Condo Association Management Blog

Basically, anyone compensated on the Board would not be able to vote on the decision to self manage or participate in Board matters there afer without violating their fiduciary duty. What will likely happen is some will resign, get paid, and be supported by the remaining board of and if of similar mindset. Send them to my website. They can have the best of both worlds without hurting the association - professional services and control. see self managed options.

They can be paid if the board authorizes it. 
 
NJ Law states: "Nothing herein stated shall prevent any officer, Trustee or committee member from being reimbursed for out-of-pocket expenses or compensated for services rendered in any other capacity to or for the Association, provided, however, that any such expense incurred or services rendered shall have been authorized in advance by the board"  
 
 
A good book for NJ condo people can be found at the address below.  
I'm not associated with the company below. I bought the book when I was having issues with my condo board. 
http://www.gannlaw.com/onlinestore/main/cartAdd.cfm?book_no=9 
 
 
 
http://www.gannlaw.com/onlinestore/main/cartAdd.cfm?book_no=9

Most condo bylaws contain a prohibition against paying board members. Check your bylaws and further download and check the NJ State Condo Act. 
I believe you'll find the proposition to be inappropriate if not actually illegal.

Check your by-laws. If the by-laws fail to address it, members of the association should call a special meeting to change the by-laws.

When checking your gov docs and/or state law on compensation of board members make sure to note if it says directors or officers. Both directors and officers are board members but not all directors are officers. My bylaws contain an article for both directors and officers stating no compensation unless a resolution is passed by the BOD authorizing compensation. There is no AZ state law regarding compensation. IMO, board members should not be compensated for their services either as a director or officer. These are volunteer positions; board members should only be reimbursed for out-of-pocket expenses. Any board member who thinks he should be compensated for his time should not be a board member. I served for 3 yrs as treasurer of a self-managed HOA and would never have thought of receiving compensation for my time worked.

Thank you for your comments. Our by-laws state the manager receives compensation. It does not state managers nor does it state the board gets compensated. It allows for self-management and that is all it says. BTW, they wrote their own resolution for the board to manage. This time around for the compensation I will insist upon a committee and I will sit on that committee.

Some of you inquired how many units are in the community. We have 136 units and 1 office. Now the Board/Mgt is converting a store room into a 'club' room for $7,000 without a vote from the community. Our governing docs specifically state there is an office, a meeting room, gym, and several storage rooms. I told the Board this required a vote since the Master Deed specifically states what encompasses the community and they are adding or converting a storage room. Also I asked them to send out a questionnaire to see if there is a need. I was told they did an informal questionnaire. (I'm sure they stopped some people in the hall and asked them if they wanted a club room without telling all the details.) My only recourse is to speak up at the Board Meeting and to hold up the project by requesting an ADR. No action can take place until the situation is resolved. If a questionnaire indicated a need that would be a different story but the Board refuses to do this. 
 
I couldn't find any info regarding payment for the Board in the NJSA. I did find something that said Boards cannot be self-dealing. I will point this out to the Board and insist that they cannot write the resolution for the vote for compensation nor can they participate in the vote. 
 
@ Wolf Leonard: The software purchased for the community was specifically for self-management. I believe it sets up all the financials and there are templates for letters and invoices. It comes with updates and a tutorial for a year.

rie, 
 
 
 
Your CCRs should tell you if the members are required to vote on the club room addition. Unless the members are required to vote on an expenditure that exceeds a certain amount,I doubt they have the right to vote on improvements or change of use that the board has voted on. In most assn's the members have limited rights with regard to management decisions. Before you stand up and complain to the BOD and try to hold up the project you should know exactly what the rights of the members are. 
 
 
 
As for the board receiving compensation, if the gov docs and state law are silent on this then the board is not violating any law. Do you not have the right to tell the board they cannot adopt a resolution unless you can find evidence that it would be against the law. 
 
I really think you need to thoroughy read your gov docs -- the CCRs and bylaws, and also the NJ Condominium Act and the nonprofit corp act so you will know exactly what is and what is not against the law and exactly what rights the members have as opposed to what authorities the board had. I'm sure the board would pay much more attention to you if they knew that you do know what you're talking about. If you find that they've done something wrong, quote the exact state law or article in your gov. docs.

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