homeowner and property owner rights advocates seeking potential solutions, including legislative reform.
By Deborah Goonan, Independent American Communities deborahgoonan@gmail.com
This post is updated quarterly, so bookmark the page for future reference. HOA News briefs are listed by state, in alphabetical order. National News stories are at the bottom of the page.
Alabama
After a family goes public with its HOA news story, HOA reverses its decision to evict the family’s pet tortoise.
Fred the tortoise has lived peacefully in the Hoover, AL neighborhood since 2015 and has never caused a disturbance or public nuisance. But several months ago, the Ross Bridge HOA created new pet restrictions, and informed the Cannon family that Fred would have to go.
However, thanks to social media posts on Reddit and Instagram, local news media shed light on the HOA’s unpopular decision. That led the HOA board to reverse their decision to evict the family’s beloved pet.
Source:
Arizona
Neighbors try to stop HOA from chopping down all their shade trees.
For the past three years, homeowners in the Silverleaf Arcadia neighborhood have been fighting to keep street trees, despite the HOA’s insistence on chopping all of them down. After the homeowners went to court, and obtained a court order to prevent further destruction of their beloved Sisoo trees, the HOA began charging owners $3,000 each to get rid of the remaining trees.
Source:
More proof that CAI does not serve the interests of homeowners in HOAs
Hats off to Arizona HOA homeowner’s advocate George Staropoli for bringing this to my attention. Community Associations Institute of Arizona recently tried to overturn a state Supreme Court decision.
The case was Kalway v. Calabria Ranch HOA, LLC. In that case, the court ruled that an HOA amendment cannot create new covenants or restrictions that defy the “reasonable expectations” of HOA members.
In other words, an HOA amendment can only be used to clarify or refine existing covenants and restrictions, not add entirely new and unrelated ones.
Thankfully, the court rejected AZ CAI’s 42-page Amicus brief pleading that Kalway should not be considered as precedent.
Case reference: Kalway v. Calabria Ranch HOA, LLC :: 2022 :: Arizona Supreme Court Decisions :: Arizona Case Law :: Arizona Law :: US Law :: Justia
AZ CAI attempts to unduly influence the courts – HOA Constitutional Government (pvtgov.info) (Oct. 2023)
Property owner wins lawsuit against HOA in Appeals court
MacLeod, the property owner, added a kitchen and living space to his airplane hangar, then moved into his new space permanently. Mogollon Airpark HOA objected and created a new restriction that limited occupation of guest spaces to no more than 4 months per year.
MacLeod lost his case against the HOA in the ALJ hearing and in Superior Court. But the Appeals Court reversed those decisions and awarded attorney fees to the homeowner.
The Appeals Court ruled that an HOA cannot adopt new restrictions and rules that cannot reasonably be expected based on the original CC&Rs. Since the original governing documents of the HOA don’t mention any limitations on permanent residents in guest houses, the Appellate Court ruled Mogollon Airpark’s restriction invalid.
Case reference:
MacLeod v. Mogollon Airpark Inc., Not Reported in Pac. Rptr., 2023 WL 2582622 (Cal. 2023)
Source:
California
Silicon Valley elite ‘California Forever’ wants to build a new city on 50 acres of Solano County farmland
Just when you think California couldn’t possibly get any more corrupt, another secret plot of tech billionaires surfaces.
California Forever envisions “walkable urbanism” in a brand-new city the group intends to create from scratch. They tout this as a solution to the problem of a lack of affordable housing in the state and promise a sustainable city.
Nothing new under sun. New Urbanism hasn’t worked to create affordable communities in the past, so why would anyone believe another attempt backed by private enterprise would work in the future?
Here’s an excerpt:
“The company plans to build tens of thousands of new homes, from townhouses to apartments and ADUs, and hopes to one day accommodate as many as 400,000 residents. It has committed to creating a minimum of 15,000 jobs by the time the population reaches 50,000 – jobs that Metcalf envisions spanning everything from construction technology and renewable energy to agricultural tech or military roles connected to the nearby Travis air force base. Current Solano county residents would be eligible for $400m in down-payment assistance, and there would be a $200m investment into revitalizing the downtowns of neighboring communities, among other incentives.”
An entire city created by private companies sounds a lot like company towns of industrial generations past. But now the vast majority of housing development is governed by HOAs, adding another layer of private government and financial risk for homeowners. And today’s modern technology enables corporate entities to micromanage employee labor and buying behavior of customers.
What could go wrong?
Colorado
HOA’s former management company charged grossly inflated fees for certified letters sent to homeowners.
In Colorado, HOA management company (RowCal) has been charging homeowners fees of $35 to $75 to cover the cost of postage for certified mail letters. A simple certified letter costs around $5.
In 2022, state law was amended to require HOAs to provide homeowners with written notice of fines, liens, and the HOA’s intent to foreclose. The legislator who sponsored last year’s legislation (Rep. Naquetta Ricks- D) says this policy goes against the intent of the law and that HOAs and management companies should not be passing on these fees to property owners. The management company resigned after homeowners complained.
Source:
The Colorado Sun published a comprehensive HOA news investigation
Report cites examples of homes sold at HOA foreclosure auction for as little as 10% of market value.
Last year, Colorado lawmakers passed a law regulating the HOA foreclosure process, and it has helped to reduce foreclosures, to some degree. (See HB22-1137)
However, by the time the consumer protection bill aimed at stopping egregious HOA foreclosure sales became law, it was significantly watered down. One of the original provisions in the bill would have required the minimum starting bid at a foreclosure sale to be equal to 80% of the home’s market value. But real estate investors and HOA industry lobbyists convinced lawmakers to scrap that idea entirely.
The Bloomberg report also points out that Colorado’s new HOA law to prohibit foreclosure stemming from fines for rule violations still has gaping loopholes. Homeowners continue to lose their homes due to HOA foreclosure liens resulting solely from fines imposed prior to August 10, 2022, when the law became effective.
HOA-foreclosed homes are auctioned off for a fraction of their value (coloradosun.com) (Aug.2023)
How HOAs File Foreclosures Over Unpaid Fines and Fees – Bloomberg (Sept. 2023)
Florida
CBS Miami investigates HOA crisis in South Florida
This 30-minute report includes interviews of homeowners in four different HOAs, including the infamous community of The Hammocks, where former board members have been arrested for embezzling millions of dollars from the HOA over several years.
Facing South Florida: Statewide HOA Crisis Continues (youtube.com) (Dec. 2023)
Condo and homeowners association laws don’t work for Floridians
Florida has two sets of laws – one for condominiums and one for HOAs governing planned communities. The HOA Act is weaker than the Condo Act, however, both laws offer minimal protection for homeowners.
Corruption and theft are systemic problems in condo and homeowners’ associations in the Sunshine state. And with last years’ mandated condo reserve requirements, many owners object to large special assessments and monthly fee increases.
The problem is, owners don’t trust their HOAs to make difficult and painful financial decisions, when there’s so much misappropriation and fraud that isn’t investigated by state regulators and prosecutors.
Source:
Inside Florida’s Broken Homeowners, Condo Association Laws (therealdeal.com) (Nov. 2023)
Hostilities erupt in Tampa area HOA-governed community.
A neighborhood war erupts in a planned community over a couple’s previously HOA-approved carport for their RV. This report explains some of the details behind a lawsuit filed against the HOA.
According to the report, there are new HOA board members, and one of them is particularly hostile.
Source:
Homeowners say D.R. Horton failed to disclose proximity of new homes to sewage treatment facility
JB Ranch is a large Planned Unit Development (PUD) being developed by D.R. Horton in Marion County. In 2021, several current owners of homes purchased new home and lot packages, sight unseen. Many of the owners are from out of state, and purchased online through real estate agents, amid COVID-19 restrictions.
When they arrived in Florida to move into their new homes, they were in for a very unpleasant surprise. Their homes were built directly next to a 30-year-old sewage treatment plant, which serves the neighboring community association. The noxious odors and constant noise coming from the sewage treatment facility led homeowners to file lawsuits against D.R. Horton for deceptive sales practices.
The homeowners also (rightfully) blame Marion County officials for allowing the developer to build houses so close to the sewage treatment utility, which has been cited for several water quality violations by the Florida Department of Environmental Protection (DEP).
As usual, no one is willing to take responsibility for this problem. Instead, the homeowners are being told that it’s their own fault for not doing their research before buying their new homes.
Source:
It Stinks! Part Two | Ocala Gazette (Jan. 2023)
Judge awards condo owner $230K in legal dispute over access to HOA records
The Boca View condominium association continues to make headlines in HOA news, due to the board’s stubborn refusal to provide access of official records to a unit owner’s attorney. This is despite a court order that the condo association must comply with state law and allow Eleanor Lepselter’s legal representative to view condo association records.
In July, Circuit Court Judge Carolyn Bell awarded over $230,000 to cover Lepselter’s attorney fees. But the condo association is appealing that award, and still refuses to hand over the records.
Source:
Court awards condo owner $232,170 after lawyer denied records by Boca Raton community board (yahoo.com) (July 2023)
D&O policy pays $2M to settle case against former board members who turned a blind eye to fraudulent activities
The Hammocks HOA has been in the news for the past few years, after several of its former board members were arrested and charged with embezzling more than $2 million from the community association’s coffers over a period of several years. The defendants (Marglli Gallego, Jose Gonzalez, Myriam Rodgers, Yoleidis Lopez Garcia and Monica Isabel Ghilardi) are accused of orchestrating an illegal kickback scheme.
While the criminal cases remain pending, Hammocks HOA Receiver David Gersten filed a civil suit against four other former board members, who, in his words, ‘did nothing’ to prevent the alleged fraud. The HOA’s Directors and Officer’s insurance provider agreed to settle Gersten’s lawsuit for the maximum amount of coverage under the HOA’s policy — $2 million.
Source:
Hammocks Wins $2M Settlement in Case Against Ex-Board Members (therealdeal.com) (Sept. 2023)
Read more:
Georgia
Georgia Appellate Court rules against HOA that avoided holding elections
The facts of this case at Water’s Edge led to the Appellate Court’s decision. The HOA’s governing documents stipulate that the board must be comprised of HOA members only. But one of the directors was a non-member.
The bylaws of the association do not establish a quorum for election of board directors. But Water’s Edge HOA repeatedly used a fake quorum requirement to invalidate the election each year. Because of this, the non-member director continued to serve on the HOA board.
The condo owners’ case was dismissed by lower court but reversed by the Appellate Court. In this case, the HOA was not following its own bylaws.
Although this case appears to be a win for the homeowners, the absence of a quorum could backfire at Water’s Edge. Unlike public general elections, which have no quorum, HOA elections do not limit voting rights to one vote per person who resides in the community.
HOAs such as Water’s Edge typically allot one vote per housing unit or lot owned. Therefore, the owner of two, three or multiple homes in the HOA gets to vote for each property he owns. The danger is that a small interest group or group of investors can decide all elections, simply because most owners don’t bother to attend HOA annual meetings, or don’t bother to vote by absentee ballot or proxy.
Willis Et Al. V. Water’s Edge, A23A0868 (Ga. Ct. App.), Decided: October 24, 2023.
Georgia court: A Milestone for Fair and Free Elections – HOA Constitutional Government (pvtgov.info) (Oct. 2023)
Georgia Democrat Legislators want “crackdown” on HOA abuse and unfair collection practices
This report explains why some Georgia Legislators want to regulate HOAs. Specifically, Georgia Democrats want to restrict HOA power to fine owners with the potential to file liens and foreclose on homes for simple violations of HOA rules. The crackdown also targets unfair HOA collection practices, such as piling on late fees, interest, and attorney fees. In general, legislators think there should be a limit to fees HOAs can collect through garnished wages and foreclosure.
See this video clip for a prime example of HOA abuse of power. (Oct. 2023)
HOA board President and Treasurer charged with theft of insurance funds
After a fire destroyed 20 units at Camelot Condominiums, owners expected to receive insurance money to rebuild their homes. Instead, their HOA president and treasurer stole the money, according to recent criminal charges.
Investigators are also looking into possible charges of arson that led to the fire damage.
Sources:
HOA cuts off water supply to condo owner suffering medical problems
In the state of Georgia, an HOA can legally cut off a resident’s water supply, if the HOA is the private owner of the utility. Beth Williams, the owner of a home in Cottage Cove Homeowners Association, Paulding County fell behind on her HOA fees by $713, due to medical expenses.
Once her account was handed over to a debt collection attorney, her HOA fees ballooned to over $4,000. The HOA put a lien on her home and turned off her water supply. Williams could face foreclosure of her home if she cannot repay the debt.
As is the case across the U.S., Georgia law does not limit the amount of attorney fees and collection costs for HOA consumer debts.
In this case, the HOA board apparently chose not to extend any compassion to their neighbor.
Source:
This HOA cut off an ailing resident’s water because of lapsed dues (atlantanewsfirst.com) (Sept. 2023)
Another example of HOA abuse and downright unloving behavior
Valerie Ghant is facing a $23,000 lien and lawsuit from her HOA, Walden Park Community Association. Why? Because the homeowner installed a rock garden and water feature in front of her home. The HOA says Ghant didn’t get the HOA’s approval for the landscape changes, which were installed about two years ago.
Ghant added the therapeutic garden for her daughter, a young adult who suffered a traumatic brain injury in a hit and run auto accident. The garden is attractive and peaceful, but the HOA says it must go, and began fining the homeowner $25 per day, after she refused to remove it.
In this report, Atlanta New First interviews state Senator Donzella James (D-Atlanta), who has filed legislation to create an HOA Ombudsman.
Seven states already have an Ombudsman to handle HOA disputes, but they have been largely ineffective at reining in HOA over-reach. Why?
Because, in all cases, state legislatures failed to give the Ombudsman sufficient authority to investigate and mediate the most common types of HOA complaints. Plus, the state appointed officials have no authority to enforce the law or the terms of HOA governing documents. And dispute resolution isn’t effective when the party with greater power (the HOA) doesn’t mediate in good faith.
Source:
Peaceful rock garden installed for injured child draws HOA’s ire (atlantanewsfirst.com) (Sept. 2023)
HOA wants to force disabled vet to remove vinyl fence and other modifications
A homeowners association in Garrett Creek is threatening to pursue legal action against and put a lien on the home of a disabled veteran. The home was recently modified to accommodate Quinton Walton, who lives with Multiple Sclerosis. The HOA claims that it never approved the installation of a wheelchair ramp and a vinyl fence. But the owner says he submitted requests as required by HOA covenants. The owner also says the HOA failed to respond in 30 days. However, according to the covenants, if the HOA doesn’t respond, the property owner can proceed as though his request was accepted.
Source:
Disabled veteran having trouble with local homeowners association after renovating home (wtvm.com) (Oct. 2023)
Real estate broker highlights HOA greed and abuse of power
A real estate broker from the Atlanta area recently did an interview highlighting the greed and abuse of condominium HOAs in Georgia. One example he highlights is an HOA foreclosure where the unit sold for a mere $2.37.
No doubt about it, public awareness of HOA problems, excessive HOA fees, and power-tripping HOA boards is growing by leaps and bounds every day.
Source:
Is your home owners association ripping you off? (fox5atlanta.com) (Aug. 2023)
Illinois
CPA says Gold Coast condo hi-rise reserve study underestimates cash needed for critical repairs.
Ever since the collapse of a condo building in Surfside, FL in 2021, owners and condo boards have disagreed over how much money is needed for their reserve funds.
In this article, Michael Novak, a CPA and former resident of Chicago, says that the Parkway Condominium association’s most recent reserve study is flawed. Novak once resided at Parkway and had battled with the condo board over financial issues for years, before he relocated out of state.
According to Novak, the condo’s reserve fund should be twice as large as recommended by the last reserve study. Novak says that there’s tremendous pressure on auditors to understate reserve contributions, to avoid making fees unaffordable for its condo association members.
However, Parkway condo association and its reserve specialist scoff at Novak’s opinion, and insist their calculations are accurate.
The matter comes down to how the reserve study is conducted and how the accounting is done. There’s no consensus among experts as to the best way to calculate reserve contributions over time.
Source:
Hancock HOA fields complaints about reserve fund, late fees- Loop North News (Nov. 2023)
Kansas
Developer’s HOA says owner must remove solar panels
Here’s an example of how an HOA can suddenly turn against long-time homeowners.
Jeff and Jill Terhune have owned their home for more than 15 years. In 2020, when they replaced their roof, they decided to add solar panels to their roof. At the time, HOA rules said that solar panels could not be on the front of the home. The owners’ roof is designed such that the solar panels faced one side of their property.
The HOA didn’t like it, and, in 2022, changed the rules to say that the solar panels cannot be visible from the street. Terhune’s panels are just barely visible from the street.
But who cares? Apparently, the developer of the “addition” cares. That’s right, the real estate developer still controls the HOA, as the community keeps expanding in phases.
Several states in the U.S. have already enacted laws that prevent HOAs from prohibiting solar panel installations. But Kansas isn’t one of those states.
The HOA has imposed nearly $3,000 in fines and has threatened to put a lien on the house if the owners don’t pay the fines and move (or remove) the solar panels.
Source:
Wichita couple’s solar panels could result in lien on property (kwch.com) (Aug. 2023)
Louisiana
Developer raising annual HOA fees from $300 to $700, homeowners dissatisfied with services
D.R. Horton strikes again! In this Baton Rouge planned community, the roads are full of potholes, the grass in the common area is brown, and the community pool is unusable. Homeowners complain that kids are breaking into the pool area and “trashing” the pool and pool furniture.
D.R. Horton controls the HOA and is raising the HOA fees because no one can stop them. Fees will increase from $300 to $700. The developer’s management company acts as a shield for the HOA board controlled by D.R. Horton appointees. Homeowners are reportedly ‘not allowed’ to talk to the HOA board. Irate homeowners are threatening to sue.
D.R Horton facing heat after announcing HOA fees will soon be raised to $700 a year (wbrz.com) (Jan. 2024)
Maryland
Homeowners win in court. Now they can keep their pollinator garden.
Jeffrey and Janet Crouch reportedly spent $60,000 to fight against their HOA, but they eventually won.
Beech Creek Homeowners Association had sued the couple for refusing to remove their pollinator garden and failing to return their yard to a manicured lawn. The owners had been using native plant species to attract bees and wildlife for about a decade, when someone on the board of the Columbia area HOA decided the landscape was out of compliance with the rules and standards.
The HOA reportedly spent $100,000 in legal fees fighting against the homeowners. But, in the end, the Crouches got to keep their natural pollinator gardens.
The high-profile lawsuit even resulted in the passage of a Maryland law (HB 322). That law protects a homeowner’s right to plant pollinator and rain gardens, despite HOA rules.
It’s great to see the occasional homeowner victory, but let’s face it. Very few homeowners can afford to spend a fortune on legal fees to win a dispute with their HOA.
Source:
Condo owners shocked by huge special assessments due to Reserve Funding law
Maryland condo owners are feeling the effects of a 2022 state law (HB 107) that mandates reserve studies and funding of reserves within three years. Some condo owners are seeing 5 or 6 figure special assessments. One example: a three-bedroom condo in an 80-unit building must pay $58,000 to make up the $2.75 million shortage in reserve funds needed for major repairs and replacements.
Source:
Minnesota
U.S. Supreme Court rules in favor of former Minnesota condo owner in “takings clause” case
The Supreme Court’s unanimous ruling affirms that a property owner is entitled to excess proceeds of a tax sale, under the 5th amendment of the U.S. Constitution.
Hennepin County foreclosed on a $15,000 tax debt for the condo of 94-year-old Geraldine Tyler in 2022. Tyler’s condo sold for $40,000. The County kept $25,000 in excess proceeds. Tyler sued, but both the District and Eight Circuit Courts dismissed the case in favor of the County. Tyler appealed to the U.S. Supreme Court, which reversed District Court’s decision.
The unanimous ruling reminds Hennepin County that government is not entitled to collect more than the taxes it is owed.
Case reference, Decided May 2023 21-166 Tyler v. Hennepin County (05/25/2023) (supremecourt.gov)
A unanimous Supreme Court limits government authority | Opinion | thefoothillsfocus.com (July 2023)
Missouri
Developer dumps $250,000 balloon loan payment, muddy retention pond on HOA
One of countless examples of the financial risks of buying into a homeowners association under the control of a real estate developer. During the construction phase, a developer controls the HOA board and all of its financial affairs, with no input from homeowner members.
In Woodbury Estates, phases 5 and 6, the developer just relinquished control of the HOA board. But, in doing so, he has left members of the HOA to pay back a $292,500 loan for their community swimming pool. Next summer the lender requires a balloon payment of a quarter of a million dollars. The HOA will also have to dredge its mud-filled retention pond, due to construction debris and apparent lack of maintenance.
With no viable legal recourse, each homeowner is looking at a possible $3,000 special assessment to fix the pool and clean up the mess left behind by the developer.
Grain Valley homeowners learn they’re facing big bill (fox4kc.com) (Jan. 2024)
Nevada
What good is Nevada’s defunct HOA Task Force? (Hint: no good at all.)
This article addresses the fact that an HOA Task Force created in 2020. But it disbanded shortly thereafter and hasn’t met since then. Critics explain why.
North Carolina
Legislative Task Force debating HOA reforms
Thirty percent of homes in NC are governed by a homeowner’s association. Every year, Legislators hear hundreds of complaints from owners about their HOAs. What the article doesn’t mention is that many more homeowners are dissatisfied with their HOAs, but simply don’t contact their state legislators. The problem is there’s nowhere to turn for consumer protection. And most owners cannot afford to lawyer up and sue their HOA.
Among the issues being discussed: preventing HOA foreclosures for minor fines and small debts, enforcing state laws with respect to HOA records, and holding developers accountable for their obligations to members of HOAs.
As usual, the trade group CAI (Community Associations Institute) downplays the problems as “lack of communication” and a “lack of education” for HOA board members. But the problems are much deeper and pervasive in NC and nationwide.
Homeowner angst: North Carolina lawmakers urged to address growing HOA complaints | NC Newsline (Jan.2024)
Local news investigation helps homeowner threatened with foreclosure by HOA
A Greensboro woman called WFMY news when her HOA management company threatened to foreclose her home after missing three $50 payments. But Delta Adams has always had her HOA fees automatically withdrawn from her bank account. She had documented proof that her fees were paid in full and on time.
The homeowner attempted to rectify the situation with her HOA management company, but the account was already in collections, and no one would talk to her. She called WFMY News 2. Their investigation and intervention pushed the HOA to clear Adams’ HOA account and remove the lien from her home. But the HOA has offered no explanation nor an apology for their prior behavior.
HOA management company threatens foreclosure on home | wfmynews2.com
Homeowners want more transparency from their HOAs
Homeowners in a large, planned community in North Carolina are facing HOA fee increases of 50-60% next year. They want to know why.
Interestingly, the HOA and its management company responded to some of the homeowners’ concerns when StarNews began to investigate on behalf of concerned property owners. (One of whom was briefly a member of the HOA board.)
The leaders of Westport HOA insist they are following state laws for conducting HOA elections and providing access to financial records. That may be true, because state law sets a low bar for transparency and HOA election integrity. Read more in the report.
Source:
Westport residents in Brunswick want answers from HOA (starnewsonline.com) (Oct. 2023)
What is an ‘orphan road?’
In North Carolina, the term refers to a road that is built by a developer, but never turned over to the local or state government for ownership, ongoing maintenance and repair.
At The Palisades, a large, planned development near Charlotte, Lennar built a long and winding road that cuts through the community. The road has an official speed limit of 30 miles per hour, but there are no traffic lights at intersections. Thousands of vehicles use Grand Palisades Parkway daily, and travel at high speeds. The road has been the site of several serious car accidents.
Lennar has informed homeowners in The Palisades that it has no intention of transferring the road to the state department of transportation. Because the road is private, local and state police cannot enforce traffic violations on the road. And if the parkway isn’t transferred to NC DOT, then homeowners will be responsible for future repairs and maintenance. Homeowners would also be liable for lawsuits stemming from traffic accident injuries or fatalities.
This is another case of a developer-controlled HOA calling all the shots, and saddling homeowners with huge financial liabilities.
Source:
Homeowners in Palisades worry about crashes, risks on ‘orphan road’ (wbtv.com) (June 2023)
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Ohio
HOA tries to forbid outdoor playing, residents push back
In August, The Great Oaks Condo Association in Wadsworth (about 40 miles south of Cleveland), put up signs and issued email warnings against allowing outdoor activities. The sign read “NO skateboarding, bicycle riding, roller blading, or ball playing.”
The HOA stated that the rules were necessary to prevent children and others from getting hit by a car. But outcry from parents and widespread media coverage of the HOA restrictions on outdoor play had an impact. Not long afterward, the HOA removed the sign, and scheduled a meeting with homeowners to discuss a compromise that would allow kids to play, while also ensuring their safety.
Source:
Pennsylvania
PA Act 115 HOA election reforms effective as of summer 2023
Although this new HOA law was enacted in 2022, it did not take effect until earlier this year. I covered the pros and cons of PA Act 115 in a previous post.
Modular homes touted as affordable housing solution
The city of Pittsburgh is allowing modular homes to be built on vacant city lots. A recent report in The Tribune featured Vine Homes, a modular home company.
“[Bob Hartle of Vine Homes] said these homes are perfect for customers who want to build an adjacent home for a family member or want a separate space for company. He said seniors wanting to downsize or people looking for a starter home have inquired about these homes, and they can be utilized as an Airbnb.”
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Cost of home is $150,000. That does not include site costs for permanent foundation and utility hookups.
Two bedrooms one bath. The homes are placed on a permanent foundation but on a very narrow city lot.
What about stormwater drainage, parking, and landscape? The site and location are every bit as important as the home itself!
It is a non-HOA infill alternative. But is it affordable? How many will turn into Airbnb homes instead of permanent housing for city residents? Time will tell.
Modular homes offer a solution to Pittsburgh’s housing shortage | TribLIVE.com (Jan. 2024)
Rhode Island
State AG investigating management company after city condemned the condominium.
Rhode Island State Attorney General recently launched a criminal investigation into Vista Management. The criminal probe follows the condemnation of a 56-unit condominium managed by Vista. Due to unsafe living conditions, Canterbury Village was evacuated with less than 24-hours’ notice.
Source:
Neronha opens criminal probe of condemned condos’ management company (pbn.com) (Oct. 2023)
South Dakota
SB 39 would prohibit HOAs from restricting 2nd Amendment rights
Two Senate committees have already voted overwhelmingly to support SB 39. The bill prohibits HOAs from restrictions on ownership of firearms and ammunition. The bill appears to be a preemptive action against the potential of HOAs to abuse their power.
2024 Senate Bill 39 | South Dakota Legislature (sdlegislature.gov) (Jan. 2024)
Tennessee
HOA in Memphis mulls adding gated entries for their community
Located in Memphis, Chicksaw Gardens is an HOA-governed community that is popular among walkers, joggers, and cyclists. The neighborhood is desirable and attractive, and it attracts a lot of non-residents who enjoy its scenery and relative safety.
However, the community has experienced an uptick in crime, notably vandalism and theft of items visible in parked cars. That’s why the HOA wants to add two gates at the entry points to the community.
But homeowners have mixed feelings about gating their neighborhood, so the HOA says it is planning a meeting to discuss concerns and options.
Fact: HOAs don’t necessarily deter crime, and gated entries don’t stop crime either.
Source:
Texas
Austin eliminates single family only zoning
The new zoning ordinance allows up to three units on any lot currently occupied by a single-family home. Austin joins dozens of other cities nationwide that are considering similar zoning changes or have already relaxed zoning laws.
Austin will allow more homes to be built on single-family lots | The Texas Tribune (Dec. 2023)
The Westfield neighborhood HOA recently mailed all residents a letter prohibiting parking on the streets in their community. The HOA threatened to start towing vehicles starting September 1.
There’s just one little problem – Westfield roads are public, and parking is permitted by the city of San Antonio. The homeowners were so upset about the proposed new rules that they contacted a local news station.
After the story aired, the HOA President said the policy was being withdrawn. He said that homeowners will meet and discuss options to deal with parking and public safety concerns.
Source:
North Side HOA threatened to tow vehicles for parking on public streets (ksat.com) (Aug. 2023)
Houston launches initiative to increase supply of Missing Middle housing
Dubbed the “Livable Places initiative” by Houston Planning and Development Department in 2020, this page updates the public on its progress toward updating zoning ordinances to allow more types of housing to promote affordability.
According to the Livable Places Action Committee:
“The changes incentivize smaller neighborhood-scale homes such as garage apartments, courtyard style developments and other developments of eight units or less. They also incentivize residential development that improves walkability and creates safer pedestrian spaces.”
Welcome to the Livable Places initiative | Let’s Talk Houston (letstalkhouston.org) (Last action Nov. 2023)
Military officer fights to keep the home his HOA sold at auction while he was on active duty
Air Force Master Seargeant Christopher Banda is fighting to take back his San Antonio home, after his HOA foreclosed on the property while he was serving in Turkey for 15 months. Banda had been on assignment providing disaster relief after a major 7.8 magnitude earthquake that hit the nation in February 2023.
During his active duty, Banda did not realize that the SA Wolfcreek HOA was not receiving his HOA fees, which he said were set up as automatic payments. By the time Banda returned home, he realized his HOA account was past due, and that the HOA had already sold his home to another owner.
A federal law, the Servicemembers’ Civil Relief Act, offers legal protections to prevent HOAs from foreclosing on homes owned by active-duty military service members. An attorney is working to help reverse the sale of Banda’s home.
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Utah
66-year-old former HOA treasurer pleads guilty to theft of $250,000
Sharon Gordon admitted to stealing money from her HOA over a period of six years. Gordon has a gambling problem and admits to squandering the money at Nevada casinos.
The judge could sentence her for up to 20 years but could also get as little as 17 months in prison due to the plea deal. The sentencing hearing date is not yet set.
An astute homeowner caught onto the scheme last year and was unable to get anyone to investigate, until Fox13 news picked up the story.
Source:
Utah HOA treasurer pleads guilty to embezzlement after FOX 13 investigation (fox13now.com) (Nov. 2023)
Virginia
Planners convince Arling Board of Supervisors to allow up to 6 housing units per lot in current single family neighborhood
This article is written by the APA, American Planning Association. It explains how the trade group convinced Arlington Supervisors to upzone their town, as a potential solution to making housing more affordable.
Planners and city officials envision adding more ‘missing middle housing’ such as condominiums and rental apartments in buildings of 2-6 units. The APA was able to garner public support from renters in the city, where the median monthly rent for a 2-bedroom apartment is $2,600.
The approved zoning plan limits runaway growth by setting a limit of 58 upzoning projects per year over the next 4 years.
The hoped-for, recommended change was upzoning all single-family parcels to accommodate up to eight units. The missing middle plan that finally passed earlier this year was slightly more limited; single-family lots could now accommodate up to six-unit structures, and annual approvals would be limited to just 58 projects per year until 2028. But it’s widely seen as a vital first step in additional reform, and an inspiration to similar efforts in neighboring parts of northern Virginia that are dealing with these issues right now.
Reclaiming the Missing Middle Ground: How Planners Got NIMBYs to Yes (planning.org)
Midrise condo apartment community takes novel approach to recreate itself
Owners of post-World War II garden apartments in Arlington Mill are working with a developer to construct a new, modern building. For an estimated cost of $78,000 per unit, each owner can look forward to owning a brand-new condo with modern amenities like a dishwasher, in-unit laundry, and covered parking.
Once the residents move to the new building, the developer will demolish the old condo building and build a new rental apartment building. Supporters call it a win-win situation for everyone, and will provide much needed additional housing in Arlington.
According to reports, 98 of 111 condo unit owners voted in favor of the 5-year plan.
How an Arlington Mill condo association plans to transform itself — on a budget | ARLnow.com (Aug. 2023)
U.S. National HOA News Articles
Survey of Housing data reveal that share of new construction in HOA communities is decreasing
In previous posts, IAC has noted that the housing market in the U.S. is saturated with HOA homes, and that the HOA product seems to have reached its peak. Could the HOA ‘product’ be embarking on a downward trend? It appears so!
Share of Homes Built in Community Associations Edges Down Again | Eye On Housing (Dec.2023)
Bloomberg podcast slams HOAs for contributing to the affordable housing crisis
No doubt about it. Public opinion and mainstream media are trending anti-HOA. Click the link to listen to the 17-minute Bloomberg podcast about HOAs exploiting laws that allow HOAs to fine homeowners and to lien, and foreclosure on their homes.
The Big Take: HOAs Add to US Affordable Housing Crisis – Bloomberg (Nov. 2023)
HOA trade group CAI balks at filing FinCEN reports per Corporate Transparency Act
For readers who are not familiar with the Corporate Transparency Act, here’s a concise summary of its purpose and requirements. In a nutshell, requiring officers of a corporation to file identifying information and documentation to the Financial Crimes Enforcement Network (FinCEN) is essential to prevent fraud and money laundering.
Predictably, Community Associations Institute is already lobbying Congress to create an exemption for HOAs and their board members to file identifying information to the Feds. Why? Because, according to CAI, the requirements are “burdensome and impractical.” (Jan. 2024)
Fannie Mae, Freddie Mac to make secret condo blacklists available to HOAs but not general consumers
Fannie Mae and Freddie Mac purchase 70% or mortgage loans in the U.S. At this time, thousands of condominium associations are blacklisted, meaning that condos in those communities won’t qualify for a mortgage backed by the GSEs.
There are several reasons a condo association can be blacklisted. A low owner-occupancy rate, a high condo fee delinquency rate, and evidence of unsafe structural conditions and/or low or insufficient reserve funds create risky investments that neither Fannie nor Freddie can afford to absorb.
Up until now, condo blacklists have only been available to lenders. But in the near future, the lists will be shared with HOAs so that condo boards can know why they are on the list and how to correct problems in order to qualify for removal from the blacklist.
Unfortunately, these lists won’t be made public. That means condo buyers –and, unless the condo board shares this information, many current owners — won’t know if a particular building or community is blacklisted until they (or their buyer) apply for a loan.
Fannie Mae to make its secret condo blacklist public (boston.com) (Dec. 2023)
Critics claim local zoning laws, NIMBYism for housing crisis
Here’s just one of many national “news” articles blaming local zoning laws for a low supply of new housing in America, thus causing home prices to rise and become unaffordable.
Keep in mind — these articles are actually part of a nationwide political movement to end single family home zoning in cities across the U.S. The goal is to increase housing density (number of housing units per acre) by, for example, converting existing homes to 2-to-4-unit multifamily properties. The proponents of changing zoning laws also favor the addition of Accessory Dwelling Units (ADUs), also known as guest cottages, granny flats, basement or attic apartments, and the like.
There are pros and cons to this movement to end exclusive single family only zoning.
On one hand, there is a genuine need for smaller, more affordable homes, apartments and townhouses. People living alone, couples, and single parent families often seek smaller homes without a large yard to maintain.
On the other hand, if local and state governments are not thoughtful about upzoning, real estate corporations could use lax zoning to exploit housing consumers. How? By purchasing and owning a large share of the housing stock in smaller towns and counties, limiting competition in both the for sale and for rent markets. That, in turn, would increase the cost of housing and reduce incentives for housing providers to strive for a high quality of life.
Source:
Why it’s so hard to build homes in your neighborhood | CNN Business The invisible laws that led to America’s housing crisis (Aug. 2023)
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