Common-interest development: Difference between revisions

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{{short description|Form of housing from the US}}

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[[File:Condominiums in San Ramon 1 2016-05-17.jpg|thumb|right|250px260px|Condominiums in [[San Ramon, California]].]]

'''Common-interest development''' ('''CID''') is one of the fastest growing formtypes of [[housing]] development scheme in the some parts of the world today.<ref>{{cite web| |title=Living in a California Common Interest Development| |publisher=State of California Department of Real Estate| |url=http://www.dre.cahwnet.gov/pub_re39.html| |access-date=2010-10-04| |archive-url=https://web.archive.org/web/20110721033635/http://www.dre.cahwnet.gov/pub_re39.html| |archive-date=2011-07-21| |url-status=dead}}</ref><ref>{{cite book| first= Evan| last= McKenzie| title= Privatopia: Homeowner Associations and the Rise of Residential Private Governments| year= 1994| publisher= [[Yale University Press]]| isbn= 0-300-06638-4| pages= [https://archive.org/details/privato_mck_1994_00_6198/page/7 7]| url= https://archive.org/details/privato_mck_1994_00_6198/page/7}}</ref> They areinclude commonlycondominiums, knowncommunity as [[condominium]]sapartments, [[timeshareplanned development|planned developments]]s, and [[plannedstock development]]scooperatives.<ref>{{Cite web |title=The ownership benefitsRole of a CID are having rights to an undivided interestColiving in common areas and amenities which might prove to be too expensive to be solely owned. For example, an owner would like to have a poolSocially butDistanced cannotWorld afford one|url=https://sharedeasy. When buying a [[condominium]] with a pool club/the-role-of-coliving-in -a-socially-distanced-world/ CID of one hundred units, an owner would have use of that pool for basically one|access-date=2023-12-hundredth16}}</ref><ref>{{cite theweb cost|title=Common dueInterest toDevelopment sharing(CID) the cost with the other 99 owners|url=https://www. [[Timeshare]], or vacation ownership, is the same conceptdavis-stirling.com/HOME/CID-Defined Where|publisher=Adams-Stirling buyingLaw aCorporation second|accessdate=5 homeJune for2020}}</ref> vacation purposes might not be financially possible, buying a week or two can be when sharing the overall costs with other participants.

==Benefits==

Within the United States, when a CID is developed, the developer is required to incorporate (in form) a [[homeowner association]] (HOA) prior to any property sales. The role of the HOA is to manage the CID once control is transferred from the developer. The HOA governs the CID based upon the incorporated [[restrictive covenant|covenants, conditions, and restrictions]] (CC&Rs) which were recorded when the property was subdivided. The CC&Rs will outline the financial [[budgeting]] guideline for the HOA in determining the dollar amount in maintenance fees for assessing the owners. In a wholly owned CID, maintenance fees would normally be assessed on a monthly basis.{{citation needed|date=September 2015}}

A CID's ownership benefits are having rights to an undivided interest in common areas and amenities that might prove to be too expensive to be solely owned. For example, an owner would like to have a pool but cannot afford one. When buying a [[condominium]] with a pool in a CID of one hundred units, an owner would have use of that pool for basically one-hundredth of the cost due to sharing the cost with the other 99 owners.<ref>{{Cite web |last=Ayala |first=Jonathan |date=2024-09-24 |title=How Does Fractional Ownership Of A Condo Work? |url=https://hudsoncondos.com/how-does-fractional-ownership-of-a-condo-work/ |access-date=2024-09-23 |language=en-US}}</ref> [[Timeshare]], or vacation ownership, is the same concept. Buying a second home for vacation purposes might not be financially possible; buying a week or two can be when sharing the overall costs with other participants.

Within the United States, when a CID is developed, the developer is required to incorporate (in a form) a [[homeowner association]] (HOA) prior to any property sales. The role of the HOA is to manage the CID once the control is transferred from the developer. The HOA governs the CID based upon the incorporated [[restrictive covenant|covenants, conditions, and restrictions]] (CC&Rs) which were recorded when the property was subdivided.{{cn|date=March 2011}} The CC&Rs will outline the financial [[budgeting]] guideline for the HOA in determining the dollar amount in maintenance fees for assessing the owners. In a wholly owned CID, maintenance fees would normally be assessed on a monthly basis.{{citation needed|date=September 2015}}

==Growth==

The following table shows the spread of Common Interest Developments in the United States.

==Growth of Common Interest Developments==

{| class="wikitable" style="text-align:center"

|-

! colspan="4" | Spread of Commoncommon Interestinterest Developmentsdevelopments<ref name="U.S. community associations, housing units, and residents">{{cite web |title=U.S. community associations, housing units, and residents |url=https://foundation.caionline.org/wp-content/uploads/2018/06/2017StatsReview.pdf |website=CAI |publisher=Community Associations Institute |accessdate=25 April 2020}}</ref>

|-

!!! CIDSCIDs !! Housing Unitsunits (in millions) !! Residents (in millions)

|-

! 1970

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|}

According to the [[Community Associations Institute]], between 22–2422 and 24 percent of the entire [[Demographics of the United States|U.S. population]] in 2017 lived in community associations. The two leading states with CIDs are [[California]], where around 9,327,000 people lived in a CID, and [[Florida]], where about 9,753,000 lived in a Community Interest Development.<ref name="U.S. community associations, housing units, and residents"/>

==Criticisms==

In his 2019 Devane Lecture series at [[Yale University]], Professor [[Ian Shapiro]] identified three primary threats to [[American democracy]] posed by the mass spread of Common-interest developments:CIDs.<ref name="Privatizing Government I: Utilities, Eminent Domain, and Local Government">{{cite web |last1=Shapiro |first1=Ian |title=Lecture 8: Privatizing Government I: Utilities, Eminent Domain, and Local Government |url=https://www.youtube.com/watch?v=9dULs7w8b-0&list=PLh9mgdi4rNeyViG2ar68jkgEi4y6doNZy&index=8 |archive-url=https://ghostarchive.org/varchive/youtube/20211221/9dULs7w8b-0 |archive-date=2021-12-21 |url-status=live|website=Yale Broadcast Studio |date=17 October 2019 |publisher=[[Yale University]] |accessdate=25 April 2020}}{{cbignore}}</ref>

'''===Undemocratic Boards:'''boards===

The [[Homeowner association|CID Boards of CIDS]] canare be quiteoften undemocratic,. becauseHOA theboard members of the boards are often selected prior to the construction of the development and are only very rarely elected to their positions. TheyHowever, in their communities, they take on the responsibilities and functions of [[Local government|municipal government]] officials but are only very rarely elected to their positions.<ref name="Privatizing Government I: Utilities, Eminent Domain, and Local Government"/>

'''===Effects on homelessness:'''===

The [[Homeowner association|Boards of CIDS]] can be quite undemocratic, because the members of the boards are often selected prior to the construction of the development. They take on the functions of [[Local government|municipal government]] officials but are only very rarely elected to their positions.<ref name="Privatizing Government I: Utilities, Eminent Domain, and Local Government"/>

"As seen in [[Albert O. Hirschman|Albert O. Hirschman's]] ''[[Exit, Voice, and Loyalty|]]''Exit, Voice, and Loyalty'']], there are problems here about [[Housing discrimination in the United States|''entry]]'', because if all of the housing in parts of the country are built in these developments and can pick the [the type of consumers they will] serve, what about [[homeless people]]? Where are homeless people going to wind up? They're going to wind up on the streets of [[Homelessness in the San Francisco Bay Area|San Francisco]] or somewhere like that. Because if you want to buy into one of these residences, they don't want you unless they can ensure you can pay. You're going to go through [[Tenant screening|financial screening]]. You're going to have to prove you can afford to live in the place. People who can't are going to wind up not getting served. If you try to do housing through this type of [[Real estate economics|market]], there's going to be a [[market failure]] that's probably going to be quite costly for governments."<ref name="Privatizing Government I: Utilities, Eminent Domain, and Local Government"/>

===Segmented democracy===

'''Effects on homelessness:'''

"[[Douglas W. Rae]] has an essay titled ''Democratic Liberty and the Tyrannies of Place,'' which points to the fact that we're becoming an increasingly segmented democracy. That is, people tend to spend time around people that are like themselves. Of course, CIDs greatly facilitate that, because people will sort by income - or if you go to the ones in Florida, often by [[ethnic group]] - into these relatively [[Housing segregation in the United States|homogenous]], certainly financially homogenous, groups. We know from [[Cass R. Sunstein]] that like-minded people, if they just talk to one another, tend to become more [[Extremism|extreme]]. So if we get an increasingly segmented democracy of people only hanging around people who look and talk like themselves, this will reinforce a lot of the divisions which are contributing to the [[Political polarization|polarization]] of the electorate. This reinforces the "out of sight, out of mind" mentality about people not like themselves."<ref name="Privatizing Government I: Utilities, Eminent Domain, and Local Government"/>

"As seen in [[Albert O. Hirschman|Hirschman's]] [[Exit, Voice, and Loyalty|''Exit, Voice, and Loyalty'']], there are problems here about [[Housing discrimination in the United States|entry]], because if all of the housing in parts of the country are built in these developments and can pick the [the type of consumers they will] serve, what about [[homeless people]]? Where are homeless people going to wind up? They're going to wind up on the streets of [[San Francisco]] or somewhere like that. Because if you want to buy into one of these residences, they don't want you unless they can ensure you can pay. You're going to go through [[Tenant screening|financial screening]]. You're going to have to prove you can afford to live in the place. People who can't are going to wind up not getting served. If you try to do housing through this type of [[Real estate economics|market]], there's going to be a [[market failure]] that's probably going to be quite costly for governments."<ref name="Privatizing Government I: Utilities, Eminent Domain, and Local Government"/>

'''Segmented Democracy:'''

"[[Douglas W. Rae]] has an essay titled ''Democratic Liberty and the Tyrannies of Place,'' which points to the fact that we're becoming an increasingly segmented democracy. That is, people tend to spend time around people that are like themselves. Of course, CIDs greatly facilitate that, because people will sort by income - or if you go to the ones in Florida, often by [[ethnic group]] - into these relatively [[Housing segregation in the United States|homogenous]], certainly financially homogenous, groups. We know from [[Cass R. Sunstein]] that like-minded people, if they just talk to one another, tend to become more [[Extremism|extreme]]. So if we get an increasingly segmented democracy of people only hanging around people who look and talk like themselves, this will reinforce a lot of the divisions which are contributing to the [[Political polarization|polarization]] of the electorate. This reinforces the "out of sight, out of mind" mentality about people not like themselves."<ref name="Privatizing Government I: Utilities, Eminent Domain, and Local Government"/>

==References==

{{reflist}}

[[Category:Condominium]]

[[Category:Living arrangements]]

[[Category:Real estate in the United States]]

[[Category:Condominium]]