Fast-Growing Common Interest Developments Spurring
Cottage Industry for Homeowner Advocacy

NWREporter July 2007

By Cheri Brennan

Love 'em or loathe 'em – homeowner associations (HOAs) are a part of the everyday lives for a rising number of Americans.

The growth of Common Interest Developments (CIDs) and "managed communities" is spurring the emergence of homeowner advocacy groups, watchdogs, legal specialists, books, blogs and other resources aimed at helping individual owners assert their constitutional and property rights.

One such book is described by its author as "the first self-defense guide for condo and homeowner association members." Not surprisingly, Dr. Joyce Starr, the author/publisher, was inspired to share her experiences and insights after winning a two-year legal battle with her condo board involving toxic mold, whistle blowing and pets.

"Defend Your Condo & Homeowners Rights! What You Must Do When the Board Turns Your Life Upside Down" is sold separately or as part of a trio of works on "homeowner defense strategies." In addition to the "Defend" title, the 3-part set includes "Creating Home Owner and Condo Association Documents: How to Protect Your HOA and Con-Dough" by David Goldenberg, Ph.D., and "Condo Board Elections Revolt," by Valmore Lucier, "the first Condominium Ombudsman in America." (For ordering information: www.drjoycestarr.com)

Starr describes her book as a step-by-step action guide for "stopping board abuse, harassment, retaliation, frivolous legal actions and failure to maintain the common association property." The book contains sections on:

• Identifying and avoiding condo or HOA commandos;
• Interacting with abusive board members;
• Responding to warning letters;
• Garnering support from neighbors; and
• Building an enforcement case defense.

Dr. Starr is the author of other books on wide-ranging topics, including international policy, environmental policy, public policy and holistic wellness issues.  Her commentaries have appeared in the Washington Post, Washington Times, Miami Herald, LA Times, International Herald Tribune, and Jerusalem Post, along with numerous online media.

Potential readers of the defense kit books number in the millions.

In 1965, fewer than 500 Common Interest Developments (CIDs) existed nationwide, according to Evan McKenzie, a professor of political science at the University of Illinois and author of "Privatopia: Homeowner Associations and the Rise of Residential Private Government."

By 1970, there were 10,000. Today, although there is no official monitoring, experts estimate there are 250,000 common-interest developments, making them the fastest growing form of housing in the country.

The Community Associations Institute, a trade association, estimates that HOAs governed 23 million American homes and 57 million residents in 2006.

"Almost all new development in densely-populated areas is CIDs. It is a total transformation of the landscape of American home ownership," says McKenzie, who has been writing about homeowner associations since 1985. "The traditional family home is becoming extinct in larger cities."

"Fifty-five million Americans live in developments overseen by community associations," says consumer watchdog Ken Hyland. "Four out of five of those associations are doing well, but the other 20 per cent have problems."

Hyland is the founder and CEO of the National Institute of Community Management (www.nicm1.com). Among its benefits, the organization provides consulting and accounting services for community associations, helps update association documents, conducts reserve studies, and offers publications and discounts on educational classes and seminars, plus a hotline for board members.

McKenzie’s book traces the evolution of homeowner associations and some of the important court cases regarding the enforcement of covenants. "When you join a homeowners association, you are signing a contract," he notes, adding, "These are legally-binding covenants and if you don't want to live by them you should not buy the house."

McKenzie acknowledges most associations do well in protecting residents’ interests, but cautions, "Even when you have a board filled with great people, it’s still only one election away from disaster!" In handing over control to an association’s board of directors, McKenzie notes there’s a risk of having untrained people "with no knowledge of the law or business, and sometimes [they] have very bizarre ideas of what they want in their community."

Not knowing what you are getting into can be costly, McKenzie emphasizes. "Your association can fine you. If you don’t pay, it has the legal right to collect by selling your house," he sates.

Another consumer group that was formed to protect residents of CIDs is the American Homeowners’ Resource Center (www.ahrc.com). This grassroots, public interest interactive website offers networking, research and resources for homeowners, journalists and legislators and draws an estimated two million hits per year.

"Nobody should have the authority these boards have over what people own," says Elizabeth McMahon, co-founder of the American Homeowners' Resource Center. Her group has five goals:

1. To help preserve the constitution and legal rights of homeowners.
2. To provide information to homeowners on those rights.
3. To help homeowners to protect and preserve those rights.
4. To publicize violations of those rights.
5. To remedy abuse of those rights by education, mediation, legislation, litigation, reparations and elections.

Industry experts agree too many members of HOAs don’t realize what rights they’ve signed away "until it’s too late."

"It is an enormously serious and growing problem," says condo law expert McKenzie. "If you move into a covenanted neighborhood, you have no choice but to abide by the covenants. It might be your house, but you can't do just what you want with it."

In a report for Bankrate.com, Paul Bannister observes, "Despite the horror stories and the legions of critics, it's obvious many Americans appreciate the way HOAs operate. Why else would 20 per cent of the population voluntarily place themselves under their control? One man's trash is another's treasure -- or in this case, one man's devil is another's angel."