Here's some clarification:
Related to this controversy were some comments by Hoppe in his 2001 book Democracy: The God That Failed about discrimination against certain people by private "covenant" communities in a free society. Over the years Hoppe's critics—most of them, sadly, libertarians—have uncharitably accused Hoppe of homophobia, bigotry, and the like, based on these passages. In particular, on p. 218, Hoppe writes:
There can be no tolerance toward democrats and communists in a libertarian social order. They will have to be physically separated and expelled from society. Likewise, in a covenant founded for the purpose of protecting family and kin, there can be no tolerance toward those habitually promoting lifestyles incompatible with this goal. They--the advocates of alternative, non-family and kin-centred lifestyles such as, for instance, individual hedonism, parasitism, nature-environment worship, homosexuality, or communism--will have to be physically removed from society, too, if one is to maintain a libertarian order.
In his followup article, My Battle with the Thought Police, he elaborated:
In my book Democracy, The God That Failed I not only defend the right to discrimination as implied in the right to private property, but I also emphasize the necessity of discrimination in maintaining a free society and explain its importance as a civilizing factor. In particular, the book also contains a few sentences about the importance, under clearly stated circumstances, of discriminating against communists, democrats, and habitual advocates of alternative, non-family centered lifestyles, including homosexuals.
For instance, on p. 218, I wrote "in a covenant concluded among proprietors and community tenants for the purpose of protecting their private property, …no one is permitted to advocate ideas contrary to the very purpose of the covenant ... such as democracy and communism." "Likewise, in a covenant founded for the purpose of protecting family and kin, there can be no tolerance toward those habitually promoting lifestyles incompatible with this goal. … (violators) will have to be physically removed from society."
In its proper context these statements are hardly more offensive than saying that the Catholic Church should excommunicate those violating its fundamental precepts or that a nudist colony should expel those insisting on wearing bathing suits. However, if you take the statements out of context and omit the condition: in a covenant… then they appear to advocate a rights violation.
Hoppe on Covenant Communities and Advocates of Alternative Lifestyles « LewRockwell.com Blog