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DougS5 (California)
Posts: 3
Posted:
Our HOA's General Manager recently quit and the Attorney has taken over the position. Does this present a conflict of interest? I can see situations when as GM the person might use their HOA Attorney position to justify actions.
HaroldS (Arizona)
Posts: 906
Posted:
Oh Boy. Second recent posting of an attorney's immediate involvment in an HOA. I wonder why?
RogerB (Colorado)
Posts: 5,067
Posted:
Doug, I would seriously question why the Board of Directors allowed an attorney to manage. Doesn't appear to me that they used good business judgement.
DougS5 (California)
Posts: 3
Posted:
I think that the frequent turnover of the Board, most serve only a 3-year term, leads to their relying on the Attorney's judgement and opinion. The problem is now the Attorney has control over practically all apsects of the operation of the association.

BTW, our HOA, and I'm not bragging, is one of the largest in the country with over 6,000 property owners.
JosephW (Michigan)
Posts: 882
Posted:
At the size of this association, GM is basically an administrator, and it sounds like the board thinks the attorney can administer the day-to-day activities. I don't think its a conflict of interest. Only time will tell if it was a good decision. It's going to depend on the skill set of the individual.

Also, you didn't indicate if this was gong to be permanent. Could it be possible that the attorney is only handling it until the board can do a better search? As the manager quit, they probably left with less notice than a board needs to find a suitable replacement, or they may want to take some additional time to look at what is really needed in the position.

I recently talked to a management company owner that had taken over the account of a 13,000 home master association, They went through 3 of their best managers in 18 months. Finally hired a former city administrator, who could handle the politics as well as the admin. Understanding what is needed in the position and then matching a person to that is hopefully what the board did or is doing.

I'm not going to second-guess the board, but it wouldn't hurt to talk them about the why's and wherefore's of the decision. If the best they can answer is that the attorney was available and "knows" the association, I'd start asking a lot more questions about job descriptions, evaluations, what kind of search did they do, etc.

Joe

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HaroldS (Arizona)
Posts: 906
Posted:
Roger is correct. Very poor business judgment. Joseph, I don't know how you can say it is not a conflict of interest. As manager, he can control violation notices, and as attorney, he can collect on those unpaid violations, adding his attorney fees (or give them to a crony or business partner.) Seems like the fox guarding the hen house.
JosephW (Michigan)
Posts: 882
Posted:
Not enough information to state one way or the other. And a lot of associations use their attorney to send out all violation notices and then collect if necessary. Management companies find violations, send them out and collect, but this isn't a conflict. I just don't like condemning something on so little information. Which is why I suggested finding out more.

Joe

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Community Associations Network, LLC
www.CommunityAssociations.net

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DougS5 (California)
Posts: 3
Posted:
Joe is right that the Attorney has been with the association for a long time and does know and understand operations inside and out. And that is the main reason why the Board chose him to be General Manager. As far as I'm aware it is not a temporary assignment.

My concern is that recently, acting as the association attorney, he may be withholding information regarding land use deals struck with a neighboring properties. Making it feel like he has perhaps too much control over the operations of the association. However forcing him to resign from the General Manager position would not necessarily effect the issue of withholding information.

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