HOA Detective™ | January 16, 2026: In recent decades, metropolitan regions across the United States have experienced a significant transformation in local governance structures. Traditional municipal authorities are increasingly supplemented – or even supplanted – by a complex network of quasi-public and privatized institutions.
These entities, often termed “shadow governments,” encompass special authorities, public–private partnerships, special districts, privatized gated communities, and statutorily empowered neighborhood organizations. They manage a wide array of public services, from essential utilities like water and waste management to large-scale economic development and infrastructure projects.
“Private Metropolis: The Eclipse of Local Democratic Governance,” edited by Dennis R. Judd, Evan McKenzie, and Alba Alexander, delves into this intricate ecosystem of modern urban governance. The book posits that while these quasi-public institutions can enhance efficiency and responsiveness, their operations often occur outside the purview of traditional democratic oversight. This shift raises critical concerns about accountability and the potential erosion of public participation in decision-making processes.
https://www.upress.umn.edu/9781517910822/private-metropolis/
The editors and contributors of “Private Metropolis” explore several pressing questions:
- What are the implications of the proliferation of special authorities and privatized governments?
- Is the trade-off between increased efficiency and reduced democratic accountability justified?
- Has the public sector relinquished too much control to these new entities, thereby diminishing the role of traditional checks and balances?
- Is there not a much-needed discourse on the future of urban governance and the preservation of democratic principles in an era of privatization and corporatization?
Through a series of essays, this scholarly work examines how these shadow governments often operate beyond the constraints imposed on traditional local governments, such as budgetary limitations and electoral accountability.
While this autonomy can lead to more agile and effective service delivery, it also means that many significant policy decisions are made without direct public input or scrutiny. Consequently, citizens may find themselves engaging in debates over symbolic issues, with limited influence over the actual distribution of resources that impact their daily lives.
This shift toward privatization is particularly evident in the rise of privatized residential developments, such as planned unit developments (PUDs) and condominiums, over the past fifty years. Homeowner associations (HOAs) in the U.S. have grown from less than 10K HOAs in 1970 to plus 375K as of the end of 2024, while 75-80% of ALL new housing in the U.S. is located within the legal jurisdiction of a HOA of some sort.
These privatized residential developments often function as private governments, exercising control over community regulations, maintenance, and services. While they can offer enhanced amenities and localized decision-making, they frequently operate in an unregulated statutory environment with limited transparency and minimal democratic oversight.
This autonomy can lead to concerns about accountability and resident participation in governance. As noted in “Private Metropolis,” such quasi-public institutions “compromise and even eclipse democratic processes by moving important policy decisions out of public sight.”
The evolution of these privatized residential communities can trace conceptual roots to Ebenezer Howard’s Garden City movement of the late 19th and early 20th centuries, as we have explored in previous posts by the HOA Detective™.
Howard’s Garden Cities were designed to be self-governing entities, with profits from communal enterprises reinvested into the community for the public good:
https://www.tcpa.org.uk/the-foundations-of-the-garden-city-movement/
However, modern privatized residential developments diverge from Howard’s ideal. While they adopt the physical planning aspects of the Garden City – such as organized layouts and shared green spaces – they often lack the communal ownership and democratic governance structures that Howard championed.
Instead, administrative decision-making authority in many HOAs rests with a volunteer Board of Directors whose expertise is entirely a matter of happenstance. These unpaid, untrained, unregulated volunteers are often assisted by a select group or external management companies whose personnel are largely untrained, unregulated, and poorly paid.
Resident input and self-determinant policy-making give way to hired professionals (attorneys, engineers, CPAs, lenders, and insurance executives); all being paid with the hard-earned money collected from the HOA members.
The privatization of municipal services has been significantly influenced by companies like Severn Trent and its former North American subsidiary, Inframark. These entities have played pivotal roles in transferring the management of essential public utilities, particularly water and wastewater services, from public to private hands, thereby reshaping urban governance structures.
Severn Trent’s Role in Privatization: Severn Trent Plc, established during the 1989 privatization of the UK’s water industry, transitioned from a public water authority to a private entity listed on the London Stock Exchange. This move was part of a broader governmental strategy in the UK to enhance efficiency and investment in water services through private sector involvement. Over time, Severn Trent expanded its operations beyond the UK, acquiring various international assets, including those in North America.
In 2017, Severn Trent decided to divest its North American operations, deeming them non-core to its strategic focus. This divestment led to the emergence of Inframark as an independent American company. https://www.severntrent.com/
Permit-Industrial Complex: In the 20thcentury Ebenezer Howard’s Garden City movement led to a convergence of urban planning, municipal permitting, and privatized, quasi-governmental services, with the result being a permanent municipal-state enabled Permit-Industrial Complex. 25 years into the 21stcentury there now exists in one form or another, in every major metropolitan area in the United States, Canada, and most of the western world, a technocratic planning and permitting cabal; empowered by statute, the primary “product” produced by this unholy alliance is housing.
Rising Tide Lifts all Ships: If you ever stop and wonder why housing is so expensive, compared to the cost of housing in your parents’ era, the reason is that the Permit-Industrial Complex has made it so expensive to build new housing that the price of all housing is commensurately higher. As the old saying goes, a rising tide lifts all ships.
In summary, the thesis of Private Metropolis highlights a significant shift in local governance, where privatized residential developments operate as quasi-public entities with substantial autonomy. Although inspired by the communal aspirations of the Garden City movement, these modern communities often fall short of its democratic ideals, raising important questions about accountability and resident participation in contemporary urban governance.
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