Why are private corporations permitted to “grant” private government charters to organizations that give the power to control and regulate the people within the territorial boundaries of the subdivision? The developers are creating political governments, sometimes as a requirement of a local government, as defined in Black’s Law Dictionary (when such powers are given to the HOA with respect to a territory, making it a political government for all intents and purposes).
What is the purpose of permitting and protecting such agreements through legislation that “sanctifies” these provisions in CC&RS? These CC&R “constitutional charters” that lack protection for the rightsfreedoms and liberties of homeowners living in these planned communities governed by HOAs. This is an issue of constitutionality, of the delegation of private governments unanswerable under the 14th Amendment. Let me offer this quote by Gillman in his The Constitution Besieged to help clarify this point:
“Specifically, it came to be determined, first, that laws that singled out specific groups or classes for special treatment would withstand constitutional scrutiny only if they could be justified as really related to the welfare of the community as a whole ? and were not seen as a corrupt attempts to use the powers of government to advance purely private interests; and second, that acts that interfered with an individual’s property or market liberty would be considered legitimate so long as they were not designed to advance interests of just certain groups or classes’?.
For the detailed proposal see MUNI-ZATION (PDF).