In a homeowners association, board members have a fiduciary duty to act in the best interest of all residents. This duty is a big responsibility as it involves the property or money of others so members should make choices based on principles for the benefit of others.
The HOA website
takes into account the interest of each homeowner as key topics are posted there to keep all homeowners informed on relevant matters. Periodically, situations come along that test the loyalty of a member such as hiring a vendor as they stand to profit financially. How can a board member avoid this conflict of interest?
Fulfill Your Obligations
First and foremost, board members have an obligation to the homeowners association to make decisions that serve the HOA’s best interest. Each member is expected to put the interest of the homeowners association ahead of their own. Some requirements are to get involved in meetings, keep accurate records, and work on improving maintenance issues.
A loyal board member that fulfills those obligations also knows to avoid any potential action that could result in a conflict of interest. Despite fulfilling those obligations, a conflict of interest can lead to other members questioning your loyalty. Ordinarily, a conflict is more likely to happen when it involves a vendor as the financial side of it plays a role in determining which vendor is chosen. Is your homeowners association taking the right approach to put the community first?
Reduce Any Potential Conflicts
Often, a conflict between board members is the direct result of a misunderstanding or due to information being withheld. Request that board members reveal all the details about a potential conflict. As well, pursue a variety of sealed bids from vendors and thoroughly review each of them to ensure the best decision is made for the association. Frequently, the HOA website and honest board members provide the clarity needed to avoid unnecessary conflicts.