Blanket Purchase Agreement

Does anyone know of any HOAs that are using blanket Purchase Agreements where the HOA mandates that the homeowner use one of the contractors that are part of the BPA? Not that I'm an advocate but someone had mentioned to me that this was catching on and that a lot of HOAs are going in this direction? Has anyone heard of this in Virginia or any other state?

Our Declaration of Covenants & Restrictions contains the following:
TRASH COLLECTION The Declarant or the Association may determine that all household trash pick up shall be performed by one designated trash hauler, the cost of which shall be payable by the lot owner.

The community has had a single trash hauler for over ten years. There have been no complaints. The benefits are a significant discount and only one trash truck comes through the community once a week.

We are looking into working out a good discount with a single propane supplier, but this would not be mandatory.

Mike,

Do your docs state that owners must use companies on the BPA list? Have you seen minutes in which the board voted for this list? It sounds fishy to me.

Mike,

This would definitely be against the law for a cable provider. The FCC Rule FCC-07-189, Exclusivity Clase for Video Services, explicitly prohibits any cable provider from doing this.

But as for the policy, I don't think it's one that should be adopted, or even considered by the HOA. Only if the HOA is paying for the services being provided should they dictate who the service provider shall be. Just my opinion, of course.

Could someone explain WHAT would be covered? Preferred landscapers or plumbers? If not trash haulers or cable providers, then what?

I think that trying to compare an approved contractor list to the practice of purchasing trash removal is a very long stretch.

Generally if the HOA an get services provided at a reasonable rate then it makes sense to do so. And I would be in favor of the HOA trying to negotiate with one or more contractors for a preferred rate. But they need to do so with no promises of how things will work out.

In our current climate, there is a good chance that some contractors would be willing to cut a good rate to owners of the association in return for having their name put out as doing such. But it should be a voluntary thing. And if enough business comes that way then the contractor is likely to continue to offer the deal. But it should remain voluntary.

I find it amazing just how often I hear of BODs feeling like they should parent the entire organization.