From
Fort Bend Now:
Dear Texas Legislators,
1. Many legislatures, due to intense lobbying both by insurance companies (particularly Chubb insurance) and CAI, have passed laws mandating that homeowner associations purchase various forms of insurance, including liability and D&O insurance.
Of course, the homeowners are the ones who pay for this mandatory insurance. What deeply galls homeowners is that this insurance is too often used as a sword against them. See the attached article - "Homeowner Association Insurance, A Sword, Not Shield".
2. CAI lawyers have milked these insurance policies to the fullest.
They manipulate situations between homeowners and their boards so that many homeowners are forced to file lawsuits against the association to protect their rights. CAI lawyers just love this because it triggers the association’s D&O policy. Using this considerable financial muscle, they attempt to strong arm the homeowners with depositions, motions, vast discovery requests – all designed to make the lawsuit cripplingly expensive for the homeowner. Combining this might with trickery, they often drive the homeowner to financial ruin, and resulting foreclosure.
3. Homeowners need protection from this CAI racket.
As the legislature requires them to purchase this insurance, the legislature should require some fundamental protections as well. One protection would be to require insurance companies to have a fiduciary obligation to the homeowner. This would help stamp out the common practice of insurance companies defending boards when the latter are clearly in the wrong.
4. The deeper reform, however, is to eliminate CAI from the entire homeowner association scene, for, without them, there would be far fewer problems in homeowner associations.
The following examples of the damage that CAI does is not intended to be exhaustive.
a). CAI has such a stranglehold on homeowner associations that insurance companies are forced to market their policies through CAI.
Chubb insurance, for example, includes an application form for membership in CAI along with its own insurance application form. An insurance company knows that it has little or no chance of securing the business unless it has the active backing and approval of CAI.
Furthermore, companies such as Chubb Insurance are forced to provide bribes to managers and board members in order to secure the business. Chubb is forced to piggyback coverage for the association’s management company onto the back of the association.
Chubb is forced to offer $100,000 in Accidental Death &Dismemberment coverage for each board and committee member for only $100 a year.
Both of these practices should be outlawed. Not only is bribery against sound public policy, but it raises the insurance premiums for homeowner association policies – and it is the homeowner who has to pay for this increase.
oney, that the homeowner is not left with enough to repair his h
d). For decades, CAI has been lying on a national level to the public, legislatures, the courts and media, that they a friend of the homeowner.
They have camouflaged proposed legislation as being pro-homeowner, whereas in reality it has legislated away homeowner's property rights, and turned the equity in their homes and their savings into lawyers' fees. For example, in California, they bribed legislators into passing a law that allowed homeowner association reserves to be used for attorney fees. CAI should be unmasked for what it really is, a selfish, grasping group of greedy lawyers.
e). For approximately the last 15 years, CAI lawyers have been training managers to be lawsuit chasers and lobbyists (AB555-California).
They train managers to be confrontational with homeowners in an effort to drive the homeowner to file a lawsuit. In California, CAI lawyers in effect created CACM (California Association of Community Managers) to lobby on behalf of CAI policies before the California legislature.
f). In the last few years, CAI has mounted an insidious campaign in such disparate states as Florida, California and Texas to be become the "official trainers" of board members in homeowner associations.
They have realized that one of the best ways to ensure that associations continue to be a cash cow for them, is to brainwash board members. Homeowners believe that this is analogous to allowing the tobacco industry to teach children about the health effects of smoking, or even worse, allowing terrorists to train airport security personnel. Homeowners believe that it is simply crazy to allow the very ones who stir up problems in homeowner associations, to be the "official trainers".
The accompanying material documents how CAI even advocates incarceration in mental institutions for homeowners who question their views and validity. (see attached article - "Land of Terror ")
g). CAI attempts to infiltrate members into government offices.
In California, they have tried to do this in the Insurance Commission, the Attorney General’s office, the Department of Real Estate, the courts, and law training publications.
They have sponsored laws that contain loopholes by which they can get unlimited lawyers’ fees for minor dues infractions. They have used fines to mine the bank accounts of homeowners, and ultimately to bankrupt them.
The overarching fact is that CAI has been a scourge on the land – and even its original founder admitted this. It has turned into a rack that seeks to grind out every last penny it can from homeowners.
Legislatures should be shutting such operations down. A home is the most important place for any citizen. Anything which threatens that should be relentlessly outlawed. Without a CAI, homeowner associations would be much better places to live, and legislatures would have much less work to do.
Sincerely,
Elizabeth J. McMahon
Director
American Homeowners Resource Center
http://www.ahrc.se/new/index.php/src/govt/sub/letters/action/display/id/19
The magic of "reappropreation"
and
NTRCA's contract with
the top HOA "foreclosing attorney" in Houston
What you don’t know about your Home Owner Association
could destroy you.
·A “vendor association” with vendor interests owns you and your property. Homeowner associations increasingly create maintenance dependent projects. For example, it is in your HOA’s interest to direct sprinklers toward brick fences, so that they can make expensive repairs or replacements. Expensive maintance made necessary from rusting interior wire mesh that repels bricks, and mortar decay from the lime in the sprinkler water. In addition, HOAs fertilize our grass (down to and around our lakes) three times a year, and then blame animals for the nitrogen buildup in the lakes. In this way, embedded vendors make hundreds of thousands for over fertilizing grass and for treating algae blooms from fertilizer runoff in our lakes, and from their fabricated need to destroy beautiful waterfowl. Take special note of who your maintenance director is, and the other associations and people he has partnered with.
A “vendor association” with vendor interests owns you and your property. Homeowner associations increasingly create maintenance dependent projects. For example, it is in your HOA’s interest to direct sprinklers toward brick fences, so that they can make expensive repairs or replacements. Expensive maintance made necessary from rusting interior wire mesh that repels bricks, and mortar decay from the lime in the sprinkler water. In addition, HOAs fertilize our grass (down to and around our lakes) three times a year, and then blame animals for the nitrogen buildup in the lakes. In this way, embedded vendors make hundreds of thousands for over fertilizing grass and for treating algae blooms from fertilizer runoff in our lakes, and from their fabricated need to destroy beautiful waterfowl. Take special note of who your maintenance director is, and the other associations and people he has partnered with. ·HOAs are not required to have open books and meetings. Therefore, they often make backward and no bid “deals” with other vendors. When homeowners show up for monthly meetings, the board simply goes into an executive session where the “real business” is covertly done out of the eyes of the public. “Reports” are often made through a hand-selected real estate agent who benefits from lucrative HOA advertising, for reporting HOA infomercials. Board members and their family members often benefit from similar contracts. In addition, it is common practice for HOA managers to purposely undercount houses in each subdivision. This was easy to hide or call a mistake, before “Google Map” made it easy for any interested person to get a correct count. The HOA undercount is often 4%. Where that extra money (hundreds of thousands every year) goes is anyone’s guess, but the loss is significant and consistent over time.
HOAs are not required to have open books and meetings. Therefore, they often make backward and no bid “deals” with other vendors. When homeowners show up for monthly meetings, the board simply goes into an executive session where the “real business” is covertly done out of the eyes of the public. “Reports” are often made through a hand-selected real estate agent who benefits from lucrative HOA advertising, for reporting HOA infomercials. Board members and their family members often benefit from similar contracts. In addition, it is common practice for HOA managers to purposely undercount houses in each subdivision. This was easy to hide or call a mistake, before “Google Map” made it easy for any interested person to get a correct count. The HOA undercount is often 4%. Where that extra money (hundreds of thousands every year) goes is anyone’s guess, but the loss is significant and consistent over time. ·HOA vendors want (and get) far more money than your increasing annual dues can pay them. It is true that assigning fees for an almost unlimited number of issues produces much income, especially at home closings, but the real bonanza of “other income” comes from fines, attorney fees, and foreclosure proceedings against targeted individuals. These targeted neighbors are often targeted, not for breaking any more rules than you have; instead they are covertly targeted for ethnic, religious, or political reasons. These illegal practices are difficult to prove, especially when one prejudiced neighbor attacks another with a hidden agenda disguised as “keeping property values up.” The HOA simply pursues the victim, while the rest of us just keep to ourselves.
HOA vendors want (and get) far more money than your increasing annual dues can pay them. It is true that assigning fees for an almost unlimited number of issues produces much income, especially at home closings, but the real bonanza of “other income” comes from fines, attorney fees, and foreclosure proceedings against targeted individuals. These targeted neighbors are often targeted, not for breaking any more rules than you have; instead they are covertly targeted for ethnic, religious, or political reasons. These illegal practices are difficult to prove, especially when one prejudiced neighbor attacks another with a hidden agenda disguised as “keeping property values up.” The HOA simply pursues the victim, while the rest of us just keep to ourselves.·HOAs often hire private “constable” contractors over Sheriffs contracts, because constables specialize in “civil” suits. When HOAs want to foreclose, serve papers, or strong-arm homeowners, they have their civil-suit vendor in place. This is the last thing that these vendors want homeowners to know, so they keep reminding you that they (the constables) are contracted to “protect” you. Nothing could be further from the truth.
HOAs often hire private “constable” contractors over Sheriffs contracts, because constables specialize in “civil” suits. When HOAs want to foreclose, serve papers, or strong-arm homeowners, they have their civil-suit vendor in place. This is the last thing that these vendors want homeowners to know, so they keep reminding you that they (the constables) are contracted to “protect” you. Nothing could be further from the truth. ·HOAs are not required to have fair elections, so they don't. Sham elections are done with manipulated proxy votes, board position “applications,” manipulated and appointed neighborhood representatives (who alone vote for board members.) In addition, an honest board member can be "voted out" of office at any moment, as is often the case.
HOAs are not required to have fair elections, so they don't. Sham elections are done with manipulated proxy votes, board position “applications,” manipulated and appointed neighborhood representatives (who alone vote for board members.) In addition, an honest board member can be "voted out" of office at any moment, as is often the case.·Having a community association run by community members is not better or much worse than one run by a Professional CAI Management group. A positive difference that protects homeowners will only come from legislation that requires: OPEN BOOKS & MEETINGS - FAIR ELECTIONS, - NO FORECLOSURES, - and NO REAPPORTIONMENT OF ANNUAL DUES. Call your elected officials today.
Having a community association run by community members is not better or much worse than one run by a Professional CAI Management group. A positive difference that protects homeowners will only come from legislation that requires: OPEN BOOKS & MEETINGS - FAIR ELECTIONS, - NO FORECLOSURES, - and NO REAPPORTIONMENT OF ANNUAL DUES. Call your elected officials today. ·At present, HOAs are privatized governments without transparency or accountability. Nevertheless, they appeal to city and state government officials because HOAs pay for parks, roads, utilities and other responsibilities that tax-strapped cities would otherwise have to pay. As the economy worsens, our constitutionally controlled government will legislate in favor of more unregulated privatized governments (HOAs) unless you demand OPEN BOOKS & MEETINGS, - FAIR ELECTIONS, - NO FORECLOSURES, and NO REAPPORTIONMENT OF ANNUAL DUES. These legislative changes will bring about the transparency and accountability that are necessary for our associations to serve the needs of homeowners.
At present, HOAs are privatized governments without transparency or accountability. Nevertheless, they appeal to city and state government officials because HOAs pay for parks, roads, utilities and other responsibilities that tax-strapped cities would otherwise have to pay. As the economy worsens, our constitutionally controlled government will legislate in favor of more unregulated privatized governments (HOAs) unless you demand OPEN BOOKS & MEETINGS, - FAIR ELECTIONS, - NO FORECLOSURES, and NO REAPPORTIONMENT OF ANNUAL DUES. These legislative changes will bring about the transparency and accountability that are necessary for our associations to serve the needs of homeowners.HOAs depend on “sheepeople,” because they are wonderfully passive and tasty when grilled and consumed at foreclosure. You may be next!Confiscation Tools
Sugar Land, Texas
