Calif. courts hold HOAs as political second governments with public issues

A recent California opinion, Turner v. Vista Pointe Ridge HOA, Cal. App. 4th G040480,  brought to light earlier court opinions where the court defended actions taken by HOA boards and equated homeowners associations with municipal governments.  In both the cited cases we obtained important acknowledgements that HOA issues can be public issues, especially when dealing with board issues or elections since they affect all the member, that these are indeed political  issues — having to do with the regulation and control of a people within a territory —  within a sizeable community (size not defined), and that they are just like a local government.  All the cases involved the use of anti-Slapp laws not by the homeowner, but by the HOA as  a defense. 
A SLAPP suit, to make it simple, is a suit brought about by a more powerful party against an individual to stop him from speaking out against it on issues of public concern.  The defending party, which would usually be expected to be a homeowner in our area of concern, was the HOA that sought protection since its actions were a public issue. 
The two cited cases, in which the court defended the HOA’s actions, involved defamation suits against statements made and/or published by the HOA or its attorney.  In the first case (Damon v. Ocean Hills, 85 Cal.App.4th  468 (2000)), the court observed that the ant-SLAPP statute protected,
 
[A]ny written or oral statement or writing made in a place open to the public or in a public forum in connection with an issue of public interest . . . .  The definition of  public interest‟ within the meaning of the anti-SLAPP statute has been broadly construed to include not only governmental matters, but also private conduct that impacts a broad segment of society and/or that affects a community in a manner similar to that of a governmental entity….  “[M]atters of public interest . . . include activities that involve private persons and entities, especially when a large, powerful organization may impact the lives of many individuals.  
The court added,
Furthermore, the statements pertained to political matters, inasmuch as they were made in the context of homeowners association board elections and recall campaigns. The court observed that “[t]he right to speak on political matters is the quintessential subject of our constitutional protections of the right of free speech….” For many Californians, the homeowners association functions as a second municipal government . . . .
In the second case, (Ruiz v. Harbor View Community Assn.,  134 Cal.App.4th 1456 (2005)), also a victory for the HOA, the court held that a dispute involving the uneven handed enforcement of ACC rules was a public issue for the entire community.  But, considering the nature of the complaint —  the questions raised — filed by the homeowner in the recent Turner decision, the issue before the court did not involve a freedom of speech issue. It was just a number of complaints pertaining to breach of faith, contract violations, etc.  On this narrow issue, the court denied the claim by the HOA that their actions were protected by the anti-SLAPP statute.
Note that the court’s opinion also recognized the fact that HOAs are indeed a form of political government within the municipality. 
It is important for homeowners to realize that the court’s ascribing of public government status and functions to HOAs was qualified. The court was careful to say that “within the meaning of the anti-SLAPP statute“,  thereby avoiding the larger issue of the whether or not the HOA was indeed a state actor.  (I avoid use of “quasi-government” or “mini-government”  since they skirt the arguments that HOAs are not legal because they are not chartered under the municipality laws, but under corporation laws). In other court cases in which the court held that HOAs were not mini-governments or quasi-governments, the courts simply declared them as such without hearing any evidence or argument. These cases did not seek a declaratory judgment as to the status of the HOA as a state actor.  While several cases had made use of a statement that the HOAs were state actors as part of their main case, they cases did not directly address the issues of state actor.
Unfortunately, with respect to the recognition of bona fide governance, once again the benefit goes solely to the HOA private corporation  without offsetting protections of the rights and freedoms of the individual as required by the Constitution.
 
For more information on American Political Governments, see political.

Holiday thoughts: John Wayne, Clint Eastwood & HOAs

The major social revolution of the 1960s changed more than our music and attitude toward sex, it produced a major deviation by the lowering of our high ideals, goals, values and standards of behavior.  In simple terms, this diminution of, collectively, our ethical values of right and wrong can be traced back to and reflected by the change in movie plots. 

No more did we see the good guys, “the white hats” vs. the bad guys, “the black hats.”  John Wayne (I speak of the romantic westerns of the late 1940s, including the 1956 Texas epic, The Searchers) was the epitome of the strong, “rugged individual” (a description no longer found in our conversation). He fought for a better America and for the people seeking to improve their life in a healthy and compassionate community.  The individual, the hero, was seen with respect to his effect on his community and on his country.

But, in the 1960s a new American hero came onto the movie scene, brought to us by none other than Clint Eastwood in his spaghetti westerns, and later by his portrayal of Dirty Harry with his “Go ahead, make my day” challenge to the bad guys.  The anti-hero was born, one who did what he thought was right regardless of the law, in pursuit of an individualized ethical concept of right and wrong.  This was the beginnings of the change and, some would say, the perversion of the role of the individual within society.  “If it’s good for me, it’s good for you” was the message being sent.  The “what’s in it for me”, or “if you can get away with it, good for you” motives  created for many, too many, a major  shift in American morality and ethics.  The individual came first, and his impact on others became secondary.  (Today’s financial problems can be characterized by such a view as contained in the 1987 movie, Wall Street, “Greed is good!”)

We see this change reflected in the HOA where the individualized interests of the board, usually dominated by the president’s views, has been institutionalized in the HOA legal scheme and its make-believe democratic setting.  It’s not difficult to see why a less than democratic “constitution” would be necessary to accomplish objectives foreign to American values and standards of a bona fide government of, by, and for the people.  Now, I know this view that HOAs are a rejection of democratic principles doesn’t sit well with those who believe in, are happy with, and who love their HOA.  But, nevertheless, this rejection cannot be denied.

Deepak Chopra, in his newly released book, speaks of a study showing that wealth does not necessarily increase one’s happiness.  (This should not be a surprise to many living in an HOA with its preoccupation with property wealth).  He echoes what The Dali Lama wrote in his 1999 book, Ethics for the New Millennium, that offered sound advice on creating happiness: “If we make the effort to be friendly, and have a regard for the wellbeing of others, we provide for our own happiness as well as theirs.”   Advice that seems well suited for HOA controlled communities, which as we well know, are focused on the material objectives of the “state”, the HOA.  Where the people supposedly chose, as we are reminded by the pro-HOA special interests, the material over the wellbeing of the community of people.  I keep thinking about The Dali Lama’s definition of ethics, and found basically in the writings of others, “An ethical act is one that does not harm  others’ experience or expectation of happiness.” 

What I find particularly interesting in this expression is the awareness of a mutual relationship between the actor and the people affected by the act.  An ethical act is not determined solely on the views of the actor alone, but by a mutual relationship.  In a healthy community, the pursuit of individual interests cannot be conducted as if in a vacuum without an awareness of and the effects on the mutual relationships that make and bind a community.

 

I just can’t seem to reconcile how an institutionalized philosophy that places the material over the ethical treatment of the people can make HOAs a better community, and America a better society.  Or how a philosophy that says the individual can do anything he wants, regardless of the effects on his community or on the greater community represented by his state and country, can be viewed as an improvement to the  philosophy of working together for a better life.    I just can’t!

HOA survival: too many cows and too few members

 

The CAI College of Community Assn Lawyers member, by Scott B. Carpenter, had cows on his mind when he wrote about The Tragedy of the Common Elements.  Somehow  he stumbled upon a 1968 article about one herder’s cows damaging the common grazing area used for the benefit of all the herders, making an analogy to some “grazing amenity.”  He then jumps to HOAs with their common areas, basically the amenities.  Could Carpenter be confusing people with cows, and in following his herder story, that the overuse of the amenities by a lot owner’s family ruins it for the other members? 

He is concerned about Arizona law, ARS 33-1255(c)(2) that defers to the CC&Rs as to whether or not the homeowner affected by a damaged roof should alone pay for the cost of repairs, and that there should be no recourse to having the HOA pay out of its common funds.  He seeks to extend this statute to planned communities.

The “tragedy” he speaks of appears to be a question of scarce money in a tight economy.  However, there is no discussion of  past failures to provide for adequate reserves, or to raise assessments to cover these contingencies, although this is occurring today with respect to foreclosures.

Carpenter then makes the argument that the very philosophy of condo living with its communal structure is itself  “the very philosophy that feeds the Tragedy.”     Say what??  He  had defined the tragedy as “a dilemma in which individuals acting independently in their own self-interest can ultimately destroy a shared resource even where it is clear that it is not in anyone’s long term interest.”  

It appears then that CAI is heading to the Legislature to make this systemic alteration in the HOA legal scheme a law, a law that mandates that the individual “take the hit” and pay out of his own funds, and not from the collective “social security” common funds of the HOA.  In the tradition of pro-HOA attorney lobbyists,  reaching way out to make a weak case, Carpenter then asserts an unsubstantiated claim that those homeowners can’t be trusted and that they are out to get us!  He writes, This would solve the problem of unit owners having an incentive to foist as many unit expenses onto the community association as possible.”

  

To be clear, Carpenter seems to be accepting the fact that the HOA is incapable of establishing sound financial management techniques that require increased assessments from the membership. That would be admitting a resounding negative to the HOA scheme, and negatives are taboo.  Establishing such reserves would then demand strict financial accountability by the HOA board and its management firm, which CAI has adamantly refused to allow.  “Trust the management” has been its propaganda.

 

CAI offers unworkable solutions that are divisive and adversarial:  go after the individual homeowner.  Forget about “we are in this together” and “we are a community.”   The survival of the HOA is paramount!  Forget about the American spirit that made America a great country.  No more let’s help the Jones build their barn, or take care of the Smith’s children while their mother lies very ill.  No, the individual must support the interests of the state, the HOA,  and the corporations that support the state, the HOA attorneys and management firms.   (It’s bad enough that the homeowner has unknowingly pledged his home as collateral for the HOA’s survival).

When will homeowners, the media, the public, and the legislators understand and accept that CAI has its own personal agenda, which is not in the best interest of the people or the state?

Read the full Commnetary at Tragedy.

Col. Barfoot HOA justice moves to US Congress

WTVR.COM in Richmond, VA announced that two Congressmen have introduced a resolution (H. Res. 952) in the US House to permit the flag to be flown anywhere by Medal of Honor winners.  I congratulate these Congressmen, but the bill falls short of granting free speech rights to all Americans living in HOAs.

What is necessary is to educate Congress about the hidden aspects of the HOA legal scheme that denies citizens their rights under state and federal laws.  I commented on this article as follows:

Congress should look into the entire HOA legal scheme that creates a private, political government that controls and regulates the people within a territory, the subdivision subject to CC&Rs. Under unconscionable adhesion contracts, unsuspecting homebuyers are deprived of their constitutional rights to due process and the equal application of the laws.

State legislatures have not delegated any such governing powers to these private organizations! As a private organization, the HOA government is not subject to the 14th Amendment that all other forms of government are subject.

State laws are biased in favor of the HOA and against the homeonwers under a gross refusal to recognize the failures of a genuine, explicit consent to the loss of their rights and freedoms that are enjoyed by all others not living in an HOA.

Much more can be said!

Please visit http://pvtgov.org and my Commentaries at https://pvtgov.wordpress.com .

Please write and educate Congress, and especially Rep. Cantor, Minority Whip, (CA) and Representative McKeon (VA).  We know that CAI will!

From Rep. McKeon’s webpage:

“I was appalled to learn that one of our decorated Congressional Medal of Honor veterans was being prevented from proudly displaying the Flag of the United States of America in an honorable way,” said Rep. McKeon“This reminds me of that famous quote by George Washington: ‘The willingness with which our young people are likely to serve in any war, no matter how justified, shall be directly proportional as to how they perceive the Veterans of earlier wars were treated and appreciated by their country.’  Our service men and women – especially those living with honors and distinction- should be allowed to fly the flag that represents the very freedoms they fought so hard to protect.”
 
 
“It’s a sad day when a veteran of three wars is told he cannot fly the American flag on a poll outside of his home,” said Republican Whip Cantor.  Col. Barfoot made countless sacrifices, wore our country’s uniform with honor, and has earned the right to proudly display the American flag.  I thank Col. Barfoot for his service and support his patriotism and efforts, as well as those here in the House, to allow him to fly his flag.” 

White House supports HOA flag flying!

Yes we can!   
 
The White House has joined in to support Col. Barfoot.  We are being heard!  The Richmond-Times Dispatch wrote,
 
 
 
 

The story has drawn national attention, and today during the White House press briefing, President Barack Obama’s chief spokesman Robert Gibbs was asked if the president supported Col. Barfoot.

“I think its silly to think that somebody that’s done that couldn’t have a flagpole,” said Gibbs, the White House press secretary, referring to Barfoot’s service in three wars.

 

 
Politicians respond to the voice of the people.  We need to get our voice heard today and at this important time.  We need to get the President’s personal attention.  Write to him!  Write your Congressman. DO IT NOW!  Do not let the opportunity escape.  It is very important to speak of constitutional issues and the need to address the issues I raised in my Richmond-Times comments yesterday: Pres. Obama and flying the flag in HOAs.  Let’s make sure the President is made personally aware of this problem!
 
You can comment on this article now that it is being watched, or write the White House. Read the article.
 
Use this link to a form to contact the Presidenthttp://www.whitehouse.gov/contact
 
For more in the need for the President’s intervention, see: