HOAleader.com - Tip of the Week - September 16, 2011
Published: Wed, 09/14/11
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Would You Hire this Man? Spotting Conflicts of Interest at Your
HOA
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In this week's tip, we offer a refresher on dealing with HOA
conflicts of interest. If you're like most board members,
you know you should avoid conflicts of interest. How
would you have reacted in this real-life situation:
"A board president's son is out of work," explains Duane
McPherson, president of the western region and Dallas/Ft.
Worth divisions of RealManage, an association management
firm that oversees properties in Arizona, California, Colorado,
Florida, Louisiana, Nevada, and Texas.
"He's a general contractor. The association has work it needs
done worth tens of thousands of dollars, and the board
president wants to hire his son to do all the work. Not only
that, but the board member is an investor-owner in several
other associations, so he's pushing to get his son to do all
the work for all these associations.
"The board member didn't understand that's a conflict of
interest," adds McPherson. "When that was pointed out,
the board member became angry and talked the rest of
the board members into hiring the son anyway! That's an
example of an extreme conflict of interest.
"Most times, you can talk boards out of it by saying, 'Hey,
you need to excuse yourself from voting because you're
related to this person who has a vendor company,'" says
McPherson. "Usually, board members will understand, even
if the involved board member gets mad. But sometimes I
as the manager get to the point where I can advise all I want,
but I have to know sometimes boards will make the wrong
decision."
Test your skill in spotting potential conflicts of interest by
reading of other sticky dilemmas in our new article:
http://www.hoaleader.com/members/622.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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Don't Ignore the Lessons of Telford v. Sagewood Homeowners
Association
This week's tip offers a reminder that being on an HOA board
imposes on you a fiduciary duty to make tough decisions and not
favor your friends. If you breach those duties, your HOA could
pay dearly.
Click here to read full article:
< http://www.hoaleader.com/members/621.cfm >
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Your HOA Battle Is Over. How Can You Heal the Scars?
Your HOA has just been through the wringer on a hot issue, and
the "losing" board members and owners are still steaming. In this
week's tip, we offer suggestions for easing the tension and
beginning to work toward peace in your HOA.
Click here to read full article:
< http://www.hoaleader.com/members/619.cfm >
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HOA Rules? We Don't Need Notice to Revise Our Stinking Rules!
Considering revising your HOA's rules? In this week's tip, we
discuss when you need to consult with owners and when you can go
forward without notice.
Click here to read full article:
< http://www.hoaleader.com/public/617.cfm >
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How to Revise Your HOA's Rules
So what do you and your homeowners association board of directors
need to know about revising rules? When do you need to consult
with owners, and when can you just go forward without notice? And
even if your state law or governing documents don't require you
to provide notice, do you need to consider the message you're
sending when you revise rule after rule--some controversial--
without a chance for owners to provide feedback? Here's a smart
process for HOA rule revisions.
Click here to read full article:
< http://www.hoaleader.com/members/616.cfm >
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Can You Save Your HOA Money By Doing Owners' Repairs?
In this week's tip, we explain how helping owners with routine
maintenance can reduce your HOA's expenses, liability, and
disputes among owners.
Click here to read full article:
< http://www.hoaleader.com/public/615.cfm >
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