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JeffC6 (California)
Posts: 1
Posted:
Hi All-

Our Condo Association recently got up and running with their first election of the HOA Board of Directors. Owners occupy about 80 of the 130 total units. One of the individuals who ran for the board, as a homeowner, is an employee of the developer. This employee of the developer serves as the design center consultant in our building. In our initial board election the developer had the majority of votes and casted enough votes in favor of this individual serving on the board. However, as a condo owner, I see a direct conflict of interest with this individual attempting to be in favor of the homeowners but working for the developer.

I was wondering if there is a legal precedence for this or just an ethical dilemma?

A recent example of this conflict of interest was discovered by a board member who was requesting documents from the Property management company. The board member asked the property management company for tracking information related to Key distribution, FOB Distribution, and Garage Door Clickers. The board memberwas told that the management company did not have a current roster since one of the developers computers was stolen from the sales office. The sales office is currently one of the commercial spaces at the bottom of the condo building. The computer that was stolen, which contained homeowner names, key #s, fob#s, and garage serial codes, was the employee of the developer's computer who is also on the board. This individual did not inform the HOA, which he is a member, that his computer was stolen and contained what some would consider to be personal information. The property management company did not notify the board president since they assumed he was a board member and would tell the board. I am not sure if this is gross negligence or incompetency. What, if any, responsibility does the HOA have to notify homeowners that this computer was stolen which had their names and unit numbers??

Thanks for your thoughts.

SusanW1 (Michigan)
Posts: 5,202
Posted:
You said: "I see a direct conflict of interest with this individual attempting to be in favor of the homeowners but working for the developer."

Is that the best reason? If he stands to gain monetarily ($$) or put himself at an advantage, then there could be a conflict of interest. How could he do this?

RE: the stolen computer. Your PM should have alerted the president of the board. What is being done to gather the needed information now? Why no back-up of this very vital information/

MicheleD (Kentucky)
Posts: 4,491
Posted:
Quote:
Posted By JeffC6 on 11/16/2008 7:18 PM
I am not sure if this is gross negligence or incompetency.


I'm thinking: Gross embarrassment?

Quote:
Posted By JeffC6 on 11/16/2008 7:18 PM

What, if any, responsibility does the HOA have to notify homeowners that this computer was stolen which had their names and unit numbers??


This could be a very expensive proposition; you may want to have the developer check into his insurance.f

I would personally like to see the HOA replace the Key Fobs, the Keys, and reset the codes.

Which by default means that the entire membership be alerted to the theft.

This should probably be done sooner rather than later.

KirkW1 (Texas)
Posts: 1,665
Posted:
I don't get how you believe there is a conflict of interest. First, his employer represents 38.5% of the membership. But also, you said he is a resident. For the most part, the interests of your community and those of the developer should be the same.

Actually the fact that one of the developer's employees bought a unit in the community speaks well to me.

As for the lost (or stolen) computer, what data was involved? Especially in California there could well be disclosure laws. And being caught violating the law will surely not make it cheaper once penalties are figured in.

If the data was limited to what you said, then I don't really see the big deal. There really isn't much that can be done with just that information. The big issue that I see is that you have to collect that information again. And with 80 units occupied, I would be surprised if you don't have to turn off access to at least one of the residents to get them to respond to what they are using.

Along that line though, what you mention is exactly why many large companies are going to whole hard drive encryption on all computers. It will protect the data involved with no real impact on daily use. Also, all data should be backed up.

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