20-Mar-17 – Condominium and homeowners associations (HOAs) currently have an estimated $50 billion on deposit nationwide in banks to stash operating account and reserve funds, experts say. Is it possible that hundreds of millions of dollars on deposit by the estimated 50,000 condo associations and HOAs in Illinois could be at risk if these accounts are not protected by Uncle Sam – the Federal Deposit Insurance Corporation? “My homeowners association bank accounts are titled in the name of the management company and my HOA,” noted John Sellers, a banker, consumer advocate, and HOA resident. “I can’t figure out if the management company is commingling the money with other accounts. If my HOA board of directors are not signers on the bank account, is the money really ours?” A concerned homeowner recently wrote to the FDIC and asked for clarification. Read more: CHICAGO – OLD TOWN TRIANGLE — And you thought your condo’s special assessment was big. An Old Town condominium building is facing an estimated $18 million repair bill — leaving some residents on the hook for one-time payments of as much as $80,000. Bruce Theobald, a condo owner at the Kennelly Square condominium at 1749 N. Wells St., said the more than 260 unit owners had been told that estimated repairs were $18 million, requiring a special assessment. According to Theobald, that would mean “rough numbers” of about $30,000 for a studio, $50,000 for a one-bedroom and as much as $80,000 for a two-bedroom. “This problem has been developing literally for decades,” Theobald said, adding that repairs were put off too long. Read more: CAI finally admits to being a business trade tax-exempt organization. Community Associations Institute (CAI) is a national nonprofit 501(c)(6) organization founded in 1973 to foster competent, responsive community associations through research, training and education. […] We work to identify and meet the evolving needs of the professionals and volunteers who serve associations, by being a trusted forum for the collaborative exchange of knowledge and information, and by helping our members learn, achieve and excel.[1] In my 17 years as a HOA reform activist this is a landmark first! This is a personal achievement. There was very little support from other reform advocates and homeowners regarding misrepresentation by CAI.[2] As a result of my repeated criticisms and exposes, CAI had to apparently fess up. Over its 44 years in existence CAI has mislead its viewers, members, the public and legislators as to its legal tax-exempt status. It news releases, websites, Common Ground magazine, communications with state and federal elected officials, and court filings that refer to representing homeowners and HOAs.[3] CAI is not allowed to have HOAs as members![4] Example, CAI’s current web page reads, CAI provides information, education and resources to the homeowner volunteers who govern communities and the professionals who support them. CAI members include association board members and other homeowner leaders, community managers, association management firms and other professionals who provide products and services to associations. CAI serves community associations and homeowners . . Read more: A new national survey by the Coalition for Community Housing Policy in the Public Interest has found that 81 percent of community association residents surveyed feel that “lack of transparency” and “poor communication” are major problems of HOA and condo life. 65.9 percent are “very dissatisfied” and 15.1 percent are “dissatisfied” because of transparency and communication issues. A whopping 72.6 percent of condo and HOA owners surveyed said they were generally “very dissatisfied” (51.2 percent) or “dissatisfied” (21.4 percent) with the whole concept of community association living. And, 60.8 percent of survey respondents urged that community associations should have more government oversight and regulation. Chicago currently has about 12,235 condo and homeowner associations containing approximately 305,000 residential units, according to a comprehensive directory, the 2016 Association Evaluation Report on Illinois Condominiums and Homeowner Associations. Association Evaluation, LLC, is a Chicago-based real estate technology firm that rates the livability and stability of condo and homeowner associations. Read more: In Georgia, a decorated Army veteran who lost a leg in Afghanistan is now ensnared in a battle on the home front — with his homeowners association. The HOA filed a lien on his house related to the placement of his trash cans. From Maryland to California, prosecutors have charged HOA officers and property management officials in fraud and embezzlement cases with losses that total in the millions. And in Missouri, lawmakers are working on a proposal to make homes associations more accountable, with one saying homeowners in his district have become so incensed with their HOAs that “we are one step away from pitchforks and torches.” In the few months since The Star’s report on HOAs from hell, horror stories continue to pile up and homeowners keep falling victim to thieves from within their ranks. Lawmakers in some states are saying enough is enough. It’s time, they insist, to take on a more aggressive role in regulating the $85 billion industry. “It’s the number one constituent issue in my district,” said Missouri state Rep. Bryan Spencer, a Republican from Wentzville, near St. Louis. “This is basic property owner rights. It’s a fundamental right that we should have as Americans.” Read more: ILLINOIS – Are hundreds of millions of dollars of condo and homeowners association money – on deposit but not FDIC insured – at risk?
ILLINOIS – What If Your Condo’s Special Assessment Was $80,000? It Could Happen Here
NATIONAL – CAI finally admits to being a business 501(c)6 trade organization
ILLINOIS – Condo, HOA owners dissatisfied with ‘carefree’ life
NATIONAL – HOAs from hell: more horror stories, more fraud – and prospect of legislative action
News from Illinois
LOOP NORTH NEWS: Are hundreds of millions of dollars of condo and homeowners association money – on deposit but not FDIC insured – at risk?
By Don DeBat
DNAINFO.COM: What If Your Condo’s Special Assessment Was $80,000? It Could Happen Here
By Ted Cox
January 24, 2017
HOA CONSTITUTIONAL GOVERNMENT: CAI finally admits to being a business 501(c)6 trade organization
By George K. Staropoli
January 15, 2017
LOOP NORTH NEWS: Condo, HOA owners dissatisfied with ‘carefree’ life
By Don DeBat
January 16, 2017
McClatchyDC: HOAs from hell: more horror stories, more fraud – and prospect of legislative action
By Judy L. Thomas
December 23, 2016