Paying HOA Board Members in Utah

Question:

I recently went on the HOA board of the subdivision where I live. I found out that the board members who are on the Architecture review Committee are being paid from the fees that an owner is assessed to have building plans reviewed. There is a non resident/non board member professional architect on the committee who is compensated for professional services from the aforementioned fees. Is it proper for a board member on the Architecture Review Committee to compensated?

– C.G.

 

Answer:

Hi C.G.,

In Utah, the propriety of compensating board members for their role on the Architecture Review Committee (ARC) depends on your HOA’s governing documents. Most HOAs operate on a volunteer basis, and board members are typically not compensated for their duties unless the governing documents explicitly allow it. However, compensating non-board members or professionals, such as the professional architect on the committee, is common and appropriate when their specialized expertise is required for tasks like reviewing building plans.

If board members on the ARC are receiving compensation, you should review your HOA’s bylaws and CC&Rs to determine if this is permitted. Compensation for board members could be a conflict of interest, especially if it is not clearly authorized or disclosed to the homeowners. Transparency is critical, so if these payments are not clearly outlined in the budget or meeting minutes, it may raise concerns among residents.

If you find the practice is not aligned with the governing documents, you should bring it up with the board and recommend that the issue be corrected.

 

Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.

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