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Avoiding Abuse of Power: Pro Strategies for Balanced HOA Leadership

While most boards are constructed of upstanding leaders, there may occasionally be one HOA board member who abuses their power. Being elected as a board member for your homeowners’ association (HOA) shows that residents trust you to represent their best interests. In fact, HOA board members have a legal responsibility to act in good faith on behalf of their fellow homeowners. This ensures the association is protected from HOA board misconduct or misuse of resources.

If your board wants to maintain fairness, promote harmony, and fulfill its duties to help the HOA achieve its goals, read on. In this article, we share how to serve constituents equally and prevent HOA board member abuse of power.

HOA Board Member Responsibilities

An HOA board of directors has a fiduciary duty to use its authority for the good of the community. In order to prevent allegations of HOA board corruption, board members must prioritize the needs of residents above their own, exercising ethical practices, integrity, transparency, loyalty, and care in all decision-making.

While each board position has specific duties related to that role, it’s the responsibility of all board members to:

  • Oversee the operations of the association

  • Follow HOA governing documents

  • Enforce community rules and guidelines

  • Manage HOA budgets, spending, and finances

  • Maintain shared spaces and amenities

  • Schedule and conduct HOA meetings and events

  • Work closely with the community manager, partners, and vendors

Related: “The Community Partners & Professional Service Providers Every Board Needs”

What Is an HOA Abuse of Power?

Abuse of power by an HOA board is a breach of fiduciary duty. Whether intentional or accidental, board members who take advantage of their positions to bend the rules, willfully ignore community guidelines, or treat people unjustly have failed in their duty.

Examples of HOA board abuse of power:

  • Using HOA assets or resources for personal use

  • Recklessly managing association funds

  • Not disclosing critical information to homeowners

  • Promoting conflict between residents or board members

  • Giving perks to only a select group of homeowners

  • Making decisions without following the proper protocols

  • Ignoring board member violations or misconduct

Avoiding Abuse of Power and Maintaining Fairness

The key to preventing HOA board misconduct is prioritizing fairness and holding everyone to the standards outlined in the governing documents. Here are guidelines to consider for avoiding HOA abuse of power.

Enforce Rules Equally

Association rules, regulations, and requirements should apply equally to all homeowners, including board members. Making exceptions for certain people can be seen as favoritism or discrimination. Do your best to enforce rules fairly and treat everyone in the community equally.

Foster Transparency

Board members need to be open and honest about the association's operations. You can achieve this by maintaining transparency regarding the board’s duties and the factors that influence decisions. You can also proactively share important information that affects homeowners, such as:

  • Finance reports and budgets

  • Necessary projects and repairs

  • Upcoming meetings and events

  • Voting and election details

Communicate and Listen

Communication between the board and homeowners should be a two-way street. Rather than only providing select information, you should create and maintain an open dialogue with residents, allowing them to share their feedback.

It’s also essential to practice active listening skills to show homeowners that their opinions matter and can make a meaningful difference. You can do this by:

  • Taking notes during discussions

  • Making eye contact

  • Avoiding distractions

  • Reacting with appropriate emotional responses

Balance Flexibility

While rule enforcement is necessary for community order, it’s also vital to approach each situation with empathy and understanding. Some homeowners may have extenuating circumstances or serious hardships that make it challenging to comply at that particular time.

Being flexible while still meeting the community's needs demonstrates that the board cares about residents and is willing to work to find an acceptable solution.

Embrace Impartiality

Remaining neutral is a crucial aspect of successful conflict resolution within the community. When ongoing issues arise between residents, taking sides can lead to discontent and suspicions of power abuse. You want to stay calm, professional, and impartial to reach a fair compromise or resolution.

Read More: 6 Conflict Resolution Best Practices for HOA Board Members

Stay Informed

Ongoing HOA board education will help you stay up-to-date on industry news, best practices, and laws that could affect your community. Understanding your role, HOA board fiduciary duties, and how to best serve the community lets homeowners know that you take your responsibilities seriously and act in good faith.

Consequences of HOA Board Member Misconduct

HOA board abuse of power comes with consequences that can have lasting impacts on the community and board members. While innocent mistakes do happen, here’s why it’s crucial to prevent serious misconduct:

  • Mistrust from residents: When board members use their power for their own personal gain, it can affect homeowners’ confidence in leadership. They may no longer trust the board to do what’s best for the community.

  • Possible legal action: Homeowners may have grounds to take legal action against the board or board member who breached their duty to the association. If the board violated a law, it could even lead to criminal prosecution.

  • Removal of the board member: In some cases, homeowners may investigate how to remove an HOA board member when their actions are compromising the community.

6 Ways HOA Boards Can Regain Residents’ Trust

Fostering confidence, maintaining fairness, and working within your scope of authority is how HOA board members can help their communities reach their full potential and avoid abuse of power by the HOA. If past mistakes or poor decisions have led to distrust and resentment from homeowners, it’s not too late to rebuild their trust and set the board up for future success.

Check out our ebook, “6 Ways HOA Boards Can Regain Residents’ Trust,” for tips on overcoming rifts between the board and residents and getting your community back on track.

FAQs About HOA Board Member Abuse of Power

What constitutes abuse of power by an HOA board member?

Unlawful or self-serving practices, like stealing association funds, instigating conflicts, or selectively enforcing the rules, can all constitute an abuse of power by the HOA board.

Can an HOA board member be personally liable?

Yes, it is possible for an HOA board member to be personally liable for an offense. A board’s D&O insurance is the best protection from personal liability.

How do you hold an HOA board accountable?

To hold the board accountable, speak up and address issues using the processes outlined in your governing documents. While respecting the laws of your community, ask questions, voice concerns, and share your opinions on board responsibilities, like financial management, transparency, communication, and more.

Can homeowners remove an abusive HOA board member?

Yes, in some communities, homeowners can remove an abusive HOA board members. With enough signatures from community members, homeowners can call for a meeting and petition to remove a board member. Review state laws and your community’s governing documents to confirm your rights in removing board member.