What is the deal when Colony House?

I think it was political. Recall when Donna tells Boyd the deal was he wasn't supposed to come there at all in S1? My guess is that not everyone was on board with making Boyd sheriff, so they moved into a place of their own (including Boyd's son), in order to be self-sufficient, not rely on anything from the town & also not submit to Boyd's authority.

They pointedly show a deep romance between Fatima and the sheriff’s son, which developed from their time at colony house. The insinuation is that colony house offered a better chance for friendships. Trapped in that place, people wanted the chance for friendships, so the chose colony house