Just got back from the National League of Cities conference
Tracy Gordon of PPIC and I did a presentation on CIDs and cities, mderated by Kevin Frazell. It was fascinating to hear the audience questions, because they confirmed a number of things that I had said in my presentation. First, many people confirmed that cities are mandating CIDs in new housing. We heard this from delegates from several states. Second, many confirmed that as the developments age and need major fixes that they can't afford, the HOAs come to the cities for help that may not be forthcoming. Third, a number of attendees also confirmed that there are plenty of defunct CIDs around, where the BOD is nonexistent, no dues are being collected, and problems are being created for local government.

Tracy's work is really excellent, and you can get it from the PPIC website. She has the best data on California CIDs available, and she is a very even-handed and responsible researcher. She envisions HOAs and cities gradually working out a functional relationship. I tend to be more pessimistic, because there are so many problems with HOA finances and leadership, but I think she has a point. It is important to keep in mind that in the long run most of the time people find a way to muddle through. But on the other hand, remember the Savings and Loan industry?