law in Californnia

Hi, I have taken on the job of sorting out the 7 Unit complex in San Diego where my daughter lives. Many, many things have been done wrongly even illegally and I am trying to sort out the mess. Here is one titbit! Two years ago the President of the Board decided that the two fences bordering the property to the north and south needed replacing. He hired (probably illegal) immigrants who gather outside Home Depot, probably paid them minimally and then got the Management person to pay him $6,865.95 although a far cheaper estimate of $4,100 had been received. I know it is illegal for any member to receive payment but I would like to find chapter and verse. Does anyone know where I can find the legislation stating this. I am hoping to advise the Board to seek reimbursement or at the very least the difference of $2,765.95 or perhaps even $5,000 (this is, I believe, the maximum that can be claimed in the Small Claims Court) - thanks. Take care David

It is not illigal for HOA members to work as independent contractors for their association. However, such work should be authorized by the Board to an independent contractor who has insurance. If the Board voted to award the contract, based on sealed bids, to the President's company this should be in the minutes of the meeting where bids were considered. If the Board approved this contract any suit would be against Board members who voted to approve the higher bid not the President. If it was not approved then you do have a case against both the President and the Board members who signed a check paying for unauthorized work.

Your case is stronger since there was a lower bid. However, you may need to be represented by an attorney at a small claims court if you are incorporated. And the cost of legal action vs. amount recoverable needs to be considered. I would present my information to the Board and ask them to recover funds from the President and set up procedures to prevent this in the future.