HOAs are private entities not subject to the same constitutional standards as government

July 26, 2007

By Frank Rathburn (View author info)

"We are pleased that the court has disallowed intrusive government interference in the rights of private homeowners," said Ronald L. Perl, president of Community Associations Institute (CAI), a national membership organization dedicated to fostering vibrant, competent, harmonious common-interest communities. "With this decision, homeowners can continue to govern their own communities by mutual consent and continue to enjoy the self-determination and quality of life they have come to enjoy."

Community associations are private entities and historically not subject to the same constitutional standards as government. Although this distinction is supported by decades of case law and the practicalities of common-interest housing, the earlier appeals court ruling had the potential to blur this line.

The decision clearly defines associations as businesses and respects the private, contractual agreements among homeowners who share the same expectations of home ownership."

Frank Rathburn
Community Associations Institute