Joe Rogan Has COVID, Cancels Show... Admits He's on Ivermectin. Like and asshole.

The problem with your H.O.A. is that, as a corporation, an H.O.A. is a defective product.

The purpose of a corporation is to protect an investor's personal assets from the corporation's debts and liabilities.

But, as H.O.A. attorney Tyler Berding explained:

>Owners are essentially liable for the association’s debts. “What?” you say. Community associations are corporations, and aren’t shareholders protected from corporate obligations? Isn’t that the whole point of a corporation?

>Yes, most community associations are corporations ― non profit mutual benefit corporations. But there is a major difference between a community association and the typical business corporation. With a typical corporation the investors’ (shareholders’) liability is limited to the amount of their individual investment. Community associations usually have something more ― lien rights to an individual owner’s separate interest, either a lot or a unit, and the personal obligation of an individual owner for his or her share of assessments. So if an association assesses the members and someone doesn’t pay, the association has the authority to place a lien upon the individual’s property and enforce that lien for payment through the process of foreclosure and/or to sue the owner personally to collect the funds owed. The corporate structure of the association protects an individual owner from being solely responsible for the association’s total obligations, but not for his or her (or the lot or unit’s) share.

>That authority, extended to the association by way of CC&Rs recorded against each individual’s lot or unit has the effect of “passing through” the association’s obligations to the owners. > ... >The California Civil Code contains the following language: “Except as provided in this section, the association shall levy regular and special assessments sufficient to perform its obligations under the governing documents and this title.” We wrote about this provision in an article last year and described a court case where the judge used the authority given to boards to levy emergency assessments and the owners’ obligation to pay assessments as grounds to charge individual owners for a debt of the corporation. The import of that case was and is that individual lot and unit owners are not insulated from the debts of the corporation.

>A corporate bankruptcy filing essentially tells the world that the assets of the company are insufficient to meet its obligations to creditors. But, where the value of all of the real estate interests within the community can be accessed through the lien process to pay assessments, where assessments are backed by the personal assets of all owners, and where the association has a statutory obligation to assess, the property and personal assets of the owners essentially become the “assets of the company.” Collectively, these are likely to be more than adequate to pay any creditors. ("Why There’s No Protection for Members When Community Associations 'Go Broke'" January 27, 2010. emphasis added).

So when the unaccountable idiots and/or thieves who run the H.O.A. corporation make a bad business or legal decision, the home owners are on the hook. Everything the home owners own is forever collateral to whatever debts and liabilities the H.O.A. corporation creates -- even after the mortgage is paid off.

The idea that H.O.A. corporations somehow "protect property values" is one of the biggest frauds perpetrated on the American consumer.

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