Edit just to clear up: I don’t have a positive or negative opinion on HOAs. I know next to nothing about them. They’ve just been mentioned to me a few times by family members recently and I asked about aspect I didn’t understand
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HoAs are *generally* set up by the company that initially builds a group of homes, and are there primarily to ensure the value of those properties stays stable until the construction company has recovered it’s investment and profit from the sales. Because they own the property at the time of sale, they can mandate participation in the HoA as a condition for the sale, and usually do so in such a way that the HoA has the ability to repossess the house and evict the owner if they begin doing things the HoA doesn’t like, usually by giving them some form of stake in the home’s ownership.
HoAs, being governing bodies with a stake in the ownership of the property, can mandate this setup be perpetuated even after the construction company is long done with it, and people who enjoy having the ability to exercise power over their neighbors usually have a significant vested interest in ensuring they do.
Edit: right, actual ELI5; the person who builds the house says the first person to buy it has to be in the HoA, or they won’t sell them the house. The HoA then says that the new owner can’t sell the house to someone who won’t be in the HoA, and because the owner is part of the HoA, they’re legally bound to that.
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