He suppressed and oppressed Nevada Homeowners with three layers of government – the board of directors, the Ombudsman, and the Commission – all totally controlled by the CAI foreclosure lawyers

March 04, 2005

By Philip Testa (View author info)

It is my understanding that Nevada State Senator Michael Schneider will appear before the California Legislature on March 9th to address the Legislature on the topic of STATE ASSISTANCE TO COMMON-INTEREST DEVELOPMENTS.

Senator Schneider will be accompanying Michael Buckley, a longtime high-profile CAI attorney. Mr. Buckley is also a long-standing member of the Community Associations Institute Legislative Action Committee. Presently, he is also Chairman of the Nevada Commission for Common-Interest Communities.

I write the following as a matter of conscience and as a warning to all concerned:

I first met Senator Schneider in 1996 during the period when our organization (Justice for Home & Condo Owners) was forming. At that point in time, we were well aware of the dangers posed to us by a trade association known as the Community Associations Institute ("CAI").

I was informed that Senator Mike Schneider would make a guest appearance at one of our meetings in 1996. Knowing nothing about him, I did some research work through a private source and discovered that Senator Schneider was a member of the CAI Legislative Action Committee. At that meeting, I listened to Senator Mike Schneider expound on the "little problems" within homeowners associations. I questioned him about CAI, and his response, to the best of my recollection, was: "Oh, they're just a bunch of nice folks who are trying to help. They know what they're doing because they are the professionals."

As the meeting broke up, I challenged Senator Schneider because of his membership on the CAI Legislative Action Committee. I then informed the four women dominant in the leadership of Justice for Home & Condo Owners about his affiliation with CAI -- they were outraged!


As the story goes, the four women were formidable in their approach to Senator Schneider the very next day. Senator Schneider reassured them that his activities with CAI were marginal and that he had the best interests of the homeowners at heart. The ladies came back from this meeting content in the belief that Senator Schneider would work in the Legislature on behalf of the homeowners.

At that point in time, the Justice organization had two goals in mind:

(1) reinstatement of constitutional protection to homeowners living on associations; and

(2) supervision of the "Industry" by the Attorney General's Office.

This was placed before the Nevada Legislature in 1997. Much clanging and banging and brouhahas happened in the 1997 Legislature. Much well-meaning posturing by the Nevada Legislature took place. Senator Schneider gave the appearance of going the entire nine yards for us, the homeowners.

As it turned out, then-Attorney General Frankie Sue Del Papa supposedly asserted that her office could not assume the financial burden of overseeing homeowners associations. After much wrangling, the Legislature decided to establish the Ombudsman's Office for Homeowners Associations. We at Justice were disappointed; however, Senator Schneider mentioned that it was a start and that it was better than nothing.

The Ombudsman's Office was placed under the supervision of the Real Estate Division. Little did we know then that CAI had undue influence over the Real Estate Division -- that they dictated policy and form. The person with the most prominent and dominant control of the Real Estate Division (and we have documented evidence to support this statement) was John Leach, then an associate of the aw firm of Woodburn & Wedge, and known as the "Founding Father of CAI Nevada."

The first Ombudsman in Nevada was Mary Lynn Ashworth. As Ms. Ashworth proceeded to operate on behalf of the homeowners, she was immediately hobbled by the then-Administrator of the Real Estate Division, one Joan Buchanan. Ms. Ashworth was denied funds; she was denied staff. CAI had made a mistake in thinking that Ms. Ashworth was a sycophant, and she told them so. She would not take direction from CAI.

There were many collisions between her, the aforementioned John Leach, and Real Estate Division Administrator Joan Buchanan. I know this to be true because I have in hand the documented history of these events. As Mary Lynn Ashworth continued in her endeavors on our behalf, she was warned to stop or she would be terminated. This advice came from Joan Buchanan, who we found out to be a member of the CAI. Mary Lynn Ashworth continued to follow her conscience and was terminated, supposedly by the Governor of Nevada, Kenny Guinn.

Our current Ombudsman was then appointed -- one Eldon Hardy. It appears that Mr. Hardy's credentials are that of a retired tire salesman with strong political connections in Nevada, with a crash course in arbitration. His office is nothing more than a platform for CAI propaganda and indoctrination. Since Mr. Hardy took office, nothing has changed that would truly benefit the homeowner; the same abuses still take place. However, much has happened to the detriment of homeowners living on associations throughout Nevada and the nation.

We at Justice unfortunately made an icon out of Senator Michael Schneider at the national level. Somehow, he acquired the title, "Father of the Homeowners' Bill of Rights," and became affectionately known as "Uncle Mikey" from coast to coast. He sold the concept of the Ombudsman at the national level. Eldon Hardy, with the assistance of Senator Schneider, jumped on the bandwagon and portrayed his office as the ideal that should be adopted nationwide.

As this was being done, Senator Schneider, almost single-handedly, with the backing of CAI, convinced the Nevada Legislature to form the Commission for Common-Interest Communities. So now we here in Nevada are suppressed and oppressed by three layers of government simply by buying a home. These three layers of government – the board of directors, the Ombudsman, and the Commission – are totally controlled by the CAI. The CAI appears to openly control all levels of government – city, county, state, and federal. In my personal opinion, this is more than appearance -- it is fact.

As I write this, I cannot find the words to express the shame and guilt that I feel for having assisted Senator Schneider in gaining his status as a friend of homeowners living on associations at the local and national levels. I have participated, along with the Justice organization, in creating a persona that is nothing more than a Judas Goat.

To those who are unfamiliar with the term "Judas Goat," it is a goat kept by slaughterhouses for the purpose of leading sheep into the slaughterhouse. Poor sheep, why not follow him? He is one of us.

In closing, let me apologize – first to the people of the State of Nevada, then to any state that has established the Office of the Ombudsman, and most especially to the State of California. I submit that anyone affiliated with the CAI should be looked upon with a jaundiced eye. I submit that any government official at any level who supports legislation submitted by the CAI should be looked upon with a jaundiced eye. I submit that any oversight of homeowners associations should be done by the State Attorney General's Office.

It is my opinion that a vast fraud is being perpetrated on the people of Nevada and this nation. It is my opinion that both state and federal governments should examine the operations of the CAI at both levels. In my opinion, we have more than the appearance of coercion, bribery, and bid-rigging. The federal government and most states have RICO (racketeer-influenced corrupt organization) statutes.

Has anyone ever asked who started the HOA concept? Who profits from it? Why do local governments mandate HOAs? Why are they mandated? Why do our politicians and bureaucrats tremble before the perpetrators of this vast fraud?

Again, let me apologize for allowing Senator Mike Schneider to assist the CAI in perpetrating this fraud upon the nation. It is my opinion that this movement to remove every homeowner in this country from constitutional protection is a greater danger to the country than Al Qaeda. Al Qaeda is easily identifiable and can be dealt with immediately in the harshest manner. We deal with CAI as if they are something other than what they really are. It is time that we recognize that their goal is "CORPORATE GOVERNANCE, the ABSORPTION OF GOVERNMENT BY CORPORATE STRUCTURE."

As a reminder, if you live on an association you have left the American Zone and are living on and in a corporation. Corporations are not subject to constitutional law.

As President Bush establishes democracy in other nations, perhaps we should ask him to stop the disintegration of our democracy here at home. Is it not time that we inform the President of the terrorist activities taking place on Homeowner Associations?

Click here to write Philip Testa - President - Justice for Home & Condo Owners