association financially responsible for board member behavior?

BarbaraS12 (New Mexico)
Posts: 9

Posted:

One of our board members is pretty abrasive when enforcing covenant rules. The owner of a rental unit accuses this board member of driving away his two-year lessee and wants financial reimbursement for these two years, threatening a law suit. The board does not have written directives on how to address those breaking covenant rules. Would the board and the association be responsible for its members behavior and the owner's loss of rent?

SusanW1 (Michigan)
Posts: 5,202

Posted:

This is why the entire board needs a muzzle on each member when it comes to violations.

Your board needs to get a written procedure ASAP for handling violations and stick to it.

Since this board member was not sanctioned by the board to speak for the HOA, he is on his own. He could be charged with harassment, but he did it himself. Do not let the board get involved, at all.

Your president should call a special meeting and hand out muzzles - and get that procedure in motion.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Is the Association responsible for the conduct of a representative (Director, committee member, etc.) of the Association when that individual is performing Association business?

YES, but only to a certain extent.

Is the Association responsible for a members lost rental income because the renter chose to not renew the rental agreement at the end of the lease?

NO

Could the Association be responsible for a members lost rental income because a renter broke the lease due to issues of safety and well being caused by the Association?

MAYBE. However, the member would have had to lodge complaints for the issues as they were happening. Police reports, letters to the Board, etc. Otherwise there is zero documentation of the incidents indicating a problem existed. Without documentation, how could one be positive it wasn't the fact that the rental rate was being increased, the neighbors were too loud, the school system wasn't as good as the renter thought, crime rate, lack of amenities, etc.

Of course, this is just my opinion, The member would have to file suit in court and incur legal fees, show damages, and prove it was the conduct of the Board member acting on behalf of the board vs some other influence to actually win any judgment.

Tim

MaryA1 (Arizona)
Posts: 388

Posted:

Barbara,

I would say "yes" if the plaintiff could prove that it was the board member's behavior that caused his/her tenant to break the 2-yr lease.

IMO, the board should not even be dealing with a tenant as the property owner is liable for any violations of the renter. Also, the board should not allow this abrasive board member to speak to any members if he can't behave in a civil manner. IMO, there shouldn't be any verbal warnings, etc., all violation notices should be in writing.

BarbaraS12 (New Mexico)
Posts: 9

Posted:

Thank you for your input. The renter had only been in the unit for several months. He should have been given copies of the covenants before signing a lease- I know a copy of the covenants was taken up to him when he moved in. So far there is no documentation of the incidents - just he said/he said. However, it is correct that the board should have had written rules in place - we are a small (22) association and have little to no input from the owners. Would it be advisable (to calm things down) if the board wrote a letter apologizing to the owner for the members behavior (but not for the breaking of the rules)and directing would not occur in the future? The owner wants the resignation of said member. Aside from this aspect of his behavior, this member is a great asset to the association - he is retired (medically) military and spends a great deal of his time tending to the association property, picking up litter, keeping an eye on equipment,etc, etc. on a voluntary basis.

BarbaraS12 (New Mexico)
Posts: 9

Posted:

Thank you for your input. The renter had only been in the unit for several months. He should have been given copies of the covenants before signing a lease- I know a copy of the covenants was taken up to him when he moved in. So far there is no documentation of the incidents - just he said/he said. However, it is correct that the board should have had written rules in place - we are a small (22) association and have little to no input from the owners. Would it be advisable (to calm things down) if the board wrote a letter apologizing to the owner for the members behavior (but not for the breaking of the rules)and directing would not occur in the future? The owner wants the resignation of said member. Aside from this aspect of his behavior, this member is a great asset to the association - he is retired (medically) military and spends a great deal of his time tending to the association property, picking up litter, keeping an eye on equipment,etc, etc. on a voluntary basis.

SusanW1 (Michigan)
Posts: 5,202

Posted:

IMHO - NO! If you write that letter, you take responsiblity for this persons action. Under no circumstances should you imply that this person spoke for the HOA.

Settle back and let the owner make the first move.

Tell him that the HOA can't assume responsibity for the actions of his renter.

PS - were HOA written or legal papers delivered to the renter?
If not, then the renter moved because he wanted to. Best not to bring the HOA into this, at all.

SusanW1 (Michigan)
Posts: 5,202

Posted:

IMHO - NO! If you write that letter, you take responsiblity for this persons action. Under no circumstances should you imply that this person spoke for the HOA.

Settle back and let the owner make the first move.

Tell him that the HOA can't assume responsibity for the actions of his renter.

PS - were HOA written or legal papers delivered to the renter?
If not, then the renter moved because he wanted to. Best not to bring the HOA into this, at all.

SusanW1 (Michigan)
Posts: 5,202

Posted:

IMHO - NO! If you write that letter, you take responsiblity for this persons action. Under no circumstances should you imply that this person spoke for the HOA.

Settle back and let the owner make the first move.

Tell him that the HOA can't assume responsibity for the actions of his renter.

PS - were HOA written or legal papers delivered to the renter?
If not, then the renter moved because he wanted to. Best not to bring the HOA into this, at all.

SusanW1 (Michigan)
Posts: 5,202

Posted:

IMHO - NO! If you write that letter, you take responsiblity for this persons action. Under no circumstances should you imply that this person spoke for the HOA.

Settle back and let the owner make the first move.

Tell him that the HOA can't assume responsibity for the actions of his renter.

PS - were HOA written or legal papers delivered to the renter?
If not, then the renter moved because he wanted to. Best not to bring the HOA into this, at all.

SusanW1 (Michigan)
Posts: 5,202

Posted:

Don't know the reason for the multiple posts. Any ideas why?

Sorry . . .

JonD1
Posts: 2,350

Posted:

Barbara:

Abrasive?? What does that mean? Telling folks they need to follow rules?

What was the issue with the tenants? Do you know?

Somer people's "abrasive" is another's "direct".

As to the unit owners suggestion he plans to sue, well my guess that is hard to make a case for against the BOD.

I would toss the ball back to him and let him prove he lost a tenant and then was unable to rent the property for two more years.

As to your suggestion the BOD offer an apology I would suggest it will do nothing to satisfy the unit owner and it puts the BOD right in the middle of this matter as some others have suggested.

Sounds to me like you have a Board member willing to act in the best interest of YOUR property. Maybe, and without details impossible for me to determine he MIGHT need to tap his brakes just a little when it comes to charging into matters regarding the inforcement of the property's rules and regulations.

Let some time pass see if you hear from the property owner or their representation and then decide how it should be handled.

Good luck.

BarbaraS12 (New Mexico)
Posts: 9

Posted:

Thank all of you for your input. We are going to "cool it" and let the owner also cool down a bit. We will also get on the written procedures for dealing with rule violations - and button up all the lips. Thank all of you again for most knowledgeable and speedy replies. This is a tremdously valuable site for HOA's.

BarbaraS12 (New Mexico)
Posts: 9

Posted:

Thank all of you for your input. We are going to "cool it" and let the owner also cool down a bit. We will also get on the written procedures for dealing with rule violations - and button up all the lips. Thank all of you again for most knowledgeable and speedy replies. This is a tremdously valuable site for HOA's.

JohnB26 (South Carolina)
Posts: 1,569

Posted:

There can NOT be an issue with a 'tenant', only with an OWNWR.
The tenant's only obligation is to the lease he/she signed ... any violations of said lease are between the 'tenant' and the OWNER.
GO AFTER THE OWNER.