Monday, May 1, 2006

SCCA HOA-A Legal Fraud




The Greatest Legal Fraud & Flim Flam in Riverside County

". . .Men imagine that thought can be kept secret, but it cannot; it rapidly crystalizes into habit, and habit solidifies into circumstances. . . .hateful and condemnatory thoughts crystallize into habits of accusations and violence, which solidify into circumstances of injury and persecution: . . ."
James Allen

Ultimately, the whole world knows the most intimate secrets of the most intimate thoughts of the most private people on the planet--be it divine or foul.
Therese Daniels

When Del Web turned the management of the Sun City Civic Association to the home owners it was suposed to be taken to the vote of the general membership. Such an election was never held. Where are the documents that go with that election? Isn't it possible this entire SCCA is a fraud with a long history of manipulating paper work and misinforming the membership?

There are thousands of deed restricted communities in America today. Though their boards may be obnoxious, at least the members get some value in return for their dues—like; 1. Trash and water bill paid, 2. Landscaping is maintained every month, 3. Friendly use of the facilities, and 4. Maintain the exteriors of the units by painting them, keeping them in good repair, plus other benefits. What benefits do the members of SCCA get for their year after year $286 dues which will be consistently raised? Sun City is the only place I know where residents get nothing for their money. This has got to be the greatest legal flim flam in Riverside County. I don’t know about you, but where I come from people are used to getting some value for their money.

“Don’t believe Therese Daniels,” the board will tell you. “You have the wonderful senior center facilities with hobby shops, swimming pools, meeting rooms, etc. You have an office staff to collect your dues. You have a codes enforcement department to enforce CC&R’S which keep up your property values and the 55+ plus senior status. Isn’t this wonderful!” the board will tell you. They have to say that. How else can they justify all the money they pirate from us every year in return for nothing? They have to convince you, the residents cannot get along with out them and there are great benefits to living in a 55+ deed restricted community. This is how they keep their useless self perpetuating jobs at the expense of innocent, good willed seniors who thought this would be a good place to enjoy their spoonful of years.

It’s time to separate myth from reality and fact from fiction. What do you think the actual percentage of members use the pool and the other facilities? According to some members who served on a committee to study the operating cost of said facilities, only 10% of the 4762 members actually use the facilities in any given year. That totals 476 members. Assuming he under estimated that number; let’s say 15% use the facilities on a yearly basis. That comes to 714 people per year. As often as I had to go there for one idiotic issue after another, I have personally never seen more that 8 people in the pool, no one in most of the hobby shops, and a couple of people in the silver smith shop. It would be safe to say 10% to 15% of the membership actually uses those obsolete facilities. That means 85% to 90% DO NOT USE THE FACILITIES. That means 85% to 90% of the membership are paying for 15% to 10% of the membership. I have been told by several residents who did try to use the facilities they were treated so rudely, they decided to never return again. Most of those deteriorating buildings should simply be torn down. Only the people who use the facilities should have to pay for them, not the entire membership. It doesn’t take an entire association to run that facility. One small management group could do it at 1/20th the cost. What is wrong with this picture? What benefits have 90% of the members gotten for their $286 per year? $286 per year has changed to $291 per year beginning January 2006. Under the Stirling/Davis Act they can continue to raise the dues ("assessments") up to 20% without our vote.

Is it possible that the majority of the enforcement of alleged violations is just plain illegal under the following definition: The California Supreme Court, in a decision usually referred to as the Nahrstedt case, held that CC&R’s are to be enforced unless they fail to pass any one of three tests: (1) being arbitrary, (2) violating a fundamental public policy, or, (3) Imposing a burden on the association member that substantially outweighs the benefit to the association as a whole. I

Definition 1: being arbitrary

The existing CC&R’s are poorly written. Most of them are a matter of the board’s capricious and arbitrary interpretation. They keep changing the meanings and rules as it suits their purpose at the time. This is why an alleged violator will see dozens of other residents getting away with the same violations he is now having to correct or pay a fine. Though the laws & bylaws may be a little more clear, the board fails to follow or conform to them in regard to “hearings” when members contest. Some people are simply fined—in spite of their proof of innocence—without a hearing. Others face merely the manager, the codes enforcement officer, and other such non designated special hearing board. There is no specially designated “hearing board or officers” as so required in the bylaws. This is why these hearing are called the Kangaroo Court of SCCA. The only consistent habit the board has is being arbitrary! All they got is “might is right.” This proves they are arbitrary and fits Supreme court definition #1.

Definition 3: Imposing a burden on a member that substantially out weighs the benefit to the association as a whole.

Approximately 99% of the alleged 1500 code violations they attempt to enforce are nothing more than piddling trivia. (The 1% of important enforcing was the pitiful home on Carmel rd.) How does the association as a whole receive any benefits from enforcement of the thousands of petty alleged violations. It doesn’t benefit Sun City at all. Who cares about silly little code infractions (but the vindictive neighbor who wants to cause his/her neighbor aggravation). It fails to benefit SCCA as a whole if: a resident 10 blocks away has a relative under 55 visiting for three days longer than stated in the CC&R’s; if some residents grow plants and bushes for privacy higher than the height limit; if a senior takes in some typing, sewing, or book keeping in her home to supplement her limited fixed income; if a much needed storage shed is bigger than 8x10; or a senior couple renovates an old junker into a gorgeous property even if a hedge or brick wall doesn’t totally comply with their codes. It does, however impose a burden on a member that substantially out weighs SCCA’s benefits. Reality is there are no benefits to SCCA as a whole and enforcement of the above mentioned violations fails to protect property values. This proves Supreme Court Definition number 3. Again, what value are we getting for our $286 per year? Now $291 per year.

Maintaining the 55+ Status

A 55+ Community is a luxury S.C. Core can not afford!

Ah yes! The precious 55+ status that they claim I don’t understand. . .or maybe they don’t understand. All it means is if filed with the DRE prior to opening the doors to the public or if voted upon by a group then filed, age discrimination is permitted. When Del Web built this community in the mid-sixties, it was legally established as an “adult only community” age 18 +. If Jean Roberge hadn’t gone door knocking petitioning that it be a 55+ community only, there would be no issues about adults under the age of 55 living here. Del Web had already legally established said status. Thanks to Jean Roberge, it may no longer be possible to get back the adult only status that Del Web had so skillfully accomplished. Other than the right to discriminate based upon age and keep out young children, there is absolutely no benefit to being a 55+ community but it has many liabilities. What benefits do we get under the SCCA 55+ umbrella that we can’t get for ourselves with out them? Is there a special SCCA deduction offered to SCCA residents on taxes, health, dental, eye, life or home owners insurance? Do super markets and local retailers offer special discounts to SCCA seniors? Is there any group that assists seniors with the up keep of their property when they become disabled for minimum cost? What do we get for our $291 per year? I can understand that many seniors become annoyed with the energy of children around them. I am not suggesting a “family” community but an adult community.

We don't need SCCA to Govern and Control us

We are senior adults, not children. We arrived in Sun city after years of living responsibly and accumulating enough money so as to retire with dignity and independence. We are not charity cases. We pay our for our own property, taxes, insurance and upkeep. We do not need the heavy handed control of a capricious, arbitrary, and mean spirited Civic Association. Sun City is in an unincorporated area already under County government. What on earth do we need them for anything. The only people who benefit is the management and the board. They need our money. We do not need their management. I would rather buy a plasma TV for the price of the dues I have paid the last eight years.

They need our money. We don't need their management. From hence forward when you pay your dues write on the front of the check "Paid in protest. This is legal piracy."

Look at SCCA's annual financial statement to see where and how they are spending the member's money on non important items only to justify their own existence. They pay nearly a million dollars in salaries to process paper work to spy, invade our privacy, harass, and misinform us. In all their busy work, how has any--but the SCCA Board and their cronies--received any benefits at all?

SCCA can legally raise you dues up to 20% per year without membership vote. Do you want your dues to continually be raised by 20% per year without your vote? $291 x 20% = $58.20 = $349.20 x 20% = $69.84 = $419.04 x 20% = $83.81 = $502.85 and so on. In just three years you could be assessed with over $500 a year. Though, you or they may claim they won't do it, remember the power to do so hangs over our heads. Isn't that just too much power they have over you and me? ? ?

SCCA can falsely accuse a member of anything in the name of some code violation. Then fine the member if the member refuses to correct the alleged violation to the Board's satisfaction. If the member refuses to pay the fine, the Board can convert the "fine" into a "lien". Liens can be recorded against a member's property. If the liens total $1800 or more, the members property can be taken with judicial or non judicial foreclosure.

The powers of foreclosure possessed by deed restricted communities are anti-American. No one should have to lose his/her home because of trivial code violations. Keeping one's home is the most important act an American family can do. That is why the HOME STEAD acts were passed. But the HOA's have manipulated a right to over ride it. This is an American shame!

There are no absolute interpretations of all the CC&R's, "Federal Guide Lines", and other laws. Alleged accusations are based purely capriciously by the Board and/or its management. This becomes the grist for conflict, resentment, and anger between members and SCCA.

For an example: SCCA and members have been in contention over storage sheds for the past several years. SCCA claims a storage shed should not be seen from the street. Many members have constructed their sheds to comply. However, if a codes compliance officer claims he can see even a part of the shed from the street, the member is in violation. However, Don Weddle, the former SCCA President has two storage sheds on his property that can be seen from the street.

Over thirty years of enforcing S.C. 's CC&R's Sun City looks worse than ever! Over 80% of the homes are "fixer uppers". So how is it that under such due diligence by SCCA this could have happened? Did it ever occur to obtuse SCCA Board that the very CC&R's they so dearly love are the obstacles to a more beautiful Sun City? The CC&R's and their enforcement do not work in this 21fst century. Wake up and take a look!

Thursday, July 28, 2005

Fight back

My last letter to Don Weddle, President of SCCA
No response ever followed after this letter.



July 28, 2005





SCCA

Don Weddle

26850 Sun City Blvd.

Sun City, CA 92586



Case No. 2005-285



Dear Mr. Weddle,



The California Supreme Court, in a decision usually referred to as the Nahrstedt case, held that CC&R’s are to be enforced unless they fail to pass any one of three tests: (1) being arbitrary, (2) violating a fundamental public policy, or, (3) Imposing a burden on the association member that substantially outweighs the benefit to the association as a whole.



As already stated at the hearing, the bushes were already that height when I purchased the property in 1998. The statute of limitations is three years. You judged a violation in July 2005. I don’t have to cut them down. Considering the longest part of the dimensions on my lot parallels Murietta Rd., a very busy public street and this is a corner lot, my lot does not fit the same criteria as an inside lot. In spite of all good and factual reason, you insist on claiming our lot must conform to your false claim. What you are doing fits the Supreme Court’s definition of “arbitrary” as stated above.



Considering there is a school cross walk very near my lot line and a bus stop across from my wall which attracts abundant pedestrian traffic, it makes my property vulnerable to the public. Cutting down any bushes that would deprive us of privacy and expose us to increased public view would jeopardize the safety of my property, the lives of my family, diminish the esthetics of our yard and deny us quiet enjoyment of our home. This is a burden my family can not bear. (This fits the Supreme Courts #3 definition in the above quote.)



Which is your greater concern? Are you concerned for the protection of my family,our property, our lives, and our privacy? Or is forcing us to conform to your arbitrary judgment of a trivial CC&R your highest and best motivation in all this? Which is it, Don Weddle?



We are in violation of nothing. We do not owe you any fines. You are wasting the member’s time and money by your continual harassment of us. As you know, SCCA is a non profit corporation. You are not allowed to be wasting the member’s dues on frivolous efforts. The nearly twenty letters I have received from you this year at the behest of Carl Fuess over no violations is a waste of the membership money. To add to the waste is the cost of the vile “Special Election Ballot” you printed and mailed to over 4000 members then canceled. To add to that cost are all the other letters of harassment sent to various members for trivia. What is going to happen to membership money when they all decide to sue SCCA Board? That’s a whole lot of legal fees and waste of membership treasury. Don’t you realize, Don Weddle you are supposed to conduct membership business so as to avoid law suits, Don Weddle? This is irresponsible and incompetent management. Use of membership money to satisfy your desire to force people to conform is wrong, Don Weddle. “Let he who is without sin cast the first stone.”



Are you also aware that harassing a member for retaliation purposes because a member is exercising a recall movement against you is illegal? I truly believe you are attempting to retaliate against me because of the news letter SHOUT, I wrote and that I have begun a petition to recall you and the entire board. You are not acting responsibly with the member’s money, Don Weddle. Don’t you think you should clean up your act before some one else does. So why don’t you take me off your persecution list and leave me alone. In the face of all rational information I have just given you as to why we are not in any violation of anything, if you still continue to send me letters falsely accusing me of a violation and to correct it or I owe you fines, then I can only conclude your continuing harassment upon me is an act of retaliation.

Sincerely,

Therese Daniels



Cc: attorney

To publish on the internet

To publish in the next issue of Shout

To anyone interested in the modus operandi of the SCCA Board

Wednesday, October 6, 2004

IF YOUR HOME IS IN A HOMEOWNER ASSOCIATION - YOUR EQUITY IS AT RISK

IF YOUR HOME IS IN A HOMEOWNER ASSOCIATION - YOUR EQUITY IS AT RISK

Can you afford to give your money away?

October 06, 2004

By Ann Roth
Copyright Ann Roth
Orange County, California -

CAN YOU AFFORD TO GIVE YOUR MONEY AWAY?

If you live in a homeowner association don't ever forget this: The more equity you have in your home -- the greater your risk of losing it. Your home equity could soon become your home 'debtquity'.

It is no secret that home ownership is supposed to be part of the American dream and that dream is very likely going to be one of the largest purchases a person will probably ever make in their lifetime. The more equity you have in your "home", the more desirable and lucrative it is for the association to use it as collateral -- and you can't stop them. You might ask, collateral for what? The answer you won't want to hear or believe is, everything and anything the board decides is in the best interests of the association.

Through no fault of your own, your very hard earned money that was sunk into your home equity is automatically in the control of a handful of so called "elected" neighbors, who may or may not like you, who may or may not have your best interests in mind, and who may or may not care about what happens to your house. Your home has instantly become not only a liability for you but a "debtquity" at disposal of the association.

If you desire to (1) protect and preserve your home equity, (2) be in control of your financial destiny, and (3) desire to pass down a legacy rather than a liability to your heirs, then don't buy a residential deed-restricted property that has a homeowner association. Run in the opposite direction.

DOESN'T EVERYBODY JUST WANT TO LIVE IN A COMMUNITY LIKE THIS?

Before handing your life savings over to a bunch of so-called "neighbors" who might rig elections, buy proxy rights, fabricate minutes, and stab you in the back, understand what it is that you are "buying."

Do this by demanding disclosure of pertinent documents. Scrutinize at least five years worth of minutes and read between the lines. Investigate if the board members that were on the board when those minutes were written, still live there -- if they don't, don't buy. Get copies of all the Master and Sub association insurance policies and proof each one is paid-up and in effect. Without these items at a minimum -- DON'T BUY. If you experience any problems obtaining these items -- DON'T BUY.

In the 2004 Winter edition of USAA Magazine, it was written that, "Home equity accounts for 30 percent of the typical American household's wealth."

For most of us, 30 percent of our personal wealth is no small amount. Just think, if you had to earn that same 30 percent all over again, how hard would that be to do today? Many American's desire to retire with their equity or pass the legacy down to their heirs -- but for many reasons, that may not be possible if you have a deed-restricted "property" that is subject to a homeowner association.

Preservation of home equity and keeping it secure should be a titleholder's priority. However, even if the titleholder wants to protect his property and equity, if that home is located inside a common interest development that might be impossible to accomplish.

FIGURE OUT WHAT A HOMEOWNER ASSOCIATION REALLY COSTS YOU

In their book, Villa Appalling! Destroying the Myth of Affordable Community Living, (2002) the authors provide an Affordability Richter Scale table where purchasers and owners can calculate actual costs of this type of housing. They posit that, if even ONE of these Ten Major Risks applies to your home, you do not have an "investment" and your home's "equity is at risk":

1. Missing a homeowner association monthly fee (regular assessment) payment.

2. Being unable to pay your mortgage payment.

3. Being unable to pay a homeowner association special assessment payment.

4. Foreclosure that is beyond your control including Mello-Roos taxes.

5. Property value is affected by other owners over whom you have no control.

6. As your property values increase, the pool of available and qualified buyers decreases.

7. Fines, penalties and punitive measures outside your control.

8. Board can place lien on your unit, clouding your title.

9. The amenities no longer function or exist, or restrictions prevent use.

10. Your payments and assessments are not tax deductible.

The book, Villa Appalling! reminds owners not to "forget to factor in the loss in interest or other funds you could have earned by investing this money. Multiply your monthly dues by the number of units then times 12." They say that gives you the size of your supposed (association) business. But what is more startling, are the many hundreds of thousands of dollars your homeowner association business turns over every year. To figure that out, the authors provide the following eye-opening calculations:

Your Calculation: $ (your dues)_______X (# of units)

X 12 months, equals Big Buck$.

Our Calculation: In California an estimated 9 million people live in common interest development$.

EQUITY ERODER$ EATING YOUR EQUITY - PENNY BY PENNY - CENT BY CENT - UNTIL IT'S GONE

1. Assessments without accountability. Accountability means owners are able to independently audit the association's books and records. Assessments are mandated means there is a statute that compels you, by law, to pay, and pay, and pay and keep paying. If you live there until you die, you pay until you die. This means if you are late paying, you have basically broken the law.

These assessments are unpredictable. They occur with or without your approval. These assessments can be special, emergency, regular, monthly, annual, and the list goes on and on and on. There is no statutory cap or ceiling on what an assessment amount can be. If you are in an association in California that just lost a major lawsuit, your assessment - that can never be discharged - will follow you until you pay.

2. Unpredictable fines, penalties, interest and lawyer fees can be imposed upon the homeowner at the whim of the board for, among other things, an inability to pay the ever increasing association assessments by way of dues, and/or special assessments.

3. Mold and Construction Defect Litigation: If the homeowner does not understand the severity of this type of litigation, and that the association can enter into it without your consent, you should not purchase in a homeowner association. Worse yet, is that once the association obtains the money from such litigation -- you may never see a dime of it. The association BOARD decides how, if ever, they will spend it. And, believe this, it won't be on YOUR unit.

4. Litigation: The Villa Appalling! authors make it clear that the association board of directors can sue any owner, and all owners will pay for that litigation. An owner can sue the association and its board, and again, all the owners will pay. Don't forget that a third-party such as a management company vendor can sue the association, as they can sue any owner, and again, all the owners will pay, and pay, and pay, and pay . . . Everyone knows the side effects of litigation, just multiply what you already know about regular litigation a thousand times over, and that's where you start in a homeowner association.

YOU will be responsible for the increased risk of liability and damages should someone get hurt on the common areas (slip and fall accidents don't just happen in grocery stores) and YES management company vendors DO sue associations if they are injured on common grounds, think they've been slandered, or if they've been fired and don't like it.

5. Added Costs: Understand that you will never adequately be able to account for any costs, let alone "added" costs because you are not in control of the association's accounts. Because of these added liabilities inherent in association and community-type housing, homeowners have been advised to purchase additional liability insurance -- if they can get it -- further eating up their equity.

6. The Quicksand of the American Dream of Home ownership is none other than Foreclosure by HOA neighbor both Non-judicial and Judicial. If there is ANY way possible, that association board and their attorneys WILL take your house from you. There are a million ways to accomplish that end.

Any inability to pay association assessments can result in non-judicial foreclosure -- and nobody cares what your excuses were as to why you could not afford to pay, or why you didn't pay. In fact, those neighbors you share coffee and proxies with, will revel in your misfortune. Why? Because it's YOU and not THEM. Your board members will be the last people on earth to care about your excuses.

Watch those management companies -- you'll never know which ones are getting the biggest cut or percentage of the foreclosure proceeds because your board won't let you read their contract. Other vendors get much more money initiating the foreclosure procedure rather than merely trying to collect some lousy late fees.

The REAL money is in the penalties, attorney fees, and interest. The association and all their co-conspirators will jack those fees up until you choke to death in the quicksand. Your home can be gone in some instances in less than 90 days. Is this really what you had in mind when you moved your family into a homeowners association?

7. Fraudulent Transfer Fees and Other Bogus Document Filings: Since no one seems to be watching what the legislature is doing to the American Dream of home ownership, or how your board keeps breaking the laws without being prosecuted, you might as well allow them to extract as much money out of your escrow account that they can.

This is easy, and its been happening right under your nose. What homeowner, who is in the middle of closing either a purchase or sale of property in an association is going to want to be accused of preventing escrow to close by questioning the management company's exorbitant and bogus fees, or the association's trumped up charges of money owed? Your escrow has become a perpetual payroll for them and they WILL hold you hostage to unconscionable fees and charges that NO OTHER PROPERTY OWNER IN AMERICA is forced to pay.

9. Your Home Equity is the Homeowner Association's Collateral: This happens because you don't control your property. Although you've got a deed/title in your hand -- OTHER PEOPLE CONTROL ITS VIABILITY. HOA management company/vendors know that all too well, and they "assist" your board -- after all, they were hired to help the board, right? If that weren't enough, be even more afraid of the HOA attorneys. Some of them might even own foreclosure companies.

In the end, if you desire to pass down a legacy, rather than a liability to your heirs - do not buy into any deed-restricted "property" that is subject to a homeowner association. There are too many factors that are out of your control and in the control of handfuls of so-called "elected" neighbors, who may or may not like you.

NOTES:
Portions copyright(c) (2000-2004)Vanitzian,reprinted with conditional permission
Portions copyright(c)(2002)Vanitzian & Glassman, Villa Appalling! Destroying the Myth of Affordable Community Living,reprinted with conditional permission

Winds of Change are here and now. We don't need a "SCCA" to do nothing for us but raise our dues.