Thoughts Provoked by Chris Webster's Comments
I've been saying for 18 years that the governance issues are the Achilles heel of this form of privatization.

Internally, many associations tend to display either too much apathy or too much conflict. Most are under-reserved, and the bottom third of the CID price curve is filling up with first-time buyers who have zilch in the bank, so when major repairs are needed associations tend to borrow the money and using their assessment stream as the security. The incentives work to almost guarantee inadequate reserves--if Americans move every five years on average, why pay today for somebody else's new roof in ten years? Sure, a smart buyer checks out the reserves, but how many buyers are that smart?

Externally, it is still unclear how CIDs are going to be built into the intergovernmental system, other than the fact that local governments like using them as cash cows.

Some state legislatures are indeed beginning to address these issues seriously, but they have had a tendency to focus on piecemeal, micro-management issues, passing laws saying it's OK to fly Old Glory if it isn't too big, or precisely how to handle proxies in HOA elections, instead of addressing the big issues--civil liberties, financial responsibility, secession, tax equalization, etc.

This policy area went from invisible to "Oh, my God," in about ten years--the 1980s. Now those who understand the problems are scared that touching things will make them worse.

Chris laid out the alternatives very well, I think. Maybe things are evolving toward greater accountability and maybe they aren't. We will see. I'd be interested in hearing what others think.