4 Steps for Managing HOA Board Member Conflicts

No matter how hard you work to avoid conflicts of interests, you’ll likely find yourself encountering one at some point during your time as a HOA board member. A conflict of interest occurs when a board member places their own self interest ahead of what’s best for the association and community member. Let’s go over some examples and the best ways to reduce conflict.

First, let’s pretend your community is in the market for a new landscaping company and one of the board members owns a popular company in town. By hiring that company, you encounter a conflict of interest because a board member has direct interest. This is called an actual conflict of interest, and it is best resolved with the following steps:

1. Reveal What’s to Gain – Encourage board members to disclose, in general terms, what they gain by approving a decisions.

2. Do Your Homework – Just because a company comes highly referred by a board member doesn’t mean they are the best. Get several bids from other companies and compare what each has to offer.

3. Notate – Keep clear notes and document the process every time you hire a new vendor.

4. Make it Official – After reviewing all the information, ask board members to vote based on what is best for the association. If any member has direct or indirect interest ask that they refrain from voting.

In contrast, a potential conflict is a conflict waiting to happen. This could arise when a board member wants to vote for lower HOA dues because they, as a homeowner, would like to spend less on their annual dues. While this is a conflict for obvious reasons, it only becomes a real issue when (or if) a board member begins to disregard the needs of the HOA community, and instead votes for what benefits them most as a homeowner. If the potential conflict becomes an actual conflict, just follow the steps above.

Since you’ll likely encounter some conflict of interest during your time as an HOA board member, we hope this post helps you navigate those tricky waters! Just remember, as a board member, your job is to act in the best interest of the association. While it may be tough at times, keeping this in mind will help you make the right choices!