I would not be surprised if it once served a racist function, a lot of things did, and I’m glad that’s now illegal. I wouldn’t be surprised if it still happens sometimes but I’m sure it’s the exception rather than the rule.
Most HOAs don’t even have the right to screen tenants, if you can purchase the house and will sign the contract you’re in and have the same voting rights and responsibilities as the other residents.
==I would not be surprised if it once served a racist function==
It is a verifiable fact found across the country [0]. Many of the covenants still exist today, although they are legally unenforceable. That said, I have read many comments on this site about how non-competes have long been considered legally unenforceable, but can still have a chilling effect on those impacted (Thankfully, this has recently changed).
I think the more interesting aspect, in regards to today's world, is how HOAs lead to even higher housing costs during a housing affordability crisis. This happens through both explicit expenses (monthly HOA dues) and implicit expenses (lawn maintenance, regulation of architectural changes/additions, rental restrictions, etc.) on homeowners.
Most HOAs don’t even have the right to screen tenants, if you can purchase the house and will sign the contract you’re in and have the same voting rights and responsibilities as the other residents.