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KerryL1 (California)
Posts: 14,550
Posted:

On an Old Topic, "Should I accept gifts from a member," Max, A CA property manager, tried to change the subject TO the below: should vendors receive gifts from HOA residents?:

He asked, "Governing documents across the country will state that directors receive no compensation for service. But, if directors can't receive compensation, why would an association 'encourage' their members to contribute, say, a minimum of $250.00 each, to a fund to give out to some of their vendors. Aren't they well compensated already?"

(Some of you will note the non sequitur where the first part of Max's question is unrelated to his "real" 2nd part of the question.")

And on a different post, same subject, Max asked: "Would you take up a collection form your homeowners and give vendors and/or employees large cash gifts during Christmas?" Posters ignored both.

Now, oddly, the public page of my HOA "encouraged" residents to contribute to a Holiday Fund and also suggested $250 or more. Max has visited my HOA's Home page multiple times. Brrrrrr.

But he misquotes our Board policy. Donations from residents do not go to "vendors." They go to our custodians and security staffers who are employed by two of our vendors. We have no direct employees. We have maybe 12 of these very low-wage but valuable staff. We're a high rise condo in the heart of our large downtown. Residents by and large are upper-middle to upper income ppl. As a Board, we kept wages low to avoid rising dues a whole lot, just as we try to manage all expenses. This year, due to a tight labor market and high turnover among our security staff, the Board gave all a better raise. Now all earn more than $15/hr. The Board awarded bonuses to 3-longterm security guys.

Several years ago, Owners at open board meetings started asking the Board to support a program to urge residents to donate to some staff at the holiday season. These Owners were very persistent, so the Board finally voted to set up a program based on months of service at our HOA. Ppl donate to the fund alone, but many of us donate to the fund and personally give staff whom we know well an individual envelope. Names of donors to the Fund are not made public.

So the question here is: Does your Board do or promote anything special for your employees or the onsite staff of your vendors for the holidays? A party? Bonuses? Gift cards?

LetA (Nevada)
Posts: 2,679
Posted:
In the past I have received gift cards/ Box Candy, Cookie tin from the HOA properties I patrol, usually around and no more than $25.00.

My HOA is small and aside from the landscapers,pool service and the gate company. Our security patrol is random and there are different guards in the company, too many to narrow down to give gifts to.

Prior to covid we would have a spring picnic in the park for all the residents, we would invite the vendors so the residents would know who serves the community.
We would get food from a Taco Truck or a good smoke meat place. That would serve as our "gratuity"
MaxB4
Posts: 3,513
Posted:
First of all, I never identified a source of the inquiry or identfy any poster on this forum. I have researched hundreds of HOA webistes, you're is nothing special. I looked at yours years and years ago when you had an issue with how your management companies mis-calcuated the assessments for both your residents and commerical units. You have stated your governing documents are some of the most complicated that management companies and attorneys have come across. Try working with sets of 40+ year old CCRs were NOTHING is spelled out for the responsibilty of either the HOA or homeowners. Have a plumbing leak, flip a coin.

I have known HOA's that have direct employees that do provide a bonus, either for the holidays or at year end. I don't see a issue. As Kerry has stated here and in the past, they have no direct employees, the individuals are employees of vendors the association is under contract with. What caught my eye was the amount, $250-$1000 per unit. Doing the math, if everyone contributed, you have a pot of $52,750-$211,000. The announcement was to give to an enginner and an assistant GM amongest others. Those are not low wage earners.

I know as an employer, I would not want an association to give out bonuses to my employees without my knowledge. Depending on the amount, there could be tax consequences.

I just thought it odd that people here have an issue with a board member receiving a $50.00 gift certificate, whcih is not compensation, while Members are giving potentially thousands of dollars to vendor employees, who are actually compensated for their work.
KerryL1 (California)
Posts: 14,550
Posted:
Your are quoting my HOA's website, Max, except that the message I read says $200-250. And you're right, it includes our manager assistant and engineer. The former isn't paid much. The engineer is but owners and the board majority wanted that position included in the bonus as it's so crucial in a high rise. He & All custodians & security officers are full-time. I don't know if our vendors would begrudge their employees -- our staff-- such bonuses. Hard to imagine.

Along with this notice to our residents that you cited, You also in mid-Sept. '21 examined our CC&Rs about permissible flags on exclusive use balconies. So it's not true that it's been years since you read our website. I still don't know your reasons.

We do have many vendors or their employees who are here weekly or less and residents aren't encouraged to donate to them. I've noticed some residents do give gifts to our full-time onsite PM--the usual: flowers sweets, etc.

I'd say it's up to individual HOAs whether they want to supply holiday gifts to those who serve them faithfully & well, I like it voluntary. We actually did have a donation to the above staffers built into our dues several years ago. The Board got our HOA attorney's opinion first on this matter since our CC&Rs show no justification for this. His written opinion was if a board believes that bonuses incentivize staffers to better maintain and secure our common areas, i.e., provide motivation to do a good or better job for our assn., it's a legitimate expense. I was surprised. But after a year of mandatory contributions via dues, the Board settled on the current approach.

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