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Beware The Associations - Part V

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Contributed by: Jan Jackson on 5/13/2008

Homeowners are, at this stage of homeowners associations "evolution," probably very aware that while they live in their homeowners associations (HOAs) -- which are also often referred to as " common interest developments" (CIDs) -- their ecological and financial lives may well be completely controlled bymentally and/or emotionally unstable, and/or politically-driven, and/or power-and-money-seeking HOA / CID presidents, other HOA board of directors members, and their Community Associations Institute (CAI) attorneys-lobbyists. And that their HOA presidents, board members, and CAI lawyers may often indulge themselves in very heavy-handed enforcement of their HOAs' governing documents. That is, they may make up their own rules as they go along (mainly because there's no one person, or groups of persons, to stop them). Therefore, they can and do continuously violate homeowners' Constitutional and statutory rights.

It appears that HOA boards of directors can, and often do, take the position of dictators who rule their HOAs with a tryrannical iron fist, treating homeowners unfairly -- oftentimes outrageously so. And they often get away with it, at least at District Court level where their CAI lawyer and the Court's judge may well be golfing or skiing or even "armchair" buddies who agree, politically, about how to improperly handle a situation where a homeowner is trying to find justice in those judges' courtrooms.

Below, you will read about one such political agreement which, no doubt, will enrage every law-abiding reader here.

Jan

[Excerpts from "Beware The Associations"]

An extreme example of outrageous behavior on the part of a homeowners' association was found in Fountain Valley Chateau Blanc Homeowner's Association v. Dep't of Veteran Affairs, which involved a Fountain Valley association, the Chateau Blanc Management Association. [fn23] The Fountain Valley decision demonstrates the outer limits of an association's intrusion into the private life of a unit owner.

In Fountain Valley, the homeowners' association's unfounded belief that internal unit clutter created a fire hazard led to the association's intimidating demand that the owner submit to internal unit inspection.[fn24] Following inspection the association issued orders to the property owner to "clear his bed of all papers and books, discard "outdated clothing" and not to use his bathroom for storage." [fn25]

The Court of Appeal found it "virtually impossible" to say that the association acted reasonably.[fn26] Presiding Justice David G. Sills wrote for the court:

[T]he association's rather high-handed attempt to micro-manage Cunningham's personal housekeeping -- telling him how he could and could not use the interior rooms of his own house -- clearly crossed the line and was beyond the purview of any legitimate interest it had in preventing undesirable external effects or maintaining property values.

. . . Particularly galling to us -- and clearly to the jury as well -- was the presumptuous attempt to lecture Cunningham about getting rid of his old clothes, the way he kept his own bedroom, and the kind of reading material he could have. To obtain some perspective here, we have the spectacle of a homeowners association telling a senior citizen suffering from Hodgkin's disease that, in effect, he could not read in his own bed! When Cunningham bought his unit, we seriously doubt that he contemplated the association would ever tell him to clean up his own bedroom like some parent nagging an errant teenager. [fn27]

Associations are Like 'Mini' Governments With Few Checks and Balances

Associations are frequently incorporated and are run like private corporations, but in actuality they are "mini governments" [fn28] with few checks and balances. Dissatisfied homeowners find that complaining is often futile. Militant boards of directors with unreasonable ideas can make for unpleasant and costly results for those who challenge them. Boards have the option of imposing fines and other sanctions against owners without resorting to the legal system. [fn29] Homeowners who feel their rights have been violated or who want to challenge boards of directors frequently have no recourse other than to resort to the courts.

There is a tremendous opportunity for attorneys, insurance companies, management companies, and contractors to take advantage of homeowner associations. Homeowners' association attorneys have a ready source of income from the associations, and the homeowners are forced to pay for it through their monthly assessments. Some CAI[Community Associations Institute, a national organization, a branch of which is located in Denver, Colorado] which [sic] member attorneys have repeatedly filed lawsuits against homeowners and have drained association reserves for their legal fees. [fn30] [fn32]

Condominium Owners Pay a Disproportionate Amount of Property Taxes Without Receiving Their Share of Benefits

Single-family groups of homes receive more benefits per tax-dollar, as their streets are beautified with parkways and landscaping and illuminated by city maintained streetlights. Of the amenities purchased with tax dollars, few benefit condominium owners.

Condominium owners pay equivalent taxes for fewer services. [fn33] They are required to beautify their own streets and maintain landscaping along their streets. Additionally, police will tag and tow a vehicle abandoned on a city street but will take no action to tow an abandoned vehicle on condominium property. [fn34]

This article seeks to provide insight into the background and development of the homeowners' associations and how they are governed. It also discusses recent law affecting homeowners' associations, their members, and the movements in California and across the nation to challenge the power of homeowners' associations.

[continued in Part VI]

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CONTRIBUTOR INFO

Jan Jackson

Florissant , CO

Jan Jackson has posted 530 stories and 38 comments since joining on 9/14/2005. Jan Jackson 's average story rating is 4.5.

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