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Evan McKenzie and Privatopia

I coined the word "privatopia" in the late 1980s. The word first appeared in print when I had an article called "Morning in Privatopia" published in the Spring, 1989, issue of Dissent

I have been studying the rise of common interest housing since 1985 and have written extensively about it in academic and popular publications.  My book on the subject, Privatopia: Homeowner Associations and the Rise of Residential Private Government, was published by Yale University Press and received the Best Book on Urban Politics Award from the American Political Science Association.

When I came up with the word "privatopia," I was looking for a word that reflected the utopian aspects of common interest housing, and when I started thinking about what that utopian idea was all about, it seemed to me that it was privatization. In other words, privatopia is a word to describe a way of life and a housing sector that embodies an attempt to create a better way of life through privatization of the functions of local government. 

Back then, we were in what was called the "Reagan Era," and it was a time when privatization was sweeping through Western Europe and the US, and soon the former Soviet Union nations and all of Eastern Europe became involved in privatizing formerly state-owned assets on a scale that made the US efforts look trivial by comparison.  It seemed that this would go on forever, and many people of a libertarian inclination, who believe in free market economics, believed they had won a decisive battle of economics over politics.

They began to claim that the rise of privatopia amounted to the gradual replacement of municipalities by homeowner and condominium associations.  Soon, they said, cities would be no more.

The famous utopian thinker Ebenezer Howard said something similar over a hundred years ago, but he thought his "Garden Cities" would replace big cities like London.  And many urban politics scholars have become what my friend and colleague Dennis Judd calls "end-time prophets," forever predicting the demise of big cities. 

Yet, somehow local governments have survived, and that libertarian claim of privatopian victory turns out to have been premature.  A lot of things have changed since the late 1980s in the world of common interest housing. They include:

  • many municipalities have been requiring that new construction must be in common interest housing developments
  •  the "gated communities" phenomenon became widespread in the 1990s, with security measures, or at least the appearance of security measures, becoming big selling points
  • the study of this form of housing became international as CIDs began to appear in nations on every continent--China, Australia, France and Great Britain, Russia, Lebanon, Argentina...practically everywhere
  • the press becoming more educated about CIDS and the potential for abuse of owners
  • the rise of the "Pink Flamingo" movement of CID unit owners fighting for their rights against what they see as oppressive CID boards of directors and their hired professionals, especially lawyers and property managers
  • the owner activists have become successful at organizing to influence state legislation in a number of states
  • increasingly aggressive state regulation of CIDs, with detailed statutes concerning elections, meetings, opening records to members, architectural review, assessment collection, and many other things, all of which gives owners more rights but makes it harder to be a board member, because there is much more to learn
  • the meltdown of the housing market, which has hit condomiums very hard and is also putting HOAs under great pressure--with owners not paying assessments, banks refusing to pay assessments on their REO units, insurance companies and banks tightening up their requirements, and the press accounts of all this making buyers especially wary of CIDS
Read more...
 
About this web site

This site is set up so you can learn more about common interest housing, read and comment on my weblog called The Privatopia Papers, find out more about me and read the articles I have posted, and contact me for other professional services.

The Main Menu takes you to the blog, links to my books, explains the services I offer, and contains my contact information.

The Free Resources section contains .pdf versions of several published articles that you can read or download.

The User Menu gives you a place to contribute to this site.

The Poll will change from time to time.

The Blog News section at the top gives examples of what is happening in the world common interest housing.

 
What is common interest housing?

Common interest housing is a catch-all term that includes all the forms of residential construction where people own something in common. Condominiums, planned developments of single-family homes, townhome developments, housing cooperatives...all these are common interest housing development, or "CIDs."

These developments have certain common characteristics:

  1. Common Ownership of Real Property (the owner has an individual interest in his or her own unit, but also a share of property that is owned in common with all the other unit owners)
  2. Private Land Use Controls (a Declaration of CC&Rs, bylaws, etc.)
  3. Private Government (Community, Homeowner, or Condominium Association)
  4. Some amount of property use planning
  5. Perhaps some Security Measures—(Entry Control, Hardened Perimeter, Internal Surveillance)
 
Are CIDs all "gated communities"?

Many people use the term "gated communities" to describe private neighborhoods run by HOAs. A real gated community has a higher level of security, or at least the appearance of security, than most other neighborhoods. This takes several forms:

  1. Entry controls, such as a gate or guardhouse
  2. Hardened perimeters, such as fences, walls, or some natural barrier like a forest or lake
  3. Internal surveillance, which could be security guards on patrol, or just cameras.

Security is increasingly important to many buyers, but it is expensive, so developers and community associations try to find ways to offer it without breaking their budget.

 
What drives the spread of common interest housing?

Common interest housing is now the predominant form of new housing construction in the US and in many other nations.  In many rapidly growing parts of the US, all or nearly all new housing is in CIDs.  Here is why:

  1. Developers:    They want to increase density, and thereby reduce land costs, while offering amenities in package affordable by middle and upper-middle class buyers
  2. Municipalities:    They want to obtain new property tax payers at reduced public expense, which they do by requiring streets and open spaces and sewer systems, etc., to be constructed by developers and maintained forever by HOAs
  3. Consumers:    Some people are seeking a sense of control over resources and space, high standards of property maintenance, increased security, intermediary for dealing with neighbors, homogeneity.
But there are many people who just find themselves buying CID units because there is nothing else available in their housing market.

 

 
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