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I truly don't understand how HOAs aren't illegal. Or at the very least restricted.
Local governments love HOAs and they are only giving construction permits to HOA communities. Why they love it? Easy, they onload the government duties of maintaining infrastructure on the HOAs, who charge a "tax" that doesn't risks the political career of the elected officials.
I'm pretty sure it's a case of gradually increased powers, afaik basically everywhere has HOAs, the difference is just that outside of america they basically just maintain common infrastructure like roads and utilities and the only things they can really enforce is when you're actually being a prick towards your neighbours, e.g. bright pink house or excessive blinking lights.