The $14 per year tax for a “block-long, private oval street lined by 35 megamillion-dollar mansions” itself shows something totally out of whack with the state’s property tax system. San Francisco appears to have an average property tax rate of about 1.2%, indicating a value of about $1,170. With the 90k present sale valuation, the tax should go to about $1,080 per year. But the reality it is clearly worth far more, as the 35 owners are figuring out. It’s only fair to see them buy the land back for the HOA with the tax appropriately increased at least 1000 times. Would be a minor payment for those on this street.
As a former HOA president in Ohio, property taxes were a very clear obligation and line item on our budget. While I was involved, we changed from a self managed HOA to hiring a professional management company. One of the issues I saw going in was a similar failure of prior management (trustees and a part time administrator) to meet legal obligations because mail was sent to a former agent/attorney that retired without redirecting his business.
Likely there was a company managing this HOA and it will be interesting as the finger pointing begins for who dropped the ball decades ago, and who failed to follow up and correct an issue so basic to managing the assets of an HOA.
It looks like the mansion owners got a sweetheart deal because they are the "wealthiest 1%" politically connected movers and shakers of San Francisco, and yet they still managed to foul it up.
They all assumed that someone else was on top of things, and all the while nobody was.
Now watch them move and shake to take their street back by any means necessary. The Chengs may be the only people in the Bay Area who won't have sanctuary.
-PJ