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Subject: Conflict of Interest Policies
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Author Messages
ChrisE8
(New York)

Posts:225


11/06/2020 2:06 PM  
Do HOA boards have conflict of interest policies?

I'm on a nonprofit board that makes me sign one each year. It says that I can't get any benefit from anyone who provides goods or services to the organization (such as suppliers), and I can't get paid anything by the organization.

It seems like a good idea. But do HOA boards have these policies, ever?

Thanks.
SheliaH
(Indiana)

Posts:3577


11/06/2020 5:46 PM  
Some do, some don't. Others may address the issue in their Bylaws, which dictate how the community is to be run. A few even have separate code of conduct policies all community volunteers are to conduct themselves when addressing board business.

For the most part, one should expect a HOA board to operate as you state, whether it's written down or not. It's a matter of common sense in my view, but for it to work, homeowners have to pay attention to who they put on the board, what they do and how when they get there.

BobbyL1
(California)

Posts:19


11/08/2020 4:29 PM  
Not at my association. But it makes sense. You've got me thinking about it now!
ChrisE8
(New York)

Posts:225


11/08/2020 6:00 PM  
Thanks. It seems reasonable for a HOA to prohibit directors from getting compensation, directly or indirectly, from the HOA or from any company that does business with the HOA.
SheliaH
(Indiana)

Posts:3577


11/09/2020 6:01 AM  
I often speak of the Community Association Institute's website and education materials it has for board members and homeowners. A few years ago they also drafted a list of rights and responsibilities for homeowners and board members (I prefer community volunteers, as this covers committee members as well). You may be able to find it simply by Googling it, as I know it's been reprinted in several areas.

This would be a great start to setting up some sort of code of conduct for homeowners as well as board members. Board members are also homeowners after all (most of the time anyway), and everyone should understand if they hold up their responsibilities as homeowners, it'll be a lot easier to do if they become some sort of community volunteer.

Add a policy addressing conflict of interest in more detail and consider adopting it with a board resolution during an open meeting.
KerryL1
(California)

Posts:7660


11/09/2020 9:12 AM  
Both our CC&Rs & Bylaws forbid directors from receiving any monetary compensation.

Our MC has a "Commitment Pledge," with is kind of like a Code of Ethics and it includes verbiage about revealing any conflicts of interest. Directors sign it annually.
JohnC46
(South Carolina)

Posts:10130


11/09/2020 3:16 PM  
Cheaters will cheat. Signing a document not to cheat does not stop a cheater so such documents are useless.
KerryL1
(California)

Posts:7660


11/09/2020 4:02 PM  
I agree with you, JohnC. I was replying to Chris' question.
ChrisE8
(New York)

Posts:225


11/09/2020 4:10 PM  
Thanks, everyone. This is all very helpful.
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Forums > Homeowner Association > HOA Discussions > Conflict of Interest Policies



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