📜 The Origins of HOAs
Early Formation and Rise of HOAs (1900s–1970s)
1910s–1930s: The Seeds Are Planted
The idea of planned communities with deed restrictions and architectural controls began in elite developments like Palos Verdes (CA) and Shaker Heights (OH).
These early HOAs were mostly private enclaves for the wealthy, designed to maintain a certain aesthetic and exclude certain groups of people (via race-based covenants, later banned).
1930s–1940s: FHA & Racial Segregation
The Federal Housing Administration (FHA), created during the New Deal, started subsidizing suburban development—but only if homes adhered to certain restrictions.
These covenants were declared unenforceable by the Supreme Court in Shelley v. Kraemer (1948), but their legacy lingered.
The Fair Housing Act of 1968 later made such discrimination explicitly illegal.
FHA guidelines encouraged racial homogeneity and discouraged integration, often requiring racial covenants in order to qualify for financing.
HOAs became a vehicle for enforcing these restrictions, ensuring the neighborhood met FHA’s “standards.”
Post-WWII Boom: 1950s–1970s
After WWII, the U.S. saw a massive housing and suburban explosion, driven by returning GIs and government-backed loans.
Developers built entire subdivisions at scale—like Levittown—and began using HOAs to govern the community after selling the homes.
Government Encouragement
During the 1960s–1980s, local governments encouraged HOAs as a way to reduce the public burden—developers and residents would manage infrastructure (roads, parks, etc.) themselves.
This led to a boom in private, self-governed communities—essentially mini-governments with the power to tax (through dues), regulate, and enforce rules.
🔥 Why HOAs Are So Controversial
Power & Control
HOAs have government-like powers without the same checks and balances. more calls for democratic governance and limits on unchecked board power.
Boards are often made up of volunteers with little training, yet they can make binding decisions and control significant funds.
They become a de facto investor in our home investment.
Conflicts often arise around aesthetic regulations, political signage, solar panels, short-term rentals, and other lifestyle choices, reflecting broader cultural and political divides.
Technology and outsourcing management to professional companies, a dominant feature to streamline operations, leads to reduced homeowner involvement.
Inconsistent Governance
Rules and enforcement vary wildly, leading to claims of bias, favoritism, or abuse.
Some are well-run, while others are chaotic, overly strict, or even hostile.
Property Rights
Critics argue that HOAs infringe on personal freedoms—telling you what color your house can be, what flag you can fly, or how tall your grass can grow.
Supporters say they protect property values by maintaining neighborhood
standards.
Legal Disputes
HOAs are involved in a lot of lawsuits—either against homeowners or by homeowners.
Controversy and litigation are rain makers of attorneys.
Foreclosures over minor infractions or missed dues can feel extreme and unjust.
Financial Transparency
Some HOAs are criticized for poor financial management and lack of transparency about how assessments are spent.
Corruption and embezzlement, while not common, have happened.
⚖️ Mixed Public Opinion
Disagreements on the “value added” proposition- both objective and subjective value.
Some people love HOAs for the security, aesthetics, and amenities they offer.
Others see them as overreaching, petty, and authoritarian.
In some states (like Southern Nevada, Florida, Texas, and Arizona), HOAs are almost unavoidable.
