Priceless ... But Not for them


Say hello to Presidio Terrace, a wealthy San Francisco community with an HOA that no longer owns its common grounds or the sidewalks and street that surround it.  How can an HOA not own its common grounds you ask?  Simple, it doesn't pay its taxes.

Here's the the background story.

Many years ago this community of the rich and famous -- past residents include Senator Dianne Feinstein, ex-Speaker of the House Nancy Pelosi, SF Mayor Aliota, and others -- decided to change HOA management.  I imagine previous management was not thrilled and probably offered little assistance during the transition.  The new management team, possibly to impress the HOA's wealthy members, immediately failed to pay the property taxes on the common grounds, a staggering sum of $14.95 per year.  This oversight, of course, would easily have been remedied upon the new management receiving the first delinquency notice.

Except they never received it.

It seems new management also forgot to change the HOA's mailing address with the post office. (Can you see in your mind's eye previous management snickering as it tossed delinquency notice after delinquency notice into the trash?)  So, after going 20 years without receiving a single property tax payment, the city of San Francisco finally got fed up and sent a final notice.  Which also went unpaid.  (The previous management now in full belly-laugh mode as it tosses final notice in trash.) You would think these millionaires would have hired a management team smart enough to hire an accountant who at least once in the past 20 years looked over the books and cried out

HEY, HAS ANYONE AROUND HERE BEEN PAYING PROPERTY TAXES?

But no, not these residents, not this new, better management team.

You would think that at least one resident, upon receiving the end of year settlement of accounts from the HOA, would have perused it and cried out

HEY, HAS ANYONE AROUND HERE BEEN PAYING PROPERTY TAXES?

But evidently not.

So the city did what all local governments do when property taxes go unpaid.  They put the property up for auction.  Still receiving no response from the HOA or the gazillionaire residents, the city sold the street, sidewalks, and other common areas to the highest bidder.

Who is the highest bidder, you ask?  A major real estate developer like Trump?  No.  A Celebrity looking to invest his or her money?  No.  A charity set up for the sole purpose of assisting very wealthy communities who fall on hard times?  No.  Another neighborhood competing with this one for the number 1 spot on the list of the rich and famous?  No.

The successful bidder: A first generation immigrant Chinese couple.

The successful bid -- $90,000 dollars.

The couple believes the property could bring in a lot of income and are considering their options. One option is to rent the parking spaces that line the street these expensive homes adorn.  The couple says they are offering them a good deal.  (Did I hear a chuckle in the air?)  However,  if the residents don't play ball, the couple might rent the spaces to people outside the community.  Parking space is at a premium in the city by the sea, and who knows who might end up with parking rights in front of the home of ex-Speaker of House.  Perhaps a shoe salesman Married with Children whose only cherished belonging is his 1980 chevy with a missing hood and last painted when originally purchased.

Of course, the couple is not naive.  Like any astute business couple purchasing the sidewalks and streets out from under a residential community, they knew to keep quiet until it was too late for the residents to do much about it.  For two years they said and did nothing, and neither did the residents. I assume this was to allow the purchase to mellow with age, making it harder for the residents to assert any remaining rights they might have.   With two years under their belt, the couple thinks now is the time to strike and turn the thumbscrews.

But here's what makes this fiasco so delicious.

For many, many years in the past, this neighborhood had a rule that the owners of these 35 mega-million dollar homes that line the street could only sell to white people, and now a Chinese-American couple own the property.  And it gets better.  Not oblivious to the irony, the couple have said

We love America. We've always wanted to own a little piece of it, and now we do.

I will tip my hat to them just as soon as I check with my HOA that our common property taxes have been paid.


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