HOMEOWNERS QUESTIONING FIDUCIARY BREACH

Started by HollyG2 • 9 replies • 176 views

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HollyG2 (California)
Posts: 1

Posted:

A BOARD MEMBER HAS BEEN COLLECTING RECYCLING, WHICH IS COLLECTED FROM HOMEOWNERS, BUT HE THEN KEEPS THE MONEY IN A PRIVATE ACCOUNT, DONATES SOME TO CHARITIES & TO THE REC CLUB BUT, WILL NOT HAVE IT BE A PART OF THE HOA. NOR DOES THE RESIDENTS HAVE A VOTE ON WHERE THIS MONEY GOES.
HOMEOWNERS ARE ASKING WHY THE MONEY CAN'T BE KEPT WITHIN THE COMMUNITY SINCE THEY ARE GIVING THE CANS & BOTTLES TO RECYCLE?
THE BOARD MEMBER HAS BEEN TOLD THAT IT SHOULD BE A PART OF THE HOA-*SEE "CAN A HOA BOARD MEMBER COLLECT RECYCLING FROM RESIDENTS, DOES MONEY BELONG TO HOA?" WHERE IT CLEARLY STATES THAT IT'S THE HOA'S, BUT HE REFUSES, SAYS IT'S NEVER BEEN A PART OF THE HOA & IT'S NOT GOING TO START, WHICH IT'S NEVER BEEN QUESTIONED BEFORE, HE HAS THREATEN TO STOP & TAKE EVERYTHING, WHICH I BELIEVE IS THE BAGS THEY COLLECT IN, NO DOUBT PURCHASED FROM THAT MONEY FROM RECYCLING.
I BELIEVE THAT THE MONEY IN THE BANK ACCOUNT HE HAS WOULD OR SHOULD BE TURNED OVER TO HOA, BUT I KNOW HE'S GOING TO BE A CHALLENGE AS HE GETS REALLY DEFENSIVE & COMES OFF AS "WHAT HE SAYS IS THE ONLY WAY" ATTITUDE.
I HAVE RESEARCHED THIS FOR HOURS & DAY'S & I HAVE FOUND THROUGH EVERY SITE THAT THIS IS A FIDUCIARY BREACH, I WANTED TO ASK & SEE IF ANYONE ELSE HAS HAD THIS TYPE OF CIRCUMSTANCE OR SIMILAR.

WE WANT THE RECYCLING TO STAY WITHIN OUR COMMUNITY & HELP SOME HOMEOWNERS WITH REPAIRS THEY CAN'T AFFORD & TO ALSO REBUILD OUR EMERGENCY RESPONSE TEAM SUPPLIES SO WE CAN HANDLE ANY EMERGENCY THAT MIGHT HAPPEN, IE: SUPPLY SHED, WALKIE TALKIES, MEDICAL SUPPLIES. AND DURING THE HOLIDAY SEASON, DO ANGEL TREE DONATIONS.

THANK YOU IN ADVANCE TO ANYONE WHO CAN HELP ME SHED SOME LIGHT ON THIS SITUATION.

HOLLY
PRESIDENT OF XXX HOA

TimB4 (Tennessee)
Posts: 21,059

Posted:

Holly,

Please read the posting rules:

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MarkM19 (Texas)
Posts: 1,459

Posted:

Holly,
Please do not use CAPS LOCKS when writing notes. It really makes it hard to read.

Regarding your concerns as someone who lived in Ca. and understand the recycle business there. I can only assume you have a very small HOA with probable limited amount of recycling. If this person is doing the gathering and the hauling over to the recycling center which can be miles away is most cases. I think he has a right to use the funds as he sees fit. I like that he is donating it to good causes. If you are not happy with what he is doing have you thought about collecting your own and handling it yourself? It is not a big money maker just for the record.

ElleN (Idaho)
Posts: 1,334

Posted:

Quote:

Posted By HollyG2 on 01/22/2026 3:08 AM

WE WANT THE RECYCLING TO STAY WITHIN OUR COMMUNITY & HELP SOME HOMEOWNERS WITH REPAIRS THEY CAN'T AFFORD

Is there a clause in your Declaration and Bylaws that says assessments may be used thusly?

Quote:

Posted By HollyG2 on 01/22/2026 3:08 AM
& TO ALSO REBUILD OUR EMERGENCY RESPONSE TEAM SUPPLIES SO WE CAN HANDLE ANY EMERGENCY THAT MIGHT HAPPEN, IE: SUPPLY SHED, WALKIE TALKIES, MEDICAL SUPPLIES.

I doubt your HOA's Declaration and Bylaws permit the use of HOA funds for these as well.

With these activities, your HOA Board is taking on liability. Your insurer may not cover the HOA if something goes amiss with these activities, harm is caused and someone sues.

I think your board would benefit asking questions of a competent HOA attorney about how the HOA spends its money.

BillD16 (Texas)
Posts: 971

Posted:

First: is this really how you want to spend your time?

Second: this boils down to a) this guy collects recycling on a volunteer basis, b) he makes a bit of money from it, and c) you want to take that money away from him. There may be more to the story, but going by what you wrote, I think it that you should be ashamed of yourself.

Bill

HOA Board ex-President
Austin, Texas USA

“You can’t put too much water in a nuclear reactor”

SheliaH (Indiana)
Posts: 6,964

Posted:

Quote:

Posted By MarkM19 on 01/22/2026 10:47 AM
Holly,
Please do not use CAPS LOCKS when writing notes. It really makes it hard to read.

Regarding your concerns as someone who lived in Ca. and understand the recycle business there. I can only assume you have a very small HOA with probable limited amount of recycling. If this person is doing the gathering and the hauling over to the recycling center which can be miles away is most cases. I think he has a right to use the funds as he sees fit. I like that he is donating it to good causes. If you are not happy with what he is doing have you thought about collecting your own and handling it yourself? It is not a big money maker just for the record.

What Mark said. Everyone else had good comments as well.

What this guy is doing isn't a lot different from what I've seen folks on the street do occasionally - pick up bottles and cans (and sometimes taking them out of garbage cans) and then taking them to a recycling company to redeem for money. It's not a fortune. It seems you're more honked off because the man's a board member doing this, when everyone in that community can choose to save their own bottles and cans and take them to a recycling place and get the money themselves (maybe they'll get enough for a coffee from Starbucks?)

Anyway, this could be a good opportunity for the board to establish a community recycling program. It can reduce trash and maybe you can collect enough to create a line item to pay for community spirit building activities like co-sponsoring a block party. I understand what you're saying about helping homeowners, but there are other ways to do that without using association money.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

DeanJ
Posts: 1,786

Posted:

If I understand this post, you believe a board member who is collecting recyclable materials from the community (like
removing these items from rubbish cans), selling the collection and not forwarding the proceeds to the HOA is in a fiduciary breech.

Is recycle collection a duty of a board member in your HOA?
Are you compensating this person for a service he is unlikely required to provide the HOA?
Is the community receiving any funds from the materials if the person leaves them undisturbed where ever he is collecting them from?

If the answer is no to all 3, this board member owes the HOA nothing. It’s his money to do as he desires.

ElleN (Idaho)
Posts: 1,334

Posted:

Quote:

Posted By HollyG2 on 01/22/2026 3:08 AM
A BOARD MEMBER HAS BEEN COLLECTING RECYCLING, WHICH IS COLLECTED FROM HOMEOWNERS, BUT HE THEN KEEPS THE MONEY IN A PRIVATE ACCOUNT, DONATES SOME TO CHARITIES & TO THE REC CLUB BUT, WILL NOT HAVE IT BE A PART OF THE HOA.

If the Board takes the advice of some here and decides to effectively pay this director for his service, then this may violate California Corporate Code § 5047.5(a)).

As well the HOA should be issuing tax form 1099-Misc to this board member.

MarkM19 (Texas)
Posts: 1,459

Posted:

Elln,
In my opinion this really has very little do with the HOA. The recycle stuff is individual owners' garbage. It does not belong to the HOA. If they are placing the garbage in HOA recycle containers I would assume they are discarding it and it belongs to no one IMO.

I also think going through others trash is not a great job. It can be really nasty how people treat trash even recycle trash. If this guy wants to do it, I think he should be allowed to without the HOA getting involved.

DeanJ
Posts: 1,786

Posted:

Quote:

Posted By ElleN on 01/24/2026 6:48 AM

Which post suggested this HOA pay a board member to perform recycling?

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