Gifts for HOA Vendor?

NO!!!! It would be okay if INDIVIDUALS whom want to get together to thank them is okay. However, NEVER EVER out of the HOA's budget. It's NOT the cost of doing business to purchase such "gifts". You also never "forgive" dues for anything.

Remember when you buy something using the HOA dime, you using ALL member's money to do it. It's NOT an individual thing. That is why many are upset. Your spending their dues money on this without their agreement to do so.

The world won't end by the $50 gift nor for a memorial gift but it's generally best to fund this from non-HOA funds. Residents attending a meeting and expressing such strong negative emotions is a bit dramatic but you know they're paying attention and have a fair point.

Thanks for the feedback. I guess I should have noted that we have a management company, and they stated that since our by-laws dont explicitly forbid this type of expenditure we were ok to do it. I really didnt think $50 would be a huge deal. We always work to diligently appropriate funds correctly. After all, we're homeowners too. So I guess I'm moreso looking for an opinion on if we should do this in the future. I gather most think the answer is no. I cant say that I dont understand the residents point of view.

I do praise the OP for asking. "The only stupid question is an unasked one." I know the law of HOAs takes at least a few years to absorb, presuming one is reasonably intelligent and educated. Even after a few years, questions will arise. To me, a good director always aims to learn more.

Adding to this, the most valuable thing you can provide to a vendor is a positive review or serving as a reference. There is a reason businesses constantly ask their customers for online reviews.

Sending a condolence card when appropriate: sure. But anything beyond that is probably not a good idea. (And in fact our contractors and other professionals seldom talk about anything in their personal lives, so we would not have known anything was happening.)

Our former PM (whose praises I've sung) was bothered because a homeowner sometimes would bring little tchotchkes to board meetings for her and the board members. Think little shamrock pins that weren't worth more than a couple bucks. She asked him to stop because she wasn't allowed to accept gifts from clients. And I always wondered if he was trying to get the board to think nice thoughts about him so that we would rule in his favor if he asked for something.

I also think that "if the CC&Rs or bylaws don't say no, it's OK" is too low a bar. Board members are supposed to behave in a professional and ethical manner, and shouldn't expect to have every little infraction spelled out for them. I also think that they should avoid even the appearance of wrongdoing, if for no other reason than it will makes their jobs harder if homeowners suspect something nefarious is going on.

-- AnnaJ1, find CathyA3's former PM and hire her.

-- Then have CathyA3 buy into your HOA and get her on the Board.

-- I think these points are everything and excellent.

The board meant well, but I agree with the residents but would be more appropriate for people to chip in some money for a gift if that's what they want to do. When our last two property managers retired, the board members chipped in money for a gift card. We didn't ask homeowners if they wanted to v ntribute, we just put up the money ourselves.

I'm also nervous about doing this for the vendors as well. The optics are bad and there could be the possibility of a conflict of interest of kickback. I suggest you stop this and prepare and pass a board resolution to this effect. At least limit the cost of the gift - no more than $20. You can still get a nice gift card for that amount - hell, this will cover one venti sized drink at Starbucks!

Thanks all. Sue, our annual budget is about $160,000.

Discretionary fund of One percent = $160

You can put any restrictions on it you want. I would exclude paid vendors, however. A card signed by the board would have sufficed.

It was a nice thing to do.

However, Association funds should not have been spent on it.

If the Board thought a gift was deserved, they should have reached into their own wallets/purses and paid for the gift from their personal funds.

Not simply saying what I think, saying what I practiced. When serving as Treasurer, I thought our trash/recycling collectors were doing a bang up job. I thought they went above and beyond on several occasions making sure wind blown debris was picked up. When the Holidays came around, in addition to the monthly check from the Association for their services, I included a personal check as a tip along with a letter thanking them for the service they were doing.

You gave money to a person who is paid for their service by the HOA. The OP's association gave something to a person who is RETIRING. IMHO, this a huge difference. I wouldn't give a bonus to a vendor, as that is what they are paid for. A long time director or vendor who is retiring, EVERY DAY OF THE WEEK AND TWICE ON SUNDAY.

Our Board has given appreciation gifts to our PMs when they've left us and we directors have funded this ourselves. Retiring directors receive a nice coffee mug with our HOA name, logo and years of service and recipient's name on it. The HOA pays for these and there's never been a complaint.

This, Anna, makes me wonder if Owners' complaints about this really small gift & expenditure is a proxy for something else that's bothering them. Maybe the lawsuit itself? Maybe another topic?