News from Georgia

GEORGIA – Flag causes problems with man’s Home Owner’s Association

CBS46.com:  Flag causes problems with man’s Home Owner’s Association
By Tracye Hutchins
July 11, 2017
ATLANTA (CBS46) – CBS46 is taking a closer look at a metro Atlanta man’s argument with his Home Owner’s Association.Something similar may have happened to you before.

The man thought he had the freedom to fly a flag, just showing support for the Atlanta United soccer team inside his home, but the HOA said no and even threatened a series of fines.

Frank Diaz and his girlfriend are true Atlanta United FC fans and he wanted everyone in his neighborhood to know it.

But Diaz says he didn’t know he couldn’t fly his founding member’s flag inside his house so you could see it through his second story window.

That was until his HOA sent him a notice of violation that the banner wasn’t inline with the architectural harmony of the community.

He’d be fined $25 a day unless he took it down.  Read more:

GEORGIA – HOA Secrets Exposed: How does your HOA spend the money collected?

11alive.com:  HOA Secrets Exposed:  How does your HOA spend the money collected?
By Rebecca Lindstrom, WXIA
June 22, 2017

DOUGLASVILLE, Ga. — Whether you love or hate your homeowner’s association (HOA), you know that when the dues are due, you have to pay. But how much do you know about how that money gets spent?

A group of homeowners in Douglasville, Ga. said they’ve been trying for years to answer that question. They said that for years their dues have been going up with little explanation why.  They asked to see their bank statements and receipts for spending but the board, through its attorney, repeatedly said no.

Four years ago, Iva Wilmott said he was hired by HOA treasurer Kevin Sanders to fix a fence for the neighborhood and paint some of Sander’s personal furniture.  He said both jobs were paid with one check from the HOA account.

“I didn’t feel too good about it but he paid me, so I said okay,” said Wilmott.

Wilmott reported it to a friend he knew in the neighborhood but didn’t tell law enforcement.  When concerns started to grow on other issues, the story of the “check” surfaced.

The Douglas County Sheriff’s Office agreed to look into it and subpoenaed 5 years of bank records to help in the case.  In his interview, Sanders told Detective Skinner he paid cash for the personal projects and adamantly denied doing anything wrong.

In the recorded interview, you can hear Skinner ask, “Has there ever been any time, any occasion with the HOA account, where you have siphoned money to, let’s say, $5 or more off the account?”  Sanders responds, “No.”  “No circumstances whatsoever?” the detective asks again.  Sanders repeats his answer, “No.”

Sanders goes on to tell the detective why he believes the allegation was made.  He claimed a homeowner, Sherry Adams, was disgruntled over her HOA dues and wanted to get him removed from the board, believing that would absolve her responsibility to pay.  Read more:

NATIONAL – CAI finally admits to being a business 501(c)6 trade organization

HOA CONSTITUTIONAL GOVERNMENT: CAI finally admits to being a business 501(c)6 trade organization
By George K. Staropoli
January 15, 2017

CAI finally admits to being a business trade tax-exempt organization.

Community Associations Institute (CAI) is a national nonprofit 501(c)(6) organization founded in 1973 to foster competent, responsive community associations through research, training and education. […] We work to identify and meet the evolving needs of the professionals and volunteers who serve associations, by being a trusted forum for the collaborative exchange of knowledge and information, and by helping our members learn, achieve and excel.[1]

In my 17 years as a HOA reform activist this is a landmark first!  This is a personal achievement.  There was very little support from other reform advocates and homeowners regarding misrepresentation by CAI.[2]  As a result of my repeated criticisms and exposes, CAI had to apparently fess up.

Over its 44 years in existence CAI has mislead its viewers, members, the public and legislators as to its legal tax-exempt status. It news releases, websites, Common Ground magazine, communications with state and federal elected officials, and court filings that refer to representing homeowners and HOAs.[3] CAI is not allowed to have HOAs as members![4]  Example, CAI’s current web page reads,

CAI provides information, education and resources to the homeowner volunteers who govern communities and the professionals who support them. CAI members include association board members and other homeowner leaders, community managers, association management firms and other professionals who provide products and services to associations.

CAI serves community associations and homeowners . .

Read more:

https://pvtgov.wordpress.com/

NATIONAL – HOAs from hell: more horror stories, more fraud – and prospect of legislative action

McClatchyDC: HOAs from hell: more horror stories, more fraud – and prospect of legislative action
By Judy L. Thomas
December 23, 2016

In Georgia, a decorated Army veteran who lost a leg in Afghanistan is now ensnared in a battle on the home front — with his homeowners association.

The HOA filed a lien on his house related to the placement of his trash cans.

From Maryland to California, prosecutors have charged HOA officers and property management officials in fraud and embezzlement cases with losses that total in the millions.

And in Missouri, lawmakers are working on a proposal to make homes associations more accountable, with one saying homeowners in his district have become so incensed with their HOAs that “we are one step away from pitchforks and torches.”

In the few months since The Star’s report on HOAs from hell, horror stories continue to pile up and homeowners keep falling victim to thieves from within their ranks.

Lawmakers in some states are saying enough is enough. It’s time, they insist, to take on a more aggressive role in regulating the $85 billion industry.

“It’s the number one constituent issue in my district,” said Missouri state Rep. Bryan Spencer, a Republican from Wentzville, near St. Louis. “This is basic property owner rights. It’s a fundamental right that we should have as Americans.” Read more:

NATIONAL – Are HOA Dues Making Real Estate Unaffordable?

THE MORTGAGE REPORTS:  Are HOA Dues Making Real Estate Unaffordable?
By Peter Miller
December 15, 2016

HOA Dues Don’t Make The News — But Maybe They Should

When mortgage rates move a quarter percent in any direction, that’s big news. But lurking in the background are fees for homeowners associations. (HOA dues). Don’t overlook them.

HOA dues are an expense that can sink many loan applications and derail personal finances. This is especially true for first-time buyers and those with marginal finances.

Who Really Owns Your Home?

The world of real estate ownership can be divided into two flavors: properties which are owned “fee simple” (you own your building and land) and those under a homeowner or condo association.

With fee simple ownership, you can do what you want with the property. Just work within the limits of zoning and local laws.

If you want to paint the place orange, that’s fine. If you want a big American flag out front, or a 120-pound dog inside, that’s not only okay, it’s nobody else’s business.  Read more: