Homeowners Associations: the Second American Experiment

 
 

 

Historians have referred to the American Revolution as the “American Experiment”,[i] because it introduced a modern, as of that time, form of a democratic republic.  Would such a government based on the principles, beliefs and values of our Founding fathers survive the passage of time? 

 

The new constitutional government met for the first time in 1789, the same year that saw another experiment in democracy, this time in Europe: the French Revolution.  The French Revolution ended with the establishment of the Napoleonic Empire in 1804, and with further bloodshed for over 11 more years during the Napoleonic Wars.  In contrast, the American Experiment has endured for some 219 years and has proven to be quite successful.

 

However, over the past century there has been a slow but steady erosion of the American Experiment.  We have witnessed the Supreme Court view the Constitution, that contract between the people and the federal government, as a “living document” subject to its interpretations, such as adding “privacy’ as a new fundamental right[ii], ignoring the Ninth Amendment,[iii] and redefining the meaning of “public use” to mean “public purpose”.[iv] 

 

In 1964, with the publication of the Homes Association Handbook[v], Technical Bulletin #50, by the Urban Land Institute, and with the support and funding of private interests and federal agencies, the birth of the Second American Experiment went largely unnoticed.  Under an unspoken alliance, the public was not informed of this experiment in the privatization of government.  The special interest promoters have described this second Experiment, boastfully, not as a revolution, but as “The Emergence and Acceptance of a Quiet Innovation in Housing”.[vi]  This second experiment was not a strengthening of democracy, but one that promoted and established, with the support and cooperation of the state legislatures, private, contractual, authoritarian government regimes.

 

The profound impact that this Second American Experiment has had, and continues to have, on public policy goes unnoticed by the public at large.    Our legislators believe in this experiment, and so do special interests and the big media corporations that have failed to inform the public.  This impact on public policy is reflected in the following recent incidents. 

 

1.      In California, a rewrite of its HOA laws contains an empty chapter for a homeowners’ bill of rights. 

 

2.      In New Jersey, its Supreme Court believes that the business judgment rule is sufficient to protect homeowners’ fundamental rights. 

 

3.      In Arizona, the only two important HOA reform bills that would provide substantive due process protections were either killed or delayed by the actions of the Rules Committee chairmen. 

 

4.      The common law authority on covenants and homeowners associations, The Restatement of Laws (Third), Property: Servitudes, states that “The question whether a servitude unreasonably burdens a fundamental constitutional right is determined as a matter of property law, not of constitutional law.”

 

This second experiment is creating and establishing a New America, an America quite distinct and contrary to the America of our Founding Fathers. 

 
 

 

 


 

[i] James McGregor Burns, The American Experiment, vol. 1 –3, Alfred A. Knopf, 1982 –1989.

[ii] Planned Parenthood v. Casey 505 US 833 (1992).

[iii] Leonard W. Levy, The Origins of the Bill of Rights,,  Chapter Twelve, Yale University, 1999; Randy E. Barnett, Restoring the Lost Constitution, Chapter Nine, Princeton University Press, 2004.

[iv] Kelo v. City of New London, 545 U.S. 469 (2005).

[v] For more information on TB#50, see “Analysis of The Homes Association Handbook” and “TB#50: The Mass Merchandising of HOAs by ULI” at https://pvtgov.wordpress.com.

[vi] Community Associations: The Emergence and Acceptance of a Quiet Innovation in Housing, Donald R. Stabile (Greenwood Press 2000). (A book partially funded by ULI and CAI).

 

Exchanging individual property rights for property values

The implicit exchange of individual property rights for not even promises or guarantees of maintaining property values has been accepted by most homeowners in HOAs. 

Many people accept the terms and conditions of the HOA governing documents, as many accept the rigors of military life.  They do not mind being told what to do, when to do it, and how to do it.  Others adhere to the belief, even after 44 years of contrary evidence, that true democratic reforms will still take place. They are faced with the harsh reality that their strong beliefs are not real, and that, in fact, their government doesn’t intend to make them a reality.  And that is indeed a very harsh pill to swallow.

 

Others do not accept this privatization of government — this delegation of government powers.  A privatization defended by those sworn to uphold the Constitution.  A privatization by virtue of a questionable private contractual agreement that is a devise by real estate special interests to bypass constitutional government with its protections of the rights and freedoms of the people.

 

Learn about the history of HOAs, and the motivations of the orginal promoters of HOAs and of the national lobbying group currently promoting this privatization. Learn about the events, incidents and pro-HOA legislation over the past 44 years that continue to have an impact on the legal  and social fabric of America, and on the everyday lives of every American.

 

 

 New Book Announcement — Establishing the New America of independent HOA principalities

 For more information see Flyer

 


The future of HOAs: Secession from or absorbtion into municipalities?

Over the past 44 years, the mass merchandisers of homeowners associations (see TB#50: The Mass Merchandising of HOAs by ULI) were successful in creating a mindset that HOAs are nothing more than contractual corporations, having nothing to do with governing the people within the community.  The policy makers have accepted that argument, because they have their own “personal” agenda — less work for municipalities.  The justification was easily acceptable given the current trend on the views of big government:  “the voice of the people”, “voluntary consent”, “direct democracy in action”, interference with [unconscionable adhesion] contracts, etc. (See Homeowner Associations: ex post facto amendments, consent to be governed, contracts to avoid the Constitution).
 
But, there must be some form of governance on the existing subdivisions and their “common areas” and amenities.  That form must be within our Constitution.  The direction to be taken would be the “merging” of these hundreds of HOAs within a county into a handful of municipal entities, as there are townships in states back east, to form  towns and villages. They, of course, would  be subject to the municipality laws of the state.  That is the only way out. It allows a degree of “home rule”, but home rule that, like in other areas of the application of home rule, is subject to state laws on the delegation of county responsibilities and obligations. (See A proposal for the ‘Muni-zation’ of HOAs; Stop developers from granting private government charters).
 
Or, if we as advocates  fail, the secession of the HOA from the county as Robert Nelson wrote in Private Neighborhoods and the Transformation of Local Government . (See HOA Secession from Local Government: The future of Planned Communities?)   
  
There are no simple answers — it’s too late for that.  Your choice. 
 
It’s up to you!
 

What Happened at the Arizona Senate

DVDA 63-minute DVD, with case, is available for viewers to witness, for themselves, the interests of partisan politics dominating good public policy. We are all aware of how the interests of the party, and of the lobbyists that have a strong influence over the legislators, have a profound effect on governing and on public policy. These influences burst out into the open at this session, and can be heard directly from statements made by the Senators.

A 7-minute “trailer” can be viewed at Senate by selecting “What Happened”..

Send an email to StarPub to order the $10 video.

Partisan politics dominate AZ Senate final session: HOA reform bill SB1162 not heard

Understanding that with the BIG Media control over our news media you will not be told about the serious failings of the Senators in their final 2008 session. So much for the media’s role in a healthy democracy. So much for homeowner association reforms!

ALIS has posted the divisive and contentious session on its site. Click on the link below and select the 3 hour and 40 minute entry shown below.

Instead of watching a movie or the news this evening, watch this real life unfolding of politics and the legislature, and understand why HOA reform bills are having difficulty getting passed into law. See and listen to the Senators speaking themselves about the loss of integrity, and “a sad day for the state, and for this body, too”.

    And all the while keep in mind that there is not even a whisper of passing SB1162 with its attempt to remove ex post facto amendments and to level the litigation playing field for millions living in HOAs.
    synopsis:

The relevant material begins about 38:40 minutes into the video with an exchange with Sen. Cheuvront on HB2723, special tax districts. Sen. Cheuvront is interrupted by a motion to adopt the COw report, and thereby end the COW session. Sen. Harper is the chair. (COW ends with a motion to report the results to the Senate, where it must be accepted by a vote).

This action by the Republicans serves as the catalyst for charges and counter-charges of rules violation that then permeates the next 2 hours. You will hear cries of “point of order” to the interruption that are ignored, with the session resuming with Pres. Bee now as the Chair. You will hear the call for the Rules attorney to attend the session.

You will hear charges of undue influence of the lobbyists, of partisan politics — from the Senators themselves.

    The sequence is:

discussion of the Cheuvront amendment
discussion of the of the retention of certain bills accepted in COW (not to be voted on)
discussion of SCR 1042, the constitutional amendment against gay marriages

The frequent speakers that you will see are:

    Republicans

Pres. Bee
Pres. pro Tempore, Blendu
Majority Leader, Vershoor
Majority Whip, Huppenthal
Senators Harper, Tibshraeny

    Democrats

Ass’t Minority Leader, Garcia
Senators Cheuvront, Aboud, Burton Cahill, McCune Davis

http://azleg.granicus.com/ViewPublisher.php?view_id=7
06/27/2008 – Senate Committee of the Whole #1 and Final Reading Part 2