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Can CCRs Prevent Bad Condo Association Board Behavior?

  
  
  
  
  

I live in a condominium complex in Illinois. There have been recently concerns and issues regarding our HOA board's compensation and expenditures. In accordance to our Articles of Incorporation, it states that "no director shall be compensated by the Condominium Association for services rendered to the Condominium Association, except as expressly provided in a resolution duly adopted by the voting members". Can you please interpret this for me?

We have three condo associations on our property, and the HOA board presidents like to have their meetings at restaurants, or bring in food and refreshments at their meetings, while discussing board issues. Are the HOA meetings that our board members have among themselves, considered services and duties of their office? Can they be compensated for holding these meetings?

Can you please explaing what CCRs are? And what impact they may have on how a board conducts their business? Thank you. Looking forward to your response.

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Comments

You need legal assistance to help you understand your CC&R's and advise you on how to proceed if you determine you have issues. Good Luck....
Posted @ Monday, December 07, 2009 7:59 AM by Jeff Leavitt
The first step is to determine what your exact issue is. It appears to me that you are defining these items as "compensation." By compensation, most documents are referring to pay for their services/time. 
 
Having meetings in a restaraunt and having the Association pick up the tab can be seen by some as "the cost of business" and others as "compensation." The board should develop a policy in regards to these types of items. Most boards I work with will only bring food or beverages if paid for out of their own pocket to avoid these types of issues. 
 
If a board member had to drive to meet legal counsel, go to court, go pick up materials for the Association's benefit, then they should be reimbursed for these costs. These are valid association expenses. Other board members not involved should vote on it. If the whole board is required, I often recommend that they have their legal counsel give an opinion on allowable expenses to charge the Association. 
 
Often these volunteers are giving up their nights and weekends to perform this service for the community. Are some snacks and some beverages really going to "bust the bank"? 
 
The best thing you can probably do is to meet with these board members and explain your concerns (and if any of your neighbors share your concerns, put it in a letter and have them sign it - otherwise, stick to yourself and don't claim to speak for the community or a group, mostly to protect yourself) and let them respond to you. Thoroughly explain that it is not personal, but what your concerns are if you still have them. 
 
Now, if they are having their fees waived for service, or they are getting a set amount for service (billing hours, salary, etc.) then they are serving with compensation, which is not allowed, should be stopped immediately and repaid. 
 
But having a cheese and cracker tray with some water, coffee and soda for meetings that may last some time (depending on how often they meet)? I don't see that as compensation and urge you to really let that slide.
Posted @ Monday, December 07, 2009 9:05 AM by Joe Schuirmann
Expanding just a bit on Joe's excellent reply. A good Board can be a huge monetary benefit to your community. If you have a good Board, take good care of them. A few bucks for dinner is a small token if their doing the job.
Posted @ Monday, December 07, 2009 9:34 AM by Jeff Leavitt
Based on the information included in the prior comment, am I correct in stating that if the volunteer board members association fees are waived for service that this is unlawful and the fees should be paid back? The board members on my association have served on the board for nearly 10 years and I know for a fact that NONE of them pay their association fees. It certainly and always has sounded like compensation to me. Thanks!
Posted @ Wednesday, December 16, 2009 1:12 PM by Tim Cowart
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