Friday, October 28, 2011

If you thought HOAs were bad now, just wait - Friday, Oct. 28, 2011 | 2 a.m. - Las Vegas Sun

If you thought HOAs were bad now, just wait - Friday, Oct. 28, 2011 | 2 a.m. - Las Vegas Sun
“Stuff falls apart. It’s inevitable. And I know we’re not prepared for it.”

That’s Evan McKenzie, lawyer and political scientist at the University of Illinois at Chicago and the foremost expert on HOAs. He wrote the book on them, aptly titled, “Privatopia.”

-----------

6 comments:

Anonymous said...

Are you sure this wasn't originally published in The Onion?

From the article: "First, an HOA allows municipal government to push responsibilities on to these private entities. And, if the city doesn’t have to build or maintain the neighborhood park, that means lower taxes. Of course, we still want the park and we want it maintained, so we still have to pay for it. But the HOA is probably cheaper than the cost of more robust local governments with their pension-gobbling public employees. Second, the HOA acts as a cheap code enforcer so the neighborhood doesn’t go to seed."

Cynthia said...

I cannot imagine an association that could be worse than one in Monroe County, Pennsylvania....Impossible!
Actually, it is a "select," few from their group and their hired talent.
Foreclosing on innocent homeowners, even those with no contractual obligations. Initiating, and filing knowingly fraudulent cases in the court, so "they" can claim, fabricate legal fees and stack them in liens against the property. Extortion, to foreclosure...where it is illegal in Pennsylvania...so why has it happened and being allowed?
An opinion based upon experience and factual information.
Whose job is it to investigate and prosecute?

Fred Pilot said...

There are disadvantages, however: “When things were going well, HOAs were already in trouble,” McKenzie says.

“The reason is because the whole institution is premised on a faulty assumption: That owners can do all the things expected of them —to run the association and essentially operate a corporation. It relies on them having more time, money and loyalty than they actually have,” he says.

This is the key analysis. For years, everyone has talked about the raison d'etre of HOAs in purely fiscal terms (i.e. privatizing local government reduces the local government property tax burden, etc.). But few have recognized the deficit of ideological support for private local government and the need for sustained volunteer social capital to keep them going as intended.

General William "Billy" Starkey CAI HQ said...

The contagion of negative opinion about HOAs has escaped the containment of the gates of Privatopia. Our goose is pretty well cooked.

As Yeats said, "The center does not hold. Things fall apart."

Anonymous said...

“The reason is because the whole institution is premised on a faulty assumption: That owners can do all the things expected of them to run the association and essentially operate a corporation. It relies on them having more time, money and loyalty than they actually have,”

Another faulty premise is that home owners give knowing and informed consent to the association.

Would anybody really join an HOA if they knew that their house could be seized for failure to pay an arbitrary fine or fee? Or that their house would be collateral to the debts and liabilities of the HOA corporation, even after they pay off the mortgage?

According to the Community Associations Institute:

living in an HOA is a lifestyle that people choose,
"community associations work" (Microsoft .docx file),
homeowners "like the responsibility" (MS Word .doc) of living in an HOA,
and everybody is just happy (MS Word .doc) with their HOA

Therefore, the good professor -- and most regular readers of this blog -- must be wrong about HOAs.

Cynthia said...

“The reason is because the whole institution is premised on a faulty assumption: That owners can do all the things expected of them —to run the association and essentially operate a corporation. It relies on them having more time, money and loyalty than they actually have,” he says."
Oh, yes, your time,money, loyalty... Actually, the time, money and loyalty of those doing the work, what is expected of them, in accordance with the law, bylaws and directives of those advising and interpreting.
Well, let me tell you what it is like to become the scapegoat for all those owners who just want to plant tenants, never of course telling them that this is a private community with rules and regulations that are supposed to be followed by all. Other boards, that think they are the ruling class and none of the rules apply to them, yet, they cam pick on whoever they want, especially the children and single females and single female parent households...Then, of course the board "primadonas," who you may know some history on, yet they want no one else to know. "You," actually could care less, because you have a life, but their sociopathic control, can't allow the chance of tarnishing their "perfection, reputations.." The innocent homeowner is farmed and targeted for homelessness and owes nothing, no one. Yes, in Monroe County, PA and all across the US.
These abusive groups are the worst predators of the innocent, nice, loyal and honest homeowners. The predators need to go to jail for their fraudulent foreclosures, victimization, terrorizing and frauds upon the courts.