NATIONAL – HOA Embezzlement Hits All, From High & Mighty to Small & Weak
Some readers may be under the impression that embezzlement of HOA funds only happens to Homeowners’ Associations (HOAs) with hundreds or thousands of units and elaborate amenities that translate to big operating budgets. I’ve talked to some people that think these cases are limited to certain parts of the country such as the Sunbelt states or major cities.
Nothing could be further from the truth. Even modest HOA communities in small towns are at risk for theft of funds by rogue Board members, community managers, or Developers.
Take Skyview Estates, for example. Skyview is a relatively small townhouse community of a few dozen homes located in Richland, PA, a town with a population of less than 1600. The nearest city is Johnstown, PA, with a population of about 20,000. There are no amenities such as a pool, and houses are located on one street named after the company that developed the community. Read more: