Effective HOA reform legislation

If advocates want truly effective legislative reforms, they must actively support their legislative champions sponsoring these reforms. There have been important successes as a result of the increased call for and proposed reform legislation in several FB social media groups.

However, these reforms MUST address the very broad and larger constitutional issues that deny homeowners rights — rights that people not living in HOAs enjoy. Simply stated, HOAs must be made part of the Union!  The trickle-down effect would be enormous. All homeowners would be protected and treated fairly when their rights and privileges fall under the well understood laws of the land.

Here’s a simple, straight-forward bill first proposed in March 2011 found in Proposed “consent to be governed” statute, the “Truth in HOAs” bill.

“The CC&Rs or Declaration for any planned community, condominium association or homeowners association shall state that, ‘The association hereby waives and surrenders any rights or claims it may have, and herewith unconditionally and irrevocably agrees to be bound by the US and State Constitutions and laws of the State as if it were a local public government entity.'”

Item 4 of the Truth in HOAs Statute (Bill).

Calif AB 572 may face constitutionality challenges

42 USC 1983

The proposed California bill, AB 572[i] (brought to my attention by Marjorie Murray of CCHAL) faces a constitutionality challenge if past and enforced by the courts. This bill attempts to aid the state in its affordable-housing program by providing reduced  CID assessments to owners in the program: 5% limit increase on affordable housing units while others can be as high as a 20% increase.   This amendment also removes the CID covenant of equal assessments for all owners.  

HOAs (CIDs) are private contractual organizations protected by the Constitution prohibiting interference in contracts.[i] If a case is upheld by a court it can be argued that the law violates 42 USC 1983, Civil action for deprivation of rights – contract interference and “the equal protection of the laws” that favors owners in affordable housing.


Every person who, under color of any statute [court decision], ordinance, regulation, custom, or usage . . .  subjects, or causes to be subjected, any citizen of the United States or other person within the jurisdiction thereof to the deprivation of any rights, privileges, or immunities secured by the Constitution and laws, shall be liable to the party injured in an action at law . . . .

I would argue this position to the California House committee prior to its public meeting to give the committee time to consider its impact.

References


[i] AB 572.

[ii] See Art. I, Section 10, paragraph 1: “No state shall . . . pass any law . . . impairing the obligations of contracts.”