> Second, it sounds like you are saying they need to run for their HOA ...
Won't work if the HOA is a private company that owns 51% of the houses.
And there's no point if the HOA was smart enough to use debt to make this happen.
> ... and run for city council to tax rich people again so we can pay for basic bare minimum services again ...
If that's possible. I think in a lot of locales this is not possible, maybe even most. Frankly we'll need to change regulations again so housing/roads/sewage/water/electricity builds and repairs can become a LOT cheaper again, but I'm guessing nobody's up for that.
And income tax is bleeding local governments dry right now. I imagine Washington (and London, and Brussels, and ... because it's not like this problem is limited to the US) sees that as a feature and not a bug, but it's still something that can't continue indefinitely ...