HOA President hiring nepotism

Started by LynneT • 5 replies • 1244 views

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LynneT (Florida)
Posts: 5

Posted:

Can someone tell me if there are regulations restricting the hiring of family members to do ongoing property work and management by the HOA President? Our President hired a nephew to work on the property in a new additional position. Nopt only did the nephew get 30 plus hours of work per week, he started a house sitting and pest control business taking customers away from other community members and may well be doing both jobs at the same time, double dipping..

MelissaP1 (Alabama)
Posts: 13,836

Posted:

I don't see double dipping. You can work for the HOA and you can work for yourself. The HOA isn't paying them for the other business then it's okay. If the HOA hired them, then they should be licensed, insured, and paid via the correct tax forms. Whether or not they are related should have no relevance except for tongue wagging.

To me, it's the old "last 10 people on earth" who do you hire? If your part of that last 10 and 1 is a lawyer who is also your son, then is it nepotism or necessity?

Former HOA President

GenoS (Florida)
Posts: 4,276

Posted:

When it comes to Florida HOAs, the conflict-of-interest prohibitions are weak. In the most obvious cases, where an officer or director holds a direct financial interest in the company to which a contract is given, all that's needed is for a 2/3 vote of the board to approve the contract once the interest has been disclosed. Unfortunately, "financial interest" is used to establish potential conflicts of interest, not nepotism. The situation you've described is quite likely legal as long as the facts are disclosed.

"Taking customers away from other community members", what business is that of the HOA?

KerryL1 (California)
Posts: 14,550

Posted:

Why is Lynne's president the one to make this hiring decision?? Why did only the prez make a decision about creating a new position without the board voting on it?? The Board as a whole acting at a meeting should decide what positions to create and who to hire.

IF the relationship between the prez & the nephew is disclosed, and IF the prez recuses him/herself, and the board wants to hire him anyway, there is no conflict of interest.

GeorgeS21 (Florida)
Posts: 3,808

Posted:

Sounds like the Board has responsibility to evaluate - if Board thinks is OK, all done. If members believe it is illegal or should be changed, time for a recall.

BenA2 (Texas)
Posts: 1,273

Posted:

I agree with Kerry, the president should not be making this decision, that is for the board to do. He should recuse himself when the board votes on it even though that is not generally a requirement. Unless your governing documents state differently, the president has no more authority than any other board member except for running the meetings.

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