Like you, I also live in Florida and an HOA. This is one of those things that always gets to me because you can’t imagine how many BODs ignore the statutes and bylaws and just do whatever they want.
If the state statute says you can’t do something, YOU CAN’T DO IT.
Here are some steps I recommend you take to resolve this problem.
First, find out if the treasurer is actually a volunteer member or if your BOD hired him/her to prepare checks and do your taxes. If he/she is a hired treasurer, then paying him/her a salary is totally fine.
If the treasurer is NOT a hired person and is actually a volunteer, then I don’t think your HOA should be paying him/her. The treasurer might even need to pay your HOA back the money paid to him/her. You can ask an attorney with HOA experience for help sorting this out.
We have the same rule as bluebeard1 but our treasurer isn’t a volunteer. Our treasurer is a hired accountant and is paid. But she doesn’t have the same authority as other board members which means she doesn’t get a vote on association matters.
Even if your CCRs don’t say anything about this issue, I believe Florida statutes prohibit it save for a few exceptions. Again, I recommend talking to an attorney.
If the attorney says you can’t do it according to law, then you absolutely MUST inform your BOD. If they refuse to listen, you can initiate mandatory mediation, though that will cost money. It’s completely possible that your BOD will still do whatever they want even after winning the mediation. At this point, you can take them to civil court. You have a high chance of winning since your BOD is going against the law here. Don’t worry about legal fees. Your BOD, not the homeowners, should be ordered to pay those once you win.
A lot of BODs aren’t afraid to bend the rules since they don’t think anyone has the guts to challenge them. But this is a misappropriation of funds and can affect your entire HOA as a whole. Stick to your guns, Leon.
I am the current treasurer of our association. Volunteering for this position and getting paid for it is a conflict of interest I believe. Most CCR’s are clear about this.
I agree with profdan_h that this is considered a misappropriation of funds and that you should confront your board about this. Ignoring is the same as allowing it. You should bring up the subject at your next open meeting so that other owners can hear about it too. Then maybe you can get some support and your board will back down.
In our association our board members get payed for there expenses. I think its normal for the board to receive compensation specially if their doing a hard job like the treasurer or secrtary.
Running an association aint free – far from it. If the secretary spends 300 on printing and distributing notices or newsletter, do you expect them to just swallow that expense? No. Volunteers are volunteering there services – not there money.
While I agree that running an HOA isn’t free, I don’t think you are getting the point here. Leon said that their treasurer is being paid (i.e. compensated) to do taxes.
What you are describing is reimbursing board members for expenses they paid on behalf of the association. That is called Expense Reimbursement, not Compensation. Compensation is paying board members for services rendered, much like a salary.
Going back to your example, I think the secretary should definitely get reimbursed for the $300 he/she spent on printing and distribution. That is an association expense. But the secretary should definitely NOT get compensated for performing that task since it is just part of their duty as a secretary, at least in Florida.
I live in a small HOA community in Mississippi. Both President and treasure receive compensation for serving. The compensation is not having to pay their HOA dues. It’s been going on for the past 10 years. The community is going downhill. Do we have any recourse in stopping it since it involves the dues?
Compensation through not having to pay their HOA dues can be a big conflict of interest. Your president and treasurer might not take votes on dues increases and special assessments seriously because these don’t affect them anyway.
It’s a good idea to check your governing documents to see if your association permits this type of setup. If they don’t allow it, talk to your board about changing their ways. Otherwise, they might be breaching their fiduciary duty. You might also want to talk to your HOA manager or HOA attorney (if you have them).