Rules

Vicki,

That depends on the language in your Bylaws on how to amend and, the language in any applicable law (check HOA/COA and corporate law).

One thing to keep in mind is that Officers and Directors are different jobs. Typically, the governing documents specify that Directors may not be paid. However, Officers are not Directors. Even when the officer positions are held by the same individuals who are Directors, it's like having two jobs. One is a volunteer job and the other job may be paid by salary.

NOTETypically, the CC&Rs (which trump the bylaws) require everyone to pay assessments. Therefore, the Board simply may not waive assessments. If the Board is going to pay Officers (note: Officers not Directors), then the proper way to do this is for the individuals to pay assessments and the Board write a check back to the Officers as salary. Things your Board may not be aware of:

1) IRS requires the issuing of 1099-misc for independent contractors. However, it would be difficult to explain your Officers as independent contractors. Thew would be employees. As employees, the Assocaition must:
File W-2 forms.
Pay the corporations share of payroll taxes (SSN, Workmans Comp, Medicare, etc.)
May have to pay penalty for not providing Health benefits (Don't know, haven't read the affordable care act).
May require the Association to file 1099 tax forms vs. 1099-H tax forms (creating a tax burden on the Association).

See: Employment Taxes from the IRS website.
See: Businesses with Employees from the IRS website

Don't let the Association not pay these things or file the appropriate paperwork. The last thing an Association needs is to have someone claim benefits that the Association should have paid (similar to individuals hiring full time maids and not paying the taxes).

See: The consequences of willful failure to pay payroll taxes

My suggestion is to make the Board aware of these IRS requirements. Inform the Board that if they are going to pay the Officers, they need to do it properly or not at all. Inform the Board that if they refuse to do things properly, you will report the Association to the IRS (Federal and State). Then encourage them to seek legal and/or accounting advice prior to implementing such changes.

Oh, share those links along with the following links with your Board as well:

Should Board Members Receive Compensation? From an attorney's site.

The claim that monthly common expense assessments can be legally forgiven or waivered, is very difficult to believe without possibly 90 or 100 % prior consent or vote. But whacko attempts to do so in the condo/HOA universe may not be beyond belief.

Sorry I'm new to much of this. What is a CC&Rs?

CC&Rs take precedence over all of the documents in HOAs in most states, so maybe MO too. Usually things like directors officers, terms of office, etc. are in the bylaws. by laws generally can only be changed by a homeowner vote. it'll say in your bylaws how they can be changed.

Make sure you understand the difference between directors (elected by homeowners unless to fill vacancies and then boar appoints the new director. Officers generally are elected by the directors form among themselves. But some bylaws permit officers to serve who aren't directors. We had a treasurer once for a few months who wasn't a director.

Directors often serve two years and officers often serve one year. Your bylaws will state that.

Finally, the name of your post is "rules," but Rules and Regulations are usually about members' conduct, e.g., no parking on the streets, or pool rules, noise rules, etc.