Manager Ethics

Board member of a self managed property.
Another b member (president) is behind on dues. Our part time manager is at each meeting and in closed session brings to the boards atten those that need to be considered to collections. As a board we have a threshold amount.. We as a board recommend they are sent collections but always consider situation and homeowner imput. Often there is none.

Our president was behind several years ago and a previous manager held this back from the entire board. With the new partime manager taking over over 2 years ago she paid up her dues. She has now gotten behind again. Our present manager only noted this to our treasurer only.

Has our present manager covered himself by only notifying the treasurer and not recommending presidents review.
Yes the last few months her amount has been on the report of past due accounts and we as a board have not inquired or asked about her past dues.

We are often focused on the recommendations of the manager..

I have been told that in the pre meeting with the president that it is noted to her that the figures are before the board and be prepared if they notice.

Has our manager acted in him realm of notice to the board and ultimately ethically..

Brought to the boards attention I do not think they would vote her to collections.

With this brought to light she now has requested a payment plan.
Case closed until she does not keep the aggreement.

Is the board in trouble with other owners we have sent to collection.?

Thank you for your opinion

Joe,

I believe that the manager did the right thing by reporting it only to the Treasurer. As that is who they should report all delinquencies to. It's the Treasurer's responsibility to make sure the collection policy for assessments is followed and report delinquent accounts to the board as the policy specifies.

As Janet said, your Board must now follow your existing procedures on collections as they would for any other member.

You already said that your Association tries to work with the members when possible. Therefore, working with the President on this issue would be no different. If it were my Association, and the issue was to the point of going before the Board, I would send a letter informing the President that policy requires us to bring the issue before the board and if they would like to offer options to resolve this issue, then to be prepared to do so at the meeting or pay what is due prior to the meeting.

BTW -

As Treasurer, I only mention the number of accounts that are x days delinquent. Names & lot numbers are never mentioned unless it needs to go to the attorney and then only in executive session. Until the issue needs to be voted on to forward to the attorney, The Board only needs to know how many accounts are delinquent and how much money that equates to. Not who the individual is.

Our policy is:

30 days - simple reminder letter from bookkeeper
60 days - formal letter from treasurer
90 days - certified letter from Treasurer of intent to accelerate payments and to turn issue over to attorney for collections.
90+ days - Discussion at Board meeting (member invited to attend but not required) in executive session. Vote to turn matter of "delinquent account" over to attorney in open session (but neither lot numbers or names are used in minutes).

Like you, if the member talks to us and has good faith in resolving the issue, we work with them. Often we will waive late fees. The Board typically may never waive the actual assessment.

David,

I agree that they should say that.

The CC&Rs/Bylaws I've seen typically only require members to be in good standing to vote.

JoeC, We report all delinquencies to all Board members every month. IMO that is the way it should be - open and transparent.