I understand what HOA’s do, and was first introduced to the term in a condo building (not mine). I understand in a condo building, or high rise, you’re all sharing one building and need to contribute to that building’s maintenance. But I don’t understand HOA’s in neighborhoods…when you live in your own house. Is it only certain neighborhoods? I know someone who lives on a nice street in a suburb and there’s no HOA. Who decides if there is one, and what do neighborhood HOA’s exist for? Are you allowed to opt out?
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The number of HOAs in America took off after the introduction of the Clean Water Act of 1972.
(source – I’m a former HOA president)
One aspect of the Clean Water Act that impacted development was a rule that says residential development should not impact the dispersal of groundwater.
Before a neighborhood is built, when it rains, the rainwater will slowly seep into the ground, or slowly trickle off into streams and rivers. But after the neighborhood is built, rainwater will fall on concrete and asphalt, get diverted into storm sewars, and quickly run into those same rivers. The quantity and speed of the water runoff is dramatically increased.
One aspect of the Clean Water Act is that developers are required to mitigate impacts on rivers and streams from developments. To do this, most developers created specific areas for rainwater to pool.
Often called “detention” ponds or “retention ponds”. Subdivisions would have a parcel of land where the storm sewars could drain, and the water could collect and slowly seep into the ground.
These stormwater management ponds are typically placed on land that is not sold to homeowners. The developer doesn’t want to hang onto it forever – they need someone to transfer the ownership of the pond to. The neighborhood needs someone who’ll be responsible for the care and maintenance of the stormwater basin.
Thus the HOA is created. The majority of HOAs in America are created solely to care for and maintain stormwater basins.
Once HOAs are created, how they are governed is entirely up to the residents & the people they elect.
Once the HOA is necessary, some developers also see value in adding amenities, like a pool, golf-club, or club-house. But ultimately it is the stormwater drainage basin that required the creation of the HOA in the first place.
When I was president of my HOA, I campaigned on the basis of “We will leave you alone, and let you do your thing.”, and we did exactly that. More HOAs should operate like that.
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