HOA’s Harm HOA * Basic * Flaws A Snapshot What’s behind all the complaints... Why they persist...

• HOA History Rooted in Discrimination Reinforced by “Privacy”, Small-Group-Rule, Elite-Rule • Governance Design Ignores Basic “Human Nature” “Obedience to Authority” - Milgram Experiment (1961) “Social Role Conformity” - Stanford Prison Study (1971) “Group-Think” - Collective Narcissism Baby-Boomer’s “Unidentified Disabilities” • State Laws Create Harmful Imbalances Primary Power to Boards Token Power to Owners Inadequate Regulation Inadequate Board Qualifications Corporate-Mentality - Corp. vs. People HOA’s ARE Corporations • Fed/State/Local De Facto “Support” for HOA’s HOA’s relieve governments of multiple civic duties Enable Politicians to ignore HOA Owner issues • HOA-Industry Social Engineering for Profit Powerful Lobby Promoting HOA’s Promote Sub-Standard Manager Qualifications HOA Attorneys = Legal Protection for HOA’s Vendor-Industry - Range of services supporting HOA’s • Real Estate Industry Supports HOA’s Making “Sales” vs. Representing the Consumer Dodges HOA Problems - Keep Buyers/Owners Ignorant • Consumer Protection Agencies Ignore HOA Buyers/Owners HOMES are largest, most personal consumer purchase! NO Protection to Buyers/Owners back to Contents