HOAleader.com - Tip of the Week - May 30, 2025

Published: Fri, 05/30/25

Updated: Wed, 06/04/25

HOA Board Member Unilaterally Withholds Vendor’s Payment, and All Hell Has Broken Loose

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HOAleader.com - Tip of the Week - May 30, 2025

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In this week's tip, we evaluate what went wrong after a vendor hired a lawyer and sent a demand letter to an HOA seeking payment blocked by just one board member. That vendor is also now complaining to the HOA about that sole board member's actions.

The back story: One board member seems to have been the liaison to this vendor for a while. That board member liaison claims damage was done by the vendor tree trimmer that wasn't fixed to the board member's satisfaction. So that lone board member asked the management company to withhold payment.

The contract/proposal the board member signed on behalf of the HOA didn't say the vendor would be responsible for any damages. Nonetheless, the board member liaison says they're withholding payment until they find out if the HOA will recover damages from the tree trimmer's alleged negligence.

Another board member is frustrated that they're hearing about this issue at this point. This board member also doesn't agree with the idea of withholding payment, worrying it'll further exacerbate the problem by creating a contractual breach by the HOA, not the tree trimmer.

Many of HOAleader.com's experts routinely advise that boards appoint a sole person to serve as the liaison to a vendor. The idea is that that board member will be the vendor's sole point of contact, and the vendor won't get mixed messages from too many cooks in the kitchen.

But this board member seems to have misunderstood the role of a board liaison. Learn more in our new article: https://www.hoaleader.com/members/5106.cfm

Best regards,
Matt Humphrey
President

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