Demand to Know: Where Do Politicians Stand on Co-op and Condo Issues?

There are over 300,000 association-governed communities in the United States and they are home to almost 60 million residents — about 20 percent of the entire population of this country! Yes, it's a big deal. Yet we hear almost nothing about this huge constituency from any politician. At the state level, housing and real-estate law and land use should carry a great deal of weight with politicians, and common-interest developments are all about those issues. Where should we build new ones? How do we make them green? How do we govern those that already exist? How do we make them affordable?

Politicians owe it to co-op and

condo owners to focus on the

consequences of failed budgets

or co-op / condo developments.

So what do all of these co-op, condo and HOA residents need from their elected officials? First of all, they need to be understood. Politicians need an understanding of how important this type of housing is to the entire nation . . . an understanding of the unique nature of its governance . . . an understanding of the potential economic disasters that will occur if co-ops, condos and HOAs can no longer self-govern or maintain their facilities. After that, homeowners need carefully drafted legislation that recognizes these concerns and looks to the long-term survival of this type of housing.

For example, current law in most states does not provide meaningful support or even a legal context for a co-op or condo development that can no longer raise the funds necessary to maintain its infrastructure, can no longer recruit volunteers to serve on its board of directors, or has reached the end of its useful life. In most states there is no statutory recognition of this problem whatsoever.

Big-Picture Planning vs. Foreclose Crisis

Is this because the preservation and support of co-ops, condos and HOAs has no political ring to it? No. Such common-interest developments resound with debates over less government vs. more government, similar to the rhetoric among political parties. Should boards more aggressively enforce house rules and bylaws, or adopt a hands-off point of view? Should the board be able to adopt a prudent economic policy by raising assessments as necessary to assure sufficient funds for future maintenance, or should they have to accept the political reality that the owners do not want to pay common charges or monthly maintenance? Are there constitutional questions here, such as those of individual rights vs. the needs of the community?

These issues emulate the national political debate. At the local level, however, they are largely non-partisan. Politicians owe it to co-op and condo owners everywhere to focus on the potential consequences of failed budgets or failed co-op / condo developments. These issues involve such a sizable chunk of the population that politicians at the state level — where real property law and policy is decided — must be made aware of these issues so at least they will be prepared to evaluate any proposed legislative changes to the laws governing co-ops and condos.

It's time for co-op / condo issues to receive more political attention. The foreclosure crisis that we have seen over the past two years could be equaled by the crisis that would befall the nation if common-interest communities begin to fail in large numbers.

The resolution of that crisis, however, will take political guts at all levels, starting with boards of directors and also including our elected officials.

Tyler Berding, a partner at Berding|Weil received a Ph.D. in Government from Claremont Graduate School and his law degree from the University of California, Davis. His firm has represented community associations for over 30 years. This is adapted from his blog post “Why are Common-Interest Developments not on Party Platforms?”

For articles going back to 2002, join our Archive >>