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T H E C O N C E P T O F H OA S
The concept of an HOA came from a need to manage residential communities
and set them up for success nearly 100 years ago. Over the years, the HOA
qualities, operations, and lifestyle have evolved, but each typically has shared
common areas, a set of rules included in governing documents, dues, and a
board of directors to achieve that original goal. The following factors had a
notable influence on the creation and identity of HOAs:
• Early 20
th
Century Development: The early 1900s saw a rise in big business,
industrialization, and urbanization, causing developers and real estate
investors to look for alternative investments.
• Post-World War II Growth: The middle class expanded following the war, and
many new members sought housing and community.
• The Rise of Planned Communities: Communities with a cohesive plan
for things like architecture and amenities would eventually lead to the
emergence of HOAs.
• Legal Frameworks: Amendments to housing and community laws would
make HOAs an effective way to manage compliance and maintain housing
standards.
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