Question:Our board president's wife is paid for cleaning the clubhouse and the president owns a landscape company which is performing landscape services for our homeowner association. Are there any concerns we should have with this arrangement?

Answer:Yes, you should have plenty to be concerned about. Directors are elected volunteers who serve for no pay. A director's wife earning money from the HOA essentially flows money back to the benefit of the director. So, no family members should be employed by the HOA since there is a conflict of interest. (On a side note, it's generally not a good idea to hire any member of the HOA. If it doesn't work out, a neighbor (and possibly friend) will have to be fired and there are bound to be bad feelings. The motivation for hiring an insider is to save the HOA money. But this often results in improper withholding, making cash payments and other illegal dodges that exposes the HOA members to liability. Anyone working for the HOA should be a legitimate employee or contractor.

Hiring the president's landscape company is a blatant conflict of interest. If the board truly feels this company is the best to do the work, the president should step down from the board and act solely as a contractor. To do otherwise is contrary to the fiduciary responsibility owed to the members. The board is elected to protect the interests of all members. Hiring spouses and self-enrichment from contracts does not self that charge.

Question:We are reviewing our Rules & Regulations for possible revisions:

1. What is the HOA's responsibility for repair and maintenance of the garage interior?
2. Should garages be used for storage which does not leave room to park cars?
3. Should owners be allowed to store ladders, refrigerators and other curiosities on their patios?
4. Should auto repair be permitted inside and/or outside the garage?
5. Should homeowners be asked to approve each revision before it is adopted or to approve the document as a whole?

Answer:

1. The HOA is not responsible for interior repairs to garages unless the governing documents say so or damage was caused by structural problems that are the HOA's responsibility.
2. Many HOAs restrict garage storage if it displaces vehicles. For aesthetic reasons and since guest parking is usually limited, it is recommended that your HOA do the same.
3. For aesthetic reasons, typically only patio furniture, barbeques and related decorations are allowed. All other storage should be confined to the unit or garage.
4. Minor repairs like oil changes are okay but major overhauls should be confined to the garage.
5. The board is authorized to enact rules and regulations that are in keeping with the governing document. Rules of the kind you mention can be enacted by the board although they should be circulated to the members for comment before doing so. If the proposed rule contradicts the governing documents, the members must vote to amend the governing documents.

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