I host HOAs website thru my business, but now Ill be on a the ACC is this a no no to keep accpeting hosting money?

Started by NoahA • 20 replies • 735 views

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NoahA (Florida)
Posts: 212

Posted:

I have a odd situation.

In the next few weeks, I have been told I will be appointed to the ACC board for my local community.

I also run a web design business.

I have charged a low fee of 5 dollars a month to host the community website to save them 15.00 that they were paying just to help out.

I have been a stickler for no board members getting money.

Now I have 2 conflicts.

I now will be on the board, if I continue to accept 5 dollars a month will this not make a volunteer for the HOA?

Would that also make me not get protection under the Volunteer act of 1997 if the board was sued?

I might just give the hosting for free is this is a issue.

I see them paying board members for "community working anyway" but I don't want to open up the door for me to have any legal issues or civial issues.

GlenM4 (Tennessee)
Posts: 141

Posted:

As long as they are paying your company then there is 0 issues.

GlenM4 (Tennessee)
Posts: 141

Posted:

Guess i should of added, if they are paying you, then it usually will say in your documents if that is allowed or not. Usually its allowed as long as your are providing a service.

NoahA (Florida)
Posts: 212

Posted:

the Articles of Incorporation say

In the articles of incorporation it says

This nonprofit corporation shall not allow any of its funs or properties tio insurnce to the benefit of any treustee officer of the nonprofit corporation or any private indivutal except a reasonable compensaiton for services rendered to or for the nonprofit corporation which directly eeffects hand help carry out of it s stated objective and proposes.

That look like to me as long as your helping out the HOA and its approved and servicing a HOA help it woudl be ok , but I wnated to double check. 5 bux a month is not worth a oz of legal trouble.

NoahA (Florida)
Posts: 212

Posted:

Fixed typcos

articles of incorporation say

This nonprofit corporation shall not allow any of its funds or properties to insure to the benefit of any trustee officer of the nonprofit corporation or any private individual except a reasonable compensation for services rendered to or for the nonprofit corporation which directly effects and help carry out of it s stated objective and proposes.

that to me looks like it would be ok with that, but I just always double check everything I do just to make sure I don't open up the door for any trouble.

GlenM4 (Tennessee)
Posts: 141

Posted:

My documents say the same thing, and i also use my business (voted on by board) to run the HOA website. I don't charge much cause it is my HOA, but enough to still make it worth my time in the business. I don't see any issues with this, but if it does bug you, do it for free and write off the hosting. Charging 5$ is not much at all, after you pay the taxes on that 5$ your left with like 3.50.. Write off maybe better for you anyhow.

AugustinD
Posts: 5,144

Posted:

Are you doing any advertising for your business on the HOA web site you put together? I think I would object to the latter. Else: I too do not appreciate anyone doing official volunteer work for the HOA taking compensation or receiving a benefit, either personally or through his or her business. But in this instance, (a) the $60 per year of "compensation" is minuscule; and (b) I think it may be reasonable to argue this is reimbursement to you for the cost of equipment (to operate the web site). If it is reasonable to call this a reimbursement to you for equipment wear and tear and supplies, then you are still a volunteer. If I were on your main HOA's board I would make sure to disclose the situation to the memmbers at least once per year; consider anyone's objections; and if no one has intelligent objections, continue with you running the web site and being on the ACC.

Perhaps let this appear on the HOA's books as a reimbursement to a director?

NoahA (Florida)
Posts: 212

Posted:

So since I normally would do 20.00 for commerical hosting, would it be safe to say that asking for a "write off" form for "20.00 a month hosting" would be fine?

GlenM4 (Tennessee)
Posts: 141

Posted:

Thats what I would do, it would then save you money and save them.

NoahA (Florida)
Posts: 212

Posted:

I'm almost wondering if I could decline the spot on the ACC and just ask for write offs from teh board to do MORE than hosting.

I would make them a really over the top website & do hosting if the money was right, and I'd gladly stay off the board.

I just don't want their to be any animosity , but mostly don't wnat any legal trouble.

Right now there are people getting 300.00 and 400.00 dollar checks at the meeting and I personally DO not like that . And Yes those people ARE on the board.

I just think there are a few conflicts of interest. I won't be doing any "web design" work for them until they start enforcing the rules, but if they would just enforce the rules (which is why I want to get on the ACC), then I might even just do the website for free glady.

I just can't do web design services ......... and have 0 satisfaction out of the HOA as they are being insubordinate by not enforcing anything.

AugustinD
Posts: 5,144

Posted:

Quote:

Posted By AugustinD on 05/22/2018 9:16 AM
Perhaps let this appear on the HOA's books as a reimbursement to a director?

Correction: That should read, "reimbursement to a member for expenses authorized by the board consistent with the mission of the HOA as stated in the CC&Rs." Or similar.

NoahA (Florida)
Posts: 212

Posted:

Illl copy paste

"reimbursement to a member for expenses authorized by the board consistent with the mission of the HOA as stated in the CC&Rs."

in my email for them, that sounds really good.

GlenM4 (Tennessee)
Posts: 141

Posted:

I personally did a design (1 time fee) and monthly hosting. All checks were written to my business, All contacts and hours of service is threw my business. I try to keep the 2 apart. Also I am on the board.

As for write offs, There is usually a limit and usually there is guidelines on what can be written off.. for example if the "donation of service" is of 0 cost to you, then you cant write it off. But hosting for example, you have cost of energy, server, backups .. or what ever else you use thus you are saying 20$ covers that. So the actual build of the site may not be a write off, but the items needed to create the site could be.

hope that helps.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Noah

Being on the ACC does not make you and Officer, BOD Member, nor for that matter a Trustee.

I see no conflict with the HOA paying you to host their website even if you were a Officer, BOD Member, a Trustee, etc.

BenA2 (Texas)
Posts: 1,273

Posted:

Are you going to be a board trustee or are you going to be on the Architectural Control Committee (ACC).

Many people believe you should not make any money from the HOA if you are on the Board. That is often in the CC&Rs but your CC&Rs does not seem to prohibit it. It is a matter of appearances more than anything. I think it depends on the circumstances. If you were making a couple hundred dollars a month, it might have the appearance of a conflict of interest. $5 a month probably does not even compensate you for your time, so I don't see a problem with it.

That's if you are on the Board. If you are going to be on the ACC there would clearly be no issue unless you were getting paid for something related to the ACC.

AugustinD
Posts: 5,144

Posted:

Quote:

Posted By NoahA on 05/22/2018 9:20 AM
Right now there are people getting 300.00 and 400.00 dollar checks at the meeting and I personally DO not like that . And Yes those people ARE on the board.

Do please elaborate. These directors are getting three or four hundred dollars at meetings as compensation for... ? Is it a kickback for allowing the chickens, from whom the owners are making a tidy profit selling eggs?

BenA2 (Texas)
Posts: 1,273

Posted:

Quote:

Posted By AugustinD on 05/22/2018 3:44 PM

Posted By NoahA on 05/22/2018 9:20 AM
Right now there are people getting 300.00 and 400.00 dollar checks at the meeting and I personally DO not like that . And Yes those people ARE on the board.

I would take everything with a grain of salt. $300 and $400 checks when an annual revenue of less than $1,000. That's if you believe the $5 a year assessment per owner as opposed to the $15 or $20 quoted another time.

There may be some confusion here.

NoahA (Florida)
Posts: 212

Posted:

They have 8000.00 in the bank

And yes that is true, they collect 5 dollars dues a YEAR.....and they also accept 15.00 a year for the 'Butificiaton fun"

That means that they could be collecting 3900.00 a year if people pay 20.00, but some people only pay 5, and over 50% dont pay anything

its the most screwed up outfit around, and I promise if you wanted to have a contest who has the worst HOA aorund, we would be number 1.

AdamD1 (Indiana)
Posts: 179

Posted:

Quote:

Posted By NoahA on 05/22/2018 5:10 PM

They have 8000.00 in the bank

And yes that is true, they collect 5 dollars dues a YEAR.....and they also accept 15.00 a year for the 'Butificiaton fun"

That means that they could be collecting 3900.00 a year if people pay 20.00, but some people only pay 5, and over 50% dont pay anything

its the most screwed up outfit around, and I promise if you wanted to have a contest who has the worst HOA aorund, we would be number 1.

Wow.. only 5 bucks a year? Doesn't even seem worth it! lol. I normally get the stink eye on this site when I mention our dues are $95 a year. Looks like my HOA is sittin' high and mighty now!

KellyM3 (North Carolina)
Posts: 2,239

Posted:

Hi Noah,

You're supplying the HOA a service at below market rate. That's clear. That also makes it clear that you and your business aren't benefiting from the labor or service. Enjoy your service.

NoahA (Florida)
Posts: 212

Posted:

Well thanks for tip. Today was a HUGE victory folks one of the major offendres in the area is in the process of cleaning up, and Its got me so happy I'm consdierng just hosting it for free.

ALERT FOLKS ....... I'm officially on the ACC board now and in doing so just by my name being on the board caused 2 families to do a "Self check up" and their yeards look great. I do happen to be quite a polarizing figure in my neighborhood and just me having the titel has caused a improviment without having to have asked anyone anything yet lol

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