The HOA's had rules that black and other undesirables weren't allowed. Enforceable since HOA's were a private associations.
However the supreme court also ruled that was unenforceable too.
But that didn't happen before developers realized that they could use HOA's as a cash cow. You sell a house once. But you can collect HOA dues for a couple of decades after. There is a case in Daily City where it took decades for home owners to get rid of the HOA. That collected dues and provided absolutely nothing in return.
However the supreme court also ruled that was unenforceable too.
But that didn't happen before developers realized that they could use HOA's as a cash cow. You sell a house once. But you can collect HOA dues for a couple of decades after. There is a case in Daily City where it took decades for home owners to get rid of the HOA. That collected dues and provided absolutely nothing in return.