[quote author="jcaraway" date=1207657111]eva, how one even think that hoa's are unnecessary in this litigious world we live in?
how can a common interest development even work without an HOA?
how can any development in this post prop 13 world work without an HOA?
the answer is d. none of the above/they can't. They aren't unnecessary or less than necessary, they are essential, for better for worse.</blockquote>
You're being sarcastic, right? Right?!? Please tell me that you are otherwise your . . . um, youth and biases are showing.
Oceania has not always been at war with East Asia.
1. Litigiousness. HOAs are the lawyers' full employment act. From the initial drafting of the documents, to advising the HOA, to dealing with the ADR (e.g., mediation) and eventual litigation, lawyers are involved throughout the entire process. Please explain to me how HOAs reduce litigation? Given the inexhaustible laundry list of rules, they would seem to increase litigation. Further, not only does the HOA enforce the rules, an affected landowner may as well. So you have one more party to add to the mix who can sue and/or be sued. Contra, e.g., Costa Mesa. They had instituted (and I believe still use) the process created by the Legislature several years ago to process code violations administratively. A citation is issued. If one wishes to dispute the citation, you go to the administrative hearing. From there, that decision can be appealed to the OC Superior Court. If there is a use restriction on the deed, a CM citizen can sue the landowner for enforcement of that provision. If not, one is left with Code Enforcement. Of course all cities, pre- and post-, with or without HOA can use the courts to abate nuisances.
2. It depends on what you mean by common interest development. For those that own improvements (streets, parks, pools, etc.), you pretty much need an HOA or other corporation to hold and maintain the improvements (you could probably do it by joint venture or partnership, but I think that would be messy - and unnecessary since the Legislature was kind enough to create an entire statutory scheme for common interest developments, as defined by statute. Prior to CIDs, however, there were deed restrictions. Take, for example, Hancock Park. Because developers (or, really, subdividers) in the 1870 - 1920s era believed that deed restrictions that ran without expiration might violate the rule against perpetuities (just google it) and be unenforceable, they added cut-off dates. With the impending cut-off date on the deed restriction, some deed restricted neighborhoods created their own HOAs. Notably, other places, like Hancock Park, have not (although it does have a community association that does not function like an HOA). The deed restrictions, if any, and local codes are enough. Also, is a CID the default? Many places in California were developed without CIDs.
3. Prop 13 and HOAs do not necessarily go hand-in-hand, although I can understand why a local public entity would like them. Rather than using the city's revenue to keep up the streets, parks, trees, etc. the HOA gets to pay for it. Without an HOA, the local public entity gets to exercise its traditional responsibilities of maintaining infrastructure. Of course, sometimes that local public entity is not the city or county (if the land is located in an unincorporated area), but a Mello-Roos district, er "Community Facilities District."
There are millions of homes located in areas without HOAs and they function just fine. Many of the issues you are concerned about are more dependent on <em>who your neighbors are</em> rather than who enforces the rules or owns the streets. Jerks can live in communities with HOAs just like they can live in communities without them.
PS: Can someone please explain how to put in line breaks? Mere carriage returns don't work. Thx.