Board member as paid LCAM/permissible?

Started by SlodotnaA • 9 replies • 2400 views

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SlodotnaA (Alaska)
Posts: 1

Posted:

Question for FLorida HOAs:

Can an HOA Board member get a Florida CAM license and then become the Association's paid property manager while retaining a seat on the Board of Directors?

TimB4 (Tennessee)
Posts: 21,059

Posted:

First and foresmost, I don't think it's a good idea and do not recommend having any sitting Board member or Board member's company provide services to the Association. Even if the Association is getting the best service for the least price in such an arrangement, the Association can create the wrong perception when authorizing such an arrangement.

It also places the individual, when serving as a PM, in a position of possibly having to justify any decision made if another member believes the decision was made on friendship or favoritism.

That said, it appears that per FL 617.0832, applicable if the Association is incorporated as a nonprofit (most are but check to be sure), such a situation is allowed providing the conflict of interest is made known prior to the voting and awarding of the contract.

NpS (Pennsylvania)
Posts: 4,216

Posted:

A board member should abstain from participating in any vote that involves a POTENTIAL conflict of interest. And that should extend to any board discussion leading up to that vote.

Yet the role of a PM can reach into every aspect of the HOA business. I can see your BOD getting tied up in knots in debate over when can and when can't the PM-BOD member participate in BOD debate and voting.

Sikubali jukumu. Read all posts at your own risk.

AnnH5 (Florida)
Posts: 304

Posted:

So who will "fire" the board member/LCAM should need arise? Who will be evaluating the work of the LCAM/board member? Will the LCAM/board member be carrying their own liability insurance? Or will the community be expected to pay for that too? If the LCAM/board member gets involved in a dispute with an owner, a contractor, etc, who will be representing the LCAM, the board member who is also the LCAM, and the owners? It all sounds like a hot mess before it even gets started. Better yet, do the owners even want this? You would be removing certain checks and balances.

BillH10 (Texas)
Posts: 1,217

Posted:

I do not think it is a good idea, for the reasons previously articulated. I will take it a step further: as a property manager I would not wish to reside in an association I manage. I see the potential for damaged neighbor to neighbor relationships, subtle favoritism, and all sorts of other icky consequences. I am a firm believer in arms length business relationships.

TjC (Florida)
Posts: 3

Posted:

Quote:

Posted By TimB4 on 02/01/2015 8:35 PM
First and foresmost, I don't think it's a good idea and do not recommend having any sitting Board member or Board member's company provide services to the Association. Even if the Association is getting the best service for the least price in such an arrangement, the Association can create the wrong perception when authorizing such an arrangement.

It also places the individual, when serving as a PM, in a position of possibly having to justify any decision made if another member believes the decision was made on friendship or favoritism.

That said, it appears that per FL 617.0832, applicable if the Association is incorporated as a nonprofit (most are but check to be sure), such a situation is allowed providing the conflict of interest is made known prior to the voting and awarding of the contract.

Tim,
Who were you B4?
It looks like you are correct concerning F.S. 617. I does not look like there is anything that says a Board member can not also be the Association's paid LCAM.

Although there are all types of reasons why a Board of Directors, the Board member and the membership at large should be leery of such a relationship, it assumes that the Association is run by a reasonably minded BOD made up of individuals who are not connected with some common agenda in mind and that the membership pays attention, is present and involved.

NpS (Pennsylvania)
Posts: 4,216

Posted:

See this article from the SunSentinel

http://blogs.sun-sentinel.com/condoblog/2013/07/can-an-hoa-or-condo-board-member-also-be-employed-by-the-association.html

Sikubali jukumu. Read all posts at your own risk.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Quote:

Posted By TjC on 02/02/2015 5:52 PM

Tim,
Who were you B4?

I was hopping for Tim B1 but alas it was already taken

RM5 (Florida)
Posts: 41

Posted:

Quote:

Posted By NpS on 02/02/2015 6:31 PM
See this article from the SunSentinel

http://blogs.sun-sentinel.com/condoblog/2013/07/can-an-hoa-or-condo-board-member-also-be-employed-by-the-association.html

Good article. Tried to get the author to look at a case that required a little bit of work on behalf of some homeowners but was only interested in a quick-and-dirty sure thing. From the article and as was noted B4 by Tim it seems that the Board member can legally act as the Association's LCAM for pay. Doesn't seem right, but hey, this is an HOA in Florida we're talking about.

The article asks if such a dual role is wise? And that consideration should be made to both practical implications, perception of favoritism, fiduciary duty. Again, this is an HOA in Florida.

JanetB2 (Colorado)
Posts: 4,219

Posted:

Quote:

Posted By RM5 on 02/02/2015 8:23 PM

Posted By NpS on 02/02/2015 6:31 PM
See this article from the SunSentinel

http://blogs.sun-sentinel.com/condoblog/2013/07/can-an-hoa-or-condo-board-member-also-be-employed-by-the-association.html

Good article. Tried to get the author to look at a case that required a little bit of work on behalf of some homeowners but was only interested in a quick-and-dirty sure thing. From the article and as was noted B4 by Tim it seems that the Board member can legally act as the Association's LCAM for pay. Doesn't seem right, but hey, this is an HOA in Florida we're talking about.

The article asks if such a dual role is wise? And that consideration should be made to both practical implications, perception of favoritism, fiduciary duty. Again, this is an HOA in Florida.

LOL … when my mom wanted to buy a vacation home in Florida I cringed. Gave a list of must nots … one was could no longer have a Declarant in control of the association. She was looking for newer home and even though a number of subdivisions had been complete for awhile she could not find one where the developer did not still rule the HOA roost. Thankfully she became frustrated at not being able to meet that stipulation, became smarter, and purchased in a different state. I for one would have a difficult time voting for any lawmaker from FL in any national election because I have an issue with some of the laws they pass on the people.

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