For those wondering about class action suits, they are only possible within an HOA IF 40 plus members sign-on. Here’s a summary of requirements:
The Georgia Federal District Court held that the Plaintiff met the four requirements for class certification under Federal Rule 23(a), specifically:
- Numerosity – Plaintiffs allege more than 100 class members and 40 is generally sufficient;
- Commonality – the excess interest rate charges is common and can be “uniformly determined” and the excess sums charges is a close decision, but for now the Plaintiffs meet this “low burden”;
- Typicality – The claims of Plaintiffs are typical of the claims of the class; and
- Adequate Representation – the Plaintiffs can adequately protect the interests of those they purport to represent, and the Court did not find any conflict of interest as argued by Defendant.
As for CAI, it’s possible for a RICO again, IF, the above criteria are met. Given the lack of involvement by HOA groups across the country, this is not going to happen.
My response to CAI’s statement below is simple: “Facts are the enemy of truth” (Man of La Mancha play, Cervantes). With all the gall CAI tells GEICO to seek the truth and read its Satisfaction Surveys and see how much HOAs are beloved.
I am forwarding my Restoring the Lost Constitution To HOA-Land collection of publications and allow GEICO to make an informed decision.
In response to GEICO Insurance’s “HOA Cynthia Advises New Neighbors” commercial, Community Associations Institute (CAI) is deeply disappointed by the company’s inaccurate portrayal of homeowners associations and the 2.5 million volunteer board members elected to serve their communities.
GEICO’s attempt at comedy about a family moving into a community association is disrespectful and insulting to the millions of volunteers and hundreds of thousands of professionals who work tirelessly and proudly to build communities people are proud and privileged to call home. Community associations, also known as condominiums, homeowners associations, and housing cooperatives, are home to 73.5 million Americans.
Learning the facts about HOA living is so easy to do, a caveman could do it. According to the 2018 Homeowner Satisfaction Survey, independently conducted by Zogby Analytics for the Foundation for Community Association Research, residents in associations are overwhelmingly in support of their community association experience, manager and elected board members.
These are the facts and not the easy, stereotypical and condescending messages designed to get a cheap chuckle.
CAI invites GEICO to take 15 minutes to discuss the value of community associations and how they bring people together, strengthen neighborly bonds, and promote a sense of belonging—especially now.
Thomas M. Skiba, CAE
Chief Executive Officer
Community Associations Institute
George K> Staropoli is inviting you to a scheduled Zoom meeting.
Friday June 5, 2020, 11:00 (PDT)
Join Zoom Meeting
Meeting ID: 754 0487 8746
Colorado’s HB 1200,[i] brought to my attention by journalist Ruthy Wexler, is an outstanding bill that provides for the long ignored, not my job, state oversight of HOA violations. It is a measure that provides the constitutional protections against depriving “a person of property without due process of law” and against denying “the equal protection of the laws.” These protections have been denied by the HOA “constitution,” its CC&Rs. Although a private contract, these protections cannot be waived.
HB 1200 is a much more protective bill of homeowner rights and freedoms as was introduced in Arizona in 2006 and adopted in the face of stringent opposition by CAI. CAI then proceeded in 3 court cases over 4 years to have the statute declared unconstitutional and have the ruling applied to all Arizona HOAs. It almost won but the Arizona Supreme Court denied it precedent value and in 2011 the statute was amended to handle CAI’s claims of unconstitutionality. It is in operation today under Arizona’s real estate department.
I was actively involved in the creation of this Office of Admin. Hearings adjudication of HOA disputes and in the defense of its constitutionality.[ii]
The role of CAI, as presented above, should not be taken lightly. Strong and active homeowner support will be necessary to carry this bill to law. I commented on former Colorado Senate President Morgan Carroll’s book:
Yes, there have been champions of HOA reform, but advocates fail to realize that these legislators must buck the powers that be at the legislature and win over the votes of a majority of other legislators. And this takes outcries by many people, not with gripes of “I wuz wronged!” but with valid arguments as to why HOAs are wrong for the state and the general public well-being. And how to fix these wrongs.[iii]
Take heed Coloradans and get behind the sponsors today!
[i] HB 1200.
[ii] See AZ Supreme Court accepts advocate’s amicus brief in challenge to HOA statute.
[iii] See Why HOA reform advocates fail at legislative reforms (2011).
Veritas para justitia
May 22, 2020 11:00 AM PDT
This FREE webinar dares discuss the CAI taboos!
The overall intent and purpose of this webinar series is the education and reorientation of HOA members, especially the board of directors, to long ignored issues of constitutional validity; issues that the public will not find in the multitude of materials and publications of that business trade group, Community Associations Institute, CAI.
The reorientation project is the first step toward the understanding and acceptance of my Plan Toward the Restructuring the HOA Model of Governance; it requires an examination of the role and influence of CAI in supporting and promoting the HOA legal concept and model of government.
To participate you will receive an invite with a password giving the time and date of the session. You will need this info when you sign up for the session at webinar time.
To receive an invitation please respond to gks256@NYU.edu with “webinar” as the subject and the email address that you will use to participate
The following is the form letter CAI HQ is urging everyone to send to Congress to oppose a federal bill granting exclusions for HOA assessments. HOAs “uber alles.”
“I am writing to strongly oppose legislation like H.R. 6423 and S. 3565 that impose a national moratorium on debt collection during the COVID-19 national emergency.
This legislation is too broad and will harm the financial interests of households in homeowners associations, condominium associations, and housing cooperatives (collectively, community associations).
. . . .
“When one homeowner is unable to pay assessments, these costs are passed to other homeowners in the community. This increases housing costs, spreading financial distress to other community households. [Part of the HOA contract is the implication of a joint and severable liability by the homeonwers. Didn’t you know this???]
“Community associations are working with homeowners suffering from the economic impact of the COVID-19 national emergency. A recent survey by Community Associations Institute indicated a 20 percent increase in requests for forbearance or payment plans by homeowners who are unable to pay assessments. Beyond this goodwill, community associations are subject to state laws that require payment plans for delinquent assessments. [Not clear whether or not HOA honored them].
“I ask that you oppose extreme legislation like H.R. 6423 and S. 3563. Thank you for considering my views and I look forward to your reply.”