EXPLOITATION OF HOMEOWERS BY THE HOA INDUSTRY

by Koreen | May 20, 2008 at 08:36 pm

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HomeOwner Associations (HOAs) are all about control. First and foremost is the control over the mandatory HOA "members" of the mandatory HOA "non-profit" corporations. These "members" are the "homeowners," (really home-owers) or "titleholders."

At the next level of control are the HOA management companies with their (in Florida) state licensed CAMs (community association managers.) In turn, the management companies have control over the lower level HOA Industry service providers contracted by HOA "management" possibly with many opportunities for "perks" for themselves and HOA board directors and officers. "D and O" insurance rates have "gone through the roof," but that's O.K. because the "homeowners" must pay the insurance premiums under threats and penalties of lien and HOA foreclosure!

At the top of this pyramid of exploitation and control is the Community Association Institute (CAI) comprised of many CAI HOA lawyers that not only exert control over HOA boards and management companies, but over legislators as well. The HOA Industry must make sure that no laws are passed, and possibly enforced, that might free and protect the "homeowners" from exploitation.

Is there a pattern emerging here? Is this a hierarchy of power and control or what? We needed a place to live (a home), we did not want to or know that we would become serfs living under a financially crushing regime of exploitation and control!

This is a comment that was e-mailed to me about my story.

"Rather than go into a lengthy explanation of the situation of control, I find it easier to simply say that in a mandatory HOA, individuals do not own their own home at all. In reality, the HOA corporation owns everything. Individuals own nothing except a limited privledge of living in a particular home. As we know, that privledge can be revoked based on the most trivial of things. In many Deed Restrictions or C&C contracts, the individual has no property rights at all. There is no limit to the rules that boards can create. Theoretically, they can't make rules based on racial discrimination. But in practice, the rules are not consistently applied. Every resident is guilty of violating some of the rules. The unlucky ones are singled out for prosecution and eventually are forced out of the neighborhood. The rules are rarely enforced for the "in-crowd", and most even proudly flaunt this."

Take care, Kristen

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