1. Conflicts of InterestPosted by Noel 06-10-2024 10:44 AMHello all,I am curious to see if others have come across situations where a board vote is needed, which could lead to a potential conflict of interest of a board member. Additionally, how the situation should have / could have been handled. Let's take for instance, a situation involving a retention pond which is on the private property of multiple homeowners. Let's assume that the governing docs do not specify that the homeowners association owns the maintenance of that pond. Instead, it calls out that a sub HOA be formed and own the maintenance.
Let's assume that several of those homeowners with property tied to the pond sit on the main HOA board. What if a motion comes about suggesting that the main HOA pay a portion of the maintenance - for various reasons. This potentially creates a conflict of interest when those board members who also own property associated with the pond.How have you, how should we and how should the board members handle this sticky situation?If it were me, I would abstain from voting since I would also personally benefit from the motion. Opening for thoughts and comments…Also, make today a great day - do something kind for a fellow human being! Noel
2. RE: Conflicts of InterestPosted by Connie 06-10-2024 08:47 PMMy practice for years, okay'd by a trusted attorney, fairly easy, and simple: should there appear to be any personal (family or partner) benefit from a decision, recuse self from anything to do with the topic, consideration, and/or decision. Better to be the one who does when not needed than the one who should have but didn't when needed. 3. RE: Conflicts of InterestPosted by Jim 06-10-2024 09:22 PMNoel, was a sub-association ever formed to manage the retention pond? How many owners own land on which this pond is situated?I suggest that your board establish a Conflict of Interest policy that can guide you all on these issues. Here is ours. I'm not really fond of it, but it's better than nothing. Connie's suggestion is very good. You should have something like this which is compliant with Georgia statutes. 4. RE: Conflicts of InterestPosted by Dave 06-11-2024 06:25 PMI've also seen situations where you can declare the conflict of interest and then abstain OR VOTE! Roberts Rules can guide you on this and perhaps Brian Pelke or another of our wise parliamentarians on here can assist. 5. RE: Conflicts of InterestPosted by Aldo 06-11-2024 09:58 AMI don’t see it so much as a conflict of interest. The action will be to revise the governing docs to make the larger homeowners association maintain the pond. Such a change to the governing document will require a majority vote of all owners and that would be the check balance on the Board. 6. RE: Conflicts of InterestPosted by Eileen 06-11-2024 10:00 AMWe have a retention pond in our HOA. It is owned by a HOA member and a church not in the HOA. The community rain water drains into this pond. The covenants state the owners can't swim, boat use a fountain, alter the bank etc. Previous Boards called it a landscaped area and refused to mow to the edge. The owners in the HOA cleaned the pond by removing over growth of cattails and lily pads and followed aquatic maintenance via IDEM.when I joined the Board, We asked our CAI attorney to review the covenants in regard to the pond maintenance. Who is responsible for dredging it, maintaining the riser etc. The City of South Bend sent me a letter stating the HOA water flows into the pond and they didn't believe the riser needs a lid. There is a safety issue there. it was determined that the HOA must mow to the waters edge and the owners can maintain it to avoid the green scum stuff and overgrowth of lily pads etc. It has yet to be determined who pays to dredge it. Good luck with your pond issue. 7. RE: Conflicts of InterestPosted by Robert 06-11-2024 10:05 AMThe way you describe it sounds like the sub HOA is mandated by the covenants. If so, it would be a violation of the covenants to bypass the intent of the sub HOA's purpose and assign financial responsibility to the main HOA. Such a change would need to be approved according to whatever is needed to amend the covenants. Sounds like the board may be overstepping its authority.
Let's assume that several of those homeowners with property tied to the pond sit on the main HOA board. What if a motion comes about suggesting that the main HOA pay a portion of the maintenance - for various reasons. This potentially creates a conflict of interest when those board members who also own property associated with the pond.How have you, how should we and how should the board members handle this sticky situation?If it were me, I would abstain from voting since I would also personally benefit from the motion. Opening for thoughts and comments…Also, make today a great day - do something kind for a fellow human being! Noel
2. RE: Conflicts of InterestPosted by Connie 06-10-2024 08:47 PMMy practice for years, okay'd by a trusted attorney, fairly easy, and simple: should there appear to be any personal (family or partner) benefit from a decision, recuse self from anything to do with the topic, consideration, and/or decision. Better to be the one who does when not needed than the one who should have but didn't when needed. 3. RE: Conflicts of InterestPosted by Jim 06-10-2024 09:22 PMNoel, was a sub-association ever formed to manage the retention pond? How many owners own land on which this pond is situated?I suggest that your board establish a Conflict of Interest policy that can guide you all on these issues. Here is ours. I'm not really fond of it, but it's better than nothing. Connie's suggestion is very good. You should have something like this which is compliant with Georgia statutes. 4. RE: Conflicts of InterestPosted by Dave 06-11-2024 06:25 PMI've also seen situations where you can declare the conflict of interest and then abstain OR VOTE! Roberts Rules can guide you on this and perhaps Brian Pelke or another of our wise parliamentarians on here can assist. 5. RE: Conflicts of InterestPosted by Aldo 06-11-2024 09:58 AMI don’t see it so much as a conflict of interest. The action will be to revise the governing docs to make the larger homeowners association maintain the pond. Such a change to the governing document will require a majority vote of all owners and that would be the check balance on the Board. 6. RE: Conflicts of InterestPosted by Eileen 06-11-2024 10:00 AMWe have a retention pond in our HOA. It is owned by a HOA member and a church not in the HOA. The community rain water drains into this pond. The covenants state the owners can't swim, boat use a fountain, alter the bank etc. Previous Boards called it a landscaped area and refused to mow to the edge. The owners in the HOA cleaned the pond by removing over growth of cattails and lily pads and followed aquatic maintenance via IDEM.when I joined the Board, We asked our CAI attorney to review the covenants in regard to the pond maintenance. Who is responsible for dredging it, maintaining the riser etc. The City of South Bend sent me a letter stating the HOA water flows into the pond and they didn't believe the riser needs a lid. There is a safety issue there. it was determined that the HOA must mow to the waters edge and the owners can maintain it to avoid the green scum stuff and overgrowth of lily pads etc. It has yet to be determined who pays to dredge it. Good luck with your pond issue. 7. RE: Conflicts of InterestPosted by Robert 06-11-2024 10:05 AMThe way you describe it sounds like the sub HOA is mandated by the covenants. If so, it would be a violation of the covenants to bypass the intent of the sub HOA's purpose and assign financial responsibility to the main HOA. Such a change would need to be approved according to whatever is needed to amend the covenants. Sounds like the board may be overstepping its authority.