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KrisJ4 (Hawaii)
Posts: 16
Posted:
Hey all,
I have a neighbor who has received a violation for replacing his windows without the boards approval. He is a new owner and several years ago, the previous owner changed out the windows. They are an approved style of windows, the previous owner just did not get permission to do the changes. Is he liable for this violation? Is there a statute of limitations for something like this in Hawaii?
ElleN (Idaho)
Posts: 4,420
Posted:
Is this s condominium?

What year was this HOA/COA established?
KrisJ4 (Hawaii)
Posts: 16
Posted:
I am not sure what year but the current VP is still VP since 1995
Yes this is a condo.

Quote:
Posted By ElleN on 07/10/2023 1:58 PM
Is this s condominium?

What year was this HOA/COA established?

ElleN (Idaho)
Posts: 4,420
Posted:
What has the association asked the neighbor to do? Replace the windows? Submit an application?

Is the association fining your neighbor?

Below is a discussion of Hawaii HOA/COA statutes of limitations. The discussion appears on the net in a few places. It appears to be up to date enough to be a starting point in your neighbor's decision-making.

In the worst case, I believe the COA would be seeking equitable relief. This means Hawaii's six year statute of limitations would not apply.

From https://cca.hawaii.gov/reb/files/2019/04/Condorama-V-Handout-Packet_FINAL.pdf:
In Hawai‘i, the statute of limitations for claims arising
out of a contract is six years. See HRS § 657-1. Since
restrictive covenants are formed contractually, their
enforcement may be limited to the six year statute of
limitations. Courts generally find that the six years
begins to run on the day the association “discovered”
or had a reasonable opportunity to discover the
violation.

However, the six year statute of limitations might not
be applicable in all cases. The Hawai‘i Supreme Court
has also “explained that the statute of limitations
applies to legal causes of action, while laches applies
to actions requesting equitable relief.” See Thomas
v. Kidani, 126 Hawai‘i 125, 267 P.3d 1230 (2011).
Since restrictive covenants are often enforced through
the equitable remedy of an injunction, a Court may find
that the defense of laches applies instead.


The defense of laches arises when there has been an
unreasonable delay in enforcement that has prejudiced
the owner. It should be noted that a “lapse of time
alone does not constitute laches,” but a delay that is
without some reasonable explanation and that has
resulted in a disadvantage to the owner may support
the defense of laches. See Pelosi v. Wailea Ranch
Estates, 91 Hawai‘i 478, 491, 985 P.2d 1045, 1058
(1999).

Other statutes of limitation may apply to other types of
claims. Accordingly, it is important that upon
discovery of a violation, associations act promptly to
address it. If the violation is not promptly remedied by
the violator, the association should consult with its
legal counsel regarding proper enforcement procedures
and deadlines to file a legal action.
TerriS6 (California)
Posts: 3,284
Posted:
New owner did not commit the violation. Seller should have disclosed it to buyer who could have recourse against seller. Surely there is a statute of limitations. Ours is 5 years.
KrisJ4 (Hawaii)
Posts: 16
Posted:
Thank you for the prompt response!
At this point, its is only to pay a fine.
TerriS6 (California)
Posts: 3,284
Posted:
In California CC&Rs are not contracts, they are enforceable equitable servitudes. However, they are interpreted like contracts in court. While CC&R statute of limitations is 5 years but contracts are 4 years.
ElleN (Idaho)
Posts: 4,420
Posted:
Have your neighbor look through the paperwork from closing. Is there anything like an estoppel letter or "certificate of estoppel"? I am seeing signs that in Hawaii, this might be required. Normally what such a letter or certificate means is that the property was transferred free and clear of violations, and supposedly the COA cannot turn around and fine the owner for a violation that existed before the purchase.

Urge your neighbor to stay polite and by-the-book. These COA Boards can turn nasty fast. They are volunteers with much on their plates. Misunderstandings do happen.
TerriS6 (California)
Posts: 3,284
Posted:
If he has to pay a fine he should get reimbursed by seller. 😊
KrisJ4 (Hawaii)
Posts: 16
Posted:
Sounds good, I believe the windows were done around the same time mine were done well over 6 years.
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By KrisJ4 on 07/10/2023 2:33 PM
Sounds good, I believe the windows were done around the same time mine were done well over 6 years.
I hope you saw that I said the six year limitation likely does not apply here.
KrisJ4 (Hawaii)
Posts: 16
Posted:
Oh shoot, ok got it.

Quote:
Posted By ElleN on 07/10/2023 2:38 PM
Posted By KrisJ4 on 07/10/2023 2:33 PM
Sounds good, I believe the windows were done around the same time mine were done well over 6 years.
I hope you saw that I said the six year limitation likely does not apply here.

ElleN (Idaho)
Posts: 4,420
Posted:
KrisJ4, also look for any paperwork from the condo association provided during the sales and closing process saying the unit is free and clear of violations. Title companies do not conduct sales when there are outstanding violations, unless the title company missed something.

Then hopefully all the owner would have to do is provide evidence he/she did not install the windows. Like maybe a letter from the previous owner?
KrisJ4 (Hawaii)
Posts: 16
Posted:
I'll inform him for sure. I happen to be on the board and disagree with the situation. I am trying to reverse this nonsense. the windows are visible from the front of the building for everyone to see. At any point they could have gave the previous owner a violation and didn't. I'll look into the certificate also I don't recall my agent mentioning one of these.

Quote:
Posted By ElleN on 07/10/2023 2:33 PM
Have your neighbor look through the paperwork from closing. Is there anything like an estoppel letter or "certificate of estoppel"? I am seeing signs that in Hawaii, this might be required. Normally what such a letter or certificate means is that the property was transferred free and clear of violations, and supposedly the COA cannot turn around and fine the owner for a violation that existed before the purchase.

Urge your neighbor to stay polite and by-the-book. These COA Boards can turn nasty fast. They are volunteers with much on their plates. Misunderstandings do happen.

MarkM19 (Texas)
Posts: 1,459
Posted:
Kris,
I am certainly not a lawyer and not nearly as detailed as ElleN with her responses but my angle to take would be the Grandfathered clause. If they have had the windows for over 6 years and no fines were issued or paid the violation should be rescinded. It is the PM and the boards job to see this violation and pursue it in a timely manner. Six years is not timely. I am sure that this owner had no idea what windows are exceptable and which aren't.
KrisJ4 (Hawaii)
Posts: 16
Posted:
Thanks Mark,

The windows are 100% legal but the board never gave permission to the previous owner to replace them. I am hoping there is a grandfather clause or something due to the nature of the situation. I would really like to help the guy out. I will definitely look into the closing documents and if there is any type of grandfather clause law.
JamesB37 (California)
Posts: 351
Posted:
Isn't your neighbor entitled to a hearing?

Usually it would be the Board deciding, which would be a good time to apply some common sense...
KrisJ4 (Hawaii)
Posts: 16
Posted:
If he asks for a hearing, he will likely get one. Common sense would apply but ultimately its the boards decision and they are the ones who issued the violation. My goal is to build his case so its not even an issue for him and ALL the owners in the same boat.
JamesB37 (California)
Posts: 351
Posted:
So your entire Board went along with this in the first place? (I would have thought it was just the PMC)

Personally, I just don't understand this mindset... (not your's, sounds like your trying to help)

How does this help the community and how would your board members feel if they were in your neighbor's shoes. Really good way to alienate someone who could be living in your community for a number of years.
ElleN (Idaho)
Posts: 4,420
Posted:
If the owner has good proof that the windows were installed at least several years ago; since this owner is new; and assuming a search of the closing paperwork turns up nothing, then if I were on the board I would quietly propose to my beloved colleagues that first impressions are important. Wouldn't it be prudent, and kind of an investment even, not to fine this new owner, given the (so far, apparent) shakiness of the COA's case?

Plus this fine is not going to have the deterrent effect it would have were it placed on the previous owner. I mean, new guy is now sitting there saying, "What? What'd I do?" In other words, go with MarkM19's gentlemanly wisdom.

In anticipation: I hope no one on the board suddenly has a light bulb turn on and says, "Hey, let's fine the previous owner!" I say: No. Do not go there. This can of worms is just barely open now. Stop wasting more time, energy and emotion. Surely this board has a reserve study to review; past due collections on which it needs to vote to take action; and more to do. Seal this can up and put it on the shelf.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Did the new owner ask for permission before they did the work? Is that what brought the issue to their attention?

Former HOA President
TerriS6 (California)
Posts: 3,284
Posted:
I would focus on the statute of limitations AND the fact that he did not commit the violation. Double check the rules and criteria for a violation.
MichaelS56 (Minnesota)
Posts: 859
Posted:
When the unit that had the incorrect windows that were installed, a lien should have been placed on the unit. There should have been a very clear statement that the unit cannot be sold without the correct windows being installed or the money to have the changes made.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Michael one can't place a lien for that. A lien is for unpaid dues. There is that exception ONLY if the HOA replaced the windows and sent the owner the bill. If they did not pay that bill, then that bill can be lien for. This case the HOA did not pay out any money to correct the violation.

You don't place a lien on a rule violation. You can fine. However, fines are not necessarily subject to lien. Some HOA's will apply due payments to fines owed, making it look like dues are owed. That is how they get away with placing a lien.

Former HOA President
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Typically during the purchase of a home in an HOA the lender will ask for a statement that there are no existing violations, no overdue dues, and no pending legal action. In FL this is called a Estoppel Letter. If this happens, the HOA cannot come back at the new owner.
LetA (Nevada)
Posts: 2,679
Posted:
The new owner did not commit the violation. If the HOA did not report or disclose the violation via the estoppel letter at the time of
sale, the HOA is SOL and is begging for trouble to enforce it.

My recommendation is for the new owner to call is Realtor and get them involved.
KrisJ4 (Hawaii)
Posts: 16
Posted:
Wow thank you all for the comments! I really appreciate it! @ElleN LOL my beloved fellow board members!! To be honest, I do think were all just trying to do the right thing but in different ways. I'll be talking to my neighbor later this week. In the meantime, I will be talking to the rest of the board and hopefully this is a simple mistake on their part. The windows are legal (same windows as mine) and were installed years before he ever bought the place. If I have to put up a fight, the current HOA President painted his window to match the trim (against the rules) and I imagine I can find other broken rules. Problem is, I also have items from a previous owner so I am trying to keep a target off my back.
Again all, you are a great digital community and I am happy to be here. Thank you!
TerriS6 (California)
Posts: 3,284
Posted:
LetA, that is very good advice.
TerriS6 (California)
Posts: 3,284
Posted:
Quote:
Posted By KrisJ4 on 07/11/2023 9:27 AM
Wow thank you all for the comments! I really appreciate it! @ElleN LOL my beloved fellow board members!! To be honest, I do think were all just trying to do the right thing but in different ways. I'll be talking to my neighbor later this week. In the meantime, I will be talking to the rest of the board and hopefully this is a simple mistake on their part. The windows are legal (same windows as mine) and were installed years before he ever bought the place. If I have to put up a fight, the current HOA President painted his window to match the trim (against the rules) and I imagine I can find other broken rules. Problem is, I also have items from a previous owner so I am trying to keep a target off my back.
Again all, you are a great digital community and I am happy to be here. Thank you!

Kris, not sure if this applies to your case but former owners have no standing to sue the association over CC&Rs (and vice versa).
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By TerriS6 on 07/10/2023 8:29 PM
I would focus on the statute of limitations
Because... ?

From https://cca.hawaii.gov/reb/files/2019/04/Condorama-V-Handout-Packet_FINAL.pdf:
...
However, [in Hawaii] the six year statute of limitations might not
be applicable in all cases. The Hawai‘i Supreme Court
has also “explained that the statute of limitations
applies to legal causes of action, while laches applies
to actions requesting equitable relief.” See Thomas
v. Kidani, 126 Hawai‘i 125, 267 P.3d 1230 (2011).
Since restrictive covenants are often enforced through
the equitable remedy of an injunction, a Court may find
that the defense of laches applies instead.

The defense of laches arises when there has been an
unreasonable delay in enforcement that has prejudiced
the owner. It should be noted that a “lapse of time
alone does not constitute laches,” but a delay that is
without some reasonable explanation and that has
resulted in a disadvantage to the owner may support
the defense of laches.
See Pelosi v. Wailea Ranch
Estates, 91 Hawai‘i 478, 491, 985 P.2d 1045, 1058
(1999).

Other statutes of limitation may apply to other types of
claims.
BillD16 (Texas)
Posts: 971
Posted:
Quote:
Posted By MarkM19 on 07/10/2023 3:20 PM
Kris,
I am certainly not a lawyer and not nearly as detailed as ElleN with her responses but my angle to take would be the Grandfathered clause. If they have had the windows for over 6 years and no fines were issued or paid the violation should be rescinded. It is the PM and the boards job to see this violation and pursue it in a timely manner. Six years is not timely. I am sure that this owner had no idea what windows are exceptable and which aren't.

I’m late to the party once again, but … I echo MarkM’s comments. This kind of thing has happened a few times in my neighborhood, and it’s always been grandfathered. At worst - for instance, a *gasp* disallowed fence color - the resident is advised to return to an approved color when they next replace the fence.

I completely do not understand the mindset behind wanting to fine over something like this. 6 year SOL or not, I think it is unconscionable to go after someone after all this time has passed.

Bill

HOA Board ex-President
Austin, Texas USA

“You can’t put too much water in a nuclear reactor”
BillD16 (Texas)
Posts: 971
Posted:
Quote:
Posted By MarkM19 on 07/10/2023 3:20 PM
Kris,
I am certainly not a lawyer and not nearly as detailed as ElleN with her responses but my angle to take would be the Grandfathered clause. If they have had the windows for over 6 years and no fines were issued or paid the violation should be rescinded. It is the PM and the boards job to see this violation and pursue it in a timely manner. Six years is not timely. I am sure that this owner had no idea what windows are exceptable and which aren't.

I’m late to the party once again, but … I echo MarkM’s comments. This kind of thing has happened a few times in my neighborhood, and it’s always been grandfathered. At worst - for instance, a *gasp* disallowed fence color - the resident is advised to return to an approved color when they next replace the fence.

I completely do not understand the mindset behind wanting to fine over something like this. 6 year SOL or not, I think it is unconscionable to go after someone after all this time has passed.

Bill

HOA Board ex-President
Austin, Texas USA

“You can’t put too much water in a nuclear reactor”
WendyM5 (North Carolina)
Posts: 1,522
Posted:
Quote:
Posted By KrisJ4 on 07/10/2023 2:51 PM
I'll inform him for sure. I happen to be on the board and disagree with the situation. I am trying to reverse this nonsense. the windows are visible from the front of the building for everyone to see. At any point they could have gave the previous owner a violation and didn't. I'll look into the certificate also I don't recall my agent mentioning one of these.

Posted By ElleN on 07/10/2023 2:33 PM
Have your neighbor look through the paperwork from closing. Is there anything like an estoppel letter or "certificate of estoppel"? I am seeing signs that in Hawaii, this might be required. Normally what such a letter or certificate means is that the property was transferred free and clear of violations, and supposedly the COA cannot turn around and fine the owner for a violation that existed before the purchase.

Urge your neighbor to stay polite and by-the-book. These COA Boards can turn nasty fast. They are volunteers with much on their plates. Misunderstandings do happen.



fining for something that is not a violation is ridiculous.
Waht is the fine based off of? Most HOA's call this kind of fine a failure to submit ARC fine.
Well the new owner did not submit the ARC because he didn't know the fine should be mailed to the previous owner.

board members that think the new guy should be fined should be fired IMHO.

vis ta vie
MelissaP1 (Alabama)
Posts: 13,836
Posted:
I read the first statement again. The owner got a violation for THEM NOT requesting permission to replace the windows. I am not sure how then the previous owner failure factor into the CURRENT situation. It sounds like the CURRENT owner did not apply for permission to install the windows. Could it be the HOA then let them know the PREVIOUS owner also did the same thing? If so, then the REAL issue is that the CURRENT owner did not apply for permission to replace the windows.

My gut feeling tells me this isn't the HOA holding an old violation against a new member. It sounds more like they are letting the owner know that they must get permission even if it will most likely be approved. Applying for permission to make a change does not equal a "no". It just means it gets approved or not.

Former HOA President
WendyM5 (North Carolina)
Posts: 1,522
Posted:
Quote:
Posted By MelissaP1 on 07/12/2023 4:37 AM
I read the first statement again. The owner got a violation for THEM NOT requesting permission to replace the windows. I am not sure how then the previous owner failure factor into the CURRENT situation. It sounds like the CURRENT owner did not apply for permission to install the windows. Could it be the HOA then let them know the PREVIOUS owner also did the same thing? If so, then the REAL issue is that the CURRENT owner did not apply for permission to replace the windows.

My gut feeling tells me this isn't the HOA holding an old violation against a new member. It sounds more like they are letting the owner know that they must get permission even if it will most likely be approved. Applying for permission to make a change does not equal a "no". It just means it gets approved or not.

wrong, read the context. how can you logically disect a sentenance but then ignore the rest of the post that contradicts your assumptiosn?

vis ta vie
CathyA3 (Ohio)
Posts: 6,299
Posted:
Do we actually know what the violation notice said?

This may be nothing more than the board notifying the current owner in writing that the windows were never approved and they want to have paperwork on file that approves the windows retroactively. That's how we would have handled a situation like this since the current owner did nothing wrong (assuming he was not informed of any outstanding violations on the unit prior to signing the closing documents).
TerriS6 (California)
Posts: 3,284
Posted:
The author said a fine had been levied against the new owner.
CathyA3 (Ohio)
Posts: 6,299
Posted:
Quote:
Posted By TerriS6 on 07/12/2023 6:53 AM
The author said a fine had been levied against the new owner.

Oops, missed that. In that case...

State laws vary, but according to our attorney it's very much buyer beware around here, and the board would have been justified in fining - however, the owner would have to be given the opportunity for a hearing first.

Personal opinion here: I have a problem with taking such a hard line for a number of reasons. One, condos attract first time buyers, and even new owners who are trying to do things right will get it wrong occasionally. Jumping right to a fine is unreasonabble since the current owner did nothing wrong, and I believe that even in cases where the item in question is truly a violation - which the OP said is not the case.

Another reason I have a problem in this case is that previous boards apparently dropped the ball on this. They should have caught the previous owner and pursued the violation then.

It seems unfair to me to make the current owner deal with this and maybe even take it to court. And it's not actually in the association's best interest to go that route, because time and money. If the goal is to educate the owner and the community, there are better ways to do it that won't involve making an enemy of that owner.
MargaretM5 (Hawaii)
Posts: 34
Posted:
Kris, since you are on the board, you must have some idea of what brought this to the board's attention, and what the association is trying to accomplish with this enforcement action.

In my HOA (single family homes in WA), if the board becomes aware of work that has been done without approval, we first try to determine if it is something that the board would approve. If it is, the work is usually just ignored rather than following enforcement to get the paperwork in order. In my opinion, this is a mistake. It's always better for the homeowner to have that approval in writing to protect them against future boards that may be more strict about these things--as your neighbor is finding out now. And it's always a good idea for the HOA to have the paperwork in order to protect against future accusations of preferential treatment/unequal enforcement.

We have an ethics pledge (pretty standard, written by our attorney) that says the board must all speak with one voice, supporting all duly-adopted board decisions. This means that, even though I was in the minority that voted against a decision, I still have to support it as a duly-adopted decision. To apply it to your case, it would not be appropriate for me to commiserate with my neighbor about how frustrating the board's decision was and how much I disagreed with it. Further, it wouldn't be appropriate for me to work with my neighbor to try to challenge the board's decision unless I recuse myself from that decision-making process.

You mention above that if you do help your neighbor fight this, you could point out ways in which other board members are in violation. I recommend against that. Each violation should be enforced on its own merits and enforcement should never be about revenge or getting even.

You also mention that violations exist on your own unit and you're trying not to be noticed. If violations exist on your lot, you should consider addressing them--preferably before this board or a future board makes an issue of it. As you mentioned, it's not a good look for board members to enforce violations on others but not themselves. If the rules are important, they should be followed and if they're not, they should be changed. It's not fair to the rest of the owners in your community if your willingness to enforce violations is influenced by your desire to keep your own violations under the radar.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Again read the first sentence the OP wrote. The new owner did not get permission. If they did not ask for permission they would get fined in that situation too. The previous owner is a separate issue or factor...

Former HOA President
CathyA3 (Ohio)
Posts: 6,299
Posted:
Quote:
Posted By MelissaP1 on 07/12/2023 9:05 AM
Again read the first sentence the OP wrote. The new owner did not get permission. If they did not ask for permission they would get fined in that situation too. The previous owner is a separate issue or factor...

Why would they ask permission for windows that were already installed and are an approved style? How on earth would they know that the windows weren't original to the unit and that the previous owner actually installed those windows without permission?

That's the problem - the current board is trying to hold the current owner accountable for something they couldn't have reasonably known. They're punishing the new owner for not being a mind reader. Even if the board could do this legally, any potential benefits will be likely outweighed by the negative consequences.
CathyA3 (Ohio)
Posts: 6,299
Posted:
Quote:
Posted By MargaretM5 on 07/12/2023 8:04 AM
... snip ...

You also mention that violations exist on your own unit and you're trying not to be noticed. If violations exist on your lot, you should consider addressing them--preferably before this board or a future board makes an issue of it. As you mentioned, it's not a good look for board members to enforce violations on others but not themselves. If the rules are important, they should be followed and if they're not, they should be changed. It's not fair to the rest of the owners in your community if your willingness to enforce violations is influenced by your desire to keep your own violations under the radar.

Agree 100%. Homeowners can spot self dealing a mile away, and stuff like this is meat and potatoes to the Chronic Complainer crowd. If I were in the new owner's shoes, I'd be so ticked that I'd be campaigning to replace the current board. (Slogan: It Can Happen to You.)
ElleN (Idaho)
Posts: 4,420
Posted:
At this point I think the probability is near 100% that either the COA, the seller or both stated in writing shortly before closing that the unit had no outstanding violations. After all one of the purposes of a title search is identifying whether such violations are in place. My quick skim of the Hawaii Condo Act seems to support this.

I suspect a few calls (to the realtor and title company) and/or a review of the sales and closing paperwork should provide all the evidence the OP needs to make her case.
WendyM5 (North Carolina)
Posts: 1,522
Posted:
Quote:
Posted By MelissaP1 on 07/12/2023 9:05 AM
Again read the first sentence the OP wrote. The new owner did not get permission. If they did not ask for permission they would get fined in that situation too. The previous owner is a separate issue or factor...



again read all the sentences for context. cause the first sentence is not written well and other sentences explain it.

vis ta vie
MelissaP1 (Alabama)
Posts: 13,836
Posted:
How do we know for sure that is approved? Your forgetting one should ask permission and not forgiveness in a HOA. Even if it matches the requirements it needs recorded it was approved for proper history.

Former HOA President
BillD16 (Texas)
Posts: 971
Posted:
Quote:
Posted By KrisJ4 on 07/11/2023 9:27 AM
Wow thank you all for the comments! I really appreciate it! @ElleN LOL my beloved fellow board members!! To be honest, I do think were all just trying to do the right thing but in different ways. I'll be talking to my neighbor later this week. In the meantime, I will be talking to the rest of the board and hopefully this is a simple mistake on their part. The windows are legal (same windows as mine) and were installed years before he ever bought the place. If I have to put up a fight, the current HOA President painted his window to match the trim (against the rules) and I imagine I can find other broken rules. Problem is, I also have items from a previous owner so I am trying to keep a target off my back.
Again all, you are a great digital community and I am happy to be here. Thank you!

Kris - just MHO, but (ref what Margaret and others wrote) if this were me, I'd try "sugar" before pulling out the bug spray: appeal to the other BoD members' sense of decency and fairness, maybe suggest waiving the fine in this. Possibly - since it kinda sounds like there's a lot of this about in your building? - y'all should consider a policy on this sort of thing? Maybe even an amnesty program to encourage everyone who has made a change to submit the paperwork with no fines? I'm just blue-skying here.

But be real careful about firing back "but you've had a violation for years!" at the President.

Bill (aka "Mr Charm")

HOA Board ex-President
Austin, Texas USA

“You can’t put too much water in a nuclear reactor”
BillD16 (Texas)
Posts: 971
Posted:
Quote:
Posted By MargaretM5 on 07/12/2023 8:04 AM
We have an ethics pledge (pretty standard, written by our attorney) that says the board must all speak with one voice, supporting all duly-adopted board decisions. This means that, even though I was in the minority that voted against a decision, I still have to support it as a duly-adopted decision. To apply it to your case, it would not be appropriate for me to commiserate with my neighbor about how frustrating the board's decision was and how much I disagreed with it. Further, it wouldn't be appropriate for me to work with my neighbor to try to challenge the board's decision unless I recuse myself from that decision-making process.

Wow. For real? Just me, but I wouldn't sign such a document. Do your governing documents contain an "ethics pledge" requirement of some kind? Do people running for the Board have to sign off on an agreement to sign the ethics pledge if they are elected?

(On the other hand, in the two years I've been on my BoD, I've never had to sign *any* kind of waiver or agreement. I do occasionally wonder if there's been some kind of massive screwup in our process).

Bill

HOA Board ex-President
Austin, Texas USA

“You can’t put too much water in a nuclear reactor”
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By MargaretM5 on 07/12/2023 8:04 AM

We have an ethics pledge (pretty standard, written by our attorney) that says the board must all speak with one voice, supporting all duly-adopted board decisions. This means that, even though I was in the minority that voted against a decision, I still have to support it as a duly-adopted decision. To apply it to your case, it would not be appropriate for me to commiserate with my neighbor about how frustrating the board's decision was and how much I disagreed with it. Further, it wouldn't be appropriate for me to work with my neighbor to try to challenge the board's decision unless I recuse myself from that decision-making process.
My take: A HOA director often has a duty like that of a City Councilor. Yes the City Councilor has to abide by a City Council's final decision. However the City Councilor can state her position without violating any code of ethics. Also it is entirely appropriate for a city councilor to advocate for her or his constituents.

The courts have ruled on a number of occasions that HOA boards are for some purposes quasi-governmental.

At a hearing IMO a director has a fiduciary duty to make sure all issues have been addressed.

I do not think ethics pledges are standard. I think many HOA attorneys do not support them, due to legalities.
WendyM5 (North Carolina)
Posts: 1,522
Posted:
our last PM made us sign an ethics pledge, they had no authority.
I like them, trying to get it codified into our bylaws.

vis ta vie
ElleN (Idaho)
Posts: 4,420
Posted:
When a board majority is rogue, an ethics pledge requiring the board to "speak with one voice" is anathema.

Notice how many states do have statute sections that spell out, for one, when conflicts of interest occur and what a board must do when they arise. This is quite different from an ethics pledge. I think such statute sections are powerful.

Enforcing statutes and bylaws that lay out what a board can and cannot do holds much more power than any "pledge."

If I ended up on a board again, and an ethics pledge was presented to me by the board and HOA attorney, I would cross out any part requiring "speaking with one voice," and possibly write in how I might possibly, politely be obliged by fiduciary duty (with a statute section cited) to not respect this in certain instances where board was clearly violating a statute, bylaw or covenant.

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