PARASITIC ASSOCIATION INDUSTRIES
EAT THEIR KILL
By Donie Vanitzian, BA, JD, Arbitrator
(c) 2006
A Lesson in Sucking the Lifeblood from Homeowners
When an industry is truly a "business" it has a "product" to sell, however, in the community association industry those shelves are "bare." Nothing on them. Nothing in them. Nothing about them produces anything of value for the homeowner. In their book "Villa Appalling! Destroying the Myth of Affordable Community Living," Vanitzian and Glassman discuss the end of the 18th century and the first Industrial Revolution as it occurred in Great Britain. They explain, that the commodity at that time consisted of "manufactured goods and an ever-increasing workforce" to support the increased production. It is established that national per capita income rises along with successful industrialization -- this means that employment opportunities flourished back then because it was all about "products and production." BUT, when that industrial society transformed into the Post Industrial society, as it is today, there were no GOODS to produce.
BUYERS AND HOMEOWNERS ARE THE INDUSTRY=S NEW COMMODITY
The Post Industrial commodity deals with "service." Because they don't have a "product," association-related businesses surrounding the common interest development industry fall into this category by offering and selling "services." They found a niche for themselves before anyone else could jump on the bandwagon and they capitalized on it quickly. These industries created a problem where none existed before AND they provided the answer to that problem under the guise of association-related services.
If these association-related businesses have their way, they want their services to be mandatory and chiseled into the law. In other words, they want their permanent paychecks written into the statutes in every state. With this permanence comes a loss of choice for consumers and the unstoppable growth of common interest developments that includes community associationrelated monopolies. You know who they are, vendors, including attorneys and management companies.
These association-related industries have come to own our laws. The fingerprint of capitalism becomes more evident as these industry businesses move into our legislature's own bedroom. That fornication results in a "mandated reimbursement of all their costs" written into the laws that rule residential deed-restricted homeowners and that we are forced to abide by. The way these so-called "cost reimbursements" are written into the California laws will blow-your-mind! Nowhere else in the California laws do reimbursements exist to this extent, only in common interest developments. IF the industry cannot get these reimbursements written into the laws, then they write them into the association's governing documents, or persuade boards to amend their documents to provide reimbursements (how stupid is THAT?) or they write them into their contracts that stupid-stupid boards sign. Ever hear this B.S. from the board: "The attorney advised us to sign it." If the law won't reimburse these industries, then you-the-homeowner WILL. These industry reimbursements ranging from miscellaneous costs, liens, fines, penalties, foreclosures, result in cheaper operating costs and bigger profits for common interest development and association-related industries.
While their profits increase, homeowners find it impossible to stay afloat and pay the demanded rising association fees under threat of losing their homes. Because of that, the association-related industries soon EXPAND those profits and businesses by hiring industry-related contractors and vendors. And, the "Monopoly Beat" goes on.
Homeowners and associations across the nation become casualties in the process and are left absorbing these costs as they trickle down the accounts-payable ladder and mystery-fee line-items in pro forma budgets across America. Gee, I wonder why our fees keep rising?
WE WILL EAT YOU ALIVE AND MAKE YOU PAY FOR THE FEAST
Generally, community association industries are parasitic businesses that constantly blur the line between profit and profiteering. This has resulted in the evolution of an industry that does little more than LOOK and ACT indispensable. Sucking the lifeblood from owners held hostage by a defective legal system, it is an organism that has perfected taking advantage of those that are most vulnerable.
Without the legislative mandate that owners must belong to the association and pay fees, the organism feeding and growing on those laws would shrivel up and die. Unable to otherwise nourish itself, the industry can be found wallowing below the association's bowels eagerly living off its excess and swallowing whatever morsels it sucks from its host. It is the homeowner's personal wealth that feeds those parasites which contribute nothing of consequence to the owners' well being. Like traditional hunters, the industry's survival depends on eating their kill.
Wednesday, June 25, 2008
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