Why Giving Money To An HOA Board Member Is A Huge Mistake

Posted on May 14, 2019 8:00 AM by HOA Sites
Categories: HOA Website
Has your HOA been paying board members to fulfill their role in the association?  In most homeowners associations, being a member of the board is a volunteer position that doesn’t include any form of compensation.  Nonetheless, it’s not uncommon to hear about board members getting their accounts credited for the work they do.  As illustrated below, giving monetary rewards to board members are a huge mistake and one you should always avoid.
 
Governing Documents

Most HOA’s have their own governing documents where it is clearly stated that board members are not to be paid.  If your documents state the same, then members who receive some form of compensation are obviously getting those benefits illegally.  In this case, the proper step to take is to stop the monetary payment immediately and force them to return the credits they have received.

Whether it has been put on the homeowners association website or in the governing documents, there’s likely a provision stating that being a board member is a volunteer position.  If they’re truly volunteering, it’s only fitting they don’t get paid.  In the event they’re being paid, they shouldn’t be eligible for the benefits that your association provides.
 
Non-Disclosure

Board members might be getting some compensation, yet homeowners aren’t aware of it.  In case the documents fail to mention that directors are paid or it states that they’re to be paid, homeowners should be aware of it through a newsletter or maybe a discussion thread on the homeowners association website.

Being a board member comes with a lot of duties but without compensation and often no recognition.  Of course, it’s easy to think that being in such a situation means doing favors for everyone else and none for yourself, but that isn’t the case.  Board members have a unique opportunity to improve the community they live in as they see fit which is a huge advantage.
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