July 13, 2003

Law - Homeowners Associations

Homeowners associations facing backlash: More states taking aim at restrictive covenants is the headline to this AP story in the business section of the Indianapolis Star. A quote:

In a country founded on private property rights, homeowners associations increasingly dictate the nation's home colors, landscaping, pet sizes and placement of satellite dishes. They also restrict many forms of political expression Americans take for granted.

Experts call this accelerating trend one of the most stunning transformations in how Americans live, rent and buy homes; an estimated 50 million people live in areas governed by homeowners associations. Especially prevalent in the Sunbelt, homeowners associations -- with corporate-style rules that limit traditional town hall democracy and keep closed financial records -- govern 80 percent of the nation's new housing and neighborhoods, said a trade group.

A quick look at Google News led to a number of recent stories on "homeowner associations." Among the, this story titled "Gov. Jeb Bush's promised veto of homeowner association bill puzzling," that explains:
Though it received near-unanimous support of the Florida Legislature, Gov. Jeb Bush sent word Tuesday that he will veto a bill designed to give homeowners association greater leverage to enforce deed restrictions. Bush informed [the bill sponsor], of his decision Tuesday morning, shocking those who have worked on the project for nearly a year. * * * Fasano [the sponsor] filed the bill on behalf of United Communities, a coalition of 24 subdivisions, 17 of which have non-mandatory associations. Unlike most gated communities such as Silverthorn and Timber Pines, these neighborhoods - with 60,000 lots between them -- do not impose mandatory dues on property owners. As a result, they lack the financial resources to maintain and beautify common areas such as clubhouses and medians. They also lack the means to enforce deed restrictions. Consequently, property values in these non-mandatory subdivisions suffer.

Fasano's HB 1632 would have permitted communities with voluntary homeowner associations to create special taxing units. Revenues generated by the annual fees would be used to maintain subdivision common areas and enforce deed restrictions. The bill received unanimous support in the Florida House when it came to the floor in May and similar support in the Senate.

And here is a story from The Gainsville Sun about neighborhood associations, a close relative of homeowner associations, but generally without the deed restrictions.

Posted by Marcia Oddi at July 13, 2003 11:28 AM