Who is the only true HOA stakeholder?

I’m tired of hearing the term, stakeholder, over and over again by CAI, and used by others including legislators. I don’t think that they know the real meaning of “stakeholder” as bastardized by CAI. Let me explain.

The term or concept of “stakeholder” is not found in the HOA “bible,” the Homes Association Handbook of 1964. I cannot find it either HOA texts, in the 1992 book by Prof. Jay Dilger, Neighborhood Politics, or in Prof. McKenzie’s 1994 book, Privatopia. However, McKenzie describes the beginnings of CAI in 1973 as an organization to solve the problems with HOAs. It was to consist of various “interest groups” that had an interest in making the HOA legal scheme work.

Even then, the real focus, as is today, was on the HOA directors and not on the homeowners per se – the five groups were: public officials (rapidly departed), professionals (attorneys), managers, developers and “homeowner associations directors (referred to by CAI as ‘homeowners’)”. Under “professional” there was reference to landscapers and accountants, etc., which makes these stakeholders also equal partners in your home, according to CAI. Gee, what would your spouse say to that? Talk about redefinitions and “newspeak.”

The term or concept of “stakeholder” is also not found in the 2000 CAI – ULI jointly funded testament to CAI, Community Associations, by Donald R. Stabile. But, in his discussion of history, Stabile speaks of The Homes Association Handbook (1963), “To establish the satisfaction all components of the housing industry expressed for [HOAs] . . . TB50 evaluated the perspectives of each [group].” It reflects the concern of various business interest groups – the stakeholders (this term is not used by Stabile), but not the homeowners, just the “association owners.” Stabile does point out that CAI was initially organized (1973) by these same groups of “interested” parties necessary to make the problems with HOAs go away, but then again, he mentions “homeowner leaders of associations,” but not homeowners.

 I believe this was the genesis of what later became the CAI argument that the stakeholders have an equal stake in the member’s private property home, for which the owner alone has monetary liability.

It should be obvious by now that the term “stakeholder” as used by CAI definitely excludes the homeowner, and has evolved from the long term focus on the “interest groups” with a stake in selling and making the HOA concept a success. It is obvious, too, from the false and misleading statements before Arizona legislative committees that CAI had met with all the stakeholders, but not one homeowner rights advocate was ever invited or attended these stakeholder meetings, just who CAI sees as “stakeholders.”

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Published in: on March 14, 2012 at 12:12 pm  Comments (4)  
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4 CommentsLeave a comment

  1. Everyone associated with an HOA benefits, at the expense of the homeowner, excluding the actual homeowner.

    And now we’ve modeled our government after an HOA – everyone benefits except the 50% who actually pay all the taxes.

  2. Enjoyed your comments,but you must realize that HOA’s are so infested with people who think that associations must run us and make money off of us . That we are wrong in our belief of what might be “acceptable ” living. My solution would be to vote that all associations be “resident members only ” . That excludes people like Eric Glazer(sorry) who seems to think that associations should be run by the Vultures.

  3. While loathed to admit it, on high CAI, Falls Church, Virginia, through its downstream hod carries, know the only true stakeholder is the individual homeowner member not the financially self-interested, non-member association “stakeholder,” the non-stock-non-profit corporations, associations, management companies, law firms and others (lobbyists, insurers, service providers and others’ not having a real property ownership stake in associations but rather a self-interested financial stake).

    Loathed to admit the truth, CAI, its agents and many statewide LACs employ the broad-brush ambiguous “stakeholder” trusting the brain-dead will not understand the significant gulf between the interests of those owning a home and those collecting a check while telling the owners how they may live in and/or enjoy their homes.

  4. The way I see it, the utterly unjust and flawed brainstorm of the homeowners association was dreamed up for the future and forever financial benefit of many parties but NOT the homeowner! As you point out almost daily, it usurps every citizen’s constitutionally guaranteed right, denying one’s right to recourse in a court of law to have a judge or jury hear and rule upon wrongs done by another party and to order compensation to you for those wrongs. Property rights are a sacred concept in the U.S., but the “worm” of the unconstitutional HOA and CC&R’s writ in stone have eaten badly into that sacred right! No person or group should have to spend hundreds of thousands of dollars in court to simply have declared null fraudulent, unreasonable or outdated covenants which a developer has crafted to provide him a cash stream for all time! In the case of the state of Florida, no checks and balances, no enforcement of HOA laws on the books and no agency to assess fines for non-compliance with the laws is our reality! How long will it take for the truth about HOAs to become apparent to those who enabled their existence? The whole concept is a miserable failure, fraught with fraud, embezzlement, kickbacks, and failure to provide the fee-payers with audited financial accounting that has been certified and signed by a C.P.A.! These terrible, coercive arrangements need to be limited via legislative reform immediately to voluntary only associations, wherein a property owner is never coerced to belong to or pay fees to, an association, and no legal device is ever incorporated into a buyer’s sales contract which enslaves them to pay for a service they prefer not to use or pay– for eternity! I say repeal all statutes relating to homeowners’ associations and let us finally live in peace to enjoy our property and homes, free of the racketeering vultures who prey on us in our golden years!


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