Coming Home Magazine

The Original Community Association The concept of a managed community began in the late 1940s, when soldiers returning from World War II needed a place to call home. At the same time, suburban housing developments were becoming more common. That's when Bill Levitt, a veteran himself, recognized an opportunity. Teaming up with his brother Alfred and dad Abraham, Bill invested in over 4,000 acres of land on Long Island, New York. Using brand-new construction techniques, the trio completed an affordable group of homes for veterans in 1947 and named it "Levittown." Although Levittown had no formal board of directors or governing documents, it was built with cohesive home designs and established rules and regulations. This laid the foundation for the managed communities we see today. The Evolution of Community Associations Levittown's blueprint took off, igniting an interest in the development of planned communities. These neighborhoods would pop up nationwide over the next 15 years, with government-enacted laws to further the boom. For example, the Federal-Aid Highway Act of 1956 permitted interstate freeways to be built across the U.S., increasing accessibility to suburban areas outside major cities. Developers took advantage of the plentiful space now within reach and constructed planned communities. Other impactful events followed: • The 1948 case of Shelley v. Kraemer • The Fair Housing Act of 1968 • The 1960 founding of the National Association of Housing Cooperatives (NAHC) The new laws resulted in anti-discrimination policies that made it legal for people of all races, religions, national origins, and genders to buy, sell, or rent a home. Consequently, the NAHC supported the best interests of cooperative housing communities and offered education and assistance to leaders. At this point, urban areas were still free of association housing. That changed in 1963, when the Federal Housing Administration (FHA) approved mortgage insurance for condos and homes in managed subdivisions. Soon after, high-demand, common-interest housing spaces filled downtown skylines. By 1967, every state had adopted a condominium property act, and it was clear that association housing and development needed to be addressed at a national level. In 1973, the Urban Land Institute, the National Association of Homebuilders, the U.S. League of Savings and Loan Associations, the Veterans Administration, the U.S. Department of Housing and Urban Development, and other prominent leaders joined together to form the Community Associations Institute (CAI). The organization studied the rise of planned communities and formed policies that balanced developer needs with consumer protections. CAI continues to educate community leaders worldwide and advocate for the lifestyle. Today's Community Associations Today, managed communities are a top choice for homeowners. According to the 2022-2023 National and State Statistic Review for Community Association Data, 75.5 million Americans live in a managed community. That's an increase of nearly 3,500% from 1970! Across 365,000 communities nationwide, there are 28.2 million housing units. And you can expect more; about 5,000 new communities are built every year. The Future of Community Associations It's an exciting time, as community types, laws, and management strategies evolve. Common-interest developments, where individual unit owners manage operations instead of a board of directors, are becoming more prevalent. Mixed-use communities are also growing in popularity, allowing residents to live, work, and play from the comfort of their own backyards. What's more, community association offerings are transforming, too. Future-driven neighborhoods tout features like innovative technology solutions, electric vehicle charging stations, and eco-friendly building renovations. The industry has come a long way from its humble beginnings, but it's charting a path forward at lightning speed. COMING HOME MAGAZINE 13

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