HomeLatest NewsFeatured HomebuildersHome Buyer ResourcesBinding ArbitrationResource LinksSubmit ComplaintsView ComplaintsTake Action 101!Report Mortgage FraudMortgage Fraud NewsForeclosure NewsConstruction DefectsHome DefectsPhoto GalleryFoundation ProblemsHomeowner Website LinksHOA Reform
Main Menu
Home
Latest News
Featured Homebuilders
Home Buyer Resources
Binding Arbitration
Resource Links
Submit Complaints
View Complaints
Take Action 101!
Report Mortgage Fraud
Mortgage Fraud News
Foreclosure News
Construction Defects
Home Defects
Photo Gallery
Foundation Problems
Homeowner Website Links
HOA Reform
Featured Topics
Builder Death Spiral
Report Mortgage Fraud
Foreclosure Special Report
Mold & New Home Guide
Special News Reports
Centex & Habitability
How Fast Can They Build Them?
TRCC Editorial
Texas TRCC Scandal
Texas Watch - Tell Lawmakers
TRCC Recommendations
Sandra Bullock
People's Lawyer
Prevent Nightmare Homes
Choice Homes
Smart Money
Weekly Update Message
HOBB Archives
About HOBB
Contact Us
Fair Use Notice
Legislative Work
Your House

 HOBB News Alerts
and Updates

Click Here to Subscribe

Support HOBB - Become a Sustaining Member
Who's Online
ABC Special Report
Investigation: New Home Heartbreak
Trump - NAHB Homebuilders Shoddy Construction and Forced Arbitration
Homebuilder Bob Perry's Legislation Gets Top Priority
Wednesday, 01 June 2011

Lucrative HOA “Resale Certificate”’ and “Payment Plans” are some of the worst business practices out there
With the passage of the latest HOA laws the ever resourceful industry still maintains control of communities, the ability to impose HOA onerous fines, legal fees, and entry fees, handling fees, resale certificate fees, transfer fees, special assessments, community enhancement fees, covenant compliance inspection fee, expedited fees, delivery fees, and convenience fees that will continue to drive homeowners out of community association they can no longer afford.  HB1228 – Rep. Harold Dutton, D–Houston whose stand-alone bill originally contained only an expedited judicial foreclosure provision became the newly amended omnibus industry bill of the day with seven major changes.  With the passage of HB 1228 the flawed Senate versions of “Priority of Payment” and lucrative “Alternative Payment Plan” provisions allows HOA vendors unethical business practices to continue business as usual.


HOMEOWNERS for BETTER   BUILDING 
FOR IMMEDIATE RELEASE                                                Contacts: Janet Ahmad
June 1, 2011                                                                                        210-494-6404
Homebuilder Bob Perry's Legislation Gets Top Priority

 Lucrative HOA “Resale Certificate”’ and “Payment Plans” are some of the worst business practices out there 

              Austin – Reminiscent of past anti-consumer legislative efforts organized by the building industry for the creation of its own state agency, the Texas Residential Construction Commission (abolished in 2010); new state HOA laws that limit the rights of homeowners and impose greater restrictions has again passed.  Despite fearless efforts by some lawmakers, special interest political powers prevailed, enabling “funded” mandates that will allow HOAs to siphon more money from homeowners than ever before. 

With the passage of the latest HOA laws the ever resourceful industry still maintains control of communities, the ability to impose HOA onerous fines, legal fees, and entry fees, handling fees, resale certificate fees, transfer fees, special assessments, community enhancement fees, covenant compliance inspection fee, expedited fees, delivery fees, and convenience fees that will continue to drive homeowners out of community association they can no longer afford.

Heated Debate 

A frustrated Rep. Burt Solomons, R-Carrollton, pulled his SB 142 substitute bill down after Rep. Phil King (R-Weatherford) introduced amendments that stripped out requirements to hold open meetings, to keep records, and would still allow HOA management companies and HOA attorneys to divert homeowner payments in a fee pyramiding scheme for the benefit of the attorneys and management companies.   State Rep. Burt Solomons, R-Carrollton argued that the industry (naming names) amendments would put into law "some of the worst business practices out there”.

In the days that followed the demise of the SB 142 omnibus bill, a series of individual Senate amended house bills came back for house consideration with the same industry written amendments; ending the possibility of making homeowners' associations and management companies more accountable.

  •  HB1228 – Rep. Harold Dutton, D–Houston whose stand-alone bill originally contained only an expedited judicial foreclosure provision became the newly amended omnibus industry bill of the day with seven major changes.  With the passage of HB 1228 the flawed Senate versions of “Priority of Payment” and lucrative “Alternative Payment Plan” provisions allows HOA vendors unethical business practices to continue business as usual. 
  • HB 1821 – Rep. Rodney Anderson, R-Dallas, codifies Resale Certificates into Texas law, adding at least $1,000 (no limitation on charges) to the price of a home every time one is sold; claiming a significant spot in the array of lucrative HOA management schemes. 

The elite group of HOA industry attorneys/debt collectors that captured the market of unsustainable pyramid payment plans, as the quick preferred option to HOA homestead foreclosures, will continue to see business  thrive.  But for the lack of significant funds to save their home the owner has little choice.

Payment plans are generally unaffordable and conditioned upon the homeowner signing an Agreed Judgment.  When a payment is missed (as anticipated) under the payment plan, the HOA attorney adds more fees then submits the agreed judicial judgment to a judge, as a default judgment.

“Like the last self-serving industry blunder, lawmakers have codified new laws to regulate consumers instead of industry,” said Janet Ahmad, National President of Homeowners for Better Building .

When it comes to legislation that might regulate developers, builders or their HOA management company partners and attorneys; clearly hands-off orders have been issued by Homebuilder Bob Perry and the affiliated HOA management industry, concluded Ahmad.
                                                                     ###

Home Owners for Better Building is a member of the Texas HOA Reform Coalition – www.hoareformcoalition

 

 
< Prev   Next >
Search HOBB.org

Reckless Endangerment
BY: GRETCHEN MORGENSON
and JOSHUA ROSNER

Outsized Ambition, Greed and
Corruption Led to
Economic Armageddon


Amazon
Barnes & Noble

NPR Special Report
Part I Listen Now
Perry Home - No Warranty 
Part II Listen Now
Texas Favors Builders

Washington Post
The housing bubble, in four chapters
BusinessWeek Special Reports
Bonfire of the Builders
Homebuilders helped fuel the housing crisis
Housing: That Sinking Feeling

Consumer Affairs Builder Complaints

IS YOUR STATE NEXT?
As Goes Texas So Goes the Nation
Knowledge and Financial Responsibility are still Optional for Texas Home Builders

OUTSTANDING FOX4 REPORT
TRCC from Bad to Worse
Case of the Crooked House

TRCC AN ARRESTING EXPERIENCE
The Pat and Bob Egert Building & TRCC Experience 

Build it right the first time
An interview with Janet Ahmad

Bad Binding Arbitration Experience?
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
or call 1-210-402-6800

top of page

© 2024 HomeOwners for Better Building
Joomla! is Free Software released under the GNU/GPL License.