Florida coop Hoa cam wants to run for board

Started by RichardA10 • 7 replies • 1433 views

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RichardA10 (Florida)
Posts: 4

Posted:

HI, first time poster.

We are a co-op mobile home association in Florida and one of our certificate holder residents was hired as our CAM several years ago. Things are not going the way the board president wants and the CAM is one of his best friends. This coming election year it looks like the existing president is going to lose his majority block of directors, so he and the CAM concocted an idea that the CAM can also be a board member. We say that would be a huge conflict of interest.
any ideas?

TimB4 (Tennessee)
Posts: 21,059

Posted:

Conflict of interest doesn't always indicate something is illegal.

If there are no restrictions or qualifications for who may serve on the Board, then you can't prevent them from running. However, you can inform the membership that this individual is not a member or resident of the Association and you don't think it would be a good idea to elect them.

The biggest concern over such a situation would be the split of duties. Since the CAM is being paid to manage the Association and the Board's duties are to run the Association there is obviously a crossover of duties. If your Association doesn't pay your Directors for performing board duties (most don't) then an argument could be made on why is one director being paid for duties performed an others are not.

Personally, if I had proof of such a plan and if the CAM is required to be licensed, I'd contact the licensing board to see if this violates something in the licensing process. I wish to reiterate, that this was if I had proof.

Tim

DonnaS (Tennessee)
Posts: 5,671

Posted:

Richard,

How many units (lots) are in the park?

RichardA10 (Florida)
Posts: 4

Posted:

Donna, we have lots owned by certificate holders, currently 108. mobile home park has about 300 units. some owned by the co-op, and some owned by individuals who are not certificate holders.

LarryB13 (Arizona)
Posts: 4,099

Posted:

Richard,

I see this as a big conflict of interest. One job of the BOD is to hire the CAM and to ensure that the CAM is doing his job correctly. Putting the CAM on the BOD is like hiring a fox to guard the henhouse.

RichardA10 (Florida)
Posts: 4

Posted:

Larry, we have a group of certificate holders that agree with you, however our HOA lawyer already was asked and he said it was not against our bylaws or any legal law. Conflict of interest apparently is not a legal ruling.

RichardA10 (Florida)
Posts: 4

Posted:

Our bylaws state " no board member can receive "any" compensation for service performed for the association. We contend that his service as a licensed CAM is providing a service for compensation.

DonnaS (Tennessee)
Posts: 5,671

Posted:

Richard,

I do not agree with your using the compensation for his CAM job as being relevent to the Board member no compensation job. He receives the money for his services as the CAM, not as a Board member.

But because he is also a member of the community as an owwner, he has the right to run for an office. If members are concerned about his doing double jepordy, then either vote against him, despite what ever votes his friend/President may gather. The power is in numbers and the membership can control the outcome of the election.

On the other hand, if he loses the election, he could become a real stinker to deal with which would not be pleasant. I would hope that at least is doing a good job as your CAM.

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