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KatL (Alabama)
Posts: 19
Posted:
Is it common for the President of a Condo Association have his/her monthly HOA Dues waived? This is not reflective of the Declaration documents? Thank you very much for your input.
GlenL (Ohio)
Posts: 5,491
Posted:
No, usually somewhere in the CC&Rs will be the statement that the Board will serve without compensation.

Studies show that 5 out of 4 people have problems with fractions
DanielH1 (California)
Posts: 482
Posted:
In my last HOA, the President/Property Manager and the Treasurer/Bookkeeper had their HOA dues waived. I was the Secretary/nothing so I had to pay full fees. I was perfectly happy with this arrangement: I had no wish to do property management nor bookkeeping.

Eventually, these positions voluntarily changed dues to half fees and then finally full fees (no compensation).

My current HOA has a "no compensation" clause. Instead, we pay a Management Company which costs way more than waived dues. The Management Company services multiple clients, not just one, and has no vested interest since they don't live in our complex. Whenever we talk about self-management, I tell the Board: "Forget it. I ain't doing property management and/or bookkeeping for free and I know none of you guys will, either. You'll just lie and then neglect the work."

While I can appreciate the lofty ideals of the "no compensation" clause, it costs more, not less. I think that it is one of the most stupid and naive clauses in HOA documents these days.
RichardP13 (California)
Posts: 1,767
Posted:
If dues are waived for individuals on a Board, then it must be reported as income to the IRS and to their respective states (if applicable).
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Most HOA's have no compensation for their officers, but as other said, you get what you pay for.

Its better for everyone to pay dues, and then cut them a check. This way your association shows the correct income levels and the next president cant go after the old president for not paying dues as required in your CCRs.

Hire them as a contractor or consultant, with a payment each month equal to their dues, or more, or less depending on how much you value their service.
MicheleD (Kentucky)
Posts: 4,491
Posted:
Daniel, I don't care what your other officers want to call themselves, or what "duties" they did, if your governing documents specify that the board positions are non-compensatory, then what was done was illegal, not to mention unethical, and that you didn't mind has no bearing on the issue.

It also makes no difference if a property management company "costs" more than waived assessments.

A resident/member volunteers for the position on the board, and with that comes the work that the board member is expected to do, uncompensated.

If the board member does not want to do that without "fees," then he/she should step down.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Steve said:

"Its better for everyone to pay dues, and then cut them a check." An adjusting entry could be made to debit contract labor and credit assessments, but Steve's suggestion is, by far, the "cleanist" way to handle it.

Of course it all hedges on what the gov docs and/or state law say. Actually by just waiving the assessments, two HOA rules may be violated. Most CCRs state that assessments are to be levied on ALL members and most bylaws state officers and directors may not be compensated. Waiving dues for an officer/director is the same as being compensated.
TimB4 (Tennessee)
Posts: 21,062
Posted:
KatL,

It's usually best not to waive assessments on anyone (fines, interest, late penalties are at the discretion of the Board). Most Association documents require annual or special assessments to be applied equally to each lot. Waiving an assessment for one and not another opens the Association up to litigation - mainly because of the perception it can create with the membership.

That said, I could find nothing in Alabama law that would prevent compensation to members of the Board. Therefore, it would be up to the language in your governing documents as to if it is allowed or not.

If compensation is allowed, it should be fully disclosed and payed as an expense to the Association (as Steve suggested) and not as a waiver of assessments.

Tim
DanielH1 (California)
Posts: 482
Posted:
Michelle needs to read more carefully. My last HOA did not have a "no compensation" clause but my current one does.
MicheleD (Kentucky)
Posts: 4,491
Posted:
Quote:
Posted By DanielH1 on 04/28/2010 4:25 PM
Michelle needs to read more carefully. My last HOA did not have a "no compensation" clause but my current one does.

I can read just fine. Daniel needs to write more clearly, and also take his own advice to read more carefully.

First, you do not make it clear at all that your first HOA did NOT have a no compensation clause. What you wrote was very vague in that regard. I read it a couple of times and it was not clear at all.

Which is why *I* wrote my response as follows:

"Daniel, I don't care what your other officers want to call themselves, or what "duties" they did, if your governing documents specify that the board positions are non-compensatory, then what was done was illegal, not to mention unethical, and that you didn't mind has no bearing on the issue."

So, as you can see, I purposely qualified my comment with *IF* . . . .

You're welcome. . . . .
DanielH1 (California)
Posts: 482
Posted:
Michelle, you skipped the point of my post to throw out baseless accusations. You can't hide behind "if".

Your subsequent post shows that you lack civility as well.
MicheleD (Kentucky)
Posts: 4,491
Posted:
Quote:
Posted By DanielH1 on 04/28/2010 4:51 PM
Michelle, you skipped the point of my post to throw out baseless accusations. You can't hide behind "if".

Your subsequent post shows that you lack civility as well.

I'm not "HIDING" behind it. It's completely paramount to my post.

On the other hand, your initial post was so vague it was not possible to determine if the first instance you were referring to involved a non-compensation clause.

Hence, my IF. . ..

Your own posts lacks civility by accusing me of having reading problems.

You dish it out, but you can't take it when it's posted right back to you.

My "accusations" are completely on target and not baseless.

Please read my post again: IF...... THEN.

Stop hiding behind your own lack of reading skills.

Or did you just want to jump at a chance to poke me?
DanielH1 (California)
Posts: 482
Posted:
Yet another thread hijacked by The Michelle Show.
MicheleD (Kentucky)
Posts: 4,491
Posted:
Quote:
Posted By DanielH1 on 04/29/2010 9:55 AM
Yet another thread hijacked by The Michelle Show.

Ad hominem, much?

Don't forget your contribution to the "hijacking."

The fact is your direct reply to ME was an attempt to take a slap at me, and was not helpful to either the original poster or others who may read this thread for important information regarding waiving HOA board member dues. And you slap was not only unwarranted, but WAAAAAY off target.

My entire point in posting the reply that I did regarding the *IF* you are so hinky about was a direct result of your own vague and ambiguous response and advice regarding waiving the assessments of officers/directors.

Someone reading it who did not already know the little tidbit in your own head as you were writing it, but that you failed to clarify point-blank in writing the post (that the HOA did not have a non-compensation clause) could be disastrous to someone who felt they, too, would only need to have the officer/director do some "bookkeeping," then maybe another do some "project management", then the OTHER board member give a thumbs up saying "s'okay, by me."

Without specific clarification that such a scenario would only apply in a very narrow circumstance (no non-compensation clause in the documents), an HOA neophyte might get themselves into deep doo-doo because of it.

That's why I posted my response the way I did. It was not directed TO YOU, it was directed to OTHERS who may have read your material and either be confused or not be aware of what they actually don't know. (and that is they cannot simply waive dues if their documents specify no compensation for directors/officers).

The SINGLE MOST IMPORTANT part of my reply, then, was the *IF* -- and I was very specific in the way I phrased it so that people could not think they can have any wiggle room on the non-compensation IF THEIR DOCUMENTS CONTAIN A NO COMPENSATION CLAUSE.

Period.

My post above ended addressing that issue and that issue only.

Your post began as an attempted slap-shot at me personally.

Then you decided to slap me around a second time claiming my *IF* was something to "hide" behind. Which, frankly, doesn't make any sense, either.

The other posters in this thread also contributed very important material and advice regarding the waiving of fees, whether there is a non-compensation clause or not, such as it would or should be counted as income and reported to the IRS, or if the documents required that ALL lots carry the SAME rate of assessment, and offered suggestions to do such a thing cleanly, if the individual's documents allow for it.

These posts and threads aren't games for many people. We may have light-hearted fun from time to time between some of the more senior (in time posting, not necessarily age), but we always have to be careful of what we say when we are imparting advice.

I admit that sometimes I am guilty of not providing enough clarification or jumping to conclusions based on faulty information, or simply interpreting something the wrong way.

But this thread wasn't "hijacked" until YOU wanted to get PERSONAL with ME. Own it.

RobertR1 (South Carolina)
Posts: 5,164
Posted:
Michele, As you know this comes up every so often and we get the same mixed response. Maybe this is why: We are trying to apply some sort of decree on a moving target. Those that have posted here for a long time know that what we say should be tempered to reflect what is best for most associations. Of course we get carried away at times, but this particular item seems to have more than one answer. I think you will agree if you are going to look at all the active HOA's and try and predict whether they should pay their directors or not, and we wanted to do the most good we would say....no pay, no benefits.

If we could have privy to each individual HOA and had enough information we may well say pay these directors, for what ever reason.

So in our shotgun method of opinion givers we are going to be correct more times if we say.......no pay, no benefits.

After all it is unknown who is taking our opinions as gospel. Maybe no one, if so, we are out of business.

We could also paraphrase Groucho Marx: "I wouldn't belong to an association that paid me to be a Board Member".
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
[IMG]http://i43.tinypic.com/wqwqkn.jpg[/IMG]
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
train

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