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SueW3 (Colorado)
Posts: 14
Posted:
When is it OK for homeowners to do maintenance work around property? Our HOA is despirately trying to keep HOA dues as low as possible. We have some very qualified, capable homeowners who would like to volunteer their time doing minor maintenance repairs, i.e., fixing gutter downspouts, providing labor for the addition of landscape rock and mulch, repairing fence pickets, minor painting. Is there a liability issue or other problems that would make this an unwise decision?
JohnK3 (Pennsylvania)
Posts: 967
Posted:
Sue,

The three of us on our BOD, along with the occasional Member, do some stuff in/for our HOA to keep costs down. We don't consider possible liability issues as a reason not to. Others might. But if you're comfortable with the skills of your volunteers (and God bless 'em for stepping up), I'd say have at it.
DonnaS (Tennessee)
Posts: 5,671
Posted:

Sue,
I have to agree with John,

This liability B.S just is way too often used. Why cannot a HO fix a downspout, spread some mulch and replace a lightbulb. Most reasons for budgets in HOAs are so inflated is the cost of doing such simple jobs such as those. Of corse we don't want the sick, elderly or physically unable people out there but when there are big surley type guys in the community who want to do these simple tasks to help keep costs down, then God Bless them and give them some praise.

Another example, our Master Gardeners volunteer on a daily basis at churches, schools, community places and all kinds of charity situations without the fear of liability rearing it's ugle heads. Have many of us gotten hurt doing these tasks. Of course we have. Part of life is cutting yourself, dropping something on your foot or just perhaps being careless. DUH! Life cannot continue to function as we have been doing with this lawsuit creature staring at us at every turn. Grab the bull and go for it. Down with lawyers!(at least the ambulance chasers)
SueW3 (Colorado)
Posts: 14
Posted:
Thank you for your responses and support - all in all our homeowners get along great and love to chip in. However, one homeowner who does have contractors liability insurance and has done a lot of work for us in the past (which he gets paid for) is threatening that homeowners without insurance cannot do work for the HOA - even small repairs(of course, it takes work away from him).
Thanks again in advance for any responses.
JohnK3 (Pennsylvania)
Posts: 967
Posted:
I'll bite. What exactly is the contractor/HO threatening?
DonnaS (Tennessee)
Posts: 5,671
Posted:

Sue,
HUH? He can threaten all that he wants but as long as none of the workers are getting any compensation, he is just blowing smoke. GEEEEZ!!
SueW3 (Colorado)
Posts: 14
Posted:
Nothing specific yet. He used to be a board member. He confronted one of our homeowners who was helping out with a small odd job that the ex-board member was paid for in the past. The confrontation was enough to convince the volunteer homeowner to say he didn't want the harrassment and wouldn't do any more volunteer work till this was resolved.
DonnaS (Tennessee)
Posts: 5,671
Posted:

I almost could have known that it would be an ex Board member. There should be a law that all exes have to sign a silence agreement.
MicheleD (Kentucky)
Posts: 4,491
Posted:
I would say that as long as the work is not something that requires a specific license or bond or something to do, I'm not getting his point.

MaryA1 (Arizona)
Posts: 7,043
Posted:
I think his "point" is that he doesn't like potential work being taken away from him.

Frankly, I see nothing wrong with members pitching in and doing little things around the community. In my former assn we had a "crew" of members who were always willing to lend a helping hand. There was never any mention of "liability" should someone get hurt; in fact, I know no one would ever have blamed the HOA if there was an accident.

This guy needs to be told to stop spreading falsehoods and if he doesn't he can rest assured he will never again have a paying job with the HOA!
SueW3 (Colorado)
Posts: 14
Posted:
Aside from the ex-board member harassing the volunteer, if there were no conflicts, is there a LEGAL reason not to allow those who want to volunteer their time and energy to the community?
KevinK7 (Florida)
Posts: 1,343
Posted:
My County actually awards grants to neighborhoods and actually has a preference for associations that use volunteer labor to stretch their dollar a bit. They go as far as to state so in the application process...

This guy is probably upset he's not getting the business. If you want to get under his skin, tell him that the HOA will be accepting bids for some of the minor repairs around. If he could beat free, then give him the job!
MicheleS3 (Florida)
Posts: 30
Posted:
We have a beautification committee. There are only 3 of them, but they share the responsibility for doing some things around the community, like cleaning trash from the canals, upgrading the entrance with plants and mulch. We can't afford to have the landscaper do those things. He does the mowing, edging, etc., but that's it.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Kevin,

My City has a neighborhood grant program that also requires a certain amount of what they call "sweat equity" when applying for a grant. Part of the application process that is required is to survey the members asking how much sweat equity they can perform.

As someone else mentioned, using "liability" as a reason for not letting members help out is plain ridiculous. The members freely volunteer, but just in case, the assn carries liability ins.
BrianB (California)
Posts: 2,820
Posted:
things to put in your legal folder:

a signed agreement from the volunteers that they have their own insurance, and absolve the HOA from liability.

a clear, plain language statement that no money or renumeration is exchanged, this is all free/voluntary, signed by volunteers

and a copy of some common sense "volunteer rules" that they should follow/be discussed: ie, follow mfg rules on ladder use, report any unsafe conditions to the HOA board, do not do more than capable of, watch for electrical/water, stay away from power lines, never work on "live' electrical circuits, etc.

these won't shield you absolutely from a lawsuit, but they will HELP, they document your HOA professionalism, and honestly, the little training page/form/tips, signed by the volunteer, often opens their eyes to the fact that they COULD get hurt doing something wrong, and that the HOA cares enough about them to want them to do it right.
MicheleD (Kentucky)
Posts: 4,491
Posted:
Quote:
Posted By BrianB on 05/14/2009 9:50 AM

these won't shield you absolutely from a lawsuit, but they will HELP, they document your HOA professionalism, and honestly, the little training page/form/tips, signed by the volunteer, often opens their eyes to the fact that they COULD get hurt doing something wrong, and that the HOA cares enough about them to want them to do it right.

. . . and possibly some verbiage about property damage?
JohnK3 (Pennsylvania)
Posts: 967
Posted:
Brian,

If I volunteered, or was asked to volunteer, and I was presented such a document, I'd reply "Thanks, but no thanks." As I would venture most others would. Plus, as you noted, same really doesn't provide insulation from liability should something bad happen. While I understand your position, having folks jump through hoops that might scare them off is counter-productive and unnecessary.

DonnaS (Tennessee)
Posts: 5,671
Posted:

I just might agree with John on this. It scared me just to read it and I don't even have to sign it. Overkill? Putting mulch down or pulling weeds just does not seem like hazardous duty to me. I know about that "you just can't be too carefull" thing but signing a piece of paper would probably not stand up in any court either.
DorothyO (Washington)
Posts: 293
Posted:
Sue,
Just don't pay your members anything AT ALL and you will be fine. Any form of compensation will move them from volunteer to employee which is a whole other can o' worms.

You should, however, confirm with the association's insurance agent that the association's policy includes coverage in the event a member subjects the association to liability. Ultimately, responsibility for operating and managing an association rests with the HOA's BOD, whether it hires a management company or is self-managed. Therefore, a board does not escape its exposure to liability when it "hires" or accepts volunteers for services rendered. As a board or its members are not automatically insulated from liability when it relies on the advice of a management company in making a decision that affects the association, it may still be liable for a breach of fiduciary duty on mismanagement or non-management grounds if the board fails to exercise adequate supervision, or failed to monitor the delegated matter through self-management.

I know I do a bunch of work around here as President, but when a homeowner, just yesterday said he "used to be an electrician," and could fix our lawn sprinkler's transformer, which had just blown, I said, "Thanks, but no thanks." Our lawn guy ordered the part and installed it which is exactly what our dues are for. So, a combination of paid/volunteer, a signed volunteer form/HOA's insurance should keep your 'hood happy, sassy and groovin!

As for the disgruntled ex-board member, make sure he doesn't have a case in that you are using unlicensed, volunteer work for work that requires a licensed contractor.

Dorothy
MaryA1 (Arizona)
Posts: 7,043
Posted:
Sue,

I agree with John & Donna regarding Brian's proposal. The members who volunteered to do little landscaping jobs (pull weeds, rake granite areas, clean up trash, etc) did so voluntarily and I really believe they would never have thought to blame the assn if they'd been injured while doing this work. Everyone was very willing to help out. When, at a board meeting, it was announced that several vacuum breakers had been stolen and the assn was researching the cost to install cages, several members volunteered to build the cages. At that point in time we were very luckly to have a number of members who were willing to do anything that might come up. If they had been asked to sign a waiver, such as the one Brian proposed, they would have been turned off completely.
SueW3 (Colorado)
Posts: 14
Posted:
Thank you all for your responses - very, very helpful.

One last question: one gentleman has done a lot of volunteer work around here - if we were to pay him what's the "can of worms"? Our liability?
Thanks again!
AnneH2 (Florida)
Posts: 82
Posted:
When the boat is taking on water, every bucket should be welcomed.

While I don't think that liability issues should be ignored, it seems to me that sometimes logic should trump liability. What if a dead tree limb is hanging over a walkway and no money for removal? Should an HOA leave it be due to lack of funds for professional removal or should members remove it? Small example, but very real at many HOAs during this time of high foreclosures and unpaid assessments.

In the worst case scenario- I would hope that common sense would hold some weight in court. Intent should count for something.
BrianB (California)
Posts: 2,820
Posted:
sue, if you pay someone, depending on the amount and the service, you could open some of the following worm cans:

Tax liability with IRS
WOrkman's compensation issues
you could become an employer, and subject to employment laws (Cal OSH, for example, in California)
recordkeeping
favoritism charges
local ordinances regarding bonding, work without bond, licenses, etc.

SueW3 (Colorado)
Posts: 14
Posted:
Got it. Invaluable information - thank you so much!
KirkW1 (Texas)
Posts: 1,665
Posted:
I would recommend that you call your insurance agent. They can tell you what you are covered for and what additional coverage you may need. Discuss the possibility of paying a resident for some of his time.

But unless the resident is struggling (or laid off), I would suggest that you may have a better option. Buy a small gift, print up a certificate of appreciation and recognize his efforts. A small gift is not considered income or payment.

I would suggest that when it comes to dealing with areas such as electrical you don't open the door to just anyone. If you have a qualified electrician in your neighborhood that is one thing. (We do have one who has helped us.) But generally you must have credentials to legally work on the HOA's electrical items. If you aren't sure call the department who issues building permits. Most are quite happy to give you guidance.
AnnJ2 (Colorado)
Posts: 120
Posted:
As an Association Management Supervisor in colorado we deal with this regularly. Here is the scoop. The Association must carry Worker's compensation insurance (not expensive) to cover the association's liability in colorado, usually runs about $365 per year. Second, volunteers cannot be compensated for "labor" but may be reimbursed for out of pocket expenses. If they are compensated for labor they are employees and the association must pay all those ugly taxes and if paid over $600 in your fiscal year file the appropriate tax reports (1099). If they are compensated and not dealt with as employees, they must be a sub-contractor which requires a contract and yes they must carry their own business liability insurance. the above statements are all predicated on the assumption that any volunteers are acting at the behst of or at the direction of or with the consent of the board of directors/managers or the management company.

If we are talking about a resident who fixes a tip out or pounds in a nail etc. on his own home and it is not at the direction of the board you are relatively safe. but you should still get the worker's comp insurance for protection if there is ever an injury. the cost is certianly justified if the board is actively aware of the situation and even if it does not encourage it the board acknowledges the work being done.

I may sound like a nay sayer but let one of your volunteeers fall off a ladder and break his neck and be paralyzed and watch just how quickly you get a claim from them for injury and damages.

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