guest blog by Deborah Goonan
Here’s the blatant truth. The corporate structure of HOAs — allocating voting rights to the Property instead of allocating those rights to People based upon residency — leads to the inevitable consequence of pitting investors against homestead property owners.
Because an HOA property owner gains voting rights for EACH property owned, it creates the incentive for investors or developers to buy up – or retain – as many “shares” of the HOA corporation as possible. And everyone knows that a majority shareholder controls a corporation.
But not everyone realizes that nearly all HOAs are corporations. Share this story with everyone you know, especially if they are considering buying a home.
We need to decide in this country: are homes a place to live and gradually accumulate stable personal wealth over time, or are they merely investment commodities subject to the whims of a volatile real estate market – where a few people profit at the expense of everyone else?