Conflict of Interest

Started by ErrolA • 5 replies • 1660 views

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ErrolA (Texas)
Posts: 19

Posted:

In continuing the discussion regarding the individual water meters in our subdivision, is there a conflict of interes of the HOA to read the meters for billing purposes? We are a self managed HOA. Our subdivision is private property. The city of Houston reads their own meter, but will not read each individual meter as they will not provide billing services for the homeowner meters.

GlenL (Ohio)
Posts: 5,491

Posted:

First off, do your CC&R's allow the HOA to change from a master meter to individual ones? Have you checked with Houston Water to see if this is allowed and if it will change your rate from residential to business since you are in effect reselling the water they provide?

My best advice is to turn this mess over to the HOA attorney and let them sort it out. I have spent many years in and around city government and I can't begin to tell you how many times I've seen people try to navigate the bureaucracy on their own or say just the wrong thing in their effort to be helpful to the nice bureaucrat to get something approved and found themselves behind the eight ball.

Studies show that 5 out of 4 people have problems with fractions

SusanW1 (Michigan)
Posts: 5,202

Posted:

Are you getting ONE master bill from the municipality?

Sounds like these are HOA meters (not city installed and/or monitored)

It will be more of an administrative hassle than anything else. You have to make sure that the total of all the income received meets your one master bill.

The HOA is still responsible for meeting the municipal invoice.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Errol,

First of all, I must say I think it was a stupid plan. As a self-managed assn, why would they even consider all the additional work stymies me.

As for a conflict of interest, I can't see where one would exist. A conflict of interest generally means the person with the conflict stands to gain monetarily from the transaction. Even if the bills sent to the members bring in more than the actual bill from the City, the assn might have a financial gain but not one individual person.

KirkW1 (Texas)
Posts: 1,665

Posted:

To answer your question, no it is not a conflict of interest. A conflict of interest is when one in power uses that power to the benefit of his/herself. If the HOA puts in meters, then they must also read the meters (or pay someone to do so).

I will not tell you it is stupid because I don't know your circumstances. I can say I would never buy where there were not meters on each house. Just something about being billed for what my neighbor uses. I like that I pay the consequence of my wasting water (or saving from my conservation).

ErrolA (Texas)
Posts: 19

Posted:

Thanks Kirk.

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