Code of Ethics

KP3 (Texas)
Posts: 124

Posted:

Do you any you use a code of ethic? If you do, where did you get the material for it and how to make it binding?

SheliaH (Indiana)
Posts: 6,964

Posted:

I just googled this and there's lots of good information on sample policies and ways to enforce it (generally censure, removal from an office {if an officer - you'll probably need a homeowner vote to boot the person off the board altogether). Start with this link from Davis-Stirling - although that's a California statute, there's a lot of practical information you should be able to adapt to your community. Have fun!

https://www.davis-stirling.com/tabid/1650/Default.aspx

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Liars lie, stealers steal, cheaters cheat. A Code of Ethics actually means little.

AugustinD
Posts: 5,144

Posted:

My former HOA put a Code of Ethics in place circa 2010. This was at the behest of a new Board that had successfully and legally (mostly?) attained a coup d'etat. They fired the landscaper and property manager within a month of taking office, claiming abuses (turns out they were right; said property manager was charged with embezzling other HOAs a few years later). This new board circa 2010 drafted, revised, and voted on a Code of Ethics. The Code of Ethics has a complaint procedure and has a huge eye on "due process." All directors were required to sign that they had read the Code of Ethics and would comply with it. It was not perfect, but the instant one of the directors learned that the President had facilitated the hiring of an attorney for the HOA that he had previously used to sue the HOA, without the attorney or the President disclosing this past activity, the President got slapped with an ethics complaint. He resigned of his own accord within a few weeks. This could never ever have happened without this Code of Ethics.

I recommend a Code of Ethics but importantly, with a complaint procedure.

Robert's Rules has some information about grievance procedures as well.

KP3 (Texas)
Posts: 124

Posted:

Quote:

Posted By AugustinD on 12/05/2016 8:37 AM
My former HOA put a Code of Ethics in place circa 2010. This was at the behest of a new Board that had successfully and legally (mostly?) attained a coup d'etat. They fired the landscaper and property manager within a month of taking office, claiming abuses (turns out they were right; said property manager was charged with embezzling other HOAs a few years later). This new board circa 2010 drafted, revised, and voted on a Code of Ethics. The Code of Ethics has a complaint procedure and has a huge eye on "due process." All directors were required to sign that they had read the Code of Ethics and would comply with it. It was not perfect, but the instant one of the directors learned that the President had facilitated the hiring of an attorney for the HOA that he had previously used to sue the HOA, without the attorney or the President disclosing this past activity, the President got slapped with an ethics complaint. He resigned of his own accord within a few weeks. This could never ever have happened without this Code of Ethics.

I recommend a Code of Ethics but importantly, with a complaint procedure.

Robert's Rules has some information about grievance procedures as well.

I have sent one to the management company to use, but they sent back another that was very vague and full of misspellings and grammatical errors stating that it was similar and it would not look like it came from me.. How would anyone know where it came from at all? And second what difference would it really make?

AugustinD
Posts: 5,144

Posted:

Quote:

Posted By KP3 on 12/05/2016 9:08 AM

I have sent one to the management company to use, but they sent back another that was very vague and full of misspellings and grammatical errors stating that it was similar and it would not look like it came from me.. How would anyone know where it came from at all? And second what difference would it really make?

KP3, I beg your pardon if you know this already, but first, I try to pick my battles; and second, I think one has to become acquainted with the "good enough" standard when working on a document by committee. (Avoid work-by-committee at all costs, unless it's no more than two or maybe three people.)

I hope you and the management are on an early draft. Importantly, management does not vote on implementing this. The board does. Granted management may be required to sign the Code of Ethics agreement. My former HOA's managment staff had to sign. You could also have two Codes of Ethics, one for management and another for the board members, officers, and HOA committee members.

KP3 (Texas)
Posts: 124

Posted:

Quote:

Posted By AugustinD on 12/05/2016 9:20 AM

Posted By KP3 on 12/05/2016 9:08 AM

I have sent one to the management company to use, but they sent back another that was very vague and full of misspellings and grammatical errors stating that it was similar and it would not look like it came from me.. How would anyone know where it came from at all? And second what difference would it really make?

KP3, I beg your pardon if you know this already, but first, I try to pick my battles; and second, I think one has to become acquainted with the "good enough" standard when working on a document by committee. (Avoid work-by-committee at all costs, unless it's no more than two or maybe three people.)

I hope you and the management are on an early draft. Importantly, management does not vote on implementing this. The board does. Granted management may be required to sign the Code of Ethics agreement. My former HOA's managment staff had to sign. You could also have two Codes of Ethics, one for management and another for the board members, officers, and HOA committee members.

We are currently trying to work one out. How (and where) did you find one for the management company? I do feel that they need to adhere to one as well. Any links to a good one that can be used?

RichardP13 (California)
Posts: 3,868

Posted:

KP3

You would like a code of ethics for the management company. What would your consequence be for failure to comply? Fire them? What consequences would the Board face if they didn't comply? Could them management company fire the Board?

Management companies and their property managers have signed code of ethics if they are certified by a couple of different national organization.

AugustinD
Posts: 5,144

Posted:

KP3, I attach the first version of the Code of Ethics for my old homeowners' association. It does apply to the manager. I think it has to be considered at the same time a contract is signed with the manager. I do not think the board back then had an attorney look at it. Also as I recall, when the President was actually accused of a violation several months later, some "bugs" in the Code were identified. I would call this version a good first start.

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📄112914127471.pdf(128 KB)

SheliaH (Indiana)
Posts: 6,964

Posted:

Perhaps your HOA also needs some sort of whistleblower policy that enables people to report issues about the behavior of board members, property managers (and the people who work for them), association vendors, etc.

The last year or so that I was on my board, we had our records audited (we do this every two years or so) and while no problems were found, the auditor noted that he’d suggested that the board consider establishing such a policy. I made that suggestion before I left, but nothing happened after that (so I’ll bring it up again at our annual meeting in February).

In the meantime, I didn’t do a detailed internet search on the subject, but you might want to search whistleblower policy for HOAs and/or non-profits and see what comes up – here’s a link to get you started - https://www.councilofnonprofits.org/sites/default/files/Sample%20WhistleblowerPolicy%202.2010.pdf

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

NigelB (Texas)
Posts: 254

Posted:

Quote:

Posted By KP3 on 12/08/2016 4:38 PM

Posted By AugustinD on 12/05/2016 9:20 AM

Posted By KP3 on 12/05/2016 9:08 AM

I have sent one to the management company to use, but they sent back another that was very vague and full of misspellings and grammatical errors stating that it was similar and it would not look like it came from me.. How would anyone know where it came from at all? And second what difference would it really make?

KP3, I beg your pardon if you know this already, but first, I try to pick my battles; and second, I think one has to become acquainted with the "good enough" standard when working on a document by committee. (Avoid work-by-committee at all costs, unless it's no more than two or maybe three people.)

I hope you and the management are on an early draft. Importantly, management does not vote on implementing this. The board does. Granted management may be required to sign the Code of Ethics agreement. My former HOA's managment staff had to sign. You could also have two Codes of Ethics, one for management and another for the board members, officers, and HOA committee members.

We are currently trying to work one out. How (and where) did you find one for the management company? I do feel that they need to adhere to one as well. Any links to a good one that can be used?

Why do you need a code of ethics for your management company? They are under contract to the association, and I imagine may be terminated for cause or with a months notice depending on how the contract is written. What if they refuse to sign?

I would think that most management companies would not sign a code of ethics published by one of their clients. The code of ethics should apply only to the directors and officers of the association - and even then you might not need one. Your governing documents probably specify what the directors and officers of the association may do, and Texas Property Code provides guidance also.

KerryL1 (California)
Posts: 14,550

Posted:

Our manager has a Code of Ethics with her professional association, CAI, I think. Many professionals have their own Codes of Ethics, e.g., perhaps your accountant, your reserves analyst if certified, etc. For your HOA to develop your own seems redundant and, frankly, a waste of time. Enforcement of these always is problematic, it seems to me.