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In his 2019 Devane Lecture series at [[Yale University]], Professor [[Ian Shapiro]] identified three primary threats to [[American democracy]] posed by the spread of 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 |publisher=[[Yale University]] |accessdate=25 April 2020}}{{cbignore}}</ref>
The [[Homeowner association|CID Boards]] are often undemocratic. HOA board members are selected prior to the construction of the development and are only very rarely elected to their positions. However, in their communities, they take on the responsibilities and functions of [[Local government|municipal government]] officials.<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]]'', there are problems here about ''entry'', because if all of the housing in parts of the country are built in these developments and can pick [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"/>
"[[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 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 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 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"/>
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