Homeowners’ Associations (HOAs) are meant to preserve community values and property integrity, but sometimes, boards veer off-course, crossing lines into corruption, abuse of power, and financial misconduct. Here are some actual incidents that showcase how rogue HOA boards can disrupt entire neighborhoods.
1. Embezzlement by Treasurer in Utah HOA (Lava Bluff): In one particularly egregious case that occurred in Utah, Sharon Lee Ann Gordon, the treasurer of the Lava Bluff HOA, embezzled more than $230,000 over a six-year period (2016–2022). She forged board members’ signatures and diverted funds to her personal expenses, including gambling. She was sentenced to home detention and ordered to repay restitution. Read more here:
https://www.the-sun.com/news/11043316/sharon-gordon-lava-bluffs-hoa-fraud-treasurer-sentenced
2. Fines and Retaliation in Georgia (South Fulton): In South Fulton, Georgia, homeowner Nicole Reeves was fined over $1,000 for minor violations – allegedly as retaliation after she questioned suspicious budget items, including a $15,000 lawn contract tied to a board member’s spouse. She’s now lobbying the Georgia Senate for reform.
Full story: https://www.the-sun.com/news/14059565/homeowner-risk-losing-house-hoa-fine-georgia/
3. Water Distribution Clash in Arizona (Goodyear): David Martin of Goodyear, Arizona, began offering free bottled water to neighbors during extreme summer heat. The HOA issued repeated $100 fines, citing rule violations. Martin led a successful recall vote – but the HOA challenged it. He’s raising funds to defend the election in court.
4. Mismanagement of Funds in Florida HOA (Kendall)
In the well-publicized Florida case regrading, The Hammocks, a large HOA in Kendall, Florida, four board members and a spouse were arrested for stealing over $2 million. The funds, intended for community upkeep, were misused for personal gain, prompting major community outrage. Coverage available via DOJ and local outlets.
5. Election Litigation and Excessive Spending in Florida (Carrollwood): In the Plantation of Carrollwood, Florida, HOA leaders spent over $360,000 in legal fees defending two election challenges – both of which they lost. Homeowners decried the waste of community funds on unnecessary litigation.
How to Tell if Your HOA Board is Rogue: Across these cases, several recurring themes stand out:
- Financial Misconduct;
- Retaliation and Harassment of HOA members;
- Ongoing lack of Transparency;
- Legal Overreach.
Entrenchment Leading to Rogue Behavior: The Rogue Board often begins with good intentions, but over time, because of entrenchment (unchallenged leadership), secrecy, and punitive enforcement, governance deteriorates to the point that it becomes unrecognizable from what many Americans have come to expect from their lowly political leaders.
Rogue behavior often surfaces when homeowners become disengaged or fear retaliation. Reclaiming Control of your HOA requires that diligent stakeholders follow a strategy offensive that includes:
- Document Everything;
- Pushing hard for complete Transparency;
- Using all legal channels available to the HOA;
- Apply Public and Legislative Pressure;
- Engage the Community;
- Get the local and regional media involved.
Final Thoughts: These real cases show how unchecked power in HOA boards can spiral into abuse. But they also demonstrate that informed, organized homeowners can push back—through elections, courts, and public advocacy. Rogue Boards thrive on silence; the antidote is vigilance. Remember, Rogue Boards do NOT want to find themselves a feature on the evening news.
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