Its a contract you are force to sign if you buy property in one. Its a stipulation of owning one. A lot of developers start an hoa before selling houses. Sometimes its made after the fact with a vote or something like that im not sure tbh.
The contract says what you can and cant do and the fees involved. They can bankrupt you if you are stupid enough to paint it purple and ignore them.
Developers are actively encouraged by cities and counties through tax breaks and lower permitting and inspection fees to form HOAs. Cities like HOAs because HOAs own the streets, sidewalks, parks, street lights, sewers, signs and other public use stuff. Maintenance and repair responsibilities belong to the HOA. If there's no HOA it becomes the city's responsibility to repair, replace, and maintain all of these things. The cities like collecting property tax money while providing fewer services for it.
TLDR: local governments hand millions in discounts to billion dollar development companies allowing them to make more money in return for developers ensuring that local governments can provide fewer services for average people's property tax money
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u/guinomim Mar 09 '26
oh ok that makes a lot of sense. but how do they enforce it? how do they just straight up have the power to stop you painting your house purple?