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KristyS (Ohio)
Posts: 4
Posted:
We recently elected a board for our HOA. Within the first week, the Pres fired the landscaping company and hired a new company. They did come in and did a great job. They are also the people replacing light bulbs in our entrance lamps, which seemed a tad odd but whatever. We just noticed that the same landscaper is aerating and mowing the President' s lawn. He was mowing his own yard as he just bought a brand new mower this year, up until the new people (his friends) were hired. I have reason to believe he's not paying them. The problem is, he is my neighbor and I do not want to tattle on him but still think this is very suspicious. They are also very manipulative and love handouts.
TimB4 (Tennessee)
Posts: 21,062
Posted:
Kristy,

First of all, the President didn't fire or hire anyone.
That is a function of the Board.

I'd suggest asking the Board the reasons for the change in companies and what benefits did the Association gain in the process (less expensive, etc.).
KristyS (Ohio)
Posts: 4
Posted:
Actually, the President did fire and hire. The company who ran the HOA up until now is a joke so they basically gave him free reign to change that. They are now basically hands off. Isn't that what a residential board is for? To run the community? The management company that handed power over stated that there in now a lawyer who basically oversees any issues that may arise.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
The MC is a sub-contractor to the HOA. They are only to do what the HOA tells them to do via a contract. It sounds like your new President is changing the relationship with the MC and the HOA. Which may be a good thing. I will tell you when I became President the first thing I did was fire our Lawn Care. Our HOA needed to get back to business and not Tyranny we had been living with. That decision changed how we did business and awarded contracts.

Now Yes I too got accused of getting "extra" service. However, our Lawn Care company was allowed to do extra work for the members if paid for out of their pocket. Doesn't mean we were friends. It just meant I could pay them for additional service or modify how I wanted my yard taken care of. Which is another thing I did with our new lawn care. Each yard had certain preferences or needs. So gave a map to Lawn care with notes.

What I don't get is this "So and so hired this contractor because they are friends". When was the last time someone hired an enemy to do the work? Plus in my HOA we had a 3 bid rule on every contract. You could recommend "friends, family, or member" as long as they presented a contract, license, and insurance. They do after all have a professional business standards to keep whether or not we break bread or beer together.

Former HOA President
KristyS (Ohio)
Posts: 4
Posted:
If I have to spell it out, I will. I don't care if he is friends with them or not, I believe he is getting a kickback for hiring them. Are you telling me it's ok for him to get free services just because he hired them??
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By KristyS on 10/21/2017 7:01 AM
If I have to spell it out, I will. I don't care if he is friends with them or not, I believe he is getting a kickback for hiring them. Are you telling me it's ok for him to get free services just because he hired them??


Members at my HOA are also concerned about kickbacks. The problem is the occurrence of kickbacks is hard to identify. The most time-efficient route to addressing these concerns it to get on the board yourself, preferably with a like-minded majority.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By KristyS on 10/21/2017 7:01 AM
If I have to spell it out, I will. I don't care if he is friends with them or not, I believe he is getting a kickback for hiring them. Are you telling me it's ok for him to get free services just because he hired them??

Kristy. Stop making what are maybe false accusations. Prove or be quiet.

You say the landscaping company is doing a better job then the one before it. You need to find out if they are charging more. If so some questions should be asked. If for the same or less, your association is ahead of the game.
KristyS (Ohio)
Posts: 4
Posted:
I don't know who you think you are but don't tell me to be quiet. I came on here for help and obviously didn't get any. If you don't like my post, keep on moving. You are probably getting free stuff, is that why you're salty?
TimB4 (Tennessee)
Posts: 21,062
Posted:
Kristys post count went to zero. It appears that she has left the forum.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Free service isn't a "Kickback". It's a free additional service. A "kickback" means the person gains in other ways. Like if you hire me, I will send X business to your company. That is a kickback.

Plus how do you know that was "free service" President was getting? When I paid or lawn care to cut some bushes for me besides just mowing, I wrote them a personal check. One that would never be reflected in the HOA bill.

Seems to me this poster is angry about the changes and doesn't like them. No proof of anything but a wagging tongue.

Former HOA President
TimB4 (Tennessee)
Posts: 21,062
Posted:
Free service to an individual is likely a kickback.

Of course the argument is moot here. The OP resigned from the forum.

KerryL1 (California)
Posts: 14,550
Posted:
I think replies are worthwhile because this is a issues in some HOAs. We have a rule that none of our staff, e.g., custodians, landscapers, security officers may work AT ALL for individual condo units.. This avoids the appearance of anything shady going on.

The other thing to emphasize is that boards should never, IMO, give the prez the sole power to hire and fire vendors. It is a board responsibility and if the president messes up, the Board will still be liable for lack of due diligence.

Now Kristy may not be certain that the president did this all on his own, but if the prez did, this HOA has troubles!
GenoS (Florida)
Posts: 4,276
Posted:
I know the OP has come and gone already, but on the sujbect of kickbacks there was talk of that happening in my association a few years before I got here involving a president who has since moved out and is no longer a member.

Almost impossible to prove without the power to subpoena someone's personal financial records. Hearsay and rumors don't count. It's a very serious charge that should not be thrown around lightly. The best way to prevent it is by getting more people involved in the bidding process, oversight of contracts, and more than a couple of people poring over the monthly financial statements.
JoyceR2 (Virginia)
Posts: 156
Posted:
Quote:
Posted By AugustinD on 10/21/2017 7:04 AM
Posted By KristyS on 10/21/2017 7:01 AM
If I have to spell it out, I will. I don't care if he is friends with them or not, I believe he is getting a kickback for hiring them. Are you telling me it's ok for him to get free services just because he hired them??


Members at my HOA are also concerned about kickbacks. The problem is the occurrence of kickbacks is hard to identify. The most time-efficient route to addressing these concerns it to get on the board yourself, preferably with a like-minded majority.

No & No
JoyceR2 (Virginia)
Posts: 156
Posted:
If a person (?) on the board hired a vendor without majority approval, shame on the board. Any board member recommending a vendor should disclose their relationship with that vendor and so note in minutes. While they can vote on a motion to approve, it is prudent not to be the breaking vote of approval.

Personally, I prefer not to recommend anyone based on any relationship, friend, beer buddy, lover, neighbor, hired for personal job etc.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
We were presented with an interesting proposal. To set the stage. We are satisfied with our MC and our landscaper. Our MC sent an Email saying that they were considering starting a landscaping service and would we be interested?

BOD opinion is we do not want to put all our eggs in one basket but we responded and said if they did, we would allow them to bid on our contract. We are using this opportunity to maybe negotiate a better deal with our present landscaper. We are not looking to lower our cost but more to add a service or two we feel we need.

My opinion at this time is keep then separate but I am open to playing them off on each other. Opinions?
JoyceR2 (Virginia)
Posts: 156
Posted:
Let them bid. if the board prefers to change (majority rules) already know the relationship to all members. Doubt they will do you any favors as a management company business. Our umbrella mc company has a maintenance business under their company name. They generally are more expensive and thus far not exceptional. Consider the bids as you would any contract bids for a job. Make sure it has a termination clause.

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