Is this Legal?

Typically, the only limitation on spending Association funds is that the Board does not get compensated for their time (unless your documents say that they can be).

Without reading your governing documents, as long as the Association doesn't buy the Directors lunch, it would be legal.

Personally, I don't think it should be done.

Many boards are in the habit of treating their mgr to a luncheon especially at Christmas time. I don't think this is necessary and my assn does not do this. In fact, our mgr treats all the board members and advisory comm. members and spouses to dinner after our Dec annual meeting.

What would the violation be called if they were buying the Directors lunch?
Or specifically, if the entire board of directors went out to lunch using association funds?

Jenn

This subject has come up several times in the past.

Some people take the view that ANY such use of the property's funds is illegal, unethical, criminal, certainly wrong or all of the above.

As we can read some people think it is ok to some degree that they feel comfortable with.

IMO if the volunteer Board memebers were given a paid lunch or dinner with property's funds this would NOT constitute some form of compensation. To suggest so would seem to believe that their efforts over a one year period can be covered with the price of a lunch or dinner. IMO hardly.

In law there is the letter of the law versus the meaning of the law. To suggest one lunch or dinner might compensate any one serving on any Board would be a stretch.

IMO this area concerns building realtionships with those that serve the property.
If the Board would like to show their appreciation to the PM or another contractor or service provider with a lunch IMO that serves the property's best interests. In the real world a thank you in some form goes a very long way. And is NOT something shady or questionable. Afterall, what amount of money are we discussing? And in the BIG picture is this really worth questioning?

IMO you are simply building good will. A simple thank you for what you do for our property. And this can be applied to the Board, PM, contractors, or other service providers. Just what message are you sending if YOU decide this action is not warranted or permitted? Your efforts don't warrant the cost of a lunch? Is that the message you want to send those that serve your property? If so then don't do anything.

Around the holidays we give out cards and lets call them "tips" to several service providers. Doing so says thank you, that we appreciate their efforts and that we recognize the role they play on the property.

In today's world so many people are taken for granted. To take the time to say thank you in some small way IMO is not grounds for a federal investigation or accusations of misconduct. But to each their own. This is just my opinion.

And if the Board decides to go through with the PM's lunch you ceratinly can file suit in court over the $20 tab. I would think there might be more important things to look into.

With respect to the Board receiving the lunch or Christmas party I think following big Govt. rules is best. No gifts over $10 - $20 value. So my landscaper, once a year, can buy me a McD's burger, or even a combo meal, but if he/she feeds me every week, or tries to buy me a $40 dinner at Outback, or season passes to a Football Team, then it is an unethical kickback to the client and should be refused.

Going in the other direction, i.e., a gift to the Landscaper, it is a sliding scale. We have a small social/community affairs line on our budget. It covers such things as yard of the month, certificates and plaques of appreciation, flowers to funerals of long time residents, etc. It usually all has to be justified and pre-approved at an open Board meeting (spending money for cards and flowers to funerals (up to $75) has been previously determined by Board resolution to be within the discretionary emergency powers of the senior officers right up there with the authority to hire someone remove a fallen tree across a parking lot without waiting till the next Board meeting). If we had a valued Board member of 20 years who decided to sell, we would probably vote to give them a plaque of appreciation. If we had a landscaper or a trash hauler who did something really outstanding above and beyond the call, perhaps CPR on someone with a heart attack, rescue children from a burning building, etc., would we buy them a lunch? Heck yes.

I can't believe what I'm reading. The board has to wrok with its property mangers. If treating them to a Christmas dinner bothers some people. I suggest those people look in the mirror and ask yourself one question. Am I really that ignorant?? If I have to toss a bone to help keep a good working relationship with my vendors then a bone is going to get tossed. Did you smoehow think the Salvation armydoesn't treat their most rewarding contributors to a bone fest? Think again and try to learn some social skills. This is not the military in Cuba we are talking about its humans in the USA. Go find something else to bitch about.

DaveH,

If you read the thread you would discover that no-one had any real issues with the Board taking the managing agent to dinner. The issue is spending Association funds for this.

Members pay Assessments to the Association for the specific purpose of maintaining the common area and the necessary expenses associated with the running of the HOA.

If the Board wants to take someone to dinner as a way of saying thanks, then they should open up their own wallets and pay for it. They should not use mine or yours. However, if you believe that it is proper to spend someone else's money to take people to dinner, please send me $50 from your wallet so I can take my wife to dinner.

Tim

I think he meant Castro's military not the US's.

Dave4. When you said in an earlier post " This is not the military in Cuba we are talking about its humans in the USA", what were you saying? Were you saying the military in Cuba were not human, or were you saying the military did not buy things for people to maintain relationships, or what were you saying? What does Cuba and the military have to do with the discussion? .

Jenn,
Our bylaws are very clear that directors can receive no compensation. That would be considered compensation and although minor, it could give a disgruntled homwowner/s grounds for a complaint or possibly even a lawsuit against the association for misuse of funds.

This situation is a little different but I was also wondering if it was justifiable ---Our hoa board meets every month at a local church that is adjacent to our community. We also hold our large community meetings at this same church. The church does not charge us for the use of their buildings. The board would like to make a donation to the church as a thank you but our property manager has stated that because we are a non-profit then this would not be permitted. If it is not permitted then does anyone have any other recommendations?

Thanks Jon The board has its final meeting next week and I would like to raise this issue again, thanks again for the input.

Make arrangements with the church for a yearly rental price = to the amount the Board would like to donate.

Tim

Tim--thanks again. you are a wealth of information.