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StephanieH5 (Indiana)
Posts: 22
Posted:
We received a complaint about using specific names of companies/products in our newsletter communications from one person. Many people have asked for resources from other neighbors which is why I put this information in the newsletter/letter. For instance, we stated a neighbor with a wonderful lawn recommended a lawncare company. We've seen alot of violations clear up from using this. For instance, we put information about a free duct cleaning service, donation centers, Wet & Forget mold remover, and a mailbox replacement service. We also have a pizza place that is giving Marilyn Ridge a 30% discount coming up that we will put in the newsletter or Facebook. We also have a neighbor that is going to host a Do It Yourself meeting to cover weeds, tree trimming, mold treatment, etc...
Plus, the HOA Facebook page is full of people recommending people for all of us to use like a/c & heating companies, lawn mowing services, donation centers, church events.
This neighbor is stating it is a conflict of interest and wants us to pay for an attorney to comment. This is absolutely ridiculous. Are HOA's not able to share recommendations from neighbors? Our covenants do not require this. Plus, I have seen other HOA's that require their mailboxes to come from one specific company. He is also saying Facebook has different rules than a newsletter and by sharing this information, I am an acting agent for the companies. Any help would be appreciated.
BillH10 (Texas)
Posts: 1,217
Posted:
I would strongly urge that neither the Association nor anyone connected with the Association officially, such as a member of the Board, a committee member, or the property manager, in any way comment verbally or in writing regarding services provided by contractors or vendors. If as the property manager we are asked to recommend a lawn care company for example, we explain we cannot do so as a matter of policy and suggest the person asking speak with their neighbors.

In those associations we manage which have newsletters, we advise our clients to accept only paid advertising to avoid any hint of favoritism and further advise them to clearly state the appearance of the advertising does not constitute endorsement by the Association. We also recommend those connected with the Association should not comment or recommend on Facebook or other social media outlets regarding contractors or vendors.

We do suggest that information provided by the Association can safely appear in Association newsletters or on social media postings regarding Association events, meetings, and similar items; also it is not inappropriate to include community, city, county etc. events and reminders such as "remember to Vote next Tuesday".

You do not wish the place the Association in the position of appearing to endorse a commercial enterprise, regardless of how innocent or harmless it may seem.
StephanieH5 (Indiana)
Posts: 22
Posted:
We send violations with no solutions. Fix this, but we don't share how. That is what we are trying to combat with a neighbor tip section. The HOA is not recommending them...we are sharing neighbor tips. It's actually worked to help clean up the neighborhood, and we've received alot of positive feedback. Are we doing anything illegal?
KerryL1 (California)
Posts: 14,550
Posted:
We long ago decided as a Board to not mention any company names or service provider's names in our newsletter.

But, we do have a list of people and firms who offer various in-condo services on our website at a tab called "Contact info for reliable vendors"

In high rises, there are numerous needs, like replacing door handles to balconies, fixing a brown gas fireplace starter on up to plumbing and electrical needs, both wiring and appliance. Also listed is the original hardwood floor company. Why should brand new owners try to find these on their own? Plumbers are especially needed in high rises, and HOA as a whole benefits if we list good ones!

We also have a small list of the very nearby services in our Welcome Pak for new owners & renters in our urban 'hood. They can walk a few blocks to a hardware store rather than drive somewhere. Ditto our postal store, a pharmacy & supermarket are within two blocks, but a newcomer might not find them immediately. We do not list things like hair style salons, dry cleaners/tailors, restaurants, etc. because they are plentiful within 3 blocks and easily noticed.

We believe that helping folks get settled makes for happy neighbors who'll feel at home with us.

Bill sounds like an attorney, but I think his approach is overly-
JohnC46 (South Carolina)
Posts: 14,265
Posted:
I would say that you made it an open letter, then no issue. Like:

Hello fellow owners.

I had So and So seal my driveway and they did a great job at a fair price.

Signed John Smith.

In no way must appear the BOD is making the recommendations.

AugustinD
Posts: 5,144
Posted:
I like KerryL's solution: Put an organized list of vendors who can do xyz on the HOA web site, without comment. Unfortunately, letting members post reviews on the HOA Facebook site seems to me to invite potential litigation, or just burdensome communications, from vendors. Your HOA Board does not need more on its plate. Else I agree, Stephanie, this can make an enormous difference in getting things fixed and up to Declaration-snuff. I was kinda disgusted a few years ago when, per insurance requirements, the HOA told me to get my fireplace and chimney inspected. The front office had not one service to suggest. It was not easy to find a service.
BillH10 (Texas)
Posts: 1,217
Posted:
The Association may not be doing anything illegal in the sense that using contractor or vendor names against the law. You may not be exercising prudent judgment.

In your post you said "We received a complaint about using specific names of companies/products in our newsletter communications . . ." so you are providing more information than tips, etc. I recommend you stop doing so. However, you may wish to consider a "Yard of the Month" designation or some such, and let those interested contract the property owner to find out who they are using.

If the neighbor hosting the meeting wishes to advertise it, let him or her pay for the advertising in a newsletter or post to the Facebook page him or herself, don't do it as a representative of the Association. True, you cannot control Facebook postings regarding Joe's AC and Heating, you can each month put a disclaimer message on the page stating the Association does not endorse or recommend vendors or contractors, that the information is being provided by other owners based on their own experiences.

The reason being is if the Association does so and the experience does not work our so well for someone who has used the "recommendations", the perception of reliability of Association information could be compromised at the least, at the worst the Association could find itself in the middle of legal action.
BillH10 (Texas)
Posts: 1,217
Posted:
Kerry, I'm not an attorney and I recognize my input is suggesting the use of an abundance, perhaps an overabundance, of caution.

My comments are based on previous experiences in a corporate environment, the advice of attorneys and others in the property management world, and seven years of owning a property management company.
FredS7 (Arizona)
Posts: 927
Posted:
> This neighbor is stating it is a conflict of interest

Some people are deeply confused about what a conflict of interest is.

It would be a conflict of interest if one of the board members owned one of the companies mentioned and would benefit financially from its use.

Personally I do not have a problem with "suggested" vendors (not associated with the board) although I would always include a disclaimer to the effect that this vendor is not required and that there are others.

StephanieH5 (Indiana)
Posts: 22
Posted:
So, it sounds like a disclosure in the newsletter and Facebook would work. That sounds like a good solution.
StephanieH5 (Indiana)
Posts: 22
Posted:
Thank you for specifying conflict of interest. No board member is receiving any type of service or benefit from these vendors. The board has been careful not to mention people that we personally use.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By StephanieH5 on 07/03/2017 7:54 AM

This neighbor is stating it is a conflict of interest and wants us to pay for an attorney to comment. This is absolutely ridiculous. Are HOA's not able to share recommendations from neighbors?

My Association does not recommend or list any contractor in their newsletter or on our website.
Additionally, we also refuse advertising from contractors.

The reason is the worst case scenario of someone interpreting this as a Board approved contractor and hold the Association responsible in any legal action if said contractor does something wrong. Would such a case be winable? Unknown. Either way, it would cost the Association money to defend itself and a Board should minimize such possibility.

We do provide a section on the Associations website for individual members to recommend or not recommend various contractors. It has not been well utilized.
GenoS (Florida)
Posts: 4,276
Posted:
We have a bulleting board in our mailhouse where owners can pin up business cards of vendors, contractors, handymen, etc. they would recommend. I think it's important to make it clear that the Board is in no way making any recommendations. I would also stay away from Facebook because it's not fair to those who may not be signed up for Facebook. No matter what you may read, every last person on the face of the planet uses FB.

And I would steer clear of any pizza in Indiana, 30% discount or no.
GenoS (Florida)
Posts: 4,276
Posted:
I hate the fact that this site does not have an editing feature. What I meant to write...

We have a bulletin board in our mailhouse where owners can pin up business cards of vendors, contractors, handymen, etc. they would recommend. I think it's important to make it clear that the Board is in no way making any recommendations. I would also stay away from Facebook because it's not fair to those who may not be signed up for Facebook. No matter what you may read, NOT every last person on the face of the planet uses FB.
JanetB2 (Colorado)
Posts: 4,219
Posted:
I would agree with many others in that the HOA itself should not give any recommendations. This has potential of coming back onto the HOA with regards to possible bad service rendered after giving approval. However, if you have a FB page and individual Owners want to post their "personal opinions" that is their choice. That would be their own "personal opinion" and not a larger Association opinion. It is simply best to protect the overall HOA from any or all liability issues ... when you have a choice avoid putting anything on the HOA.
KerryL1 (California)
Posts: 14,550
Posted:
You all have persuaded me to post a disclaimer on our website saying the list of vendors to work in our condo units are suggestion and no guarantee of satisfactory service (or some such).

The list is very important as some features in our condos' interiors can only be serviced by one vendor (our gas fireplaces, for instance). In other cases, there may be many vendors available, but only one or a few who'll drive downtown and maybe have parking problems. Some charge extra for high rise buildings. There is, for instance, a handyman, who loves nearby, has a pickup truck, and is inexpensive. He's able to do a huge variety of small tasks that many Owners just can't do.
FredS7 (Arizona)
Posts: 927
Posted:
> We have a bulleting board in our mailhouse

In Arizona we do have bulleting boards.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Quote:
Posted By KerryL1 on 07/05/2017 9:06 AM
You all have persuaded me to post a disclaimer on our website saying the list of vendors to work in our condo units are suggestion and no guarantee of satisfactory service (or some such).

That would be good .

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