There is no improving on that headline from a front-page story in the Sunday NY Times. The Times story is a good companion to The Indiana Law Blog entry of July 13 on the same topic. Some quotes from the Times story:
About one in six people in the nation, or roughly 50 million residents, lives in a community governed by a homeowners association, from co-op buildings in New York City to suburban subdivisions. Formed to take care of the small tasks that fall through the cracks of municipal government, like picking up garbage and repainting curbs, some homeowners associations are asserting far broader powers, backed by local courts. Cities and counties, which are reluctant to raise taxes to pay for services, have in many cases stepped aside, allowing associations to become de facto governments with increasing authority over daily life. * * *At issue are "the powers of homeowners associations to foreclose without due process."Homeowners associations collect dues, which finance a variety of things, including landscaping and playgrounds. The boards, composed of elected volunteers, dictate house paint colors, lawn-mowing schedules and parking policies for recreational vehicles. The boards can fine residents who break these rules and, in some cases, foreclose on homeowners who cannot afford the monthly dues.
Critics say that the boards, while elected, have few checks and balances, and often act in secret. They "are made up of good old boys who just want to go into a backroom and decide what's best for everybody," said Bob Finn, a retired judge from Nebraska who won a spot on the board at Sun City West, a resort community in Phoenix, by campaigning for open government. * * * For a homeowner with a serious complaint about the board, there is no third party to mediate other than the courts, an alternative that few can afford. With the courts as a first and last resort, a squabble easily escalates into a neighborhood battle.Posted by Marcia Oddi at July 28, 2003 06:47 AM