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Speaker 1: What's going on. Thank you so much for listening to

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smartphone or tablet, and again, thank you so much for

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your support. So yesterday we had ap Dylan on from

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the North State Journal and she's the publisher of her

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newsletter More to the story, and we mentioned it that

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the Democrats up in Raleigh were doing a press conference

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or did a press conference yesterday, and it was a

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mock funeral that they did. I mean that's what they

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called it. They called it some sort of a funeral

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for all the dead bills, like pieces of legislation. Not

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people named William, but all the dead legislation that languish

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is now in eternity in the in committee they were filed,

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They never got committee hearings, they never got discussions, they

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never got votes. Woe is the Democrats. Democratic state lawmakers

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branded it a bill funeral. This is a piece at

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wr L by Laura Leslie. Believe she is their chief

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capital correspondent or something like that. She's been there for gosh,

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probably twenty years. But the eulogy gave way to a

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free wheeling complaint session. There's another word for a complaint session. Yeah,

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I'm not going to say it, but you know what

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that word is, Okay, But a free wheeling complaint session

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for leaders in the legislative minority who lamented wayne bipartisanship

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in the General Assembly. Right, this is always funny to me,

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Like you're gonna run hundreds of bills in the legislature

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when you are in the minority and you don't have

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any sense of what the majority is going to be

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with you on. So you're gonna run all these bills

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and none of them are going to go anywhere, and

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you're going to blame it on a lack of bipartisanship.

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Could it be? And I'm just spitballing here. I've never

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been an elected official, but I'm just gonna throw this

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out there as a potential reason is that they don't

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agree with your policies. I feel like that might be

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the reason they disagree with your proposal. It's not a

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matter of bipartisanship. It's that you don't have the votes,

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and you either don't know how to count votes, or

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maybe you just don't know how to count. But I suspect,

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I'm gonna be charitable, don't know how to count the votes.

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Because if you can count votes ahead of time, then

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why bother submitting the bill? Because if you know there

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are not votes for your particular bill, then why even bother? Oh,

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unless of course you want to hold a news conference

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at the end of the bill filing period and lament

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how the Republicans vote here hundreds of our bills, even

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though hundreds of your bills were garbage and they did

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not and they did not have majority support. Right, it's

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not a matter of them not hearing you. It's a

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matter of them disagreeing with you. Also going to throw

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this out there too, This is just another idea I'm having.

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But time is limited. We actually mark this with like

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things called seconds and minutes and hours and days and

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weeks and months and years and all of that. And

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these are finite periods of time. And so when you

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load the agenda with a thousand bills, you don't have

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the time to actually hear every single bill. You can't

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do debates on every single bill that gets filed, because

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anybody can file a bill, and people file really stupid ones.

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And when Republicans file stupid ones, they make the news.

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Democrats file a ton of stupid ones too, they never

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make the news. The memorial quote unquote, which a news

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conference in reality, was for the seven hundred and seven

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proposals filed by Democrats this year that never received a

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single committee hearing before the legislative deadline to pass their

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chamber of origin. So this is you've heard me talk

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about crossover. This is it's not music related, although maybe

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sometimes if it's like state song or something. But no

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crossover means bills filed in the House have to get

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through through committees, through the House vote, and sent over

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crossed over to the Senate, and the Senate filed bills

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have to do the same. They have to cross over

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by the deadline, and that's the crossover deadline, and that

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already passed, and so if it doesn't cross over, then

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the bill is basically dead. However, however, there is another

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way that you can still get stuff done if you

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have the votes. Once again, there's that thing having the votes. Right,

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it's called well, they call it gut and amend. That's

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what the legislators and the media call it, gut and demand.

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I prefer gutt and stuff because it sounds better. So

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you take a bill that's already crossed over, you gut it,

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like you rip out all of the all of the

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language of the bill that passed, and you stuff it

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full of another bill completely unrelated maybe, and then it

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has to get debated again and agreed upon again and

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voted on again and all that. So there is a

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way to do that. Very difficult if you were in

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the minority, because once again you don't have the votes

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to pull a gut and stuff all right.

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Speaker 2: So.

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Speaker 1: On the numbers, I was informed by a person who

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works up at the legislature that the numbers are actually

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thus oney. Eleven House bills were filed, two hundred and

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sixty four were passed by the House. There are three

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hundred two House bills still sitting in the House Rules Committee.

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About sixty six of those bills are gop bills. Okay,

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so it definitely it definitely seems like Democrats filed a

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metric buttload of bills that had no chance of going anywhere.

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And I'm not one to ascribe motive, but it is

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pretty convenient. Now they have a press conference of a

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funeral for all their dead bills. So the chambers passed

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hundreds of GOP backed bills before the crossover deadline. Both

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chambers Democrats introduced real solutions. According to Senator Lisa Grafstein,

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a Democrat from Wake County, she of the really weird

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colored hair. She says, they introduced real solutions for fixing

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what ails us in state government, hiring critical staff, cutting

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red tape, investing in the infrastructure behind state services. But

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Republicans actually didn't want to fix it, or, as I

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suggested earlier, it's possible they disagreed with your proposals and

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there's not enough time to hear them all, and you

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don't have the votes to pass them, so why waste

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everybody's time. Five months into the session, state lawmakers have

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only sent one bill so far to Democrat Governor Josh Stein.

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That was the disaster relief bill, which was signed into

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law in March. Now they've also the legislators have also

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been working on the budget, and they do a two

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year budget. It's a very big budget. It's like twenty

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five billion dollars or whatever it is. It's large or no,

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it may be over thirty now, yeah, I think it's

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over thirty billion. So that's the primary focus of the

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long session. They do a whole bunch of work and

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then you know, crossover deadline. They're not done. They're going

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to be going for another couple months here. Senate Democratic

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Leader Sidney Batch called the session one of the most unproductive,

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ineffective legislatures in modern history, which is surprising because I

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would think, is the minority party that disagrees with the

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majority party, you wouldn't want them to do a lot

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of stuff. Right, The fewer bills they actually pass, I

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would assume, the happier you would be. Why would you

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be demanding that they do Oh, you're demanding they do

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stuff you want them to do. Well, there's a there's

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a way to go about getting that stuff done is

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for you to win. Batch said that the Senate has

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taken more bills on social issues this year than ever before.

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See so it's not enough, while also being too much.

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Thank you Sidney Batch for that clarity. She also represents

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Wait County and too many bills and not enough bills.

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and celebrations. You've got graduations, weddings, anniversaries and the special

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days for mom and dad. Your family's making memories that

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are going to last a lifetime. But let me ask

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you are all of those treasured moments from days gone by?

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Are they hidden away on old VCR tapes, eight millimeter films,

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photos slides? Are they preserved? Because over time, these precious

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memories can fade and deteriorate, losing the magic of yesterday.

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a video. Dot com got a message here, It's a

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peat mail from Stan who says, on this hump day,

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I know we're only halfway through the work week, but

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this situation couldn't feel more right, and I feel a

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good one coming on. Does this ever happen to you? Pete?

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Enjoy the show? No? I no, you can't play it

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any other time except for the Friday as I'm you know,

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rolling out of here. And honestly, it does make a

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little bit more sense, like to close out a three

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to six, you know, because like the six o'clock going

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into right up at six o'clock, you know, five p

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forty five timeframe, most people getting off of work at

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that time. Yeah, but now I'm all my calendar is

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all out of whack, which is weird given my last name,

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even though it's not the same spelling. But it's all

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out of whack because I was off on Monday, and

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so I keep feeling like today is Tuesday.

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Speaker 2: You know.

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Speaker 1: So anyway, talking about some Raleigh action or inaction, which

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is what Democrats want but don't want all at the

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same time. But there is a bill that actually went

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through the Senate forty seven to zero, a bipartisan bill.

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The thing that Democrats said doesn't happen, actually happens. It

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actually happens quite regularly. This bill was approved in the

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Senate forty seven to zero. The bill, moving through the

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North Carolina General Assembly, could limit the power of Homeowners'

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Associations across the state or hoa's or as I call them, hoa's.

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Senate Bill three seventy eight, passed forty seven to zero,

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now heads over to the House. If approved, the bill

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would place a cap on HOAH fines. So if you're

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in violation for something and the HOA finds you for

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it first, that usually they give you, well they should

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give you the opportunity to correct the issue right and

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then if you don't correct it, then you get brought

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into a hearing, and the HOA board holds a hearing

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and then they make a ruling if you're in violation,

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and then they start assessing fines and people are like,

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I'm not going to do that, or maybe it's an

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absentee landlord or something, and so they don't show up

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for the hearing. Maybe it's a tenant that is in

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violation or something, and it starts racking up fines. And

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this would put a cap on the fines because people

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could end up owing thousands or even tens of thousands

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of dollars to the HOA, and then they could put

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a lean on the property. So if you try to

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sell the house, then you would have to pay off

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the fines first. And so you could conceive of a

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situation where somebody has been racking up fines for years

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and years and then they go to sell and they

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can't sell the house for more than the fines. It

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would also prevent foreclosures. It would ban for closures over

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unpaid HOA fines, so the HOA could not basically seize

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your property. Now, I like the idea, the concept behind

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this stuff, because I imagine you could have some completely

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out of control HOA boards. I've never had, well, let's

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put a pin in that one. I've never had a

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resident controlled HOA board that behaved in this kind of

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a way. So I don't know what that process would

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look like. The only thing that I ever got in

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trouble for I've lived in two hoa's, one currently, one

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previously and the previous one. Like they said, you got

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weeds in your yard, and so I went out and

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pulled weeds in my front yard and that was it.

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Current hoa, we got a warning because my garbage cans

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were on the side of the house and they were

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visible from the street. And that is a no. No,

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you're not allowed to have good We are not allowed

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to produce garbage. We get the cans, we pay for

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service and all of that, like the garbage collection. However,

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you're not allowed to let anybody know that you actually

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generate trash in your house. So you have to screen

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the garbage cans from view. They can't be visible from

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your neighbor's house, they can't be visible from the street.

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So basically you got to put them in like a

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garbage can corral, and there are specifications for what that

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is supposed to look like. Or you could put them

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in a shed. Haha. No, you can't put them in

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the shed because sheds are banned too, So you got

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to put them in your garage. And that's where my

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garbage cans live. They live in the garage, which also

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requires us to put the little wall plug ins to

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keep it fragrant in the garage because otherwise in the summertime, yeah,

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it would get pretty bad at any rate. I can

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see how these the fines in the foreclosures. I can

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see why or how rather that would that would be

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abused by out of control HOA boards. However, there's another

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side to this, which is how do you get people

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to comply with things, like when they are in gross violation,

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Like somebody has piled up a whole bunch of like

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dilapidated vehicles in the front yard and that just happens

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00:15:47,399 --> 00:15:49,559
to be next door to you. Right, they're running a

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junk yard basically in their front yard, and that's against

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the rules. So they would start getting fines, but now

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you can never actually force them to correct the behavior, right,

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So there's the other side of this issue. It also

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this legislation would also ban hoas from finding people who

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00:16:09,320 --> 00:16:14,200
run home businesses like music lessons or tutoring services, which

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00:16:14,360 --> 00:16:17,440
I feel like that's appropriate, Like you should not be

258
00:16:17,600 --> 00:16:21,600
you should not be prevented from offering piano lessons in

259
00:16:21,639 --> 00:16:25,080
your house, Like that's as long as it's not at

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00:16:25,120 --> 00:16:26,960
like three in the morning and can be heard by

261
00:16:26,960 --> 00:16:30,960
all your neighbors, Like that's you can't be banning that

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00:16:31,080 --> 00:16:36,320
kind of stuff. However, there are parts of this bill

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I think that don't go far enough. All Right, if

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you're listening to this show, you know I try to

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00:16:41,679 --> 00:16:43,480
keep up with all sorts of current events, and I

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00:16:43,519 --> 00:16:45,720
know you do too. And you've probably heard me say

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00:16:45,840 --> 00:16:49,879
get your news from multiple sources. Why well, because it's

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00:16:49,919 --> 00:16:52,600
how you detect media bias, which is why I've been

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00:16:52,639 --> 00:16:56,200
so impressed with ground News. It's an app and it's

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00:16:56,320 --> 00:16:59,159
a website, and it combines news from around the world

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00:16:59,200 --> 00:17:02,639
in one place. You can compare coverage and verify information.

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00:17:02,919 --> 00:17:06,559
You can check it out at check dot ground, dot news,

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00:17:07,039 --> 00:17:10,160
slash pete. I put the link in the podcast description too.

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00:17:10,519 --> 00:17:12,880
I started using ground News a few months ago and

275
00:17:13,039 --> 00:17:15,599
more recently chose to work with them as an affiliate

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00:17:15,640 --> 00:17:18,960
because it lets me see clearly how stories get covered

277
00:17:19,039 --> 00:17:21,920
and by whom. The blind spot feature shows you which

278
00:17:21,960 --> 00:17:24,839
stories get ignored by the left and the right. See

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00:17:24,839 --> 00:17:29,920
for yourself check dot ground, dot news, slash pete. Subscribe

280
00:17:29,920 --> 00:17:32,839
through that link and you'll get fifteen percent off any subscription.

281
00:17:33,160 --> 00:17:35,880
I use the Vantage plan to get unlimited access to

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00:17:35,960 --> 00:17:39,400
every feature. Your subscription then not only helps my podcast,

283
00:17:39,440 --> 00:17:41,799
but it also supports ground News as they make the

284
00:17:41,839 --> 00:17:47,599
media landscape more transparent. Talking about out of control Hoah's

285
00:17:48,440 --> 00:17:54,160
Hoa's legislation moving through the general Assembly right now would

286
00:17:54,599 --> 00:17:59,680
seek to rain them in and their abuses, from banning

287
00:18:00,799 --> 00:18:05,079
foreclosures over unpaid fines, placing a cap on those fines,

288
00:18:05,640 --> 00:18:09,400
banning hoas from finding people who run home businesses like

289
00:18:09,519 --> 00:18:13,799
music lessons or tutoring services. And according to Charles Williams

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00:18:13,799 --> 00:18:17,039
with the North Carolina Citizens for HOA Reform, the state

291
00:18:17,119 --> 00:18:18,960
still has a long way to go, but he says

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00:18:18,960 --> 00:18:21,960
this is a step in the right direction. He said, quote,

293
00:18:22,759 --> 00:18:25,359
there is not a single agency in this state that

294
00:18:25,440 --> 00:18:28,519
has oversight of the HOA industry. So if you have

295
00:18:28,599 --> 00:18:31,920
a problem, there's really no place as a homeowner for

296
00:18:32,000 --> 00:18:35,759
you to go. We have some of the weakest HOA

297
00:18:35,920 --> 00:18:39,839
laws in the country. Anybody who has done battle with

298
00:18:39,880 --> 00:18:44,160
an HOA in North Carolina knows this. There is nowhere

299
00:18:44,160 --> 00:18:49,039
to go. Let me get to Greg real quick here. Hello, Greg,

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00:18:49,079 --> 00:18:50,039
welcome to the program.

301
00:18:50,680 --> 00:18:52,319
Speaker 3: Hey yeah, good question.

302
00:18:52,480 --> 00:18:52,799
Speaker 2: All right.

303
00:18:53,359 --> 00:18:56,400
Speaker 3: I'm in real estate and if I managed property, you

304
00:18:56,440 --> 00:18:59,559
have to have a real state license be a broker

305
00:18:59,559 --> 00:19:04,000
in charge. There's no law that requires does has changed

306
00:19:04,039 --> 00:19:07,640
the law that requires HOA management company to have a

307
00:19:07,640 --> 00:19:11,079
broker in charge so that there's some recourse that you

308
00:19:11,119 --> 00:19:14,240
could go to the North Carolina Real Estate Commission.

309
00:19:14,319 --> 00:19:16,839
Speaker 1: If you have a problem, I don't know. I don't

310
00:19:16,880 --> 00:19:21,680
know if if that is in this bill, I can

311
00:19:21,720 --> 00:19:25,640
go check. I don't remember seeing it. Yeah, I mean

312
00:19:25,720 --> 00:19:27,799
it's like twelve pages long. I read it a couple

313
00:19:27,759 --> 00:19:30,880
of days back. I don't recall seeing anything about that.

314
00:19:30,920 --> 00:19:33,160
But that's not to say that it wasn't in there

315
00:19:33,920 --> 00:19:36,000
or doesn't it. And you're saying that this does not

316
00:19:36,160 --> 00:19:37,200
exist at the moment.

317
00:19:38,400 --> 00:19:41,279
Speaker 3: No, anybody off the street could just start an HOA

318
00:19:41,400 --> 00:19:45,000
management company and if you can talk at HOA management

319
00:19:45,160 --> 00:19:50,000
board to hire you, right, And and then that's why

320
00:19:50,039 --> 00:19:52,279
you get so many letters, because they make money by

321
00:19:52,319 --> 00:19:53,000
each letter.

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00:19:54,440 --> 00:19:57,880
Speaker 1: So that has not been my experience there. We're actually

323
00:19:58,000 --> 00:20:02,559
our h OA is now abandoning it because it's too expensive, right,

324
00:20:03,039 --> 00:20:06,119
It's too expensive to the homeowners that are paying for

325
00:20:06,200 --> 00:20:09,160
the postage. It's a separate line item in the budget.

326
00:20:09,599 --> 00:20:12,319
And the more letters that they send, and especially in

327
00:20:12,359 --> 00:20:14,160
a neighborhood as big as mine, I don't know. Do

328
00:20:14,400 --> 00:20:18,559
you live in an HOA now now much better?

329
00:20:19,000 --> 00:20:19,279
Speaker 2: Right? No?

330
00:20:19,400 --> 00:20:21,720
Speaker 1: I understand that. But part of the problem in North

331
00:20:21,720 --> 00:20:24,960
Carolina is that a lot of builders believe that they

332
00:20:25,000 --> 00:20:27,920
have to do hoa's as part of a Planned Community

333
00:20:28,000 --> 00:20:31,759
Act provision in existing law, and they don't have to,

334
00:20:32,119 --> 00:20:35,240
but they do it so they can maintain total control

335
00:20:35,400 --> 00:20:39,559
during the build. And that is because when you're building

336
00:20:39,599 --> 00:20:42,119
a neighborhood, the builder is the HOA.

337
00:20:43,799 --> 00:20:44,920
Speaker 3: Yeah. I work for a builder.

338
00:20:45,039 --> 00:20:48,680
Speaker 1: Yeah, and that to me is a huge problem. That's

339
00:20:48,799 --> 00:20:51,200
that's been my experience that that is a huge problem

340
00:20:51,359 --> 00:20:55,359
because the builder then can make mistakes, do shoddy work,

341
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and then offload the costs of repairing to the homeowners

342
00:21:01,119 --> 00:21:04,440
when they should have been the ones held accountable. But

343
00:21:04,480 --> 00:21:07,039
because it's them, they're not going to hold themselves accountable

344
00:21:07,079 --> 00:21:07,880
unless they choose to.

345
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Speaker 3: My boss made a new neighborhood and she bought the

346
00:21:14,119 --> 00:21:16,759
first lot and she cut it out of the neighborhood

347
00:21:16,799 --> 00:21:20,079
so it wouldn't be intohoa. Wow, she ran too.

348
00:21:21,880 --> 00:21:27,720
Speaker 1: Unbelievable actually, very believable in this state. Very believable. Yeah, Greg,

349
00:21:27,720 --> 00:21:29,480
I appreciate the call. I'll take a look and see

350
00:21:29,480 --> 00:21:35,039
about the real estate. Say license, I'll take a look.

351
00:21:36,039 --> 00:21:40,599
Next up is Gary Hello, Gary, Hello, Yo, what's up.

352
00:21:41,599 --> 00:21:47,039
Speaker 4: Well, I'm dealing with hoa's. I found something that shut

353
00:21:47,160 --> 00:21:52,480
them up and made them leave me alone. I found

354
00:21:52,519 --> 00:21:57,240
out that the HOA whenever it was established, did not

355
00:21:57,519 --> 00:22:02,759
complete all of its paperwork all those years ago, and

356
00:22:02,839 --> 00:22:08,440
so the state threatened to shut down the HOA. And

357
00:22:08,519 --> 00:22:11,880
so that's something that if people have problems with hoa's

358
00:22:12,000 --> 00:22:13,279
they might want to check into.

359
00:22:13,559 --> 00:22:15,799
Speaker 1: That's I'm assuming you're talking about the declaration.

360
00:22:17,119 --> 00:22:21,960
Speaker 4: Yes, yeah, yeah, the HOA itself, whenever it filed with

361
00:22:22,039 --> 00:22:26,559
the state to be an entity, they did not complete

362
00:22:26,599 --> 00:22:27,480
all the paperwork.

363
00:22:27,960 --> 00:22:30,400
Speaker 1: So that was that the builder or was that when

364
00:22:30,640 --> 00:22:32,200
homeowners took over?

365
00:22:34,079 --> 00:22:35,279
Speaker 4: When homeowners took over?

366
00:22:35,559 --> 00:22:38,000
Speaker 1: Okay, so right, so the builder had the paperwork and

367
00:22:38,319 --> 00:22:40,200
set it all up, and then the paperwork for the

368
00:22:40,759 --> 00:22:44,200
turning over to the resident controlled HOA board, that's where

369
00:22:44,240 --> 00:22:48,160
they messed up, right, Yeah, so not the declaration, got you? Okay,

370
00:22:48,359 --> 00:22:51,720
Well that's a good lead if if you're having problems, Yeah,

371
00:22:51,759 --> 00:22:55,039
take a look at the original paperwork. So this to

372
00:22:55,079 --> 00:22:57,240
me is why I say that this bill And thanks

373
00:22:57,279 --> 00:22:59,759
for the call, Gary, I appreciate it. It's a good tip.

374
00:23:00,240 --> 00:23:03,200
But yeah, you got to have all the documentation. You

375
00:23:03,279 --> 00:23:06,000
got to if you're in an HOA neighborhood, you've got

376
00:23:06,039 --> 00:23:09,680
to have all of the documentation saved onto a personal

377
00:23:09,720 --> 00:23:13,839
file or a cloud whatever, but you got to you

378
00:23:13,880 --> 00:23:18,799
got to know it all, all the original documents, because

379
00:23:19,200 --> 00:23:24,319
things get said in the neighborhood and among residents and

380
00:23:24,960 --> 00:23:27,359
by the board, and things just become sort of like

381
00:23:27,480 --> 00:23:32,000
accepted as the truth. And then you find out years later, no,

382
00:23:33,039 --> 00:23:35,880
that's not true. Oh there actually isn't a rule that

383
00:23:35,920 --> 00:23:38,359
governs this thing. That everybody thought there was a rule

384
00:23:38,400 --> 00:23:41,480
saying you couldn't do this sort of thing, and turns

385
00:23:41,480 --> 00:23:44,759
out there isn't a rule. Because it's usually it's very

386
00:23:44,759 --> 00:23:49,279
hard to change what's called the CCRs, the codes, covenants

387
00:23:49,279 --> 00:23:53,000
and restrictions right that you you usually need like two

388
00:23:53,079 --> 00:23:56,079
thirds of the neighbors to vote for some sort of

389
00:23:56,079 --> 00:24:00,000
a major change to your CCRs, and so it's very

390
00:24:00,079 --> 00:24:02,720
difficult to do. So a lot of boards will try

391
00:24:02,720 --> 00:24:06,599
to get around it. And as you might imagine, if

392
00:24:06,640 --> 00:24:09,319
the board is still controlled by the builder in a

393
00:24:09,400 --> 00:24:13,440
new neighborhood still under construction, and they're like, we'll turn

394
00:24:13,480 --> 00:24:17,319
it over when seventy percent or eighty percent of the

395
00:24:17,440 --> 00:24:20,440
units are sold, and then they'll start turning it over.

396
00:24:21,599 --> 00:24:23,839
But they don't have to set it at seventy percent.

397
00:24:24,000 --> 00:24:27,039
They can set it at one hundred percent, and that

398
00:24:27,079 --> 00:24:30,640
neighborhood could take a decade to build. And so residents

399
00:24:30,720 --> 00:24:33,839
never get control over that board. And that board is

400
00:24:33,880 --> 00:24:37,559
basically controlled. It is controlled by the builder, and then

401
00:24:37,599 --> 00:24:41,960
the builder can change the rules however it chooses, and

402
00:24:41,960 --> 00:24:45,839
they're only required to have one meeting a year for

403
00:24:46,240 --> 00:24:51,279
their budget quote ratification of the board by the board.

404
00:24:51,319 --> 00:24:53,240
Home owners don't get a vote on it, but they

405
00:24:53,279 --> 00:24:56,480
have to have a meeting. So they show you here's

406
00:24:56,519 --> 00:25:00,400
the spending. And here's a little secret I learned. They

407
00:25:00,480 --> 00:25:03,200
keep the HOA assessment levels, the dues, they keep them

408
00:25:03,240 --> 00:25:06,160
low while they're selling their units, and then when they're gone,

409
00:25:06,599 --> 00:25:09,359
you find out you don't have any money because they

410
00:25:09,359 --> 00:25:13,960
haven't been funding for all the maintenance. This is a

411
00:25:14,000 --> 00:25:17,440
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All right, let's go over to the phones though and

434
00:26:31,319 --> 00:26:33,799
talk to Mark. Hello, Mark, Welcome to the show.

435
00:26:34,720 --> 00:26:36,039
Speaker 2: Hey Pete, how you doing.

436
00:26:36,160 --> 00:26:38,200
Speaker 1: I'm all right, how are you good?

437
00:26:38,240 --> 00:26:42,160
Speaker 2: Good? I call uh just tuned in and called the

438
00:26:42,240 --> 00:26:45,759
fact that there's some legislation moving through North Carolina. But

439
00:26:45,799 --> 00:26:48,480
I wanted to give you a little perspective on South Carolina.

440
00:26:48,599 --> 00:26:50,799
All Right, I'm right across the border. I live in

441
00:26:50,799 --> 00:26:53,480
an h I live in a neighborhood where the developer

442
00:26:54,119 --> 00:26:57,400
still controls the HOA because he's still building out right,

443
00:26:57,799 --> 00:27:02,599
and he has not followed his own bylaws. He went

444
00:27:02,720 --> 00:27:05,880
two or three years without sending out any financial statements

445
00:27:06,759 --> 00:27:11,079
to to the to the residents, and so we began to,

446
00:27:11,720 --> 00:27:13,839
you know, complain. Of course, we signed, We got a

447
00:27:13,839 --> 00:27:17,279
neighborhood petitioned up for him to follow his own bylaws.

448
00:27:18,039 --> 00:27:21,000
Long story short, there's not a lot of recourse at

449
00:27:21,000 --> 00:27:23,240
the state level. We went all the way to the

450
00:27:23,279 --> 00:27:27,759
Attorney General's office, and he falls under HOA. Developer h

451
00:27:27,880 --> 00:27:32,359
a's fall under the non Profit Act in South Carolina,

452
00:27:32,440 --> 00:27:34,759
which simply says, you know, you have to act on

453
00:27:36,000 --> 00:27:40,160
in fiduciary duty if you run a nonprofit and you

454
00:27:40,240 --> 00:27:44,240
have to respond to the people that benefit from the nonprofit.

455
00:27:44,640 --> 00:27:47,279
Problem is, there's no teeth in the law in the

456
00:27:47,319 --> 00:27:49,680
Act that says, well, what if you don't do that,

457
00:27:49,720 --> 00:27:53,400
what if you breach your faibuciary duty. So the end

458
00:27:53,400 --> 00:27:57,680
result was we were told get a lawyer, and so

459
00:27:58,039 --> 00:28:02,240
it really is ranked with potential for abuse and we're

460
00:28:02,240 --> 00:28:04,359
suffering it right now. Oh yeah, we do have a

461
00:28:04,400 --> 00:28:08,599
lawsuit against against this developer. Can't go into a lot

462
00:28:08,640 --> 00:28:11,640
of detail about that. Sure, it's not an easy route, Pete.

463
00:28:11,680 --> 00:28:12,640
It is not easy.

464
00:28:12,799 --> 00:28:15,599
Speaker 1: No. And that's the other thing too, is the litigation

465
00:28:15,720 --> 00:28:20,119
that you have to pursue. You are just residents. You

466
00:28:20,279 --> 00:28:23,160
just have to band together and take up a collection.

467
00:28:23,279 --> 00:28:27,279
You can't even use HOA funds. You're not even an entity.

468
00:28:27,359 --> 00:28:31,000
You're not an HOA. So like, who's the client in

469
00:28:31,079 --> 00:28:35,920
that lawyer customer relationship? Right, you have to raise the

470
00:28:35,960 --> 00:28:36,480
money yourself.

471
00:28:36,519 --> 00:28:40,960
Speaker 2: I'm assuming you're exactly right. We banded together. We got captains,

472
00:28:41,000 --> 00:28:43,519
you know, captains in the neighborhood, so to speak, door

473
00:28:43,519 --> 00:28:47,039
to door because I could money. It's just a lot

474
00:28:47,079 --> 00:28:50,799
of work and even today it's moving through the system.

475
00:28:51,440 --> 00:28:54,599
They've challenged us, they said, you know, each individual has

476
00:28:54,640 --> 00:28:58,359
to sue them directly. Our lawyers argue that we're a

477
00:28:58,400 --> 00:29:02,480
class action, and I think the last I saw we're

478
00:29:02,480 --> 00:29:05,519
getting approved to be that with right, Thank goodness, you know,

479
00:29:05,559 --> 00:29:07,799
because then we'd really do on on the ropes if

480
00:29:07,799 --> 00:29:11,599
we each had to sue directly. But yeah, anyway, just

481
00:29:11,680 --> 00:29:15,200
wanted to share that, and you know, I just feel like, oh,

482
00:29:15,240 --> 00:29:19,640
I'll give you this too. So the legislature said, Okay, well,

483
00:29:19,640 --> 00:29:21,960
we realize there's a lot of problems with hoa's, and

484
00:29:22,519 --> 00:29:24,720
we're going to create a you know, we're gonna we're

485
00:29:24,720 --> 00:29:27,319
going to create a hotline with a consumer affairs department

486
00:29:27,319 --> 00:29:31,440
in South Carolina for people to register complaints with their

487
00:29:31,559 --> 00:29:34,880
hoa's and then we'll use that to inform us on

488
00:29:34,960 --> 00:29:39,519
future legislation. Which that was five years ago. MERGYA has

489
00:29:39,640 --> 00:29:42,880
just they've had tons of issues down there. Uh and

490
00:29:42,960 --> 00:29:45,000
so really it's just to kick the can from what

491
00:29:45,160 --> 00:29:48,400
we can tell, you know, with the legislature. But it's unfortunate.

492
00:29:48,559 --> 00:29:51,160
Hopefully they'll learn something from what may be happening in

493
00:29:51,160 --> 00:29:51,839
North Carolina.

494
00:29:52,039 --> 00:29:54,519
Speaker 1: I don't. Yeah, And here's the other thing. When you're

495
00:29:54,559 --> 00:29:58,720
dealing with a legislature that is packed with people who

496
00:29:58,759 --> 00:30:02,640
have to run for election, they get campaign contributions, and

497
00:30:02,680 --> 00:30:05,799
they usually get most of them from the developers that

498
00:30:05,960 --> 00:30:10,160
are benefiting from the lack of oversight and controls.

499
00:30:11,119 --> 00:30:13,519
Speaker 2: Absolutely. I mean the whole thing. You think about everybody

500
00:30:13,559 --> 00:30:17,119
that benefits from pro development, and you know there's bankers

501
00:30:17,160 --> 00:30:21,119
and mortgage companies and real estate agents and builders and construction,

502
00:30:21,200 --> 00:30:24,200
and so you weigh all that in and people are like, well,

503
00:30:24,200 --> 00:30:27,279
we don't want to handcuff development. I mean, we're very

504
00:30:27,279 --> 00:30:27,920
pro development.

505
00:30:28,000 --> 00:30:28,359
Speaker 1: Same here.

506
00:30:29,599 --> 00:30:34,200
Speaker 2: Yeah, but you're right, that's that's what's your up against. Yeah, okay, all.

507
00:30:34,160 --> 00:30:37,119
Speaker 1: Right, well good yeah, good luck to you. Mark. Yeah,

508
00:30:38,000 --> 00:30:43,079
I know the I know the feeling Ralph was calling.

509
00:30:43,200 --> 00:30:45,720
I think Ralph's I saw on the board that he

510
00:30:45,759 --> 00:30:48,400
had a comment about the Palisades. That's sort of the

511
00:30:48,400 --> 00:30:53,359
poster child in Charlotte for this kind of uh, these

512
00:30:53,440 --> 00:30:54,240
kinds of problems.

513
00:30:54,319 --> 00:30:54,480
Speaker 2: Right.

514
00:30:54,519 --> 00:30:57,400
Speaker 1: They they laid in a road if I recall correctly,

515
00:30:58,000 --> 00:31:01,400
and the developer did and then didn't maintain it. And

516
00:31:01,440 --> 00:31:06,160
then a lot of times the builders will they will

517
00:31:06,200 --> 00:31:10,680
not fund the reserve accounts, and if they do, they

518
00:31:10,839 --> 00:31:14,079
draw them down so rapidly when they fix everything on

519
00:31:14,119 --> 00:31:15,920
their way out the door. So they get their bonds

520
00:31:15,920 --> 00:31:17,799
back because whenever they start building, they got to get

521
00:31:17,799 --> 00:31:20,799
bonds with the city, and then they want the bonds back.

522
00:31:21,400 --> 00:31:23,039
So in order to get the bonds back, the city

523
00:31:23,079 --> 00:31:25,480
has to approve it. But the homeowners are not included

524
00:31:25,880 --> 00:31:28,519
in any of this process. They don't have to be included.

525
00:31:29,000 --> 00:31:31,839
As long as they pass the city checklist, then that's fine.

526
00:31:31,920 --> 00:31:33,880
And then they get their bond back and they're gone.

527
00:31:34,160 --> 00:31:37,240
And then you realize, oh, they haven't fixed all of

528
00:31:37,279 --> 00:31:41,319
this stuff, and that means the you have to tap

529
00:31:41,359 --> 00:31:44,400
into reserves. Oh but they haven't funded the reserves or

530
00:31:44,440 --> 00:31:49,640
they drained them. See this is like, yeah, this can

531
00:31:49,680 --> 00:31:55,920
be cataclysmic, like bankruptcy territory for Hoa's all right, that'll

532
00:31:55,920 --> 00:31:58,599
do it for this episode. Thank you so much for listening.

533
00:31:58,720 --> 00:32:00,799
I could not do the show without your support and

534
00:32:00,880 --> 00:32:03,599
the support of the businesses that advertise on the podcast,

535
00:32:03,960 --> 00:32:06,039
so if you'd like, please support them too and tell

536
00:32:06,079 --> 00:32:07,759
them you heard it here. You can also become a

537
00:32:07,799 --> 00:32:12,480
patron at my Patreon page or go to dpetecleanershow dot com. Again,

538
00:32:12,720 --> 00:32:15,279
thank you so much for listening, and don't break anything

539
00:32:15,279 --> 00:32:17,000
while I'm gone.

