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Category Archives: Financial Controls

9 Steps to avoid HOA Embezzlement

How to Recognize HOA Embezzlement–and 9 Steps to Minimize Your Risk

“Creative accounting” or “cooking the books” has been on the rise in HOAs the past few years. Headlines are unfortunately full of cautionary tales. Consider these two recent cases:

  • A former treasurer of the Woodbridge Townhomes Homeowners Association in Nevada City, Calif., recently entered a guilty plea to embezzling more than $100,000 from the association.
  • HOAs that contracted with Kroger Management Group claim the Fairfax, Virg., firm stole more than $2 million from client associations.

Embezzlement is also perennially under-reported. Many cases are simply settled quietly because the victims—the HOAs—don’t want to face the bad publicity of announcing the theft.

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HOA Foreclosing to Rent Units?

The takeover of foreclosed units by condominium and homeowners associations to rent them out and recoup delinquent fees has been one of the fastest-growing solutions to the rise in foreclosures. But it’s not without cost. 

Here we explain what your HOA board needs to know about the risk when acquiring a unit for rental and the expense involved in foreclosing on a property to rent it out. 

The Pros and Cons of Foreclosing to Rent 

There’s no easy answer when it comes to deciding whether your HOA should foreclose on units with the intent to rent them out because lenders are slow-walking the foreclosure process. 

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