On July 10th 1998 the Le Parc Home Owners Association lost a binding arbitration case in the amount of 6.7 million dollars. The majority of that amount was awarded for slander and trade libel based on actions of a construction manager under our employ.
How does this affect the homeowners?
Due to a loophole in the law,
1) The court has ordered our HOA to special assess it's
members to pay the award.
2) Our HOA has been taken over by a court appointed receiver who is scooping
up our regular monthly dues as well as the court ordered special assessment
and handing all of these funds over to the creditor.
3) The creditor is not required by the court and therefore has not been
paying our utilities such as water, gas (which heats our homes as well as
our water), trash pick-up, common area electricity and insurance premiums.
4) The interest alone grows at roughly $1900
dollars per day for the total judgment (over $200 dollars per month per homeowner). If the majority of our monthly dues as well as the special assessment
were applied directly to the debt, it would take approximately 30 years
to pay off.
5) Each and every homeowner has no limit of personal liability on this debt.
If some people are forced to walk away from their units, the homeowners
who remain will become responsible to makeup for and pay the difference.
In theory, one homeowner could become liable for the entire amount.
HOW DOES THIS AFFECT YOU, THIS COULD HAPPEN TO ANY MEMBER OF A HOMEOWNERS ASSOCIATION
If we cannot continue to fight this in court and win back the rights that the legislature clearly meant to give "Homeowners" and "Homeowner Associations", this WILL happen to many of the other 32,000 homeowner associations and their members in the state of California alone.
As homeowners, though we are not a direct party to the judgment, we are being backdoored and bullied by means of special assessments, liens and the threats of disconnection of our essential services. Many homeowners are seniors on fixed incomes or families who can't afford this mounting debt while their units are threatened with being uninhabitable. We must literally pass the hat to collect funds to raise money to defend ourselves in court. Our current outstanding debt for legal representation exceeds $100,000 dollars. Without help we cannot continue to fund our defense, find money to keep the lights and water on and quite simply "survive".
1) Call and write your Congressperson,
Senator, State Representative and the Governor. You'll find their phone numbers, addresses and e-mail here . Tell
them what is happening to us and demand that they take action to protect
all Homeowners Association and their members.
2) Contact the press, both print
and television and get them to report on this outrage.
3) Tell your friends, family and co-workers who are owners of Condos and
members of associations to do the same.
4) Pass this website on to anyone who is concerned and can help.
| C.AR.E. P.O. Box 940826 Simi Valley, CA93094 |
For more information look around this website or contact us via e-mail. Thank you very much for anything you can do to help.
This website is being maintained at no charge thanks to the kindness and hard work of many people.
© Community Association Rescue Effort 1999