No One Has Time to Volunteer for HOA Board: Can We Pay Them?

When it's legal for HOA or community association board members to begin compensating themselves for their service to the community.

By , J.D. · University of Utah S.J. Quinney College of Law

If you live in a condo, home, or townhouse within a subdivision, it likely has has a homeowners' association (HOA). These are meant to be largely led by volunteers, recruited from among the homeowners themselves. But some HOASs have trouble recruiting directors to serve on the board. In order to recruit more owners to join the board, can the HOA legally start paying themselves and new directors for their time? That plan might not go over well with homeowners, since the board would likely then have to increase the assessments on all property owners to cover the cost.

The board of directors, as the decision-making body for the homeowners' association (HOA), must make all of its decisions in accordance with the HOA's own governing documents and state law. This means that if you're facing a situation where the board is hoping to start paying itself, and you don't approve, you will most likely be able to find your answer in either the applicable state statute or in one of the HOA's governing documents, following the steps below.

Step One: Examine HOA Governing Documents

The HOA's governing documents are likely to include both Covenants, Conditions, and Restrictions (CC&Rs), and bylaws. The goal of the CC&Rs is to protect, preserve, and enhance property values within the community.

For example, the CC&Rs might prohibit you from painting your house hot pink or keeping a pet snake. Bylaws, on the other hand, typically address voting rights of members, meeting requirements, and issues related to the board of directors.

Odds are that the answer to your question will be in the HOA's bylaws. You might have received a copy of these prior to purchasing your house, from either your real estate agent or a title company. If you don't have a copy available, the bylaws should be available at the office that maintains public property records in your area, such as the county clerk or county recorder.

In many instances, there will be a specific provision in the bylaws addressing this very issue. A common relevant provision states: "No Director shall receive compensation for any service he or she might render to the Association. However, any Director may be reimbursed for his or her actual expenses incurred in the performance of duties." In other words, within a community whose bylaws say this, the board member could claim reimbursement for phone calls, gas, and so forth, but not for the actual value of time spent.

Bylaws, CC&Rs, and other governing documents aren't always prepared by experts, so in addition to reviewing them, you might also want to look through any other governing documents.

Step Two: Check Your State's Law on HOAs

Next, you might review your applicable state law to see whether it expressly prohibits compensation of directors. Depending on where you live, there might be a public law library with a librarian who could assist you. Alternatively, a lawyer would able to help you research this issue.

Step Three: If No Prohibition on Paying HOA Directors Exists, Check Whether Appropriate Procedures Were Followed

If, after reviewing both the applicable state law and the bylaws, you can't find a law or rule prohibiting compensation of HOA board members, it's possible that it is lawful for them to be compensated.

That just leaves the question of whether your board followed appropriate procedures if it has already decided to compensate itself. In many states, amending HOA bylaws requires a majority vote by the property owners. This means the issue must be presented to the property owners in the community for a vote. It's possible that such a vote has yet to happen. Of course, if it is required and you weren't asked to vote, you will have solid grounds upon which to object.

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