HOA threatens to sue Possum Kingdom wildfire survivor
When raging wildfires destroyed 54 homes in the Possum Kingdom Lake residential area known as Sportsman's World last month, one of those houses belonged to Jim Brumbelow. Now, more than a month later — as he surveys what's left of his world — the 77-year-old cancer survivor faces new challenges in his life... The recreational vehicle and camper he is living and working out of until his home can be rebuilt is violating Article 8, Section 3(e) of the Sportsman's World Property Owners Association covenant, according to a letter Brumbelow received from a Dallas law firm. Related Report: Sen. John Carona defends controversial HOA rule

HOA Reform: stalemate means checkmate
The death of the HOA bill is a prime example of how special interests work in Austin. Particularly telling is that Solomons and homeowner reform groups lay the blame at the feet of homebuilder and powerbroker Bob Perry. It reflects a lot of frustration with the influence of special interests in Austin; all one has to do is suggest that pending legislation would hurt business and that the odds immediately favor bad legislation passing or reform stalling.

WFAA News Report: Senator John Carona Featured
When asked what the "priority of payment" should be, Carona said it should be like it is with most associations...
schedule they highlighted that the last item to be paid was "Sixth - Regular Assessments," but the first item to be paid was, "First - Cost of Collection, including Attorneys fees." After this insert was shown, Shipp asked Carona, "So attorneys should be paid first?" Carona replied, "No I'm not saying that." To which Shipp responded, "You're not saying that?" Carona said, "No." Shipp persisted, "Isn't that the policy of your property management association?" To which, Carona held his hand up, turned sharply, and said, "end of interview."  See Associa Priority of Payment Contract

Sen. John Carona defends controversial HOA rule
While state lawmakers debate proposed reforms in the law, one local state senator with HOA-industry ties says he thinks some laws should stay just as they are...Among the defenders of the current system is Sen. John Carona, of Dallas. Carona is not only the author of many of the current HOA laws in Texas, some say he benefits most...A Principal Management collection schedule obtained by News 8 spells out Carona's policies of fines, fees, the filing of a lien...according to Carona's company's payment policy, the last priority of payment, number six on the list, is to be a homeowner's "regular assessments." First on the list to be paid, attorney's fees...When WFAA asked, Carona denied that was his policy. He then abruptly ended the interview as WFAA attempted to show him a copy of his own policy. Carona then bolted out of the interview room and back onto the Senate floor. When WFAA tried to follow him, Carona ordered the sergeant of arms to have us removed from the chamber...  Related: Big Business of HOA NON-Judicial Foreclosure

I-TEAM: HOA foreclosures draw attention of state lawmakers
“It’s a scary situation,” said Kimberlee Benes, whose dream of home ownership had become a nightmare.  Benes was placed on a payment plan that took months to settle-up: A plan where the HOA’s attorneys act as the debt collector, too, charging fees. Fees were issued for verifying addresses, sending demand letters, and researching owners. Benes wonders how the research went, given that she left a forwarding address, verified by the Postal Service, but still received no notices until the threats of foreclosure. “They’re just not willing to budge. You can tell them anything. You can provide them proof of everything that you’re saying is legitimate, and all they want is their money,” said Benes.

How 'Reckless' Greed Contributed To Financial Crisis
Gretchen Morgenson, who covers world financial markets for The New York Times, has been untangling the complex foreclosure mess and efforts to reform government regulations on Wall Street for several years. Now Morgenson and co-author Joshua Rosner have written a book about the origins of the financial meltdown. In Reckless Endangerment: How Outsized Ambition, Greed and Corruption Led to Economic Armageddon, Morgenson and Rosner describe how regulators failed to control greed and recklessness on Wall Street. Read more...

Litsen to NPR interview with Gretchen Mortgenson 

Lawmaker: Builder hurt HOA bill
Dewhurst, Bob Perry aides deny interference
With a midnight deadline approaching, the Texas House author of a bill designed to make homeowners' associations more accountable said he would rather let the measure die than accept a weakened version promoted by Houston homebuilder and mega-political-donor Bob Perry. A frustrated state Rep. Burt Solomons, R-Carrollton, pulled his bill down after the House accepted an amendment he said would put into law "some of the worst business practices out there."...Perry spokesman Anthony Holm called Solomons' account of last session "far-fetched." Dewhurst spokesman Mike Walz said the lieutenant governor does not have any recollection of a conversation with Perry about homeowners' associations.

The Quorum Report: SOLOMONS PULLS DOWN HOA BILL AFTER KING PREVAILS WITH FLOOR SUBSTITUTE
Solomons replaced West bill with new language that brought incoming from Buddy Jones and Bob Perry. Yet another attempt at comprehensive homeowners’ association (HOA) reform hit the mat this afternoon when the latest iteration was body-slammed on the House floor by a rival member and its sponsor threw in the towel, likely putting the omnibus legislation down for the count this session.  Rep. Burt Solomons (R-Carrollton) succumbed to a challenge to his version of the bill by Rep. Phil King (R-Weatherford) and capitulated rather than advance the Senate version King was pushing. Solomons laid the blame for the debacle squarely at the feet of lobbyist Buddy Jones, homebuilder and major GOP donor Bob Perry, Dick Weekley of Texans for Lawsuit Reform (TLR), and the Texas Conservative Coalition (TCC). According to Solomons, Perry and representatives of the HOA industry helped write the bill authored by Sen. Royce West (D-Dallas). King touted it as an agreed-to bill by all parties, although reform groups never fully embraced it. Solomons said Perry, TLR and TCC all opposed his committee substitute.

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SAHA, homeowners agree to settle in Mirasol case
“We are thankful to have come to a mutually beneficial agreement and put an end to this four-year legal case,” says SAHA Chairman Ramiro Cavazos, following a special meeting of the board. “This settlement allows us to focus on moving forward and rebuilding the community.” In 2001, the contractors received $18 million to build 247 single-family homes in the Mirasol neighborhoods for low-income, first-time homeowners. However, a group of homeowners began reporting problems with the homes. In 2007, SAHA filed the lawsuit and was eventually joined by 66 Mirasol homeowners in the lawsuit. SAHA and the homeowners sought to recover damages and to receive funds that could be used to begin rebuilding Mirasol homes.

It Teetered, It Tottered, It Was Bound to Fall Down
By GRETCHEN MORGENSON and JOSHUA ROSNER This article was adapted from “Reckless Endangerment: How Outsized Ambition, Greed and Corruption Led to Economic Armageddon,” by Gretchen Morgenson, a business reporter and columnist for The New York Times, and Joshua Rosner, a managing director at the independent research consultant Graham Fisher. The book is to be published on Tuesday by Times Books.

Read more...

When an expensive payment plan deal becomes a foreclosure
Senator West’s HOA Reform SB 142 contains a flawed “Priority of Payments” section that will dictate how homeowner HOA payments must be applied.  SB 142 has a “Payment Plan” section as well that will officially dictate that HOAs must offer a payment plan under state law, to homeowners who are delinquent on their dues. Senator West has added both requirements to Rep. Dutton’s HB 1228.  The problem is that the Priority of Payment as it is currently written has the (b) exception that would allow current abusive practices of applying all payments to attorney fees under a payment plan, so that business will continue as usual.

Symptoms Include Headaches, Anger, Depression
A psychology professor from the College of Southern Nevada said that he has discovered a new anxiety disorder called HOA Syndrome. If you live in a community with a homeowner's association, you will likely experience some symptoms of anxiety, according to Dr. Gary Solomon. "You might experience anger, sleeplessness, headaches and emotional problems," said Solomon. "You can even experience a fear of going to the mailbox or living in your own home." ...What is the treatment for HOA Syndrome? It's pretty simple, said Solomon. Just do what Lantry and his family did, move out and never move into an HOA neighborhood again. "Why would I want another incompetent level of government standing in judgment of me?" said Lantry.

Neighbors: Builder Breaking Rules, Destroying Neighborhood
Now D.R. Horton is building homes in the $90,000 range, some with one-car garages and siding, instead of the more expensive stone and brick. "They don't care who they sell to. They don't care what they look like as long as they get them up and they get them sold. To me ... it seems that they don't care," Salinas said.  Neighbors like Jeremy Taub are even thinking about moving out because of the new homes. "We like the neighborhood, but if our house is going to continue to drop in value, then it's not any place I'm going to stay," Taub said.