The Freedom to Display the American Flag Act of 2005 prohibits a condominium association, cooperative association, or residential real estate management association from adopting or enforcing any policy or entering into any agreement, that would restrict or prevent an association member from displaying the U.S. flag on residential property within the association—with respect to which such member has a separate ownership interest or a right to exclusive possession or use of the flag.

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Homeowners associations walk a fine line between enforcing and promoting aesthetics within a neighborhood versus individual patriotic expression. Before 2005, many homeowners associations prohibited any flag or sign from being displayed in a manner visible to the public. This blanket prohibition is mainly to protect against unsightly, profane, or discriminatory flags and signs, and to protect the overall community aesthetics. Associations trying to enforce specific flag and sign regulations often found themselves embroiled in lawsuits for unequal treatment or selective enforcement. The solution was a complete ban on all flags and signs within a community. While these broad and sweeping prohibitions were intended to promote a harmonious and aesthetically pleasing neighborhood appearance, it simultaneously barred what some consider to be the fundamental right to fly the American flag.