The reading of a community association’s election results can be filled with mixed emotions ranging from anticipation, to worry, to excitement, but those members elected to the board of directors generally are eager and optimistic to make positive changes within their community. Unfortunately, dealing with a multi-member board of directors can have significant challenges, and […]
HOA Codes of Conduct and Why They Are Unenforceable
Codes of Conduct are all the rage in HOAs and condominium communities. Some associations are even attempting to insert these Codes of Conduct into their bylaws, declarations, and other governing documents. There’s just one major flaw with Codes of Conduct — they are invalid and unenforceable. Read the article…………………………….
Board Member Code of Conduct (FL)
The law specifically provides that Board members have a fiduciary relationship with the owners and requires Board members to disclose conflicts of interest. However, the law does not specifically address acceptable (and unacceptable) behaviors for discharging these responsibilities. As such, a Code of Conduct for Board members is a good idea to have so that […]
Codes of Conduct for Association Volunteers (CA)
Generally, board members of common interest developments are volunteers dedicating their time, skills and energy to serve the communities within which they live. Indeed, without these director volunteers, community associations would be unable to properly function. Similarly, committee members are volunteers who work on specific projects within a community. Read the article………………………..
Ethics of Collections (CO)
No one feels good about collections. Board Members don’t relish sending their neighbors to collections. Professionals, be they managers or account techs or attorneys, don’t enjoy it either. However, the reality is that collections is a necessary reality for nearly every Association at some point. Read the article………………………..
The Importance of a Board Member Code of Conduct Policy (CO)
Situations involving conflict are always easier to address and resolve when a prior relationship between the parties has been established. Every time I’ve facilitated a New Resident Orientation with new owners in a community, I have always encouraged them to make it a priority to introduce themselves to their neighbors sooner than later so that […]
A Code of Ethics for Community Associations
In Ohio, community associations are organized as nonprofit corporations. Just as a board for a corporation must be accountable to its shareholders, a community association board must be accountable to its members who have elected them to be responsible for managing the association’s activities. One measure of accountability is for the board to operate ethically. Read […]
When to Use a Code of Conduct for Board Members
Our firm recently received the following question at a free virtual class we were teaching… “We have a candidate running for our Board who previously served on the Board. This candidate was asked to leave the Board at that time for engaging in unprofessional behavior. What can we do if this person is elected to […]
HOA Board Members Ethics Model
Leaders of organizations, corporations, and governments should abide by a set of ethical standards when performing their duties. This also applies to volunteer leaders of homeowners associations. Here is your guide to HOA board member ethics. Read the article………………………..
DIRECTORS’ STATUTORY STANDARDS OF CONDUCT—PROTECT YOURSELVES FROM LIABILITY! (CO)
When it comes to director duties and obligations, people throw around lots of terms, such as “fiduciary”, “duty”, and “best interests”. But rarely does anyone reference a specific statute, or specific language, in a statute addressing board duties. Read the article………………………..
Good Governance of Residential Associations: Board Member Codes of Conduct
An Association’s board of directors plays a fundamental role in a residential community, and, even though much of the day-to-day operations of running the Association may be delegated to a professional manager, a well-functioning board is indispensable to a well-functioning community. Read the article………………………..
Ask The HOA Expert
Question: A newly elected board is taking over for directors that have been in charge for years. Is it time to audit the books? Read the Q&A……………………………….
Five Most Common Conflicts of Interest for Board Members
Bringing proposals for consideration from a company either owned by a Board Member or relative/close friend. According to the Professional Manager Code of Ethics, ‘Managers shall disclose all relationships in writing to the client regarding any actual, potential or perceived conflict of interest between the Manager and other vendors. Read the entire article……………………………….
Condominium Boards and Ethics: The Top 5 Reasons Your Association Needs a Code of Conduct
All members of a condominium association board have legal duties. These duties include a fiduciary duty of care and a duty of loyalty to act in the association’s best interests. Read the entire article……………………………….
What Does The Code Of Ethics Mean For HOA Board Members
A code of ethics usually referred to as a code of conduct, is much more than a set of rules. The code of conduct of HOA board members explains the key elements you must follow and informs you when you have crossed the line. Read the entire article……………………………….
HOA’s Board Code of Conduct
As a member of a volunteer homeowner association board, it’s important to codify the goals and behaviors an effective director should strive for. It not only serves as a constant reminder for those that are serving but can also help screen out director candidates with hidden agendas. Consider adopting something like this: Read the entire article……………………………….
Does Your Board Have A Set Of Ethical Standards It Follows? If Not, Here’s Why It Should
One of the most important aspects of being on the board of your community association, aside from carrying out the business functions of the association, is adhering to a set of ethical standards. As a board member, you are entrusted with the overall care of the association and are always called to act reasonably and […]
Ethics Starts with You…
The term “Ethics” can sometimes generate different feelings and meanings for different people. However, we usually count on people of high moral character to act virtuously both in public and private. They seek the greatest amount of good for themselves and others. In this way, they are seen as moral decision-makers. Read the entire article……………………………….
The Ethical Dilemmas of Community Association Insurance
The procurement and maintenance of Insurance in the community association industry is shrouded in unique ethical considerations that do not apply to individual insurance consumers. Enter the Community Association Board’s (“Board”) “fiduciary Duty.” This process is imbued with inherent ethical considerations for not only Boards, but also Community Association Managers (“CAMs”), Community Association Attorneys, Community […]
When Does a Board Member’s Financial Interest in a Transaction Cross the Line? (CO)
Board members come from all walks of life and have a variety of connections or expertise that may overlap with the needs of their associations. Sometimes this works to the association’s benefit. It may also work to the board member’s benefit. Any board member who will or may receive a financial benefit or interest from […]
Board of Director’s Code of Conduct (AZ)
A Code of Conduct describes the expectations of board members during, and in some cases after, their service to the community. While many of the issues addressed are already codified by Arizona law, adoption of a written, signed Code of Conduct provides a tangible framework for board members to reference and follow in furtherance of […]
What Exactly Are The Code Of Ethics For HOA Board Members?
A code of ethics, also known as a code of conduct, is more than just a set of guidelines. The HOA board member code of conduct outlines the core principles you must honor and lets you know when you are outside the line of propriety. It gives you a standard that you can use to […]
Code of Ethics: Does Our Community Need One? (FL)
While some may believe that a “Code of Ethics” or “Code of Conduct” is nothing more than a policy advising fellow owners how to conduct themselves like adults – and, make no mistake, it serves that purpose quite well – every community association needs one. Read the article…………………………………….
Condo questions: What constitutes a conflict of interest regarding an HOA board member? (FL)
Q: What constitutes a conflict of interest regarding an HOA board member? I have issues with our landscape contractor not performing according to his contract. I’ve brought this to the attention of the president of our board on more than one occasion. Read the Q&A……………………………………..
Board Member Tips: How to Handle Conflicts of Interest
As a member of a homeowners’ association (HOA) board of directors, you must know that both real and apparent conflicts of interest can occur while conducting HOA business. A conflict of interest is a situation in which a board member may have a personal gain from decisions he or she makes in their official capacity […]
Ethics
The Washington Metropolitan Chapter of CAI published a number of excellent articles in their magazine “Quorum”. Read the magazine………………
Identifying Conflicts of Interest
As a board member, you strive to make the choices that protect your community and create a neighborhood that homeowners are proud to be a part of. You follow your obligations to complete your duties in good faith and with due care, and you act in the best interests of the association. Read the article………………………….
Conflicts of Interest in HOA Boards
A conflict of interest can range from problematic to disastrous for a homeowner association board. HOA board members should be impartial representatives of their communities who make decisions with the entire association’s wellbeing in mind. A conflict of interest will interfere with these duties and can lead to severe consequences if not dealt with in […]
The Importance of an HOA Board Code of Conduct
Serving as an HOA board member is a rewarding challenge, especially if this is your first time! The more prepared you are for the expectations of the role, the more confident you’ll feel. There’s certainly a code of conduct you should be committed to upholding. Read the article……………………………..
How to Deal With an HOA Conflict of Interest
HOA board members are bound by a code of ethics to put the interests of their associations ahead of their own. They have a fiduciary duty to the community and its covenants, as do property managers. Conflicts of interest between board members, property managers, and vendors – or even the appearance of conflicts of interest […]
Making America Ethical (and Civil) Again
I often note that community associations are effectively microcosms of our larger culture, facing the same challenges and trends. One example of this is the increase in (real or perceived) lack of civility and ethics in communications with and between boards and their members. This past week, the Community Association Institute (CAI), an international membership […]
Code of Conduct
A Code of Conduct describes the expectations of board members during, and in some cases after, their service to the community. While many of the issues addressed are already codified by Arizona law, adoption of a written, signed Code of Conduct provides a tangible framework for board members to reference and follow in furtherance of […]
Code of Conduct for HOA Board Members
HOA board positions are filled by volunteers – well-meaning community members who are invested in the continued success of their community. But even the most well-intentioned board members often lack the experience and training needed to run a community, and it’s not uncommon for personal beliefs or misguided actions to cause problems. A solid code […]
How can I tell if a co-op or condo board member has a conflict of interest—and what can I do about it? (NY)
Co-op and condo board politics can get heated, but actual conflicts of interest are few and far between. “There’s a conflict of interest when, and only when, a board member has a pecuniary interest in the issue on which the board has to decide,” says real estate attorney Ian Brandt, a partner at the Manhattan […]
Creating an HOA Board Member Code of Ethics (Refresh)
As you create your HOA board, your goal is to create a solid platform for providing the best possible living experience for all of the members of your community. Unfortunately, there will be times when there is conflict within the HOA–or worse, times when members have a conflict of interest. Creating a solid HOA board […]
Conflicts of Interest and HOA Board Recusal
Any acting HOA board member has an obligation to act ethically and avoid all conflicts of interest when making decisions for the community. Board members have the responsibility to recuse themselves from their responsibilities any time they have a problem keeping their fiduciary duty to the HOA – or, in other words, representing the HOA’s […]
The Clock Is Ticking on Preparing Conflict-of-Interest Reports (NY)
Time is running out for co-op and condo boards to compile and disseminate their first annual report under the state’s new conflict-of-interest law. The reports must list all contracts or transactions that were voted on by the board with an entity in which a director has a financial interest. The reports must be signed by […]
Condominiums and Conflicts of Interest: How to interpret the rebuttable presumption (FL)
The legislature recently amended Chapter 718 of the Florida Statues, relating to condominiums, to create a rebuttable presumption that a conflict of interest exist in certain situations.[1] A conflict of interest is a real or seeming incompatibility between one’s private interests and one’s public or fiduciary duties. Black’s Law Dictionary (10th ed. 2014). For example, […]
Kickbacks: Don’t get accused of taking them (FL)
Despite all the great work done by volunteer condo and HOA board members, the actions of a few bad apples have resulted in law changes that could label a casual lunch meeting an illegal kickback! Board Members (and Managers) cannot accept anything of value from someone providing or proposing to provide services to their association […]
Creating an HOA Board Member Code of Ethics
As you create your HOA board, your goal is to create a solid platform for providing the best possible living experience for all of the members of your community. Unfortunately, there will be times when there is conflict within the HOA–or worse, times when members have a conflict of interest. Creating a solid HOA board […]
Avoiding Conflicts of Interest as an HOA Board Member
When you’re an HOA board member, you hold a great deal of responsibility for your association in your hands. You want to be sure that you’re handling that responsibility correctly–and avoiding conflicts of interest is one of the key ways to make that happen. Thankfully, it is possible to allow your own issues to be […]
HOA’s Should Adopt a Board Code of Ethics
While it’s certainly not mandatory, the board of directors for your homeowner’s association (HOA) should think seriously about implementing a code of ethics, which would serve to aid in the management of the HOA, as well as help community members. Read the article………….
HOA Board Code of Conduct
As a member of a volunteer homeowner association board, it’s important to codify the goals and behaviors an effective director should strive for. It not only serves as a constant reminder for those that are serving but can also help screen out director candidates with hidden agendas. Consider adopting something like this: Read the article……….
Community Association Code of Ethics to take it from Good to Great
Community Association Institute put together Principles for Community Association Success. We’ve highlighted some key information from that resource guide in this article which is part 3 of a 3 part series. Part 1 covered Rights and Responsibilities of Homeowners which can be found here, and Part 2 covered the Rights and Responsibilities of Community Association […]
Conflict of Interest: Better Safe Than Sorry
With ethics and governance being such a hot topics in the corporate and political world, you won’t be surprised to hear that condominium corporations are no stranger to these concepts. Directors must be conscious of the standard of care expected from them and of the risk of conflict of interest. Read more……….
CAI Best Practices: Ethics
Simply put, when someone is employing ethics, he or she recognizes what is right and what is wrong and is choosing to do the right thing; however, as a great deal of business ethics literature will attest, “the right thing” is not always straightforward. For example, most ethical dilemmas in the workplace are not simply […]
Condominium Boards and Ethics: The top 5 reasons that your Association needs a Code of Conduct
Condominium associations are largely governed by volunteer directors that receive little training with respect to their fiduciary duties and potential ethical issues that they may face. Each director has a fiduciary duty of care and duty of loyalty to act in the best interest of the association. Unfortunately, many directors blur the lines between what […]
Honey Bees and Ethics
“When I put the bees in, I knew it probably would be against the covenant, but I knew it was going to be a safe situation and if it wasn’t, I was going to remove them. I was bending the rules, but it’s not like I was raising vicious pit bulls in my backyard. I […]