State and local governments are not allowed to take on debt. Small governments which cannot run deficits will do everything they can to lower their expenses; the alternative is to raise taxes, and that will get you unelected in the next cycle.
Therefore, if they can offload public service maintenance to HOAs, even if the system would be more efficient and effective under one roof, they will do it because it lowers expenses.
It’s only the federal government, which takes on a trillion or two of new debt every year, which doesn’t have to worry about balancing its budget.
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