Contrary to conventional wisdom, Americans do not waive their constitutional rights when they move into a community association. In fact, courts have found that community association residents, by enacting reasonable rules for their own communities, are actually exercising their constitutional rights of association, contract, expression and assembly.
By purchasing homes in association-governed communities, buyers enter into constitutionally protected agreements with their neighbors that define how they want their communities to be governed and managed. In each community, buyers agree to rules that are established to (1) preserve the nature and character of the community, (2) protect property values and (3) protect the rights of homeowners.
These are not informal understandings, but contractual agreements designed to protect each owner and the community at large. U.S. courts have long recognized the right of American homeowners to enter into these private agreements.
Importantly, these protections were and are designed to prevent restrictions imposed by government. The U.S. Constitution gives community association residents the right to govern their own communities without the need to get government’s permission to adopt rules. This prerogative is at the core of individual property rights and is a tradition that dates to the very founding of our nation.
CAI—and U.S. courts—have long supported the right of elected community association boards to develop and enforce reasonable rules that govern issues like architectural modifications, yard signage, home-based businesses, flags, banners and religious symbols. Such rules are codified in associations’ official governing documents and are essential elements of the contractual agreements among all owners and between each owner and the community association.
This principle was articulated clearly by the New Jersey Supreme Court in the landmark Twin Rivers case in 2007*:
“ … Twin Rivers is a private, residential community whose residents have contractually agreed to abide by the common rules and regulations of the Association. The mutual benefit and reciprocal nature of those rules and regulations, and their enforcement, is essential to the fundamental nature of the communal living arrangement that Twin Rivers residents enjoy.”
In a free society, real and perceived “rights” often come into conflict. Debates about individual versus collective rights take place frequently in our communities, workplaces, schools, athletic organizations and even our religious institutions. Such issues can generate spirited discussion and debate, which is the cornerstone of participatory democracy. All Americans are empowered when we work together to strengthen neighborhood governance and civic participation rather than surrendering the right to neighborhood decision making to state or federal government entities.
*New Jersey Supreme Court Docket Number A-118-12-05 July 26, 2007