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Posted By CathyA3 on 05/29/2022 9:49 AM
The best way to not have "loosers" on the board is not to elect them in the first place. Good luck with that.
I agree that ethics and professionalism are good things. But IMHO opinion, codes of conduct are window dressing unless there is some way to ensure that they're adhered to. Guess what, there already is! Typically bylaws and/or state laws state that board members serve at the pleasure of the membership and may be removed with or without cause via the annual election or a special meeting of the membership.
Codes of conduct are ultimately well-intended but are often vague and ineffective. Effective board members are already behaving ethically without being told to, and bad actors won't be stopped by a piece of paper. And unlike professional codes of conduct that can be tied to various licenses and sanctions, there really are no penalties for violating an HOA's code of conduct unless the behavior rises to the level where legal action is appropriate. Short of that, you may end up removed from the board if the membership can get their acts together and do something about you. Whoopee.
Some lawyers have also opined that signing a code of conduct may compromise a board member's ability to use the business judgement defense since the person has agreed ahead of time to act in specific ways regardless of the issues at hand.
The one benefit I see in these codes is their educational value. It's hard to believe that some homeowners and board members have never come across concepts such as conflict of interest, but it's true. The discussions around the proposed adoption of a code of conduct can help fill this gap. Now if we can convince homeowners not to vote for a candidate just because they're a dog walking buddy...
The last time I remember somebody being elected to the board was 20 years ago. We never get 33% quorum at any annual meeting so the bylaws let the existing board simply appoint their best friend or next door neighbor. This happens every year! What your saying sounds good in theory, but it's very hard to get a board removed if the community is so apathetic.
I want really specific R&Rs for the board. Explicitly stating the maximum fines that can be levied. In the past it has been all over the place from $100/day with no reduction at all once resolved to $15 a week (with a 75% reduction once they paid)
I want to limit when they can foreclose on a house by requiring they get input from the community. Perhaps a foreclosure committee approval, or only if they are behind on dues and not for architectural aesthetic reasons, still thinking of best way approach this.
I want to require they get HOA education, by requiring they go to a seminar or watch educational videos, etc.
Require they not vote on issues pertaining to their specific home/lot so no conflict of interest.
I want them to get approval (from a committee or a small percentage of community members) for spending on lawyers over a certain dollar amount or percentage so that our HOA is not terrorized by some over zealous violations natzi. I remember going to annual meetings where fines/violations/past dues were over $30K, now they are just a few thousand.
Basically I want specific numbers they must adhere to (or get approval from the community or committees or some group other then themselves to change ) and if not they can be removed easily by HOA members.
I want some balance to their power, currently there is none. The board could make a rule saying no alcohol, no swearing, etc. and it would be legal.