Friday, August 7, 2009
I have created a group on the social networking site Facebook, titled "Not My HOA", to help raise awareness of issues involving homeowners associations, whether they be legal, philosophical, political, or emotional testimonials.
From my research and own experience, I believe that homeowners associations violate the very principles this nation was founded upon, and have been allowed to perpetuate because of the belief that they operate as a democratic institution that ensures your property value, when in reality, homeowners associations evolved from developers intent to develop, manage and sell a development of homes. This is why covenants and restrictions mention transfer of the association to the homeowners from the developer once a certain number or percentage of homes have been sold. The developer extends their arm of control over those who purchased their property by using an association, but must transfer operation to the homeowners to exit involvement with the created neighborhood. This is the origin of such covenants that dictate home colors, foliage, and parking.
What's left is an association of homeowners continuing the developer's goals. Of course the developer would promote the belief that associations raise property value because this would benefit their sales model. If ownership in an association was perceived to lower property values, homeowners would shun such developers and the developer would lose money on their investment. I equate the initial creation of the HOA as "pumping and dumping" stocks, which is a form of fraud that artificially inflates the price of the stock so that the one selling it can reap a tremendous profit before the true value can be determined.
Unfortunately, developers have been allowed to get away with this practice, and now homeowners associations have spread across America to be quite common. HOAs have become living, breathing entities and must now fight for survival, just as you or I must, and so the myth that associations boost property values continues.
Posted by Kevin at 7:50 PM