“Novice buyers often fall in love with the decorative staging or the lakefront view of a for-sale unit,” said Sara E. Benson, a Chicago real estate broker and appraiser with more than 30 years of experience.

“However, you need more high-tech inside information than typically available on a Multiple Listing Service printout,” advised Benson, CEO of Association Evaluation LLC, a Chicago-based real estate data-analysis firm. (www.AssociationEvaluation.com)

Working as an exclusive buyer’s broker for decades, Benson always did the behind-the-scenes condo-investigation homework for clients. On every deal, Benson dug into the condo documents—budgets, board minutes, history on special assessments, status of reserve funds, and common-area conditions before she let a buyer blindly sign a sales contract.

Why? Because more than half of the 337,000 community associations in the U.S. are facing “serious financial problems,” reported the Community Associations Institute. And, 72 percent of association-governed communities were underfunded in 2013, according to Association Reserves, a California-based company that helps associations with budget and operational issues.

In 2012, Benson utilized her real estate appraisal background to develop a unique algorithm analyzing more than 140 data-points regarding the internal workings of community associations. Using the data, she commissioned a team of computer scientists and programmers to create a new, patent-pending scoring system—the “Private Association Rating”—or PARScore®, a revolutionary new high-tech, data-driven analytics process.

So, how does a condo shopper obtain the often hard to get financial information? The simplest way is just ask for it, and make the deal contingent on getting the information.

“You should insist that your Realtor or real estate attorney attach a special “Condominium Association Inspection Contingency Rider” to the contract to make completion of the deal contingent on receiving important documents and often hidden financial information.

The rider requests the following information: Declaration or Covenants, Conditions and Restrictions (CC&Rs), association rules and fine schedules, current and prior year’s operating budgets, most recent 12 months of board minutes and audits.

The rider also requests most recent reserve study and reserve study review, current reserve and operating account balances statement, lawsuit disclosure statement, owner-occupancy disclosure statement, life safety completion statement, and most recent 24 months of special assessment history disclosure.

The Contingency Rider also requires the seller to pay any expenses related to gathering the documents and providing them to the buyer.

The Contingency Rider also includes a new benefit—a Buyer’s Inspection Notice—which calls for visual examination of the property’s commonly owned elements, such as recreation facilities, swimming pool, fitness center, parking, elevators and common roof deck. The prospective buyer pays for the visual inspection as part of the PARScore® fee.

While surfing the web, a Chicago-area condo shopper found Association Evaluation through a Google search.

The buyer, who plans to move from north suburban Gurnee and hopes to buy a condo in southwest suburban Oak Lawn, downloaded the free “Buyer Kit,” the Condominium Association Contingency Rider, and the HOA Contingency Rider using the following links:

• Buyer Kit: https://associationevaluation.com/buyerkit/

• Condo Rider: https://associationevaluation.com/wp-content/uploads/2014/06/AE-Condo-Inspection-Rider.pdf

• HOA Rider: https://associationevaluation.com/wp-content/uploads/2014/06/AE-HOA-Inspection-Rider.pdf

The buyer also asked Association Evaluation to complete a PARScore® evaluation on the Oak Lawn condominium he plans to buy. He already has received the association’s declaration, bylaws and insurance certificate. “Financial information and other documents listed on the Association Evaluation website have been requested,” he said.

“Today, potential buyers of condos or homes in HOAs have access to digital tools that de-clutter murky data in favor of transparent information that actually empowers the consumer in advance of their purchase,” said Benson.

The Association Evaluation team already has captured more than 50,000 Chicago-area and Illinois condo associations and HOAs in their database, and has completed hundreds of PARScore® reports from Bethesda, MD to Palm Springs, CA.

Through the proprietary algorithm, PARScore® provides a standardized rating between 400 and 900. Every association is assigned a unique Permanent Identification Code (PIC). More than 140 data sets are analyzed and scored against the coded individual associations by using the patent-pending PARScore® point system.

Depending on the number of units in the condo building, the cost of a PARScore® typically ranges from $300 to $850.

Collected data includes direct investigations with association directors and property managers, as well as on-site inspections of the communities. Additional data sources include monitoring corporate filings such as lawsuits, judgments and bankruptcies.

Financial reporting includes verification of operating and reserve-account monies. Board minutes are examined for adherence to standard accepted business protocol procedures and to ensure against unexpected and costly special assessments that have been discussed by the association’s directors, but not yet levied at the time of sale.

A check for date of last reserve study and date of last financial audit also serves to greatly reduce risk. News, Internet and media sources are consistently monitored for each association.

For more housing news, visit www.dondebat.biz. Don DeBat is co-author of “Escaping Condo Jail,” the ultimate survival guide for condominium living. Visit www.escapingcondojail.com.

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In 2012, Retired Sergeant Daniel Lister, his wife, and two children were thrilled to be the recipients of their 2-story brick home in Chandler Grove Homeowners Association, Gwinnett County, Georgia. The home had been donated by the Military Warriors Support Foundation and Bank of America.

Four years later, Lister finds himself embroiled in a battle with his HOA over where he kept his trash can when, as an amputee, he was only able to get around with the use of his wheelchair. A stack of violation letters from his HOA also cite violations about his fence and edging of his lawn.

But when you watch the video below, you won’t see anything unsightly in Lister’s yard. Whatever issues might have existed at the time, it appears the homeowner has addressed them. Lister explains that, at the time of the violation letters, he was recently discharged from the Army, and recovering from his injuries and PTSD. He was also a first-time homeowner raising two daughters. A few maintenance tasks fell through the cracks. The trash can had to be placed where he could access it easily from his wheelchair.

Now, as reported by Fox5 Atlanta, Lister faces liens on his home, placing Lister at risk for foreclosure by Chandler Grove HOA.

Disabled, decorated Army veteran battles HOA (Fox5 Atlanta)

POSTED:DEC 09 2016 08:57PM EST
UPDATED:DEC 09 2016 08:57PM EST
GWINNETT COUNTY, Ga. – A wounded war veteran said he is facing serious fines from his Gwinnett County neighborhood’s home owner association.

Retired Army Staff Sgt. Daniel Lister did four tours of duty: first in Iraq, then Afghanistan, but he is now in a big fight with his homeowners association after they put a lien on his property. His days of fighting aren’t over yet. He said the HOA forced him to pay thousands of dollars for not keeping his house up to regulations.

Read more, see VIDEO:

http://www.fox5atlanta.com/news/222835988-story

I was curious about Chandler Grove HOA’s regulations, so I looked them up on their website.

Here are the trash can guidelines.

I’ll let the reader decide if these guidelines seem reasonable or a bit over the top.

As for my opinion, let’s just say that I would not consider lawn chairs, tables, and patio furniture as “debris,” even if they are placed on the front lawn. And, personally, I don’t see the requirement that trash cans be placed on the curb after dusk to be reasonable, especially if a homeowner happens to have poor night vision or some other type of disability.

This is one picky HOA. And this story should highlight the importance of any home buyer – or tenant – reviewing these rules, regulations, and guidelines prior to moving in. If if means you walk away from the deal or a lease, so be it.

But, in this case, Lister was gifted the home. So I doubt there was a full disclosure that included a review of HOA governing documents prior to handing him the keys to the house.

But, of course, the additional risk of buying into an HOA is that those rules can and do change after you close on the sale and move in. And, like it or not, you’re obligated to follow the new rules or face the consequences, which could include fines or other penalties issued by your HOA, up to and including having a lien filed on your property and even losing your home to foreclosure by the HOA.

Now, in Lister’s case, I suspect there’s a potential Fair Housing issue at stake, whereby the HOA ought to be making a reasonable accommodation with regard to placement of the trash can. That’s a whole other legal battle that could take years to fight.

And for what? If you have watched the video, can you see anything at all dangerous, disturbing, or offensive about Lister’s property? Is there anything to justify thousands of dollars in fines or the threat of losing his home?

I just don’t see it. And I have to wonder what’s really behind the HOA’s decisions and actions.

So now Retired Army Veteran finds himself, once again, fighting for freedom. But this time, that fight is on his own home turf.

**Reposted with permission from Independent American Communities blog http://independentamericancommunities.com/

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Every day I hear or read about outrageous events in Association Governed Housing Communities. And I see the same issues over and over again.

These are not “isolated incidents” as the HOA industry would have the public believe.

Two very common issues I encounter:

• disputes over who should pay for substantial repairs to exterior elements in condominiums and
• failure to disclose important information to homeowners and homebuyers.

A few months ago, I wrote about Mallard Lakes Condominium Association in Selbyville, Delaware, where several condos were damaged by Superstorm Sandy 4 years ago. A group of condo owners are currently locked in a battle with their Association over who will pay to elevate their condo units as required by FEMA and Sussex County, Delaware.

To refresh your memory, or if you’ve missed it, here’s the link to the Previous blog:

4 years after Sandy, it’s a no-win situation at Mallard Lakes

Over the past few months, there have been some new developments.

Another lawsuit at Mallard Lakes

John and Jennifer Mingora, condo owners who purchased their unit in 2013, have filed a lawsuit against the seller, their real estate agent, and Mallard Lakes Condo Association.

Mingoras allege that important (material) facts about their recently remodeled condo unit were not disclosed to them.

According to public court documents, here’s a summary:

Mallard Lakes has 477 townhouse condo units. 30 of those condo units are located in five buildings on a barrier island.

Superstorm Sandy slammed the island condos at Mallard Lakes on October 29, 2012, causing coastal flooding, and damage to the first floor of several units.

On April 24, 2013, Mallard Lakes Association opened a claim with FEMA. On May 14, 2013, Sussex County designated Mallard Lakes units as “substantially damaged.” To meet the definition of “substantially damaged,” the cost to repair must exceed 50% of current estimated value of the property.

Both FEMA and Sussex County Flood Control Ordinances require “substantially damaged” structures to be raised to prevent damage from a future flood. Until a “substantially damaged” structure is raised to the required elevation, no certificate of occupancy can be issued.

The formal complaint also states that Mallard Lakes Association failed to timely follow FEMA procedures when applying for funding, therefore, the Association received very little money to use toward extensive repairs.

The Association is required by law to raise 24 condo units to a higher elevation, but there’s not enough money to do the job.

After the owners of those 24 units were told they could return – despite the lack of a certificate of occupancy – they were then told they must contribute $60,000 each to cover the cost of  construction to elevate their condo buildings. (4 buildings with 6 units each)

One of those units was owned by Charlotte Hurley of NC. Hurley sold her unit to John and Jennifer Mingora on October 13, 2013.

(In a separate lawsuit, attorneys for Mallard Lakes owners argue that all 477 members of the Association must share in the cost of elevating affected units, see previous blog.)

The Realtor representing both buyer and seller, Cynthia Spieczny of Resort Quest Real Estate in West Fenwick (DE), has sold many properties in Mallard Lakes and owns a unit in the condo association.

However, Hurley, Spieczny, and Mallard Lakes all failed to disclose to the Mingoras that the condo they purchased did not have a valid certificate of occupancy. The buyers were also not told that, as new owners, they might have to pay a $60K special assessment to cover their share of the cost of elevating the building.

Non-disclosure of material facts involving a real estate sale is against state law.

In late September of this year, Mingoras filed the following legal complaint. In the exhibits, see if you can spot misrepresentations in the seller disclosure. The complaint lists seven counts against the defendants, including breach of contract, fraudulent misrepresentation, and civil conspiracy between Spieczny and Mallard Lakes Association.

Mingoras paid $114,900 for the Mallard Lakes property. They seek reimbursement of their purchase price and related costs.

Legal complaint – non-disclosure of material facts

https://cldup.com/cc8OwXJRzB.pdf

Association tries to silence condo owners

Melissa Golden and other condo owners are stuck with condos they cannot legally occupy. They want to set the record straight with their neighbors, because Mallard Lakes Association has misrepresented or omitted key facts in official correspondence with their members. This has led to resentment toward victims of Super Storm Sandy.

But when damaged condo owners tried to communicate with their neighbors, or call attention to the issue at board meetings, Mallard Lakes Association filed a court order to prevent condo owners from speaking out in public.

The gag order was a blatant attempt at stifling free speech, one that was thankfully denied by a Judge this summer.

Judge won’t put gag order on Sandy-damaged condo owners

James Fisher , The News Journal 12:12 p.m. EDT July 22, 2016

A bitter disagreement over Superstorm Sandy damage to a set of Selbyville-area condo buildings won’t be tamped down by a court-imposed gag order, a Court of Chancery judge has ruled.

Vice Chancellor Sam Glasscock III ruled against the condominium association at Mallard Lakes, which had asked the court to stop some unit owners from speaking publicly about a dispute – and lawsuit – over whether Sandy-damaged structures have to be elevated and who will pay if they must be.

Read more:

http://www.delawareonline.com/story/news/local/2016/07/22/judge-wont-put-gag-order-sandy-damaged-condo-owners/87379894/

**Reposted with permission from Independent American Communities blog http://independentamericancommunities.com/

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Alan P. Gold reportedly had signature authority on Edgewater Condo Association accounts, but allegedly misused that authority to overpay himself for management services and other services not rendered.

According to reports, thefts occurred between 2010-2014. AP Gold Realty and Management’s license was revoked in 2014.

According to the criminal complaint, AP Gold may have managed up to 600 units located in 50 different client associations.

Condo association fees were deposited into nine different bank accounts, of which seven were under the sole control of Alan P. Gold, as sole proprietors of his management business. Also according to the criminal complaint, up to nine victim condo associations (VCAs) allowed Gold access to both their operating and reserve accounts for their respective associations. VCA board members report not receiving copies of actual bank statements for years.

Gold was in the habit of providing after-the-fact “owner statements of account” to condo board members by U.S. Mail. For example, in one association, the complaint notes that 22 “owner statements” reported inflated bank account balances and omitted multiple withdrawals that were made from both the association’s operating and reserve accounts.

The discrepancies were discovered in 2014 by the Treasurer of one VCA, who compared the actual bank statements with owner statements that had been mailed to him by Gold.

Charges in this case include mail fraud. If convicted, Gold could serve up to 20 years in prison.

This case is another reminder that owners should never defer unsupervised control of finances and bank accounts to an association manager or any one individual. Furthermore, at least two board members must obtain signature authority over all association bank accounts, and all board members should be receiving original bank statements for monthly review.

Property Manager Charged with Fraudulently Pocketing Fees from Chicago Condominium Association

**Reposted with permission from Independent American Communities blog http://independentamericancommunities.com/

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When a condo owner is faced with damages caused by the board’s actions or failure to act, legal expenses can quickly exceed $100,000. That prevents many owners from fighting for their legal rights in court. In some cases, a condo owner is forced to simply walk away from a damaged or uninhabitable unit.

That’s exactly what happened to Lisa Carlson, a former condo owner at Spanish Court II Condominium in Chicago. When a leaky roof caused damage to her unit in 2007 following a rain storm, Carlson’s insurance carrier refused to pay for repairs. Her insurance carrier made a determination that Spanish Court II was liable for the extensive water damage. But the Association’s insurance carrier, State Farm, refused to cover the claim as well. The board dug in its heels and informed Carlson she would have to pay for repairs to the interior of her unit herself.

Carlson stopped paying her assessments, and embarked on a seven-year legal battle with her Condo Association that wound up at the Illinois Supreme Court, where the Court made a landmark ruling that assessments must be paid No Matter What the circumstances – even if the association fails to hold up its end of the agreement to maintain and repair common areas, or to pay for damages caused to the interior of a unit because of that breach of fiduciary duty.

Additionally, according to Lerum, a condo board’s liability in cases involving breach of fiduciary duty are significantly limited by “exculpatory clauses.” In layman’s terms, that means that the bar for proving violation of fiduciary duty is set unusually high for a condo association board – a plaintiff must prove malice, gross negligence, or fraud. In the eyes of the law in Illinois and most other states in the U.S., a condo board member’s decisions and actions are presumed to represent the best interests of all owners, except in the most egregious cases. The legal burden is on the plaintiff to prove otherwise.

Following the Supreme Court decision, Carlson had racked up a debt of $400,000, including $200,000 of her own legal expenses and $108,000 of the Association’s legal expenses, which she was ordered to pay after she did not prevail on her case. The case was later refiled in the 19th Judicial Circuit, where a Judge awarded Carlson $195,000 in partial compensatory damages, due to “bad faith” errors and omissions by then Board President Maria Cassabaum, but Carlson still had to spend more than $200,000 to fight Spanish Courts II for seven years, all because the association failed to repair a leaky roof.

Meanwhile, Spanish Court Condo Association was covered by State Farm insurance policies paid for with assessments of all unit owners. High paid attorneys working for the insurance carrier defended the condo association and its board members at no out-of-pocket cost to them.

That’s why Lerum worked with Illinois House Representative Scott Drury to author and sponsor a condo reform bill that would have allowed owners to recover their legal costs in cases where breach of fiduciary duty can be proven. But House Bill 4489 was not approved for consideration this Legislative session. Lerum and Drury say they plan to reintroduce a “compromise” version of the bill next session.

As usual, the Illinois Chapter of  Community Association’s Institute (CAI) opposed the bill, taking the stance that the amendment would increase the incidence of litigation a therefore, increase legal costs for condo associations.

CAI consistently fails to acknowledge that the legal scales are unbalanced in favor of its industry stakeholders. But that is to be expected from an industry trade group.

The larger concern is why state Legislators seem more interested in protecting the interests of Community Association board members, management companies, and attorneys to the detriment of condominium owners and housing consumers in general.

Supporters of stalled condo board bill will try again next year

By Steven Dahlman

22-Aug-16 – Supporters will keep trying to get a bill passed that they say will help unit owners who are suing their condominium association.

House Bill 4489, along with two related amendments to the Illinois Condominium Property Act, was introduced on January 22 by 58th District Representative Scott Drury and assigned to the eleven-member Judiciary-Civil Committee but on March 2 it lost a motion, 3-8, for recommendation to the full House.

Chicago attorney Norman Lerum, who wrote preliminary versions of the bill, says Drury is “speaking with a number of members of the…committee in the hope of making compromises on the bill and doing something that would be acceptable to the majority and then perhaps reintroducing it in the next session.”

Among the changes to the Condominium Property Act, the bill would allow a unit owner to recover legal fees if breach of fiduciary duty by a board member is proven.

Read more: http://www.loopnorth.com/news/condo0822.htm

References:

Unit owners urge state lawmakers to help with condo board disputes

http://www.loopnorth.com/news/condo0304.htm

State bill to help with condo board disputes stalls

http://www.loopnorth.com/news/disputes0612.htm

**Reposted with permission from Independent American Communities blog http://independentamericancommunities.com/

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This week, we discuss how condo and homeowner associations are addressing the rampant bedbug problem infecting the nation.

Bedbug Compliance Mandated

The city of Chicago passed an ordinance in 2013 to help quell the growing problem of bedbugs in multifamily housing. With input from the Chicago Department of Public Health, the ordinance requires governing associations of condominium and cooperative buildings to prepare a pest management plan for the detection, inspection, and treatment of bedbugs. The ordinance also requires landlords to provide a brochure on bedbugs to tenants when they are signing a new lease or renewing an existing lease.

New York City now requires owners and managers of properties where bedbug infestations have been identified to inspect and treat units on either side of, above, and below and bedbug-infested unit. They must also use a licensed pest control professional to treat the infestation and employ a variety of treatment strategies rather than depending on chemical pesticides alone.1

If bedbugs persist or occur in multiple apartments in the same building, the department of health will require owners to take additional pest removal steps, including notifying residents that bedbugs have been identified in the building, and also to develop and distribute a building-wide pest-management plan to all residents.

Penalties for noncompliance can quickly add up. Violations will require an owner or manager to appear at a hearing before the city’s Environmental Control Board, where fines may be issued and noncompliant owners may actually end up with liens on their buildings. This is serious stuff – and a process to be avoided at all costs. The US Department of Housing and Urban Development (HUD) ha also published bedbug guidelines for owners and occupants. The guidelines may be found on the HUD website.

Bedbug Treatment

Treating bedbugs is difficult, but not impossible, and depends on the extent of the infestation – whether it’s in one unit or dozens. Treatment options include the application of extreme temperatures, such as freezing or high heat, high-powered vacuuming, steam, and pesticides, or a combination. Many bedbug strains have grown resistant to the pesticides available to treat them. Prices may range from a few hundred dollars to several thousands of dollars for larger infestations.

Contrary to popular belief, bedbugs are not an indicator of poor sanitation. However, excessive clutter provides them with more places to hide and makes them more difficult to treat.

“In an apartment building, the landlord has the authority enforce bedbug services or inspections,” said Sara Kantarovich, technical director and entomologist for Smithereen Pest Management Services in Niles, Illinois. “In a condo building, there’s no one authority who can enforce those kinds of procedures.” Many condo boards and managers won’t even discuss the subject, she said, “They want to keep things quiet. They fear that if word gets out, the value of their property will decrease.”

Association boards must never look the other way when it comes to bedbugs. They must be immediately proactive. The most successful associations will have a strong board that is willing to mandate inspections and remediation. Bedbug control is yet another expense community associations may need to add to their budgets.

1 _{Tom Soter, “What Do You Do When You THINK Your Co-op Has Bed Bugs?” Habitat Magazine, September 29, 2011.}

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This week, we delve into the dirty bedbug problem plaguing the entire nation.

Don’t Let the Bedbugs Bite!

According to a recent report issued by the US Department of Housing and Urban Development, bedbug infestations have become a serious problem in housing throughout the country. In recent years bedbug infestations have increased dramatically in all 50 states, reports the National Pest Management Association, which tracks the little critters. In 2000, bedbugs were a growing problem for only 25 percent of pest-control professionals. By 2010, a new survey found the pest experts were treating the bedbug epidemic 95 percent of the time.

Bedbugs thrive on human blood. They hide until they hunt for nourishment, which they typically do under cover of darkness. Amazingly, these pesky night biters can go for a year without food. You may not even know you have them until you wake up with small red welts on your skin – often three in a row. They will bite anywhere, but prefer soft spots on the body such as the inner arm, stomach, neck, breasts, or behind the knees.

Pest-management experts say bedbugs are on the rise because people are traveling more often to exotic locations and some are bringing them home. Bedbugs are especially attracted to environments inhabited by large numbers – their primary food source.

The environments they seek not only include condominiums and cooperatives- both luxury and modest – but apartments, hotels, hospitals, and assisted-living centers. They are equally fond of fitness center gym lockers and department store dressing rooms.

Scratching at the Problem

Take the case of the condo renter who woke up one morning with what looked like a few bug bites. She contacted a doctor friend and he said they looked like bedbug bites. The concerned renter spoke with her landlord, and an exterminator and he instructed her to look for signs of bedbugs (markings on sheets and shell casings), none of which were present. The exterminator said without such evidence, it’s difficult to tell if bedbugs are present and it might take at least a month to find such things.

“He gave me the number of a dog scene service,” the renter said, “Dogs can trained to locate live bedbugs when they are not visually present.” The renter asked the dog service to come out to check the apartment. “The owner of the dog service said the animal sensed bedbug activity in one corner of my box spring, but nowhere else in the unit. He could not, however, find any physical evidence, but he did believe- consistent with the bites I had received and the dog’s indicators – that there were bedbugs in the unit. He believed the infestation was very early and said it could be just one or two bugs.”

Not wanting to wait or let the problem worsen, the renter asked an exterminator to come and spray the entire apartment, and a second treatment was also scheduled. “I have also taken the additional precautions of washing and drying all of my linens and clothes in the entire apartment. The good news is that since they sprayed, I’ve had no new bites,” she said.

Bedbugs travel easily from unit to unit through electrical outlets, under baseboards, and across hallways. They hitchhike on luggage, clothing – and even pets. They do not distinguish socioeconomic classes.

The good news is that they won’t kill you and they don’t transmit disease. The bad news is that they do cause health problems, such as varying degrees of skin irritation due to itching, and can cause allergic reactions in some people, which may lead to secondary infections. They may also cause stress, anxiety, and insomnia.

As an owner of condominium or a cooperative, it is your duty to immediately inform your board of directors if you have the slightest suspicion that bedbugs are present. Just one week is a virtual eternity of breeding in the bedbug world. The board must quickly conduct its own investigation. Ultimately, it has the legal responsibility and duty to deal with the issue.

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This week, we continue our exploration with disturbing stories out of Michigan and New York.

Human Garbage Dump in Michigan

When inspectors checked a unit at the Wingate Condominium Association, just south of Ann Arbor, Michigan, they found rotting meat in plastic bags, decaying animals, animal feces, money strewn throughout the debris, around 30 bicycles, “unknown soft items” in various states of decay, and mold and raw chicken stuffed in the mailbox. Mice and rats were living in the heating vents and ducts of the low-rise property. Because their skin felt like it was being bitten by tiny insects, building officials wore disposable, protective outerwear and respirators while inspecting the home.

“It’s absolutely the worst scene you can imagine, in terms of just the nightmare of decaying food and rodents,” said township attorney Doug Winters. “It’s almost like a human garbage dump.” The condominium association and its property management company had to be ordered by a court to have the abandoned property completely cleaned and cleared.

New York Cleanup  

In one chic Upper East Side co-op, a reclusive owner had lived in the building for 20 years and had never permitted anyone into her apartment. It wasn’t a problem until a water leak began infiltrating the unit below.

“The entire apartment, floor to ceiling – and they were 10.5-foot-high ceilings – was filled with garbage bags,” recalls the board president. The debris was so thick that initially, the plumber could not find the source of the leak.

When the shareholder refused to work out arrangements with the board, they sued for eviction, arguing that the shareholder was in violation of her proprietary lease by failing to keep her unit in a habitable condition. She was given an ultimatum: either clean up or leave.

Suing for eviction was beneficial. The shareholder hired an attorney, whom the board insisted come out and personally inspect the apartment. That did the trick, said the president. The shareholder signed an agreement stipulating that she would remedy the problem within a certain time period, and if deadlines were missed, she would pay a fine. The agreement also gave the board the right to inspect her apartment on a periodic basis.

Is Hoarding Entertaining?

Apparently, Americans find hoarders fascinating. Recent series of reality television shows and documentaries have included TLC’s Hoarding: Buried Alive and A&E’s popular Hoarders. But when a hoarder lives next door or across the hall, it isn’t entertaining in the least. In fact, it’s a healthy and fire hazard.

Whether treasure or trash, compulsive hoarding is characterized by the excessive acquisition of stuff- mostly useless- and the inability to discard it. Hoarding has been associated with health risks, impaired functioning, and poor sanitation, and it negatively impacts personal and familial relationships.

Many hoarders have piles of debris to the ceiling with tiny pathways cutting through the clutter. Others have to climb over mountains of trash in order to move around. Hoarding becomes problematic when it crosses the line into health, safety, sanitation, and welfare issues.

Amid the piles of debris are often found rotting food, maggots, rats, roaches, vermin of every type, and animal feces. Hoarders can be difficult to spot, and an association may not know a problem exists until an emergency erupts.

“Hoarders tend to be antisocial and often won’t let anyone into their units,” said Tom Skweres, president of Wolin-Levin, a Chicago-based property management firm. Symptoms of hoarding may include foul odors, insects or vermin coming from a unit, and window blinds that are always closed.

Miami property manager Gloria Donnelli, owner of Elite Management Associates, said that she has had to call the fire marshal to explain the situation to owners. Her management company posts signs that there will be a fire department inspection on a certain day and time. Upon the department’s inspection, she then has the firemen explain the life safety issues involved with hoarding. They also explain the danger involved and how the situation puts other unit owners at risk.

“In Chicago we deal with this on a frequent basis,” said the late Mark Pearlstein, a condominium attorney. “The first step is to contact the family, but in most cases family members want nothing to do with the individual. The second step is to contact the neighborhood community police officer, who, if they respond, will notify the Board of Health and may refer the individual to a care facility on a temporary or permanent basis.”

Pearlstein stated: “More often, with a younger person, we advise the owner with a cease and desist notice that they have 48 hours to clean the  unit or we send in ServiceMaster to clean the premises and restore it to a sanitary condition. If the owner resists access, we seek an emergency injunction. Management or staff will often find insect infestation, thus justifying the emergency.”

In dealing with a hoarder, David Hill, an Atlanta, Georgia, community association manager, found that “in the end, the association had to obtain a court order. By the time we were able to enter the unit, the hoarder managed to accidentally burn the building down.”

Living inside a community-governed association requires neighborly involvement. Be sure to look for warning signs of hoarding and be vigilant about any insect or vermin infestations in your building.

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. This week, we begin an examination of HOA Horrors stories about roaches, bedbugs, and rats across the nation.

A “Biblical” Explosion of Roaches

Cleanliness may be next to godliness, but when your community is invaded by roaches, bedbugs, rats, maggots, and other vermin, it’s time for quick action.

New York City’s famed Ansonia has had an illustrious and remarkable past. The 18-story Beaux-Arts style structure was originally built as a hotel around 1900. Ninety-two years later, it was converted to a 430-unit condominium building.

Over the years, the Ansonia has been home to Babe Ruth, Igor Stravinsky, and Angelina Jolie and has been featured in several movies. During the 1960s and 1970s, it house an infamous gay bathhouse in its basement. Later, the club became, Plato’s Retreat, a renowned heterosexual swing club.

One couple at the Ansonia, Alan Arkin (not the famous actor) and his wife, Suzanne Bagert, said they were hardly able to sleep at night and stopped using their kitchen for fear of crawling critters. They started seeing roaches scurry about in 2006 and had an exterminator spray their unit, but it helped only temporarily. They started sleeping with the lights on.

Ms. Bagert, who worked from home, imagined roaches crawling on her neck. “My brushes my neck and I scream,” she said in an interview with the New York Times. Her husband found a roach in his sock.

After what Mr. Arkin called “a biblical-type explosion of roaches,” the couple filed a lawsuit in New York State Supreme Court against the Ansonia’s management. “This infestation,” Mr. Arkin wrote in his court papers, “has rendered their apartment completely unfit to live in.” According to the filing, the situation was so bad that the roaches were on the floor, the walls, the ceiling, the curtains, and even the couple’s bed.

The suit further alleged that his and his wife’s complaints were met by “doublespeak and half-truths.” Management reportedly responded by sending a maintenance worker to knock cockroaches off of the hallways walls, vacuum them up, and then wash the walls with soap and water, a treatment Mr. Arkin called “grossly and negligently” insufficient.

Mr. Arkin further states that management said the infestation was caused by an elderly tenant on the same floor who would not allow exterminators into her apartment.

Even if you’re the most spic and span housekeeper in the world, if you’re sharing walls, ceilings, or floors with a hoarder, or someone who simply keeps wet cat food out all day, getting rid of roaches – and even ants- can be next to impossible. It’s the actual physical nature of community living that is the most challenging.

If infestation exists, communities would be well served to have a regular maintenance schedule for extermination with mandatory cooperation from all unit owners. If the root source of the problem is overlooked, all the spray in the world will be only temporarily effective.

The post HOA Horror: Roaches, Bedbugs, And Rats Pt. 1 appeared first on Association Evaluation LLC..

This week, we discuss what mold actually IS and how to take action against it.

There’s a Fungus among Us

Mold is a fungus.To Some degree, it is always in the air- both inside and out. Mold is an equal-opportunity organism, and it doesn’t discriminate between new construction and older buildings, geographical locations or poverty and wealth. It can attack one unit at a time or infect an entire building through improperly maintained common elements, including HVAC systems.

A consistent water supply is ideal for mold growth. Building materials such as wood, drywall, and even dust, if combined with enough high humidity and moisture, will produce sufficient food sources for mold to multiply.

Newer buildings are sealed more tightly than older ones. They don’t “breathe” as much, and if there is any kind of leak or water infiltration, mold can quickly grow. Moisture is mold’s best friend. In buildings with central heating and air-conditioning systems, under certain conditions, mold spores can quickly spread throughout all of the units. Any type of leaks in a building – from water pipes to air conditioner lines – must be immediately repaired to prevent mold growth.

Indoor mold growth can typically be seen or smelled. Looks can vary from cottony, wet slime to velvety or grassy growth in a color chart that rivals the rainbow: white, black, red, green, purple, yellow, and brown, to name a few. It smells musty and musky.

Mold can secrete chemicals called mycotoxins, which can find their way into your body, entering through your nose,  mouth, and skin, lodging perhaps in your digestive tract, your lungs, or your brain, according to the New York Times. Among these toxins, are trichothecenes, which were rumored to have been used as a biological weapon during the wars in Afghanistan and Vietnam.

Most states have enacted legislation to mandate that sellers of residential real estate disclose in writing any known presence of mold, fungus, mildew, and similar organisms. Additionally, most statutes allow buyers to obtain an inspection specifically to diagnose mold conditions. It is important to remember than in addition to mold and mycotoxins, various types of bacteria may also be problematic.

How To Take Action against Mold

Removing mold by stopping the water source is the first step. Next, all mold should be treated and removed.The good news is that mold is a fragile organism and is easily killed by exposure to disinfectants, sunlight, and heat. However, mold’s means of reproduction is through a by-product known as “spores.” Spores are produced in huge quantities and are easily airborne and inhaled. To make the situation worse, spores are exceptionally resistant to chemicals and heat.

In these tough economic times, association boards should be vigilant in inspecting and assessing vacant or abandoned units. What often starts out as a small maintenance issues can easily turn into runaway mold in a vacant unit. At a minimum, monthly inspections of the appliances and all related hoses and connections for condensation and leaks should be made.

Mechanical units should be inspected to determine if heating, ventilation, or air-conditioning ducts, vents, and intakes are covered or blocked. Water heaters, furnaces, refrigerators, dishwashers, humidifiers, dehumidifiers, freezers and icemakers, and all plumbing lines and drains should be inspected.

If a unit is vacant, the main water supply to the unit should be turned off as well as the individual water supplies to all fixtures and appliances.

In Chicago, one Wicker Park owner heard water dripping in an adjacent bank-owned and long-abandoned unit. Upon inspecting the condominium, he found mold covering the kitchen and bathroom floors and giant mushrooms sprouting from the carpet. “I only got halfway down the stairs to the basement when I had to stop,” said owner Matt Duffey. “I was blown back by the stench of mildew.”

Boards have a duty to always take a mold complaint seriously and immediately investigate using appropriate and qualified experts. The expert should deliver a written report including recommendations for remediation. If the cost of mold abatement is anticipated to be large, bids from qualified contractors should be obtained.

Associations that ignore complaints often find themselves in the most hot water regarding mold claims. That trouble can easily lead to a lawsuit against the association if it fails to protect the health of its members.

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