Local government nightmare | The San Diego Union-Tribune: "the budget stress now felt in the state Capitol is about to become the norm for every last local government in California.
These governments – cities, counties, school, water and fire districts, redevelopment agencies and more – have been somewhat insulated from the revenue downturn so far because most are largely reliant on property taxes. These levies are lagging indicators of the economy's strength, since they depend on annual assessments and a drawn-out payment system. But beginning with the 2009-10 fiscal year, Beacon forecasts a plunge of more than 10 percent in property tax revenue."
-----------
Think this won't have any impact on HOAs?
3 comments:
So much for the myth that HOAs preserve property values. They only "preserved value" for developers that desired totalitarian control over a neighborhood and the vendors that feed off of the existence of the HOA. HOAs also serve as an easier way of reclaiming property belonging to others for re-development. The HOA never did and never will preserve value for the owner of the property.
The issue isn't preservation of property values at all. Public local governments also seek to preserve property values -- and their property tax base -- and enact zoning and other ordinances with this goal in mind.
Rather, the central issue is the privatization of local government into mandatory membership HOAs as part of a broader policy to fiscalize land use in order to reduce local government expenditures and shift these costs to the private sector.
What we have before us is the consequences of a failed experiment that was based upon a “fundamentally unworkable concept” that is being encouraged and supported by those who economically benefit most from its continuation and spread. Simply what we have is a square wheel that was not properly debated, studied or supported by consumers from day one. Instead federal government support and industry marketing was used “to sell the CID concept to America.” So the new question becomes, should this continue ?
Consequently the CID industry with their silent municipality partners have been laughing all the way to there Banks for a long time. Except the municipality Bank is now in trouble since the CID concept has not made good on its preserving property values and other masqueraded claims that historically were known to be false and unworkable.
Finally the States and local municipalities are paying the economic price for mandating a poor and reckless CID policy upon consumers without their voice or vote who to often have no reasonable or affordable housing alternatives. By the use of slick industry marketing that masquerades unsubstantiated benefits to mislead consumers into accepting and buying their corporate housing product in CIDs that was never intended to economically or much benefit its purchasers.
Post a Comment