GAINESVILLE, VA — A Gainesville homeowners' association has paid $425,000 to resolve federal allegations that it made false statements to obtain a pandemic-era Paycheck Protection Program loan, according to the U.S. Attorney's Office for the Eastern District of Virginia.
Heritage Hunt Homeowners Association, which represents an age-restricted, gated community in Gainesville, received a $397,600 PPP loan in April 2020, according to the release.
Federal prosecutors alleged the Heritage Hunt HOA knowingly made false statements and certifications concerning its employee count, average monthly payroll, use of the loan proceeds and its eligibility for the federal program.
The HOA agreed to pay $425,000 to resolve the allegations, including $255,000 in restitution, according to federal prosecutors.
The settlement was one of four involving Virginia homeowners' associations or private clubs announced by federal authorities on Wednesday. Combined, the organizations paid nearly $2.7 million to resolve allegations that they improperly obtained PPP loans.
Public records show Heritage Hunt's $397,600 loan was approved April 27, 2020, and later forgiven.
InsideNova reported in late 2025 that the Heritage Hunt HOA had agreed to the settlement without admitting fault and had passed the cost on to residents. According to the Oct. 14 letter the outlet says it obtained, the HOA's board "approved a one-time special assessment in the amount of $343 payable in six monthly installments beginning Jan. 1, 2026 (or $57.17 monthly)."
This $343 per-resident amount would cover $4,000 owed to the attorney for the person who submitted the claim; approximately $200,000 in legal fees to the law firm of Crowell & Moring; and $9,250 in administrative and printing fees, the outlet wrote.
According to the HOA, it paid outside contractor UptoPar and its dozens of employees to operate some of the complex's amenities. It says UptoPar requested the HOA submit a PPP loan so their contract employees could get paid during the pandemic and the HOA made a mistake in honoring that request.
Other organizations settling similar allegations were mentioned in the release. Lake Caroline Property Owners Association, a homeowners' association in Ruther Glen, applied for a $169,400 PPP loan in May 2020. Lake Caroline paid $225,000, of which $178,932.81 was restitution, to settle allegations that it made false statements in its application.
The Commonwealth Club Inc., a private club in Richmond, obtained PPP loans totaling $1,615,050. The Commonwealth Club paid $1,676,117, of which $1,257,221 was restitution, to settle allegations that it made false statements in its application.
The Villages of Kiln Creek Owners' Association, a community in Newport News, obtained a $772,156 PPP loan in March 2021. The Villages of Kiln Creek paid $365,556, of which $228,472.38 was restitution, to settle allegations that it made false statements in its application.
The settlements are part of a False Claims Act whistleblower case filed in federal court in Alexandria. The whistleblower received 10 percent of the government's recovery, according to the U.S. Attorney's Office.
The settlements resolve allegations, but don't themselves constitute a finding of liability.
Congress created the PPP under the CARES Act in 2020 to provide forgivable loans to qualifying businesses struggling during the COVID-19 pandemic. Loan amounts were generally based on an applicant's payroll and number of employees.
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