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Homeowners Aassociation:
A homeowners' association, is an
organization comprised of all owners of units in a common
interest development, and is given authority to enforce
the covenants, conditions, and restrictions and managing
the common amenities of the development. Most homeowners'
associations are now non-profit corporations, and are
subject to state statutes that govern non-profit corporations
and homeowner associations.
United States:
The fastest growing form of housing
in the United States today are common-interest developments,
a category that includes planned-unit developments
of single-family homes, condominiums, and cooperative
apartments, Before the first unit is sold in one of
these developments, the developer records restrictive
covenants on all of the properties. Restrictive covenants
limit the property rights of individual homeowners,
by contractual agreement.
Since 1914 builders of common interest
developements and firms and companies that sell services
to homeowner associations have said that deed restrictions
protect property values — a rationale that remains
the most common justification for the loss of freedom
inherent in a development run under a regime of restrictive
covenants.
For example, these covenants may authorize the board
or a designated committee to approve the color a house
is painted, or the types of flowers and shrubbery
planted, and even regulate the conduct of homeowners.
Restrictive covenants run with the land, meaning that
they bind subsequent purchasers.
Constitutional Challenges:
Of interest to homeowners in modern associations is
the application of Shelley v. Kraemer, which ruled
racially-restrictive covenants to be unenforceable,
to the United States Bill of Rights or state constitutional
rights that most Americans take for granted. These
rights include the freedom of speech, due process,
and the right to peaceably assemble. However, these
are rights that protect individuals against governmental
abuse.
Traditionally, courts have held private 'actors' are
not subject to constitutional limitations -- that
is, enforcers of private contracts are not subject
to the same constitutional limitations as police officers
or courts.
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By joining an association, homeowners "contract out"
of their constitutional rights, because boards
of directors are private actors, and not government
agents. Unhappy homeowners have argued that judicial
enforcement of restrictive covenants is state
action, citing Shelly v. Kraemer. However, in
2002, the 11th Circuit declined to extend Shelley
beyond race discrimination in Loren v. Sasser,
a challenge to an association's prohibition of
"for sale" signs. There, the court ruled
that judicial enforcement of a private contract
did not constitute state action, and accordingly,
there was no First Amendment violation.
In a more recent 2002 case, Committee
for a Better Twin Rivers v. Twin Rivers Homeowners’
Association the New Jersey Superior Court held
that a homeowners' association was not subject
to the free speech provision of the state constitution,
which paralleled the First Amendment but was more
broadly applied. An appeals court overturned the
decision. The case involves a group of homeowners
collectively called "The Committee for a
Better Twin Rivers" which sued the Association,
for a mandatory injunction permitting homeowners
to post political signs. In ruling for the plaintiffs,
the appeals court relied on a 1946 United States
Supreme Court case, Marsh v. Alabama. In Marsh,
the Court held that a company-owned town that
functioned like a government should be treated
like one. Accordingly, the company town was subject
to the First Amendment and could not abridge the
employees' freedom of speech. Similarly, the New
Jersey appeals court found the Twin Rivers Homeowners'
Association was open to the public, contained
public schools within its boundaries, and provided
many private amenities such as services and roads.
The court concluded the association assumes many
government functions, and therefore the New Jersey
state constitution limits the authority of the
board members or others who set and administer
"standards of the community." |
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| Financial Risk for Homeowners: |
The AARP has recently voiced concern that homeowners
associations pose a risk to the financial welfare
of their members. They have proposed that a homeowners
"Bill Of Rights" be adopted by all 50
states to protect seniors from rogue Homeowner
Associations.
In some U.S. states, California
or Texas for instance, a homeowners association
can foreclose a member's house without any judicial
procedure in order to collect special assessments,
fees and even a fine. Other states, like Florida,
require a judicial hearing.
Homeowners association boards
can also collect special assessments from its
members in addition to set fees, often without
homeowners' vote. Special assessments sometimes
require a homeowner vote if the amount exceeds
a prescribed limit established in the Association's
by-laws. In other cases, the amount of special
assessments is completely at the board's discretion.
Increasingly, homeowner associations handle large
amounts of money. Homeowners often do not pay
attention to the business of their association.
Embezzlement from associations has occurred, as
a result of inattention and dishonest board members
or property managers. This has been a difficult
problem, and losses can (and have) been in the
millions of dollars.
Housing Society:
Housing society is a term used
to describe residential complexes usually consisting
of buildings each having flats, especially in
India. A housing society is a group of house owners
generally residing in same building, apartments
or same premises formed as per relevant laws for
smooth functioning of utilities and other ameneties
provided to them. The housing society formed must
be formally registered with registar of Co-operatives.
Each state has its own rules in this regard. Each
building in same premise may have separate housing
society or one. Many housing societies form one
federation. Housing societies run on the fees
or charges levied by them on house or flat owners.
Some of the housing societies in Mumbai are cash
rich, having millions of rupees in their bank
account. |
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