True believers in the HOA system say, “Well, at least it protects my property value.” That statement only comes from the spectacularly stupid.
When you sign those real estate documents, you are essentially becoming a legal partner with every other member of your HOA. As thoroughly documented in my new book, Neighbors At War, when you have all those other homeowners as partners, you’re liable for every single accident, temper tantrum and lawsuit across the landscape. You’ve made yourself a legal financial partner with people you’ve never even met, possibly many people you’ll NEVER EVEN meet.
The Homeowners Association movement is rife with hypocrisy. This truth was demonstrated in a recent Illinois Supreme Court case, Spanish Court v. Carlson. The Illinois Supreme Court has made some goofy decisions on HOA issues in the past, but this one was spot-on. It essentially ruled that homeowners can withhold dues if the HOA isn’t fulfilling its contractual obligations to homeowners.
Community Associations Institute (CAI) makes billions of dollars by pretending that Homeowners Associations are exempt from annoying and petty requirements of the U.S. Constitution because they’re not real governments. They’re private non-profit corporations.