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In 1924, the Hollywood Land Company was incorporated by real estate developer Clyde Nelson for the purpose of developing a planned community of Spanish Colonial Revival style homes in the area now known as Hollywood. He paid $109,800 for the land that would become “Birmingham’s Master Subdivision.” Nelson hired Harvard-trained landscape architect Rubee J. Pearse to design the 750-lot neighborhood by laying out roads, green spaces, lot lines, and house placement.
 

Nelson engaged Birmingham architect George P. Turner to design most of the original residences. At the time, lots sold for $1,800–$3,700, and completed homes sold for $15,000–$35,000. Nelson eventually allowed lot owners to also build the popular Tudor Revival style homes, but he still insisted on strict design codes in keeping with his vision for the community.
 

Nelson lavishly promoted Hollywood. Once the first floor of a new house was built, he hosted extravagant outdoor lawn parties and invited the general public to attend. He lured potential homeowners to the area with many desirable amenities, such as free bus service to downtown Birmingham for Hollywood residents, the first natural gas pipeline into Shades Valley, and the Hollywood Country Club, which offered fine dining, dancing, and a large pool with a sandy beach.
 

At the end of 1926, Hollywood was incorporated as a township, and a mayor and five councilmen were elected. Clarence Lloyd was the first and only mayor of Hollywood. In 1929, facing mounting expenses to provide necessary municipal services to a growing community, the town merged into the City of Homewood and remains a part of Homewood to this day.
 

In 2002, the Hollywood Historic District was placed on the National Register of Historic Places. It remains of historical significance as the earliest, and one of the best-executed, planned communities in the state. It is still noteworthy for the architectural style of the surviving historic houses of both Spanish and Tudor design.