Possible conflict of interest for PM

The irrigation contractor for the master association in our community (covers only the common property, not the homes) is the husband of our PM. A previous board chose him as our vendor. The PM supervises his work and codes his invoices, but our treasurer approves the invoices. We have access to all the invoices. I just reviewed the last 6 months and do not find any issues.

He is a very good vendor, reasonably priced, and an all around good guy. He does a lot of little things for the community (and his wife) without charging. We have a lot of elderly homeowners and he has trimmed branches and done other small things for these people just to help.

He also does private work for the homeowners. I used him to do some sprinkler work for me (I'm on the board - I paid the going rate - no discounts).

We have an ex-board member who does not like our PM. He and one other person in his sub-association (that uses a different irrigation contractor) feel that it is a conflict of interest to use a vendor that is related to the PM. They have complained about this many times, but they have no control over the vendors the master association uses.

Today I got a complaint from this ex-board member because the contact information of the vendor was included in our last monthly newsletter. We have a section where the PM lists numbers for reputable contractors. They do not pay us to be included, but the list includes pressure washing and tree trimming contractors that the master uses and who have done a good job and are licensed and insured. The ex-board member is pushing once again to get the PM disciplined, saying that she is out of line adding her husband's company to the list.

The ex-board member is really difficult to deal with since he thinks he's still on the board, so it would be easy for me to dismiss his complaint. Any thoughts?

What is said in your bylaws or ccrs regarding conflict of interest? If not prohibited in ccrs, you are fine in opinion

Conflict of interest rules usually apply to people like the board members who have a fiduciary duty to the association.

The PM is a hired contractor, same as her husband, so doesn't have the same duty of care as board members. Contractors' obligations are spelled out in their contracts with the HOA, not in the HOA's governing documents.

The problem I see is that she may not be able to perform some of her duties because of her relationship with her husband. So I view it as less of an ethics issue for the PM and more of a job performance one. (The PM's company may have a code of conduct that their employees are supposed to abide by, and that may have something to say about situations like this - but that's between the PM and her company.)

Regardless of what we call it, though, the board is still responsible for what happens on their watch.

The relationship between the PM and contractor has been fully disclosed to the Board. As long as the Board still likes the work of both, I do not see a substantive problem. Granted the "optics" are not so great. But I think anyone complaining needs to state exactly what aspect of the PM's and the contractor's work they feel is unsatisfactory. I think it is likely that any complaints that owners have will have nothing to do with the relationship between PM and contractor.

I do advise against this:For one, any contractor not listed might complain and have some justification to do so. For another, when one of the recommended contractors is not up to an owner's standards, the Board may get to hear about it at a Board meeting. And so on.