The Evolution of Planned Communities in America

The first planned community was Levittown, a community built in Long Island in the late 1940’s. The purpose of Levittown was to intend to offer low-interest homes to veterans. Though there was no formal association, community rules and regulations did exist.

Communities like Levittown continued to pop up throughout the mid-nineteenth century. The 1960’s saw great growth in HOA communities. The HOA growth was a result of the federal government’s encouragement of more residential developments. Along with government encouragement, the resulting mass exodus to the suburbs from the cities was also a great contributor.

The popularity of these communities increased the cost of land. As a result, developers began increasing the volume of homes on each parcel of land. They also varied the types of homes built.

Shared, common recreational space allowed for smaller personal lot sizes. The smaller plot size allowed for more homes. More homes were needed to meet the swelling demand.

Clusters of homes were built around a communal, often amenity-rich space. Association Boards of Directors were elected or appointed to manage that common space. The association acted as the community government for their neighborhoods. They managed responsibilities that were traditionally handled by local government authorities, for example road repair, landscaping and building maintenance. As more communities became established the HOA model began to shift. It molded according to the wants and needs of residents. Eventually, this morphed into what we know today as the modern HOA industry. As HOA communities become more common state governments have begun to establish regulations and laws. In Florida HOA rules can be found in Chapters 718 and 720 of the state code.

There are over 370,000 homeowner associations in the United States. These 370,000 represents over 40 million households (over 53% of the owner-occupied households in America). An estimated 45% of Florida residents live in an HOA community representing 49,000 HOAs.