It’s incredible, really, how common embezzlements are from Homeowners Associations. With 320,000 HOAs across the country, you’d think there would be a major push to clean out the corruption that seems endemic in such HOAs as the latest one in the link below.
There are many fundamental problems with the structure of the modern HOA. As private non-profit corporations, the HOA is typically beyond the law. Restrictions against government, the protections we’ve grown accustomed to in the U.S. Constitution, don’t apply to the average HOA. As such, dictatorial edicts against such things as freedom of speech, protection against unreasonable search and seizure, and due process happen all the time.