Question: Our HOA board has three members who are employed by the master community company. They hold the highest positions, including the president of the HOA board. This appears to present a conflict of interest. Is it legal or does it give the community a negative perception? — S.F., Mission Viejo.
Answer: Having HOA directors who are also paid by the master association puts them in a difficult situation. They are serving two different corporations with potentially conflicting interests. This situation also raises concerns among other homeowners who question why the master HOA is paying some of its own members.
In the Mission Viejo area, there are likely many service providers who are not affiliated with the master HOA. It reflects poorly on both your HOA and the master HOA when they hire their own members. Therefore, HOAs should make an extra effort to avoid such arrangements.
Question: Our HOA is considering hiring a member to design our remodel. Is this legal or advisable? — R.B., Coronado.
Answer: It is not illegal to hire an HOA member as a designer, unless your governing documents specifically prohibit it. However, it may not be a wise choice. If the member performs poorly, the HOA board may struggle to hold them to the same standards as an outside service provider.
If the member’s design services are negligent, the HOA board may need to sue them for damages. Additionally, if there is a personal relationship between the service provider and the HOA, it becomes difficult to maintain a strictly professional relationship, potentially harming the HOA’s interests.
Despite any discounts that may be offered by a member, some HOA members may still view it as improper to hire fellow homeowners or residents. It would be advisable for the board to consider finding a skilled designer outside of the HOA membership within the greater San Diego area.
Question: Our small association has a president who is romantically involved with the former president. The new president has appointed the former president as the property manager. They do not disclose information about elections, including the time and ballots. How can we challenge the authority of this entrenched HOA? Many of us are fed up and want to take action. — J.A., Glendale
Answer: Hiring a homeowner to manage their own community is not a good idea, for the same reasons mentioned earlier. Even if the homeowner had the necessary credentials to be a manager, they would still face conflicts of interest between their roles as a homeowner, manager, and board member’s friend.
In small HOAs, elections usually happen more easily than in larger ones. Things will change when enough members have had enough of this tight-knit control over the HOA. Hopefully, you can find dedicated volunteers who are committed to practicing good governance.
Kelly G. Richardson, Esq. is a Fellow of the College of Community Association Lawyers and Partner of Richardson Ober LLP, a California law firm known for community association advice. Please send any column questions to [email protected].
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
