First you must distinguish between the different kinds of HOAs. The condominium (in some states called “Horizontal Property Development”) is the most strict. Whether it was initially developed as a condo or was later changed from rental properties to condo units, a set of by-laws is enacted and all deeds to all the units state that they are subject to those by-laws and all regulations enacted by the Board. In addition, every purchaser gets a copy of the by-laws and the regulations so they know what those are. Before a unit can be sold, all regime fees must be paid, and that is taken care of at the closing.
HOAs for townhouses also exist. A townhouse can be set up as a condo, however. The difference is that an owner of a townhouse does not have any interest in the “common elements,” but all the owners have easements for access, enjoyment, etc. In a condo, all the owners have an interest in the common elements, an undivided interest in which the numerator is the number of units owned and the denominator is the total number of units.
A “normal” residential development can have a HOA too. These are “normal” houses and there are no common elements. However, the developer set forward certain regulations that should benefit the development.
So, before you can ask questions about HOA, the type of HOA must be specified.
No longer used today, as far as I know, is the concept known as a “co-op” which is short for cooperative ownerships. These were set up for apartments and owned much like condos today, but each owner of an apartment was a part owner of the entire building (buildings or development). The concept of the condo was not yet developed. The drawback with that arrangement, which is obviated by the condo concept, is that since all the unit owners had an undivided interest in the entire development, all the owners had to join in any mortgage executed by any single apartment owner.
It’s more common for HOA rules to become less restrictive as time goes on, rather than more. Things that the original rules stipulated become less relevent, and the rules turn out to restrict things that a majority of owners agree are reasonable, or weren’t anticipated under the original rules, such as modern small satellite dishes.
People tend to have a knee jerk reaction that HOA = evil Nazi busybodies telling you what you can do with your property, and some have that flavor, but they came about because they were basically thought desireable - the original buyer was comforted by the fact that there were rules in place to keep his neighbors from having a rusting junker in their front yard. They are a perfect example of contract law - part of the contract for owning the place is to abide by the HOA rules.
Another reason for HOA’s early on is the way new subdivisions are built in many US municipalities. Initially, the city doesn’t maintain things like the streets, sidewalks, sewers and streetlights built by the developer. They only take over maintenance after they are built, and it can be a long, drawn out process to get the city to do so. In the meantime, the HOA has to handle maintenance, and dealing with the appropriate government department and their ongoing requirements to get them handed over. I had a townhouse once where the HOA was trying to get the city to take the streetlights - one of the few times I went to an HOA meeting. The city claimed there were too many, and wanted some removed before they would take them. Some lady was all concerned that “her” streetlight would go away, and some guy immediately said “Good. Take out the one in front of my bedroom window.”. You can guess which streetlight was among the ones the city wanted to remove and which one was in the group being kept.
Actually, in a lot of places, we are seeing zoning boards imposing the sort of rules that used to appear in these covenants, often causing huge flaps. Some of the most restrictive are passed by affluent suburban municipalities. There was a flap here recently about a developer who had managed to get permission to build out in some former greenbelt area, and the city passed an ordinance about what colors houses could be painted in the area.
I guess I’m a little older than some of you. One of the original reasons for these HOA’s was racial. I know, “groan”. But early on in the successful passage of equal rights legislation white people had to do something to maintain the status quo. Members could, and did, blackball potential buyers without giving a reason.
I’m sure it’s no longer that way.
Since this is no longer the case, why bring it up? You’ve made it apparent that you wouldn’t live in a managed community, although not given a reason. So far you’ve hinted darkly at communism and racism, but given no particular reason why you’re agin’ 'em. Granted, it’s not what everyone wants, but for my lifestyle (and I’m probably as old as you are), it’s just fine. I get along just fine with my black, Russian and Asian neighbors.
Hinted darkly? Hardly. Flat out sunshiny statements is more like it.
If you somehow sensed some kind of accusation, Chefguy, I’m sorry.
Are you now going to bellow at others who spoke of the history of HOA’s?
Not all homeowner’s associations are mandatory. Some, like the one on which I am a board member, are entirely voluntary. Our Assn was formed over 40 years ago to try to protect property values by watching local government activity, for social purposes, and to support charitable actions. Although over 80% of the eligible property owners belong, there is no legal requirement that they do, and we have no law enforcement powers if a covenant is violated.
We publish a quarterly newsletter, an annual directory, have a web site, sponsor two dinners per year plus our annual membership meeting and bi-monthly board meetings.
