Real Estate with no HOA,s 10-25-07

I've written about homeowners associations in the past, and it's no secret that I would not choose one. Choice is the key. As I stated before, if you choose to buy where you are governed by homeowners association, that is your choice. However, there should be a choice. In today's world, there are those who are always trying to see to it that you no longer have that choice.

To help explain the previous statement. I give the following examples. I'm not sure about other states, but Arizona has by referendum passed into law a requirement that each county have a land-use plan completed by a certain date. This has become an opportunity for those who want to see the rural way of life disappear. In the view of these people. Everyone should be in a high density development with no purpose in life but to work consume and pay interest on credit cards, car loans and mortgages.

Along with this, one of the major power companies in Arizona, has just done away with a line extension that had been free for many years. Their claim when they went to the Corporation commission was they could ask for less of a rate increase if they didn't have to subsidize line extensions. Of course, there's no doubt in my mind that they will get this back in the next rate increase. What's interesting is the private individual will now receive a $5,000 allowance toward the cost of construction as well as the developer. However, the developers will get $5,000 per lot. So to extrapolate if a developer builds a 200 lot subdivision, they will receive $1 million allowance toward extending power. However, mom-and-pop splitting their 10 acre parcel into two pieces so that their child or someone who buys the five acre parcel could pay from $10-$20000 to extend power. In my opinion. Just another way to inhibit growth not being done by developers in subdivisions with homeowners associations and the rules and expenses that go with that.

Unfortunately, the Corporation commission our commissioners are independently elected to office and are therefore under the same special-interest pressures that already pollute our country. I am sure even without research that the Corporation commissions were originally designed to govern a semi-governmental utility and their purpose was to assure that all citizens receive power at a reasonable price. However, if you need to be reelected and are under pressure by lobbyist or developers, environmentalist and no growth advocates, you might forget your mission.

You see, a lot of our politicians nowadays have forgotten about our right to own and control property. Much of today's regulation, specifically infringes on this right. Something I have become very aware of are the land-use plans, creating blanket regions. Basically, an overlay, saying, we have decided this area may only be used for this purpose or this area is 20 acre zoning and this area is one acres zoning. However, those developing these plans don't seem to take into consideration that they have just made a decision for a private property owners property.

In my opinion, this comes from the fact that it is much easier for a government bureaucracy or even elected official to sign in or vote for unconstitutional regulations than it is for the private individual to see a lawsuit through to a satisfactory conclusion. Of course there are attorneys fees which are usually more terrifying than the loss of rights. To compound the cost of a lawsuit these types of cases, must be seasoned in order to move into higher courts. Seasoned means they have to be heard in the lower court then appealed to the higher court. Then appealed to a yet higher court. That's why they call it the Court of Appeals, because you are appealing the decision of a lower court. Not at all, an expert. I believe the Supreme Court will not hear this type of case if it has not already been seasoned through the lower courts.

What does this have to do with homeowners associations you ask? If you watch closely, you will see ever-increasing regulation land use plans, zoning restrictions and other pressures that force, more and more people into subdivisions. One way this is accomplished is by making the cost of developing infrastructure to a property so expensive that only big money concerns can afford to do it. Of course, those investors must spread the cost of a subdivision process and the cost increases required by regulation imposed on subdividers to the home buyers.

If this trend continues, I suggest we all invest in apartments. Interestingly, I heard recently on a news cast. I believe it was the new Fox Business Network,( but I'm not positive about that) that those investors and average homebuyers who have been caught in subprime debacle and foreclosed on, are paying more for rent now then their mortgage would have been. It seems that the more people who are foreclosed on, the more demand, there is for rentals. If the cost of homes continues to be driven up by regulation, that is probably unconstitutional. The rental market should do very well.