Nevada Governor takes bold stand against New America and vetoes HOA bill AB396

The forty-year political and social movement to create a New America populated by independent HOA principalities, which deny homeowners their fundamental liberties, suffered a major setback in Nevada.  Nevada Governor Gibbons vetoed AB396 that contained a provision for the establishment of HOA reserve assessments determined solely by the board, without any homeowner voice.  Governor Gibbons was concerned that the bill raised “the possibility of increased assessments and the possibility of dramatic changes to common areas without an opportunity for homeowners to participate” which far outweighed any other homeowner favorable provision in the bill. 

Across the country homeowner advocates, who have been denouncing HOA private governments for their lack of true democratic principles, saw this measure as an admission of failure of the HOA concept and industry supporters to properly manage and govern the homeowners.  The bill is an admission of the negligence and failure of HOA boards to have established and maintained good business judgment practices by having monies set aside for foreseeable capital improvements.  Consequently, industry supporters saw the urgent need for this bill with its “quick fix” at the expense of the unrepresented homeowner. And it’s an admission of the failure of the national lobbying organization, Community Associations Institute (CAI), to have provided effective educational tools and training for its “professional” HOA managers and board members.

Yet, state legislatures continue to see no evil, hear no evil, and speak no evil about the HOA structural and legal defects amounting to coerced expression and a lack of choice in housing as a result of mandated HOAs for new developments.  At the same time, and wholly inexcusable, failing to protect homeowner rights under the US and state constitutions, and failing to provide proper consumer warnings and notices relating to the implied surrender of unspecified rights by accepting HOA restricted deeds. 

Advocates can only conclude that industry supporters fear that the adoption of democratic institutions would undermine their planned communities in the truest sense of state-controlled territories. Their conclusions have a solid foundation as exemplified by the CAI statement in its amicus brief to the NJ Appellate Court in the Twin Rivers case. CAI states, “the unwise extension of constitutional rights to the use of private property by members” fearing the bona fide judicial protection of homeowner rights, and offering the fallacy that corporate, business governance is a true and faithful expression of a democracy by the people within the HOA. 

Thank you Governor Gibbons for your bold and courageous stand against New America and the tyranny of authoritarian HOAs.

Published in: on June 16, 2007 at 7:37 am  Comments (1)  

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  1. For the record, these are the totals before Gibbons Voted AB396.

    Assembly Final Passage Apr. 23 Yea 42, Nay 0, Excused 0, Not Voting 0, Absent 0
    Senate Final Passage May. 25 Yea 19, Nay 2, Excused 0, Not Voting 0, Absent 0

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