HOA Board Member Potential Conflicts

Started by TimM16 • 7 replies • 315 views

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TimM16 (Florida)
Posts: 1

Posted:

Background:

I'm a Board Director of 2 small HOA's in Florida (less than 13 lots each). I'm also the Land Developer and ARC reviewer of the Communities, and will sit on the HOA Boards until turnover. The company I work for is also the only Home Builder in these Communities.

Question:

Given my Board Director roles, roles with the Company as Developer and ARC, and the small size of the Communities, can I also be the Property Manager (assuming I obtain my CAM license)? Is this a legal issue in Florida or a conflict of interest issue?

TimB4 (Tennessee)
Posts: 21,059

Posted:

Something to ask your attorney about.

TimB4 (Tennessee)
Posts: 21,059

Posted:

As you are aware, the optics of it aren't good (regardless of the legality, which you need to ask your attorney about)

MelissaP1 (Alabama)
Posts: 13,836

Posted:

That is kind of tricky as your living in the larger fish...

I thought I wanted to take this route too once. Easily blinded by the role you play. Not a bad or good thing.

The issue is read your documents first. Some require it be run by the owners be it developer or the owners.

The relationship of a PM is as a hired contractor to the HOA to manage it. They are not members of the HOA. It should not be on the board. They are hired to do the job per contract.

You may talk to your bosses that own the HOA to change your relationship from employee to a hired PM company. Which means you could work as your own company they hire to manage their HOA. This means no longer employed or on the HOA board.

You may be better off as a board position and then later branch out to property management under your own company if this is what you want to do. Otherwise you may find yourself unemployed.

Former HOA President

TimB4 (Tennessee)
Posts: 21,059

Posted:

Melissa,

I believe the OP wanted to be everything at the same time:

A Director
An Officer
The Property Manager
The Builder
The Architectural Committee
The Declarant
etc.

Basically, finding a way to pay themselves with the HOA funds.

Not a good thing.
May or may not be legal (ask a local attorney)

MelissaP1 (Alabama)
Posts: 13,836

Posted:

I agree TimB. That is why I pointed out the relationship. If you want to be PM, then you have to make your own company. You can not have it both ways. The dynamic changes.

Board members in a HOA are volunteer and not paid typically. Why would do the job without a paycheck? He is getting one from his employer that owns the HOA and his job is to be on the board.

I wanted to do this once. It did make sense but in our HOA if we disbanded the HOA we had to be turned over to a PM. However, that meant giving up all control as a homeowner in the HOA. The PM would be in charge. That would look like a conflict of interest and be setting my own rules.... Plus setting my salary.

Former HOA President

ElleN (Idaho)
Posts: 4,420

Posted:

Quote:

Posted By TimM16 on 12/29/2022 6:40 AM
Given my Board Director roles, roles with the Company as Developer and ARC, and the small size of the Communities, can I also be the Property Manager (assuming I obtain my CAM license)? Is this a legal issue in Florida or a conflict of interest issue?

Read FS 617.0832 for what your obligations are for this conflict of interest. snowbird ElleN

WendyM5 (North Carolina)
Posts: 1,522

Posted:

conflict of interest for sure
which is all that matters in the court of public opinion

whether it is legal or not only matters if you get caught. I suggest you dont' take the risk.

vis ta vie

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