February 2024

TIMELINE... from page 22.

Other developments are built that begin to resemble more contemporary community associations. Although not strictly labeled a condominium or homeowners association, these developments included association-like organizations with required owner membership and annual dues relating to general maintenance and repairs. The first formal planned development was built on Long Island in Levittown, NY. This community was developed by William Levitt and was geared toward providing veterans with inexpensive yet attractive homes. Although not formed as a formal homeowner’s association, Levittown consisted of multiple homes in a development subject to community rules and restrictive covenants in their deeds which prohibited certain practices such as hanging laundry on lines in front yards. The first law relating to condominium ownership – the Horizontal Property Act of 1958 – passes in the Commonwealth of Puerto Rico. This legislation was inspired by similar “horizonal property” laws previ ously passed in Brazil (in 1928) and Chile (in 1937) The National Housing Act is amended to allow the Federal Housing Administration (FHA) to approve and insure condominium mortgages. This allowed residential developers to obtain large-scale funding for residential CIC developments, particularly in suburban areas. The Community Association Institute (CAI) is formed through joint efforts of the Department of Housing and Urban Development (HUD), Veterans Administration, U.S. League of Savings and Loans, along with developers and builders, among others. As laws relating to condominiums within each state were largely incomplete or non-existent, the National Conference of Commissioners on Uniform State Laws agrees to a final version of the Uniform Condominium Act. Following the UCA’s enactment, many states begin adopting the UCA or their version of CIC laws. As developable land grows scarcer, particularly in metropolitan areas, developers seek to build commu nities with increased density on each parcel of land. To attract high-paying buyers desiring a suburban setting, however, developers focus on situating homes around common areas, often landscaped open spaces and ponds, to be maintained by associations through dues and common reserves. By the end of the 1970s, approximately 700,000 CIC units housed 2.1 million residents. The first actual condominium in the United States – Graystone Manor – was constructed in Salt Lake City, Utah.

1900s

1940s

1958

1960

1962

1973

1977

1970s

The CIC housing continues a steep growth trend throughout the country. Between 1980 and 2010, CIC units grew from 3.6 million to 24.8 million, and residents grow from 9.6 million to 62 million.

1980s – 2000s

CAI estimates that there are approximately 363,000 community associations in the United States, with 30 million units housing 74.2 million residents.

2022

Despite a slowing housing market, community associations remain the fastest-growing form of housing in the United States. CAI estimates that CICs will continue to grow by approximately 5,000 per year. It is estimated that by 2040, the common interest community housing model will be the most common form of housing, surpassing apartments and single-family homes.

2024 AND BEYOND

CONTINUES ON PAGE 26

24

FEBRUARY 2024