Addressing HOA board member abuse of power

Tuesday August 13, 2024
Homeowner’s associations (HOAs) play a vital role in the management and daily operations of many communities. Board members, who work on a volunteer basis, help shape residences by protecting a healthy and harmonious living environment. There are many HOA board positions that are common in communities, ranging from the board president all the way to the treasurer; all have differing responsibilities, but all are equally important in conserving and building a great community.

Unfortunately, leadership comes with responsibility, which not everyone knows how to handle properly. If you find yourself experiencing the abuse of power from an HOA board member, it is critical for you to know how to assess these situations. This article is designed to help you recognize and address HOA board member abuse, ensuring that all parties involved can navigate these situations effectively.
 

What is HOA board member abuse of power?

HOA board member abuse of power HOA board member abuse of power can manifest very differently depending on the situation. In these scenarios, red flags typically unfold in the process, and recognizing these signs can help protect you and your fellow homeowners from the negative impact of such behavior.

One of the first indicators is board members making decisions that primarily serve their own interests or those of their close associates/friends/family. They may stop considering the overall opinion of the entire board or ignore concerns raised by specific members to cherry-pick the points that cater only to the outcome they seek. You may find favoritism, unfair allocation of resources, or personal gain as an outcome of these actions. Most of the time, they all come at the expense of homeowners.

A behavior that can accompany this is manipulative and unethical behavior by the board member to other members or residents. This can include everything from coercion and intimidation to misinformation. The board member in question could be using their power stance to threaten others' positions on the board or even their standing as a resident of that community. In some cases, they could also use their rankings to spread inaccurate information about others or about specific topics. For example, imagine a board member has set their mind on changing policies and no longer allowing pets in the community. The board member then spreads misinformation about a specific resident and their pet to influence others to stand on their side. This is an abuse of power that not only spreads false information to intimidate others but also damages the resident’s image.

Financial mismanagement may also occur, with funds being misused or misappropriated, ultimately burdening homeowners with unnecessary expenses.

Board members typically do this to maintain control and often unethically disregard established rules and regulations. These actions can cause significant damage, creating a toxic and divisive environment that leads to distrust and disputes among homeowners.
 

Preventing HOA board member abuse of power

We understand that these occurrences are unfortunate and can often leave residents and the other board members feeling a lack of control over their own say. We want to remind you that those who experience this are not responsible for the actions of those HOA board members who abuse their power.

Several steps are recommended to mitigate these events. They all lie within the core of your HOA’s rules and guidelines. It is of utmost importance that these are established early on, including expectations, boundaries, and a checks-and-balances system for all board members in every position. With expectations clear as soon as members are introduced, this can help keep their goals, values, and ethics centered around the benefit of the overall community. They will also be focused on their duties, roles, and decision-making processes and are likely to do so in the way they are instructed. That is why having boundaries established within your board is also key. Once boundaries are instructed, board members will have a clear path ahead and can be less likely to overstep their authority or misuse their power.

Outside of the technical things, you can contribute to the prevention by promoting transparency and accountability as a board member. Try encouraging others to communicate regularly with the group and with the residents, as well as taking accountability. This can be done in several ways, including tracking all official meeting minutes, dates, financial reports, and any other relevant information. Overall, practicing ethical and effective meeting practices can be beneficial to communication. Referencing Robert’s Rules of Order and following official guidelines will supplement your HOA board meetings and promote the transparency you seek for your board.

Last but most importantly, prioritizing participation and feedback from residents and board members can help target abuse of power before it further surfaces. You can implement surveys, open forums, or regular and additional meetings solely for the purpose of discussing their opinions, issues, concerns, or suggestions. This can help make their voices heard and create a space where speaking up against unfair actions is supported.
 

Taking Action: How to remove an HOA board member

If the issue has already taken place, risen to extremes, and become a critical concern for you and the community, action needs to be taken. You will need to follow several guidelines in order to properly assess and report the actions the board member committed in their abuse of power.

It is crucial you keep a record of all incidents of HOA abuse. Make sure to create reports outlining the date, time, location, and description of the event; this type of documentation can heavily benefit you as it can serve as evidence to support your case and show patterns of abuse. If you have any emails, letters, or meeting minutes, you can add them to this document as potential supplements. Then, you should seek legal advice and explore the options they provide. Typically, they will use the information you gathered to establish if the case can move forward. They will also be available to provide you with counsel as you navigate the complexities of the legal system. Keep in mind that they are there to help you determine the best course of action when regarding your specific situation.

In this next step, the resident and board member feedback system we suggested earlier can be beneficial. If anyone had previously mentioned an instance where there was an HOA board member abuse of power, you could potentially use any information you find there to support your case. If they are willing, you can also reach out to your fellow board members and residents for their own testimonials or additional evidence they may have. All of these recommendations can help strengthen and further build your case and demonstrate the widespread impact of the misconduct that has taken place.
 

Grounds for removing a board member

Another initiative you can count on is the HOA board removal process. It is crucial that those who abuse their power have their member privileges revoked and that the unethical behavior in question stops.

Like in any process, there are grounds that need to be assessed before proceeding. Some examples of grounds to remove board members include:
  • Misconduct
     
  • Breach of fiduciary duty
     
  • Conflict of interest
     
  • Misuse of funds
     
  • Any other behavior that negatively impacts the community.
If you have documentation of these occurring, the first step to this process is done.

The specific procedures and requirements for removing an HOA board member vary depending on the specific bylaws and state laws. Typically, the first step involves filing a formal complaint with the rest of the HOA board that outlines the allegations and provides supporting evidence. The board will then review the complaint and conduct an investigation if necessary. In some cases, a special meeting may be called to address the issue in total transparency and allow other members and residents to make statements. Working with other members and residents is crucial to initiating this removal process. They should actively communicate with each other, share their concerns, and gather support from fellow residents who also believe in the need for change. 

Dealing with HOA board members who abuse their power within their roles can be challenging and oftentimes dehumanizing for those who are experiencing the obstruction of power themselves. As a resident or board member, encouraging respectful communication and collaboration is the foundation of a healthy environment. Always prioritize establishing open lines of communication where board members feel comfortable expressing their thoughts and concerns; active listening allows every member to have an opportunity to contribute.

All board members and residents deserve to be treated fairly and respectfully, regardless of their position or tenure; we hope you use this resource to further foster a culture of inclusivity and create an environment where all board members feel valued and empowered, reducing the likelihood of abuse. 

To learn how FirstService Residential can support your community's vision, contact a member of our team.
 
Tuesday August 13, 2024