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Senator Joh Carona and HOA's
Saturday, 26 April 2008

Senator John Carona Authored of Texas Property Code 209 and "games" it

He convinces his HOA Boards to adopt home foreclosures for fines resolution which primarily benefit his management company
November 21, 2007

Senator John J. Carona is a real estate broker, a homeowner association management company owner and CAI member. The legislation he sponsors for CAI industry has been very profitable for himself and his real estate business. His website states that his management company is now the largest in America
Austin, Texas -

Re: • Homeowner Alleges that Texas Senator John Corona is involved in a homeowner association foreclosure scam - Maintenance dues homeowners pay to his management company will be used for fines so he can foreclose on homes - July 16, 2007 - By Amy McCorkle - Rockwall, Texas



Fox 7 News in Austin did a story on Senator Carona's management company practices November 20 and 21, 2006.

In Austin, he engages in the same game via
Alliance Association Management - another Associa company. Although everyone references Texas Property Code 209, no one seems to be publicizing the fact that Sen Carona WAS THE AUTHOR of that bill. Please note that Senator Carona authored the bill you refer to.

He is intimately familiar with the bill and it was "gamed" from day one to protect the practices of his management companies. He convinces HOA Boards to adopt these resolutions (which primarily benefit the management company).

Although the
Patton Boggs attorney seems to suggest that it was the HOA Board that was responsible for this policy, all one needs to do is look at the county clerk's office wherever Sen Carona's Associa companies operate.

You will just as (Fox 7 News did) a significant number of HOAs that Carona's companies manage have coincidentally adopted the same resolution!

I doubt that Sen Carona really wants to get pulled into a discovery battle. You would certainly be entitled to discovery and you could demand copies of the "fining resolutions" adopted by every Texas HOA that his Associa companies manage.

The defense to this practice is the Fair Debt Collection Practices Act which at present has not been found to apply to HOAs in Texas. The FDCPA protects homeowners from this scam in many other states.

Folks should know that CAI actually has Public Policies promoting elimination of the application of the FDCPA to HOAs.

Community Associations Institute (CAI) does not advertise this racket which amounts to little more than extortion. Instead they try to eliminate the homeowner's defense to this extortive racket.>

If the HOA assigns its "right to collect" to Carona's organization, then all his agents have to decide is how much to take from each homeowner. As it stands now, they can threaten homeowners with accusations of violations with impunity. No court, no judicial determination. The accused has no recourse. His management contracts also usually require the HOA members to indemnify his management companies. Yet another liability saddled on the homeowners against their will. Guess who pays the tab if the homeowner sues the management company to defend against these collection efforts.

You may also find that his management agreement requires payment to the management company of a percentage (10%) of any insurance claim payment exceeding $1,000,000. This fee is in addition to all other compensation fees. This fee is in addition to any deductibles the HOA pays. Since when did insurance pay 111% of the amount required to repair or replace? Either the HOA or the insurance company is likely to get the short end of this stick. Oh yeah, the HOA is paying its insurance premiums to Association Policyholders - another Sen Carona company. Guess it's the members getting the short end of the stick again.

As of the date of this comment, Sen Carona's Associa has updated standard templates for the "community websites" for HOAs his companies manage. Outrageously, the websites all proclaim that these HOA meetings are "open to the public" and that "all members can participate in various committees". This is probably in direct response to demands from homeowners for legislation to mandate open meetings and open records in Texas HOAs. These statements on his website are simply not true and are apparently designed to mislead prospective purchasers.

Aside from highlighting Senator Carona's self-serving legislation and his business practices of preying upon homeowners in these HOAs, there must be a push to impose liabilities on these management companies.

In addition to any other actions, homeowners must seek a determination that the FDCPA applies in HOA contexts and that the HOA and its agents have a fiduciary obligation to the members.

Texas Homeowner
Austin area, Texas
Posted Nov 20 2007 6:29PM PST

View Comments (2) | Post a comment


For more information, please check out the articles listed below:


  • The abuses in the homeowner association governed community - Bill Davis   
  • After widow's loss, Senate approves foreclosure limits - Eric Berger
  • What happens when homeowner associations lose their power to foreclose? -
    Richard Craig
  • Hopefully we can keep getting more of the media involved until the terrorism
    by Homeowner Associations is removed - Amy McCorkle
  • Movement to Force Recorded Votes in Texas Legislature - Barbara Sowell
  • My First Rodeo - Riding the Homeowner Association Litigation Vortex - Richard Craig
  • Texas Senator Carona's Bills Dominate Intergovernmental Relations Public Hearings
    Thursday - Barbara Sowell
  • American Real Estate Alert - July 24, 2006 - Real Estate Alerts America
  • Texas Court System refuses to uphold laws - Jerry Flores
  • Homeowner Alleges that Texas Senator John Corona is involved in a homeowner
    association foreclosure scam - Amy McCorkle
  • Panel hears debate on home foreclosure - MIKE SNYDER
  • Homeowner Battles to Stop Home Foreclosures for Fines - Amy McCorkle
  • Amy McCorkle - Editor - AHRC Texas Homeowners News
  • The Texas Homeowner's Advocate Group - THAG - Harvella Jones
  • The National Homeowners Advocate Group, LLC - Harvella Jones
  • Texas Uniform Planned Community Act - TUPCA.org
  • Texas College of Real Estate Lawyers TCREA - Chair: Richard L. Spencer - TUPCA
  • Committee for Responsible Development--Missouri City Group - Chris Calvin
  • HOAdata.org - Beanie Adolph - Houston Homeowner Association Foreclosure Filings
  • N. N. Jaeschke - Associa Management Company - Texas Senator John Carona
  • Principal Management Group - Senator John Carona - Associa
  • Senator John J. Carona - Texas Senator - Associa Management Company Owner
  • The HOA Gravy Train - Robert Metcalf
  • Community Associations Instiitute - CAI - HOA Foreclosure Lawyers Trade Group
  • Benjamin D. Wood - Patton Boggs Attorneys
  • Responsible Neighbors.com - A CAI Website to lobby for HOA Foreclosure laws
  • Tom Skiba - Frank Rathburn -Christoper Durso - Propagandists for CAI foreclosure lawyers
  • Chris Durso - Common Ground - Community Association Institute's (CAI)
  • College of Community Association Lawyers - A sub-league of Community Associations
    Institute (CAI )
  • Foundation for Community Association Research - Community Association Institute
  • What is the Fair Debt Collection Practice Act's role in protecting Homeowners? - Robert Thompson
  • Remove Foreclosure Powers of Homeowner Associations - Wendy Laubach
  • Washington State Senate passes another home foreclosure racket bill - AHRC News Services
  • Realtors And CAI Managers in Washington State Try To End Run Around Fair Debt Collection
    Practices Act - Steve Wittlake
  • Washington State politicians have passed a law violating Federal law   - HOA Voices
  • Federal Court rules that homeowner association lawyers and managers are debt
    collectors - HOA Voices
  • Gov Locke of Washington signs SB 5211 - Steve Wittlake
  • HOMEOWNERS ASSOCIATIONS - A New Form Of Government - spongebob_man1
  • Washington Lawmakers Pass Anti-Homeowner Foreclosure Legislation after taking
    donations from the Washington Realty Association - Steven E Wittlake
  • Illegal Contracts, Disappearing Funds, Millionaire Attorneys, Kangaroo Courts, Stolen Homes
    - Joni Skibo / Mr & Mrs Ferguson
  • CAI - DON'T TREAD ON US!! - HOA Voices
  • HOW TO STEAL A UNIT FROM A CONDO OWNER - Margret Koch Chalupowski MD PHD
  • Still Cookin' Up Fraud! - Anita Sowers
    - AHRC News Services
  • CNA Insurance is considering selling it's homeowner association Directors & Officers
    Liability policies through Community Associations Institute (CAI) - Eizabeth McMahon
  • A licensing Bill that seeks Monopoly Control of Association Homeowners - American
    Homeowners Resource Center
  • Homeowners report fraud by homeowner association lawyers, managers and board
    members - Peter C. Harvey - Attorney General - New Jersey
  • CNA Insurance
  • CHUBB Insurance Corporation World Headquarters
  • Attorney General - State of Texas - Gregg Abbott
  • Report on legal fees and foreclosure powers of Texas Homeowner Associations -
  • State Attorney Generals' Offices do nothing to help defrauded homeowners 
    - Joe Homeowner
  • Do one-party foreclosable contractual liens on the land by the developer that
    supersede the homestead rights created in Article XVI, Section 50 of the Texas
    Constitution violate[s] the Texas Homestead Act? - Amy McCorkle
    Harvella Jones - THAG
  • TEXAS HAS NO SHAME - Jordan Fogal
  • Please tell me where the justice is! - Mark Taylor
  • I'm hurting! Please help me! - AHRC News Services
  • Texas Homeowner Association Fines, Liens and Foreclosures - Sandy Meyer
  • Texas Property Code Chapter 204 by CAI - AHRC News Services
  • Texas Property Code Chapter 209 by Senator John Carona - AHRC News Services

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