Mgmt case study #1 – final update

By this time I believe some are beginning to realize the larger objective of my posts.  It’s about HOA-LAND, that collection of HOAs across America, and SCG was just a prime subject for study that provided detailed documentation.  Through acts of commission and of omission, by both the board of directors and the members in general, my research  was revealing.

Now that the board of directors meeting was held, without write-ins being allowed and no outcry of foul by the members,  I conclude my study of a failure to act in good faith that contained documented violations of state laws and the governing documents.

My case study showed that an HOA with members above average income and education  exhibited the same social and political dynamics of the prevalent HOA culture. It is a culture found throughout HOA-LAND that allows for the classification of HOA-LAND as a nation within America, consisting of independent principalities allowed to exist outside the Constitution.  In the face of demonstrable violations of the law and the governing documents, the silence by BODs and the majority of the members places HOA communities above the law as outlaw communities.

Although participation in  the SCG polls and focus groups was in the thousands, the failure of members to participate in my nonpolitical  “Values” poll  is indicative of the HOA Culture.  It is very disappointing, but not unexpected.  Early results do not show a heavy leaning for or against but a balanced response that I see as truthful, honest replies. Another failure by the members to accept criticism.

Check out the poll — it’s anonymous. https://www.surveymonkey.com/r/NF7FVR2

I was texted by a member who said this failure was due to fear on the part of members. She was partially right; fear is one aspect of the social dynamics of the HOA Culture in SCG.  Others texted asking, what does this prove and where are you going with this?  In a broader context, we are dealing with  simplified explanations by apathetic members.  Why is this so?

In my well founded argument of the social and political  dynamics at work included findings of the existence of:

  1. an authoritarian environment made possible by members’ authoritarian followers behavior. In short, trusting in authority figures. (It is in keeping with the increase in American authoritarianism);
  2. a cult-like behavior by members who religiously support the board of directors, who completely believe that the BOD can do no wrong, and who  will intently not discuss or debate the issues, but ready to attack and disparage the messengers (as found in cult followers);
  3. a “You can’t fight city hall” mentality stemming from the adhesion governing documents granting powers to the HOA and supported by pro-HOA statutes mimicking the governing documents in many ways (the practical ability to seek justice in the courts is subject to unattainable financial and emotional bars;
  4. a “I just don’t care” attitude by members who are in love with the amenities and benefits made possible by the HOA, and the means to that end doesn’t interest them;
  5. a fear in being rejected, ostracized, and socially distanced as “not one of us,” and “should move out if not happy here,” if critical or disagreeing with the prevailing views of the “establishment.”  Or, in other words, the equivalent of not being politically correct.

The making of this culture falls only partially on the members to the extent of their being all too willing to accept pro-HOA propaganda —  carefree living, affordable housing, resort style living etc.  CAI (Community Associations Institute) has for over 40 years 1) heavily influenced and dominated the formation of HOA-Land as an institution – accepted without question as that’s the way it is; and 2) conditioned and indoctrinated the public and members with its CAI School of HOA Governance (my label).  NO, that’s not the way it is!

This business trade group has advanced its mission to support its members, the attorney and manager “venders.”   Collectively, its program of education and acceptance can be found in its CAI Manifesto, which is a collection of all CAI documentation including town sponsored seminars and conferences,  court filings, and legislative testimony in  almost every state.

As I presented elsewhere, SCG has a “clique” of CAI members who, over the years,  are also or were SCG presidents and directors.  And their presence continues and can be seen on the BOD and as committee chairs today.

How SCG, and all HOAs, go forward depends on a proactive and involved membership, starting with reforming pro-HOA state laws and trickling down to conforming governing document revisions.

CAI Manifesto – white paper

{Originally published in 2016].

This CAI ‘white paper’ cements the position that CAI is the sole competent voice for HOA matters. For those who took the time to read all four of these papers, [note 1] what should stand out is the absence of any discussion of HOAs as de facto private governments, as de facto political entities, or as quasi or mini governments both of which imply a political entity.  The reason why the authors of these papers, the elitist would be Philosopher Kings, cannot address the question of violations of the Constitution is that they would be “Defending the Indefensible.”

So, as expected of politically motivated actors, ignoring the controversy makes it go away, especially when there’s only one voice of any merit and strength.  Facts that are inconsistent with the views of CAI are dogmatically dismissed and ignored. And to this end CAI has been very successful with respect to state legislatures and the cooperating media.

“For more than 40 years, CAI has educated, advocated, published and informed people living and working in common-interest communities. Thanks to those ongoing efforts, we have a strong and valuable understanding of community associations today.[note 2]

CAI will use these papers to further indoctrinate the legislators, the media and the public that CAI is the only competent, informed, knowledgeable, educational and credentialed organization with 40 years’ experience to conduct HOA affairs and to deal with HOA issues.  “Homeowner rights advocates” are ignored and dismissed as an opposition movement.  Instead, following the lead of Arizona Rep. Ugenti who in 2013 made the following statement to the Arizona Government Committee:

Ugenti stated that each year there was “a plethora of personal HOA legislation” and tried “to spare the [committee] members the constant agony of many personal pieces of HOA legislation,” as contrasted to the industry legislation. (See video of Ugenti speech here https://youtu.be/REt_TJD-6UQ).

CAI speaks only of “individual constituents” and “isolate incidents” that do not measure up to a policy that the legislature could act on[note 3] (my emphasis):

“Lawmakers have been, and will continue to be, called upon to address concerns expressed by individual constituents who share an isolated incident that has made them unhappy with their community associations. In an effort to help constituents, lawmakers may introduce legislation addressing association governance that may increase and undermine the well-established and proven model of community association governance.

“This trend is expected to continue as long as a legislative response is considered necessary to respond to negative perceptions produced by media out of lone circumstances. Legislative responses to individual constituents contribute to community associations being perceived as over-restrictive micro-governments focused on covenant enforcement. This perception may accelerate legislative efforts aimed at greater oversight of community association governance and require greater transparency.”

They make an accurate assessment of conditions. This failure to present a unified national voice backed by credential authorities will continue to persist into the future.  If you stop CAI Central, you destroy all local CAI state chapters’ reason for being. They become just another self-serving special interest.

These papers also contain CAI attempts to influence other dominant organizations like AARP and NAR (National Assoc. of Realtors).[note 4]  Furthermore, CAI calls for not only influencing legislatures, but the judges, too.[note 5]

References


[1] Links to these papers can be found on the CAI web page, Community Next: 2020 and Beyond(May 5, 2016).

[2] Id

[3] Supra, public policy link, p. 6.

[4] Supra. n. 1, external influences link, p. 4-5.

[5] Id, p. 13-14.

HOAs undermine principles of democratic America

The immediate reaction to the title of this editorial comment from the vast majority of readers, is as I suspect,

Unbelievable, wild statement; No way; I love my HOA; the volunteers work for the community; the board of directors has my interests at heart; I can vote for the directors and on other matters, And anyway, I really don’t care, I’m happy with the amenities, facilities, and protection of my property value.

This blindness toward compliance with the US Constitution and the laws of the land can be traced to the culture of the HOA-Land Nation as I presented in Part 1 of The HOA-Land Nation Within America. As for the false argument that because members can vote for a board of directors makes the HOA democratic, ignores the reality of Cuba, China, Russia, North Korea and other countries where people can also vote for their leaders.  Voting alone does not make a democracy.

Other aspects of the HOA model of government that illustrate departures from public government, the Constitution and laws of the land can be found in the HOA-Land Nation publication: lack of oversight protections and the absence of a separation of powers, especially there is no independent judicial function for fair hearings; an absence of meaningful  penalties against acts of the Board amounting to absolute immunity; and inadequate fair election procedures as found in public elections.

In all practicality, the HOA private government is based on a business model and not a municipality model, and whoever described a business as being democratic?  As such, following the business model, the HOA is a one-party government; the party of the incumbents who control the selection of candidates, who can vote, and the election procedures designed to keep the establishment in power.

Here’s what Gandhi had to say about one-party governments and democracy. With the independence of India from British control in 1947, Mahatma Gandhi reflected on the dominance of the Indian National Congress Party over the newly formed government.

“[Gandhi] realized that a one-party system could actually be a no-party system, for when the government and party are one, the party is a rubber stamp and leads only to a fictitious existence.

‘Without free criticism and potent opposition, democracy dies.

‘Without political criticism and opposition, a nation’s intellect, culture and public morality stagnate; big men are purged and small men become kowtowing pygmies. The leaders surround themselves with cowards, sycophants and groveling yes-men whose automatic approval is misread as a tribute to greatness.’”

(The Life of Mahatma Gandhi, Louis Fischer, The Eaton Press, collector’s edition (1988, initially 1950).

The common culture within the HOA-Land Nation treats any criticism, any opposition, any independent thought not supported or approved by the board of directors as subversive. The members are inculcated into adopting and supporting this attitude and treat such views as harmful to the peace and harmony of the community.  Committees of members — opposing political parties – are attacked and treated with hostility. Free political speech and dissent is not tolerated.  

With 23% plus Americans living in HOA-Land, the HOA culture has had its effect on national, state and local politics; ignoring the Constitution and laws of the land are easily acceptable and do not constitute a problem for HOA members. 

HOA-Land Nation publication to aid constitutionality

The important question of HOA constitutionality has generally been avoided and given token lip serve by all interested parties: homeowners, homeowner rights advocates, state legislators, real estate departments, attorney generals, nonprofit private entities proclaiming a defense of the Constitution, and the media at large.

Even the renowned Wayne Hyatt’s[1] statement in 1976 went ignored.

“One clearly sees the association as a quasi-government entity paralleling in almost every case the powers, duties, and responsibilities of a municipal government.   All of these functions are financed through assessments or taxes levied upon the members of the community, with powers vested in the board of directors, council of co-owners, board of managers, or other similar body clearly analogous to the governing body of a municipality.”[2]

Clearly challenging the constitutionality of the HOA model of local government and legal scheme is well beyond past due. To correct this horrific and inexcusable oversight I have published, The HOA-Land Nation Within America,[3] a white paper, an exposé of the HOA legal scheme violations of the Constitution. The eBook and paperback editions can be found on Amazon.

This task of constitutional HOA reforms may appear overwhelming and almost impossible to achieve, but constitutional HOA reforms can happen. It will take tremendous effort and perseverance, and a “never give up” mentality. David Cole passionately makes this point[4]

“If Americans now and in the coming years insist that . . . our most fundamental values, including equality, human dignity, fair process, privacy, and the rule of law, and if we organize and advocate in defense of those principles,” we will succeed in bringing about the necessary fundamental and constitutional reforms to the HOA legal scheme in existence since the HOA “bible” was released in 1964. In order to accomplish this important task, “it will take a persistent civil society, a vigilant media, brave insiders, and judges and other government officials who take seriously their responsibility to uphold the Constitution. But first and foremost, it will take an engaged citizenry.”

The defense of liberty depends . . . on citizens engaging collectively to fight for the values they believe in. . . . The preservation of liberty through a written constitution . . . has survived . . . because ‘we the people’ have consistently taken up the charge to define, defend, and develop liberty in our own image, so that it reflects our deepest commitment , not just those of a privileged elite who do not represent us.”

It falls upon the homeowners in HOAs, as has always, to advance constitutional arguments that are valid and credible.    And that takes knowledge and understanding of the issues.  The HOA-Land Nation, and other of my publications and Commentaries, as well as those of others, provide the “ammunition” that will pass the valid and credible challenges to be expected from CAI and other lawyers, provided the arguments do not get bogged down in irrelevant arguments from the opposition.

CAI cannot handle a broad Bill of Rights challenge. Period!  I have never been challenged  by CAI because they well know that they are defending the defenseless.

Read the book, paperback or eBook, and spread the word.  Use it in those many HOA violations where state statutes support the HOA.  Work to hold seminars and conferences to openly discuss the issues raised in The HOA-Land Nation.  Expose their defense of HOAs, now!

 Notes

[1] Wayne Hyatt was a prominent figure in the promotion of HOA-Land as well as an important person in creating CAI in 1973, serving as its second president.

[2] I have extensively quoted Wayne Hyatt’s 1976 statement on HOAs as mini-governments, as cited in the 1983 California case, Cohen v. Kite Hill.

[3] I have concluded that there exists an HOA-Land Nation within America that is comprised of fragmented and local HOA governments across the country and have designated them collectively as “HOA-Land.”  The commonality of their declarations of CC&Rs, flowing from the 1964 Homes Association Handbook (ULI publication), their shared beliefs, values, traditions, and institutions qualify HOA-Land as a nation.

[4] David Cole, National Legal Director of the ACLU, Engines of Liberty, Basic Books (2016).

Protecting HOA political free speech on matters of general community interest

Should matters of concern and interest to the general HOA member-community be protected from suits designed to stifle participation in HOA governance?  Homeowners in HOAs should be protected from these suits, called SLAPP suits, just as the general public is protected in most states that have anti-SLAPP laws.

The question becomes: will the courts hold issues of HOA governance to be a matter of general public interest and concern?  A failure of the courts to do so puts HOA governments solidly into the category of independent principalities, where members are not permitted free speech on community public issues, especially about their governing body, the HOA.

The expected defenses are 1) that HOAs are private, contractual governing bodies not subject to the 14th Amendment protections, which the members have agreed to obey; and disregarding the Ruiz opinion above,  2) the local HOA community cannot be considered as a public body that is interested in and concerned with matters of public interest; it’s a local, private matter.

There are several California cases holding that HOA concerns amount to public speech because it affects the community at large.  The following are anti-SLAPP suits.

“A SLAPP suit (strategic lawsuit against public participation) is a lawsuit brought primarily to chill a party’s constitutional right of petition or free speech. The anti-SLAPP statute was enacted to prevent and deter lawsuits that chill the valid exercise of the constitutional rights of freedom of speech and petition for the redress of grievances and provides “an efficient procedural mechanism to obtain an early and inexpensive dismissal of nonmeritorious claims” arising from the exercise of those constitutional rights. . . . . The resident’s front lawn is a public forum for purposes of the First Amendment. . . . Moreover, it is now well established that the anti-SLAPP statute protects private conversations as well as those occurring in a public forum.” (Santa Barbara).

“’Public interest’ within the meaning of the anti-SLAPP statute has been broadly defined to include, in addition to government matters,  ‘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.’ (Ruiz; according to California statutes).

[My emphasis]

“[W]e hold the trial court properly determined the anti-SLAPP statute applied because the evidence showed the alleged defamatory statements were made “in a place open to the public or in a public forum” and concerned “an issue of public interest. . . .  The two locations where the alleged defamatory statements were made–at the Board meetings and in the Village Voice newsletter [HOA] –were open to the public and constituted “public forums.” Additionally, because each of the allegedly defamatory statements concerned [*11] the manner in which a large residential community would be governed, they concerned “issue[s] of public interest.”  (Damon).

A homeowners association board is in effect ‘a quasi-government entity paralleling in almost every case the powers, duties, and responsibilities of a municipal government’ (citing Cohen v. Kite Hill Community Assn).”  (Damon).

My quick survey of state anti-SLAPP laws shows AZ, IL, HI, GA and MD as having strict laws relating to only issues before the legislature or a law, as petitioning rights.  A host of other states contain the much broader right to file an anti-SLAPP suit for issues of public interest. They are: CA, FL (as of 7/2015), IN, LA, OR, RI, TX, VT, and WA.  Check current status.

Case references:

  1. Santa Barbara Beach Club HOA v. Freeman, 2d Civil No. B212972 (Cal. App. 2nd 2010)
  2. Ruiz v. Harbor View CA, 37 Cal.Rptr.3d 133 (2005)
  3. Damon v. Ocean Hills [an HOA], 102 Cal.Rptr.2d 205 (2000)