Board Members Bidding on Jobs

It is common and unfortunate that many board members are so ignorant that they think serving on the board is a chance to help their personally-owned business. He /is/ taking advantage of his position on the board. Ignore anything he says about how he is billing only for his costs and makes no profit (as one board member I know insisted for a few years as his landscaping company provided expensive services). This is baloney. He would not be providing the service if he was not personally benefiting.

I could check Michigan's HOA and corporate statutes, but knowing a little about Michigan's statutes, I bet they are silent on the point. Of all the legal authorities, your covenants are most likely to say something about how 'directors are not to be compensate for their service to the HOA/condo.' If your covenants have such a clause, then your director will likely waffle and say he is not being compensated for his service to the HOA/Condo. To this I would say, "Nonsense."

My former HOA with the board member whose company provided landscaping was booted largely because of the conflict of interest and his being a jerk about it. He was very angry. But the HOA members were very angry with him. He felt he was entitled. I say he was clueless.

You say he's bidding on jobs. Has he actually been paid for jobs or hired/contracted for jobs? What is your level of factual knowledge in regard to what's occurring?

Regardless, what he's doing is probably legal (you'd have to look deeper into that if legality really matters to you); however, there could very well be an actual, potential, or perceived conflict of interest (see below for definitions).

In reality, he may very well be saving the HOA money and is honest and upfront about the whole process, or he may be intentionally manipulating things for his own personal benefit. We don't know enough here about what's going on . . . and perhaps you don't either . . . yet. If in your position, I wouldn't crucify the gentleman just yet, but it would be a good idea to start asking some questions about what's going on.

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A good definition that I googled . . . What is a conflict of interest?

A conflict of interest is a situation where one's personal or private interests could, or be seen to, improperly influence the performance of official duties/responsibilities. A conflict of interest can be actual, perceived, or potential:
-- An actual conflict of interest involves a direct conflict between one's official duties/responsibilities and a competing interest or obligation, whether personal or involving a third-party.
-- A potential conflict of interest arises where one has an interest or obligation, whether personal or involving a third-party, that could conflict with one's official duties/responsibilities in the future.
-- A perceived conflict of interest occurs where it could reasonably be perceived, or give the appearance, that a competing interest could improperly influence the performance of official duties/responsibilities.

Patricia, If course your Board is going thru blind bidding from at least three other companies, and this person would recuse himself from voting on the bids, right?

If a board member has a particular skill, qualification or license, he/ she should be considered for the job. We had a board member who was licensed by the State for water quality issues and our board hired her to monitor our well water testing. Why wouldn’t we?

Companies providing landscaping services are not unique, but should have recommendations from other customers, along with a reasonable price bid. That person should provide all that.

I don't see any issue with this.

Sorry, the guy in the White House doesn't feel it's a problem, so why should a simple Board member feel any difference. Sorry, but the norms have changed.

That's my opinion and I WILL stick with it!

Sorry, this isn't "everyone else doing it" and you know it!

You are obviously not a CAM in Florida. Florida statute addresses this directly:

720.3033(2):If the association enters into a contract or other transaction with any of its directors or a corporation, firm, association that is not an affiliated homeowners’ association, or other entity in which an association director is also a director or officer or is financially interested, the board must:

(a) Comply with the requirements of s. 617.0832.
(b) Enter the disclosures required by s. 617.0832 into the written minutes of the meeting.
(c) Approve the contract or other transaction by an affirmative vote of two-thirds of the directors present.
(d) At the next regular or special meeting of the members, disclose the existence of the contract or other transaction to the members. Upon motion of any member, the contract or transaction shall be brought up for a vote and may be canceled by a majority vote of the members present. If the members cancel the contract, the association is only liable for the reasonable value of goods and services provided up to the time of cancellation and is not liable for any termination fee, liquidated damages, or other penalty for such cancellation.

I would hope ethical property managers, certified or not, would tell the board about the rule (along with the association attorney), but remember, they work at the board's direction, so if you have an issue, the BOARD are the folks you start and end with. If they cannot or refuse to do the right thing, it's on the homeowners to hold them accountable or replace them. Some folks don't give a hoot about doing the right thing - hence the "but everyone's doing it" response. That doesn't work (usually) with your children, so why let grown-ass people get away with it?

Most do not care until it hits them in the pocketbook or they are told they cannot do something.

The OP didn't state what type of work the board member is doing. We have a board member's husband who will work around the condos fixing small items such as siding or soffit that have come loose. The board member that oversees the buildings will just contact this individual when small jobs come up. Why? Because it's so difficult getting another contractor to come out to make such small repairs. I see it as a win-win.