Wednesday, March 06, 2013
Municipal duties move to 'burbs as HOAs must step in
"It's the most dramatic privatization of local government services that we've ever seen," said Evan McKenzie, a political science professor at the University of Illinois at Chicago and author of Privatopia: Homeowner Associations and the Rise of Residential Private Government.
Transferring these responsibilities to homeowner associations places more of a financial burden on individual homeowners and drives up the overall cost of housing, McKenzie said.
The costly repairs of aging streets or retaining ponds can become too much for a small group of residents in the community, particularly as many HOAs continue to reel from the lost revenue created by foreclosures, he said.
"I just think as a short-term solution to the fiscal problems of cities, what they created potentially is a long-term problem," McKenzie said.
"At some point, my question is this: Is not the responsibility going to come back to the municipality? They'll have slums on their hands."