Gilbert, AZ, mandating HOAs
Thanks to the Yahoo group "hoanet" for some excellent work on developing the facts on the most important trend in the rise of residential private government: the increasingly common practice of cities requiring developers to create HOAs in new housing as the price of building in lucrative high-density PUD zones. This practice eliminates choice in the new housing market and conscripts people into HOAs whether they want them or not, and then forever after they are told by the courts that they chose HOA living of their own free will.
So...check out Gilbert, AZ, where you can read the Public Review Draft of Article 3.104 B-9 of its Unified Land Development Code. The section provides that, for developers who want to build in the planned development areas where higher density is permitted,
"The Planning Commission may recommend, and the Town Council may impose, conditions of approval including, but not limited to, the following matters:...9. Requirements for establishment of homeowners or property owners associations or other mechanisms to assure continued maintenance of landscape areas, trails, open spaces, shared parking and access areas, homeowners association facilities, fences.."

Now, this is what is being done in other parts of the nation, including right here in Chicago. Builders want to develop in the most desirable and profitable areas where higher density is permitted. Cities require them to create HOAs as a condition of entry into these areas. Why? Because the HOA does the city government's job in large part, and the city collects the same amount of tax dollars from the new owners without having to build the infrastructure or provide services. Pretty sweet, isn't it? In short, HOAs are a cash cow for local government. But then when the owners start complaining about loss of basic liberties and foreclosure, and other problems, the city suddenly becomes deaf. Solving the problems is somebody else's job--like, well...the court system, paid for by the state.
How long will this be allowed to continue?

Read the code for yourself right here.