CAI admits desirableness of HOAs on decline

Now that hard times have come upon us, the weakness and high risk of living in an HOA has become readily apparent, and too late for all those living in HOAs. The coerced acceptance under false pretenses, and the all too eagerness for people to believe, hid the reality that HOAs are like privately held small businesses and partnerships that expose the owners to high financial risks not of their own doing.

As I wrote,

The pro-HOA supporters’ reason for the need for foreclosure rights can be found in the defective HOA legal scheme that is similar to a partnership. In partnerships there are a limited number of financial supporters, the owners, who are jointly and severally responsible for all the HOA debts — those with the money pay for those without the money. A legality. And like a privately held small business, the financial base is relatively small and limited to the homeowners who have very little practical means to escape their obligations by leaving the HOA. (Call for HOA action: “Occupy Wall Street” vs. Occupy the Legislature).

Like those caught in privately held businesses and partnership “gone south,” there is very little that can be done for homeowner-investors in HOAs. HOA foreclosure is unjust and lacks any evidence to salvage an HOA. Those very same laws that gave the image of safe investments and a happy community are at the heart of the problem. You know, like the banks giving away all those almost free mortgages.

See news release: CAI Survey: HOAs Still Reeling from Economic Slump, 12/8/11
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Published in: on December 8, 2011 at 2:29 pm  Comments (2)  
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  1. “CAI admits desirableness of HOAs on decline”

    George,

    The blood-sucking lying scumbag POSs at the CAI have admitted no such thing, and you are doing a great disservice to your readers and damaging your credibility to imply that they have.

    Contrast your sensationalist interpretation with the headline of Professor McKenzie’s blog post about the same press release; “CAI Survey: HOAs Still Reeling from Economic Slump.”

    • I appreciate your frank comment.

      If you were looking for an explicit statement from CAI of such an admisssion, you didn’t find it. Aside from painting a dismial picture facing HOAs, CAI’s study is, in my opinion, an argument for a bailout of HOAs. “We can’t afford FHA policies that prevent many potential buyers from obtaining FHA-backed loans.”

      However, you can extrapolate, or interpret, the following CAI statements, based on their survey, as a recognition that HOAs are not heaven on earth. “Unfortunately, only 7 percent of managers say their owners are “strongly” sympathetic to the issues faced by association leaders” and “Association boards, community managers and other professional service providers are being put to the quintessential test: how to sustain communities and meet homeowner expectations with far fewer resources.”

      Why is CAI painting such a dismal picture? Why include these negatives about HOAs when seeking FHA support? Would you buy or invest into such a deal?

      If CAI does not believe HOAs are not such a “hot” thing anymore, let them reply. And don’t forget that aside from the financial picture, there is the increasing exposure of the “ills of society,” as one Arizona legislator put it.


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