Conflict of Interest/Board member on ARC

Can a board member approve their own ARC? We have only three board members right now so we’re the ARC. The V.P. Submitted an ARC and I asked for more documentation before I make a decision. She stated she wanted an answer within days before the item went off sale. She had no survey or permits. She held a meeting to dicuss her ARC of which I wasn’t available because it’s a holiday weekend. So she passed her own ARC with another vote with no documentation. Is this considered a Conflict of Interest?

Yes. More importantly, NC law most likely has a lot to say about this.

Please indicate whether this is a condominium or subdivision of single family homes. Please read the first few pages of the Declaration. Does the Declarations state which NC statutes apply?

Is this HOA incorporated?

If you answer the above questions, I can provide you with a statute citation. Thx

This is not enough to identify which if any NC HOA statutes apply.

See NC nonprofit corp statute section § 55A-8-31. Director conflict of interest at https://www.ncleg.net/enactedlegislation/statutes/pdf/bychapter/chapter_55a.pdf

Per the statute, when a conflict of interest, like the one you describe, the board has to take certain steps so that its vote on this matter is not null and void under the law.

If any of this does not make sense, please study the statute section and then ask a question.

The bigger battle will be getting the rest of the board to comply with the law. You are outnumbered. This portends to be a difficult situation (if it is not already).

Meaning, if someone desires to challenge the ruling in a court of law.

Yes, it's a conflict of interest.

The real question is whether or not the requested modification violated any of the covenants, rules, etc. Since it sounds like the person did not follow proper procedures (survey, etc.) you could argue that the approval was invalid.

If the board member had dotted all the i's and crossed all the t's, the modification complied with the CC&Rs etc., and the only issue was that she didn't recuse herself from the vote, I'd be inclined to let this go. But since it sounds like this didn't happen, I think the rest of the board should revisit it. At the very least the board member should have the survey done and follow all other requirements. And the other board member who went along with this needs some educatin' on why what they did was improper.

Again, one of my posts disappeared and I'm sure it's my error.

No time now, but I'd basically raised the issues that Cathy is raising. Sounds like the violated some governing documents by not completing this HOA'a a requirements for ARC changes. Permits??? But why did the 3rd director vote to support an incomplete application??

We don't even know if the directors called a special meeting of the Board properly, ie, per their HOA's Bylaws.

That 3rd director, and Joy, too, can be liable for any negative issues this "project" creates. If Joy has access to the HOA attorney she should try to get an opinion.