Homeowners' Associations: Why You Want & Need One

Homeowners' Associations (HOAs) are non-profit organizations set up to help run, manage, and maintain a residential community. The community management industry has a robust history that stretches back to the mid-twentieth century. Over the decades, HOAs have grown and evolved into the keystone of communities built around us today. Many Adams Homes are in an HOA-managed community, and there are valid questions and concerns from homeowners regarding such management. An HOA can evoke diverse emotions; for some, they represent a cherished guardian of property values and community standards; for others, they seem overly restrictive or bureaucratic. In order to fully understand the importance of HOAs, we will cover a full breakdown of how HOAs came to be and how they have grown with modern society. 

The First HOA

In the late 1940s, veterans returning from World War II struggled to find affordable housing. Bill Levitt, a former veteran himself, recognized the issue and teamed up with his father and brother to invest in more than 4,000 acres of land on Long Island, New York. They turned the land into a well-planned housing development, named Levittown. While the community didn't have a formal HOA with a board of directors and governing documents, it established rules and regulations that set the precedent for what we see in today's HOAs. 

How Levittown was built and managed ignited an interest in and development of planned communities. Developers saw opportunity in suburban areas thanks to the Federal Highway Act of 1956, which allowed interstate highways to be built across the United States. In 1960, the National Association of Housing Cooperatives (NAHC) was founded as an organization that supports the best interests of cooperative housing communities, making way for the first true homeowners' associations to begin managing those developments. 

Today's HOAs

According to the 2025 National and State Statistical Review for Community Association Data, 78.1 million Americans, or about 30% of the U.S. population, now live in some form of a community association. Each HOA is governed by a board of directors that enacts and enforces rules. They have individualized governing documents that detail how the HOA operates, and each board has a fiduciary duty to work in the best interest of the entire association. 

The homeowners' association industry continues to grow and expand, with an estimated 5,000 new HOA communities being built yearly. With continued progress throughout the country, your future home may likely be a part of an HOA. 

Homeowner Benefits

When people think about homeowners' associations, their mind probably lands on all the rules to follow and dues to pay. While these are a part of the reality of HOA living, rules and regulations are there for a reason: to make any community a well-rounded place to live. 

One of the main reasons people buy into an HOA is due to the consistency of property values. An elected board of directors is there to help you protect your investment. All owners must comply with the community guidelines related to the upkeep of their lawns, homes, and personal property.

Buyers should make themselves familiar with the governing documents before signing on the dotted line. Typically, associations will not tolerate unruly behavior - whether it's a rambunctious late-night party in the backyard or a clear disregard for architectural rules. There's a board set in place to mediate neighbor disputes and set forth consequences when things go wrong. 

Depending on the type of community you live in, you will find amenities for the private use of homeowners. A number of Adams Homes' communities offer walking paths, pools, recreational areas, pickleball/tennis courts, playgrounds, and gyms. Your HOA dues contribute to the maintenance of such facilities.

While each HOA differs in management, membership, and amenities offered, they all share common attributes that bring them together under the umbrella of community. The HOA board consists of your fellow neighbors who all want to see the community thrive.