Conflict of Interest - Friend/Relative

Started by JoyceS1 • 4 replies • 1924 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

JoyceS1 (Indiana)
Posts: 140

Posted:

We have a fairly new, small community consisting of 14 units. About half the residents are either related to one another or have been life-long friends. When serving on the board, these people are reluctant to "make their friends/relative" mad and do not make decisions on behalf of the community as a whole.

We need these people to serve on the board because we have so few capable. My question is: Can this be a case for conflict of interest when they act out of fear of making their friend/relative mad instead of making an unbiased decision and should they abstain from voting on a situation?

This is probably a petty question, but covenants and rules and regulations are not being enforced because these people have no backbone to tell their friend/relative "no".

WilliamT (Arizona)
Posts: 489

Posted:

Posted By JoyceS1 on 06/06/2006 11:14 AM

We have a fairly new, small community consisting of 14 units. About half the residents are either related to one another or have been life-long friends. When serving on the board, these people are reluctant to "make their friends/relative" mad and do not make decisions on behalf of the community as a whole.

We need these people to serve on the board because we have so few capable. My question is: Can this be a case for conflict of interest when they act out of fear of making their friend/relative mad instead of making an unbiased decision and should they abstain from voting on a situation?

This is probably a petty question, but covenants and rules and regulations are not being enforced because these people have no backbone to tell their friend/relative "no".

In my layperson opinion, this is not a conflict of interest. Conflict of interest usually refers to a board member having an interest in a vendor company. In that case the board member must state his interest in the company, and should, but is not required to, abstain from voting on that vendor issue.

Yours is a case of the board not performing their duties, and having favoritism toward certain individuals.

By operating in this manner, they are not serving their friends nor the community well, as the community as a whole will suffer. They need to uniformly enforce all regulations, and allow for special circumstances of an individual homeowners current personal or financial situation.

The board would be well advised to draft very friendly first notice letters, followed by a friendly notice to violate, and then the violation letter.

Bill

SwanB (Washington)
Posts: 199

Posted:

Certainly not a conflict of interest but absolutely not the way a Board of governing entity should operate. I would suggest fair procedures be set up before situations occur and the Board stick to them regardless of the individuals involved. That way you can't go wrong as so many before you have. Trust me, you are not existing in a vacuum.

EdR (Texas)
Posts: 170

Posted:

The MC (if they are doing their job) would recommend to the board that they not be selective AT ALL. The MC (if there is one) should send these letters about violations to buffer for the board and keep friendships and personalities out of the mix. If there is not an MC then the board should handle the violaters and not treat anyone differently. If a board ignores one violation and then tries to enforce something toward another homeowner, that homeowner has a cause for a suit for harassment and/or discrimination. However if you read the posts on ASSAULTS ON BOARD MEMBERS, you'll see why some MCs will not buck the board or the liaison of the board who signs their paychecks. That's where the conflicts of interest come in. In our assn. NOW--swim team advocates (parents of those kids) are not sent violation letters and they actually thumb their noses at the rules because they know that neither the MC nor the board (who are now majority swim team advocates) will make sure they are not cited. This is WRONG, WRONG, WRONG. I knew I was entering into an agreement to be in an HOA when I purchased my home, but not a swim team-dominated board who would give my amenities away and to 1/3 who do not live in the subdivision and do not pay dues.
EdR

RogerB (Colorado)
Posts: 5,067

Posted:

Joyce, unfortunately this happens more often in small HOAs which do not feel they can afford a Managing Agent. There is no conflict of interest. This is a common occurance among us social animals; we have a need to be liked and appreciated

Often Board members are not aware of the rules or proper procedures. One of my jobs as their Managing Agent is to assist them as necessary. Then if they don't want to comply I will no longer be associated with them. I enforce covenants and rules equally with all owners. I have been know to cite the President for a violation and not cite a neighbor when the Presidnet complained because the neighbor was not in violation. Treat all owners equally, follow the Golden Rule, and you will be appreciated

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here