Why has pubic policy favored HOAs with their denial of member rights and freedoms??

Could it be the effect of a corporate – legislator alliance?  Last year, ALEC, the American Legislative Executive Council, proposed model legislation that promoted local government by means of restrictive covenants. Yes, that’s right! And supported by none other than The Goldwater Institute.

A model law authorizing a transition from government-controlled local zoning and planning regulations to private restrictive covenants.

(See the 2011 report, Model Legislation, Decentralized Land Use Regulation Act).

The following quotes are from the Arizona Capitol Times article by Jeremy Duda,

ALEC, a conservative state lawmakers’ organization known for drafting model legislation for members to sponsor in their respective states.

“John Loredo, a former Democratic legislator, said ALEC woos lawmakers with trips, fancy meals and expensive gifts to promote its ‘extremist agenda.’

With many of the 56 Arizona legislators – all Republicans – who are ALEC members” [That’s 56 out of 90 legislators!]

See APS ending ALEC membership; SRP considers doing same.

Read more about ALEC here

ALEC, the American Legislative Exchange Council, is a one-stop shop for corporations looking to identify and cultivate friendly state legislators and then work with them to get special-interest legislation introduced and passed.”

Shades of corporatocracy and fascism!

Find out just what Arizona legislators are ALEC members. See the above ALEC report.

NOTE the reference “in their respective states” above. See if ALEC is active in your state.

 

Fundamental government functions: public or private HOA

Last month I commented on The Goldwater Institute’s Local Liberty Charter by Nick Dranias, its Director of the Center for Constitutional Government. The title asked the following question: Whither goest local government? Restrictive HOAs or responsible public government? A “follow-up” question that was not raised is:

Disregarding the knee-jerk reaction by those opposed to government involvement, “private enterprise can do the job better than government”, why, in the face of the serious problems surrounding the restrictive covenant, private government HOAs, does The Institute believe that restrictive covenants will provide for a better government?

It must be understood that we are not talking about providing services, such as trash, utilities, etc., but the basic functions of a government itself. What then becomes of public local government? In essence, the very concept of public government becomes an anachronism, replaced by myriads of independent local “principalities” since our now antiquated concept of government does not permit it to interfere with these private arrangements. What becomes of that initial contract between the people and its government, commonly known and referred to as the US Constitution? What becomes of the protections of individual freedoms and liberties protected by the Constitution?

Are these the concerns of the homeowners living in HOAs — those people whom we are told actually prefer and “love” HOAs? Definitely yes! Just look at the HOA reform legislation of substance, other than those dealing with the day-to-day operations. You will see legislation that attempts to restore fundamental rights and freedoms and “equal justice under the law” to homeowners living in HOAs, that were taken away by special interest influenced legislation.

I congratulate Mr. Dranias, and Shu Bartholomew, for keeping HOA issues before the general public: the basic issue is private or public local government. However, I was disappointed that Mr. Dranias’ appearance on the On The Commons internet talk radio show this past Saturday did not address these important HOA constitutional concerns.

There was, though, a brief mention of a loss of constitutional protections in HOAs. In response to Shu’s concern for private security use of radar guns and the absence of constitutional protections found in the public domain (32 – 35 minute mark), Mr. Dranias gave a response that might have been missed by most listeners. He referred to the city “spinning out or spitting out” a private entity to handle functions that it wanted to unload that such an entity was an agent of the city and was “bound by the same responsibilities of the city.” He added that, “the city cannot avoid its constitutional restrictions by contracting.” He spoke of “if this is an inherent function of government and they chose to contract it out . . . that person would be subject to constitutional law.”

The key point here is that the state did not establish the HOA (court rulings so hold) and, therefore, these private governments are not subject to constitutional protections. Again, this is the reason why there is a strong visceral reaction by CAI to any mention that HOAs are de facto governments.

In response to my email to Mr. Dranias, I was told that he will be addressing the issue in a future report. I eagerly await this report, and I await his return to On The Commons to speak of these concerns.

Goldwater Institute: stop mandating HOAs

I applaud The Goldwater Institute’s position that the government mandating of HOAs must cease. 

I believe that the Institute must also address the reality that government intervention has produced unjust laws that violate the rights and freedoms of the people.  And, in keeping with its philosophy of protecting individual rights, the Institute is in a position to support corrective action to remove these unjust laws that mimic the private declarations, creating an imprimatur of state approval of private contracts.
Either rescind the condo and planned community statutes need to be rescinded or protection provided for homeowner rights under the law.  The HOA governing documents, these so-called “private constitutions”, are a top-down imposition of profit seeking developers on the community by developers, encouraged, supported, and defended by state governments.
These private entity developers soon leave without any concerns about the problems of democratic government that they have created for the homeowners, the people.

****

The Goldwater Institute Daily Update, Jan. 13, 2009

The fix for HOAs won’t come from government

The Arizona Republic recently reported that developer abandonment threatens bankruptcy for “as many as 200 of the more than 10,000” Arizona homeowner’s association communities. If there is an HOA bubble that is about to burst, it was created by government mandates and subsidies, so the best reform option is to stop those policies, not throttle contractually-created communities with more regulation.

Tucked in the middle of the Republic’s article is a fleeting mention of how towns like Gilbert force developers to create HOA communities for new developments by conditioning required permitting and approvals on HOA creation. But local HOA mandates aren’t the only governmental intervention. For decades, the Federal Housing Administration has indirectly subsidized the creation of HOAs by giving buyers easier access to mortgage financing when buying into an HOA community.
Government policies have caused developers to oversupply HOAs to meet artificial demand for HOA communities. When HOAs are created to satiate government bureaucrats, rather than homeowners, it shouldn’t be surprising that many HOA communities are neither well-crafted nor homeowner-friendly. But, the solution to the HOA problem is not more government intervention. It is less. The first step is for government to stop mandating and subsidizing the creation of HOAs.
 

Nick Dranias holds the Goldwater Institute Clarence J. and Katherine P. Duncan chair for constitutional government and is the director of the Institute’s Dorothy D. and Joseph A. Moller Center for Constitutional Government.

Goldwater Institute: separate and unequal constitutions for HOAs

In reply to my Arizona Capitol Times Commentary of December 12th, Constitutional Center Director Nick Dranias believes HOAs are bona fide consensual relationships and regulating homeowners associations would “stand the Constitution on its head.”  (See Goldwater Institute: regulating HOAs “stands Constitution on its head”).

In the late 1950s the Southern states enacted a Poll Tax and instituted certain “tests” in order for citizens to be eligible to register to vote.  No federal or state laws were violated, since the states were permitted to determine the methods for registering citizens, so long as it was not based on race (15th Amendment).  Of course, the tax was set at a level very few Blacks could afford to pay, and among the test questions were such gems as (LBJ: Master of the Senate, Robert A. Caro, p. x, 2002).
Name all of Alabama’s 67 county judges.
What was the date that Oklahoma was admitted to the Union?
How many bubbles in  bar of soap?
While legal, these state laws were intended to keep Blacks from voting, and were plainly an unjust and unfair vehicle to support the will of the local power groups.  Today, we can ask about the intentions and use of privately developed HOA restrictive covenants, and the arguments by the legal-academic aristocrats promoting the supremacy of servitude laws over constitutional law:
Can private, contractual governments be used to  circumvent Constitutional protections?  If so, then what becomes of the Constitution?  Can the people opt-out of the Union?  President Lincoln didn’t think so, and Americans paid dearly to make that point.
The Goldwater Institute’s continued dialog on HOAs and the Constitution reflects the view of HOAs as independent principalities existing outside the Constitution, and thus establishing a new order for Americans, a New America of HOA-lands.

Attorney Rebuttals of Goldwater Institute reform legislation as contract interference

The Goldwater Institute, a public interest firm that believes in protecting individual property rights, opposed Arizona HOA reform legislation SB1162 on the basis of contract interference. The Nick Dranias opinion stated:

This bill runs afoul of freedom of contract, the principle that the government should not interfere with agreements reached by willing parties. This principle recognizes that the state should not superintend the wisdom of contractual relationships.

Read more . . .

From the rebuttal letter by Steve Cheifetz, an attorney representing homeowners who also argued for reform legislation before Arizona legislative committees:

Your suggestion that it is inappropriate to seek to limit the powers of such associations because the relationship between the homeowner and the association is one of contract would be the same as suggesting that citizens of this country should not seek to limit the powers of our state, federal and local governments.

Read more . . .

From the rebuttal letter by Clint Goodman, another attorney representing homeowners who also argued for reform legislation before Arizona legislative committees:

As a trial attorney, I am witnessing a clear trend that concerns me greatly. Associations are using their “contract” to act in any way they please without fear of legal consequence. A few of the many cases I have encountered over the last year demonstrate this point.

Read more . . .

See this writer’s commentary . . .