Arizona HB2154 - New law implemented

In regard to a move by one HOA to oust its board, Arizona's Representative Chuck Gray told the Arizona Republic that "The homeowner's ability to take control of their association mirrors the function of all government . . . . Prior to Aug. 12 residents needed two-thirds homeowner approval to force a recall election. [Now just a majority.]

Any bill that can be used to motivate homeowners into action against abusive boards does a service to all of us. But, don't believe that this bill was a major victory over the forces of evil. No, it's just one skirmish in a broader battle for rights and equality and against a legislature that refuses to recognize the broad constitutional wrongs being perpetrated on the people.

Under the mantra that citizens have the right to form private governments, and not be held accountable at all, to the state or under the 14th Amendment -- as all municipalities are -- the state perpetrates a gross injustice on homeowners. In other areas, where consumers actually sign a contract, the state has stepped in under its police powers to protect consumers -- truth in lending, truth in advertising, protected classes of people, etc. But for some reason, not here with HOAs where the consumer has not even initialed the governing documents, nor explicitly signed away his constitutional rights, this gross injustice is allowed to continue.

Even in spite of media article after media article across the country, this injustice is allowed to continue. This failure to hold HOA boards accountable under the laws, as municipal governments are held accountable, reflects this injustice and the continued protection of the HOA private form of government by state governments.

It must stop today!

HOA Secession from Local Government: The future of Planned Communities?

"[I]n the future, more complete forms of private secession may become possible. For example, if neighborhood associations become more numerous, the political pressures for substantial rebates from property taxes - for relief from the current system of 'double taxation' - are bound to grow."

Private Neighborhoods and the Transformation of Local Government, Robert H. Nelson, (Urban Institute Press 2005).

The view that planned communities are equivalent to principalities is strongly presented in the book. Six chapters are reviewed from Parts V, Creating HOA Constitutions, and VI, Neighborhood Asociations in American Life, that include chapter titles of: Neighborhood Legislature, Freedom of Neighborhood Association, A Democracy of Property Owners and Neighborhood Secession.

To obtain the complete Commentaries on Private Associations and Local Government, download Secession (PDF).

For additional information, see the Ned Peirce Commentary in the Arizona Capitol Times, or United HOAS

Group's voice is heard in new book release

In the newly released book by Nelson, Private Neighborhoods, Nelson quotes Citizens Against Private Government HOAs (former name of this organization), pp. 342-3, Ch. 16, "The Executive Office".

The material used (dated from 2003) reads, in part:

"According to this group, the lack of rights protection reflects in part the fact that 'the HOA lacks a separation of powers doctrine as found in every level of American government' . . . ."

"[W]hile members may vote for board members as if they were electing councilmen or legislators, the HOA is not a real democratic institution."

The pattern of these chapters is to introduce prevalent problems and then the author presents his solutions.


Private Neighborhoods and the Transformation of Local Government, Robert H. Nelson, (Urban Institute Press 2005) [Not affiliated with the Urban Land Institute, ULI. See http://www.urban.org/].

The United HOAs of America

Private Neighborhoods and the Transformation of Local Government, Robert H. Nelson, (Urban Institute Press 2005) [Not affiliated with the Urban Land Institute, ULI. See http://www.urban.org/].

In reading Part V, "Creating HOA Constitutions", of Bob Nelson's new book, Private Neighborhoods, its 3 chapters are called: The Neighborhood Legislature, The Neighborhood Executive Office and The Neighborhood Judicial Branch.

In his intro to this part he says, among other things,

"The purpose of a constitution is to set the ground rules for governance. . . . Yes the rise of the private neighborhood has resulted in far and away the largest number of new constitutions in recent years. [Is he referring to HOA pincipalities?] . . . . [T]he real estate lawyers and their developer clients . . . With no previous experience available to understand what the pros and cons would be to live in a community controlled by covenants, [governing documents] were born . . ."

Author Robert Nelson advocates the rewritng of HOA constitutions, allowing for the exercise of pro-active local voice in the governnace of the community. He admits that the big obstacle to creating communities has been the real etate profession's drafting of the CC&Rs with a concern for the profitability of the developer so he can easily exit the governance of the subdivision. In short, he propounds the current special interest view that private HOAs offer more local influence and should replace local governance.

But, he doesn't mention the 14th Amendment protections against state and local government violations of our rights. He seems to think that's not an issue. Rather, he refers to law of covenants and equitable servitudes as rewritten in the Restatement (Third) of Servitudes (2000) as the basis for rewritng the HOA declaration/constitution. So much for the American way of life.

I don't think anyone here is going to create a better set of rules than are already in existence, for better or for worse. This, I believe without reading the details, is what Nelson is promoting: The end game of planned communities is the legitimization of the private HOA form of government, accepted by all, replacing civil local government without the Bill of Rights.

Then, we will become The United HOAs of America. That's where you must be watching.