Can Can a member of the ARB perform handyman work?

We have a member of the ARB committee that does a lot of the handyman work around our community. Especially in the common areas. He does it so we can save money. I know that it's illegal to pay a board member. Would he be considered a board member? Is there any way that we can pay him for his services. He does not have a license, but he is a retired contractor. I am not sure if this is legal, and at the same time, we do not want to be accused of illegal activities.

Why wouldn't you pay him? Just like everyone else he is providing a service to the property and at the same time saving everyone money.

Or would you like to thank him by not paying him anything.

I would doubt there would be many restrictions in any state laws, or your documents addressing this situation. That you leave it up to your Board to make a common sense decision which would serve the best interests of the property.

This person is going out of his way to improve, maintain your property while saving you money. I would make every effort to show him some level of appreciation. And those critics be damned.

If you stand on your head and spit quarters someone will complain or question your actions.

IMO this person is a valuable asset to your community to continue to use them without some pay IMO would be wrong.

Hire them as an employee, cover them for workers comp. and reap the benefits.

This type of situation is what being a Board member is all about.

It depends on your state.
In VA it is a big no-no for a member of the Board to profit in ANY way. Clearly if a contract has been awarded to a Board member an illegal conflict of interest situation existed. Rather large fines are involved in HOAs violating the state regs. No sane HOA (or knowledgeable owner) would go there. There is a very narrow exception for actual reimbursements of money laid out by a Board member doing HOA business. Examples would be court filing fees accompanied by a receipt turned in to the Secretary which were paid in cash when suing over assessments, certain US Post Office costs for which checks can't be used, paper and ink from Office Max when the Board has specifically pre-approved so and so to go there and buy it and turn the receipt in to the Treasurer, etc.

The example cited in the original post is way, way, outside that exemption and in VA someone from the state with a badge would probably be interested. The ethical thing for that person to do would be to step down from the Board. The smart thing for the rest of the Board to do would be to demand he either do so or cancel the contract.

The potential conflict of interest is not in him doing the work, but in him voting on the matter (on awarding the work or on making payments, if he is a vendor or potential vendor).

If the decision is made by the ARB on which he sits, as long as he recuses himself from voting on anything related to his work, that removes the conflict.

I think the generally accepted standard is direct financial interest of the voting member.

Ideally an Association should have a Conflict of Interest Policy, which should state the criteria and procedures for determining a conflict. That policy could specify personal affiliation with an individual with a financial interest.

As a practical matter, an HOA is generally made up of neighbors who know each other. Just about everyone either likes or dislikes a lot of their neighbors. If you make that a conflict of interest criterion, then you'd run into situations where no one could decide anything. So, you really have to decide that the Board cannot do business with any Member, or take sealed bids and make full disclosure to avoid favoritism, or just trust your neighbors' judgment. I like the middle option, combined with the neighbor who has the direct financial interest in a matter not voting on that matter.