Friday, February 7, 2014
HOA Transfer Fee Provides Rude Example in Civics
Civics:
the
study of the rights and duties of citizens and of how government works (or
doesn’t). A Bill
to rein in the use and abuse of HOA Transfer Fees (a fee assessed by property
managers on home sellers simply because they can) offers an ugly lesson in
civics. The Bill started out with
legislative support and enthusiasm. Legislators from both parties were shocked
and in disbelief about how the fee had no limit on the amount charged (ranging
from $50 to over $1,000), had nothing to do with work perform, the use of the
fee was in conflict with the law, and if home sellers didn't pay it they
couldn't sell their home. The Bill to rein in abuse with this fee was on track
for wide support. Then lobbyist from Colorado and Virginia who stood to lose
millions if the abusive fee was contained worked the halls of our legislature
and DORA (a government agency) to get the Bill killed or watered down. HOA home
owner groups continued to compile and present evidence on the abusive fees to
our legislators. They found support from realtors, property managers, home
owners, and even lawyers who were in favor of ending or limiting the fee. Some
legislators even labeled the transfer as "extortion". Then history repeated
itself. The sponsor of the Bill, who was appalled with HOA Transfer Fee
practices, flipped and ignored home owner interests and allowed the lobbyist to
not only get the Bill watered down to ensure no change took place but allowed
the interest group to direct the total rewrite of the Bill. The civics
lesson in all this is that citizens aren't so much simply apathetic in
participating in their government but understand that the system flunks as an
example to encourage citizen involvement.
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