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The interplay between private and public governments: the relationship between homeowner associations and municipal finance

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  • Shaoming Cheng
  • Hai (David) Guo

Abstract

Homeowner associations (HOAs), as a form of private residential governance, have grown exponentially in the United States, representing a profound transformation in urban governance. This paper examines the fiscal correlation between local municipal governments and private residential governments, and specifically, the extent to which the proliferation of HOAs in a municipality is related to municipal expenditures and revenues. Administrative data of the Florida Department of Business and Professional Regulation are employed with spatial econometric methods for accounting for potential inter-jurisdictional spillover effects. Empirical evidence suggests that a greater presence of HOAs within a local municipality is associated with the municipality’s declining public expenditures and revenues for providing public services to local residents.

Suggested Citation

  • Shaoming Cheng & Hai (David) Guo, 2021. "The interplay between private and public governments: the relationship between homeowner associations and municipal finance," Local Government Studies, Taylor & Francis Journals, vol. 47(5), pages 759-783, September.
  • Handle: RePEc:taf:flgsxx:v:47:y:2021:i:5:p:759-783
    DOI: 10.1080/03003930.2020.1794845
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