The True Origins of HOAs—and Why Discrimination Is Baked Into the System

Homeowners Associations (HOAs) are often marketed as guardians of “property values” and “community standards.” But the uncomfortable truth is this: HOAs were born out of a system designed to exclude.

Understanding their origins explains why so many modern HOA disputes feel personal, targeted, and deeply unjust.

Racially Restrictive Covenants: The Predecessor to HOAs

In the early 20th century, developers openly used racially restrictive covenants—clauses written into property deeds that barred Black families, Jewish families, immigrants, and other marginalized groups from purchasing homes.

These covenants were not informal practices; they were legally enforceable.

That changed in 1948, when the U.S. Supreme Court ruled in Shelley v. Kraemer that courts could no longer enforce racial covenants.

But exclusion didn’t disappear—it evolved.

Federal Housing Policy and the Rise of HOAs

The Federal Housing Administration (FHA) played a critical role in shaping suburban America. It favored developments that promised “stability,” “uniformity,” and protection from “undesirable influences”—language widely understood to mean racial and economic exclusion.

HOAs became the perfect workaround:

• Private governance instead of public law

• Rule enforcement without explicit discrimination

• Control disguised as “community standards”

Levittown and the Suburban Blueprint

Developments like Levittown epitomized the post-war American Dream—for white families only.

HOAs and deed restrictions ensured uniformity in:

• Architecture

• Behavior

• Appearance

• Participation

This model spread nationwide and still shapes housing today.

Modern HOAs: Same Control, New Language

Today, HOAs rarely use overtly discriminatory language. Instead, exclusion appears through:

• Selective enforcement

• Excessive fines

• Rental restrictions

• Denial of voting rights due to dues disputes

• Targeting homeowners who speak up or challenge the board

While technically “neutral,” these practices often have disproportionate impacts on minority and lower-income homeowners.

That’s why HOAs increasingly face scrutiny under Fair Housing Act principles—even when discrimination is subtle.

Why This History Matters Now

When homeowners feel harassed, silenced, or financially cornered by their HOA, it isn’t just bad management—it’s a system operating exactly as it was designed.

Understanding the origins of HOAs reframes today’s conflicts:

• This isn’t about curtain colors

• It’s about power

• And who gets to wield it

Final Thoughts

HOAs were never neutral. They were born from segregation, normalized by policy, and preserved through private enforcement.

And until there is real oversight, transparency, and accountability, many homeowners will continue to experience the same exclusion—just with updated language.

If you’ve lived this reality, your experience is valid. And it deserves to be heard.