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MC4 (Florida)
Posts: 29
Posted:
Need your help, no one seems to be able to give me a direct answer. I am part of Board in Florida. We have a gentlemen that volunteers in our community and does many of our minor maintenance work. Many of the homeowners have suggested on the Board giving him a gift card. Is this legal.
DonnaS (Tennessee)
Posts: 5,671
Posted:

That would be a very nice gesture. The Board did not suggest it but the Homeowners did. That removes the "favortism" from the Board. Set some limitations if you give the card to insure that cards are not given out nilly willy (where did I come up with that?) I am trying to say that be careful not to be too generous and be reasonable.
JohnS43 (Colorado)
Posts: 24
Posted:
It's virtually impossible to say without knowing more. As a general rule, my modest research indicates that it is most likely legal from the standpoint of any governments (fed/state/local). Most laws either seem to say nothing or just speak to a framework of how to lay out CCRs and bylaws, but little about what an HOA can do with its own funds--just as most companies or other organizations. Next comes your association's documents. There's probably some statements around what capacity/discretion the board has in using funds, but from the few I've seen, most don't speak clearly enough to specific, low cost issues like this to prevent you.

My non-expert guess is that a board can do such a thing. Most everyone who knows this guy's contribution will be okay with it and a few will be up in arms over it. If that fallout is okay with you, then I think you could do it.
JonD1
Posts: 2,350
Posted:
Based on his contribution to the community it would be the correct thing to do.

IMO for the amount of money you are talking about there is no legal hurdle to clear.

Gift card and thank you for what you do.

SusanW1 (Michigan)
Posts: 5,202
Posted:
What about all the other volunteers?

I just think it starts a bad precidence (sp?)

Either pay him hourly or not, but don't give him $$ for volunteering.
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Legal yes, but not smart. If you want to keep it clean, have him submit an invoice and pay him. Keep a paper trail because it will become a problem in the future with different people later down the road.
PeterD3 (Florida)
Posts: 708
Posted:
Where does the money come from? All monies collected must have a line item for it's collection. Florida statutes prohibit compensation to Board and Committee members. While he appears to be neither it does flirt with the intent of the law.
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Quote:
All monies collected must have a line item for it's collection. Florida statutes prohibit compensation to Board and Committee members.


Correct, you cannot pay him for being a board member. But you can pay him for mowing the lawn or painting the fences.
PeterD3 (Florida)
Posts: 708
Posted:
Without proper licensing or insurance?
JonD1
Posts: 2,350
Posted:
Wow talk about making a mountain out of a mole hill.

You have man who volunteers his time for no pay and some people wish to show their appreciation for what he does for the property.

A simple gift card with thanks for saving the property how much?

Not real tough to work through.

But now the wooden nickel lawyers see some maybe, possible, violation of perhaps some law or the possible intent of some law. Wow now I see why the jury trial is such a failed system. Everyone complicates things rather than just getting things done.

Simple things become issues to debae till the cows come home.

And now we need to question whether he has insurance or license maybe it would be best to stop him from volunteering his time. Hire a contractor at maybe $50 per hour or more and exceed the price of a gift card each year for years to come.

Now that would be a wise us of the property's funds.

But of course you don't want to join the other thousands of board members who violated the intent of the law or failed to cover each and every cost in some federal jail. That happens all the time you know.

But of course this new and increased cost to the property could be paid with a line item in the budget well worth going by the percieved letter of the law.

Common sense is not all that common anymore.

Just what do you do when something real complicated shows up?

SteveM9 (Massachusetts)
Posts: 3,699
Posted:
The only reason why I say have an invoice and a check paying the invoice is to avoid abuse. There needs to be a paper trail. If the HOA started buying gift cards left and right for people, no records, there is likely to be abuse. Tomorrow they will buy a gift card for ed, then frank, then start issuing gift cards to themselves etc.

Dont go down that road.

Keep it simple. Someone does work, invoice, payment. Done.
JonD1
Posts: 2,350
Posted:
Steve:

I can go along with your need to have a check and invoice for the purchase of this gift card.

But to now suggest the board might go overboard and abuse this well seems to be quite a stretch for me.

You have a man who gives of his time to help out around the property. Is the world at the point we can't find a way to offer him a simple gesture of thanks and appreciation?

MelissaP1 (Alabama)
Posts: 13,836
Posted:
JonD1...things in a HOA aren't as simple as they seem. Take a note from the $15,000 dollar hammer the government buys all the time...

I think there is a time and a place for a gift card. Not knowing this HOA first hand, but getting the jest from the poster, this would be the time and place for a gift card. However, not to sound cold but from a business stand point it isn't necessarily wise to participate in such practices as a common expectation. I site looking at the "Oscars, Tonys, or Music awards" as a guide. We now have award shows for actors and musicians every year in big granduer and it's a tragedy if they get cancelled or even toned down due to world events. I know that example is extreme but you can get where it is going...

Sometimes the job is it's award itself. That's how I took my President position. I couldn't be more happier than when I did my job even though I could get compared to "Hitler" for doing so...Get to know the reason behind the volunteer effort before bestowing such gifts. I know I've been to way too many "charity" events where the person who paid the cash and never showed up to the job site, got the plaque...while the people who did the work applauded...So it can be a slippery slope on which to apply one's gratitude...

As far as accounting for the money...ask your accountant where this cost would be applied to if it were to be paid. It may be for supplies or consulting work. There is always a money trail and the best way to politicize is the best policy in my book...lol

Former HOA President
FredB4 (Ohio)
Posts: 375
Posted:
We have done this in the past and stopped because it was getting complicated with who, when and how much was "gifted".
It is a nice jesture in principal but HOA's and COA's are governed by strict regulations and it is the boards responsibility to ensure that all funds are properly spent and not to open the association up to potential problems.
Have you thought of bringing this up for vote at the annual meeting and getting approval of the general membership ?
I assume that the person doing the small maintenance work is a registered owner. Otherwise he would need workmans comp and liability insurance to protect the association. Then it would be a question of whether the "gift" was considered compensation which is probably not allowed.
PeterD3 (Florida)
Posts: 708
Posted:
JonD1,

I can only speak from my knowledge and experience which is different, though not inferior, to yours.

No one works on any common elements that does not have proper insurance and licensing.

Were just 'crazy' about protecting our assest I guess.
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Quote:
No one works on any common elements that does not have proper insurance and licensing.


Every hoa is different, some are high rise condos, some are trailer parks. Finances and money for common areas vary greatly.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Hi MC:

I agree with Steve … it is nice gesture but may pose problems in the long run. The individual is a member of your community and therefore just like you, Donna, Steve, Susan, etc. we are all volunteers in some fashion doing work within our associations.

My recommendation would be for the homeowner’s themselves to maybe pass around a hat and anyone interested chip in for a gift card from the neighbors instead of association as a special thank you for the extra hard work on their behalf.

PeterD3 (Florida)
Posts: 708
Posted:
Quote:
Posted By SteveM9 on 06/18/2011 5:56 PM
No one works on any common elements that does not have proper insurance and licensing.


Every hoa is different, some are high rise condos, some are trailer parks. Finances and money for common areas vary greatly.

I agree.

However it wasn't mentioned by the O.P. as an issue.

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