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I live in an HOA subdivision with 436 homes. My Landscape company

was awarded the landscape maintenance...
I live in an HOA subdivision with 436 homes. My Landscape company was awarded the landscape maintenance contract for the common grounds from the board of directors because my bid was the lowest and offered the most services out of a 3 bid process. Now, a new board of directors have taken over and they are telling me my contract is not valid because I'm a member on the architectural review committee and there is a law that states no HOA committee member can earn money. When my contract was signed by the previous board, I asked if there was any conflict of interest if I remained on the ARC. They told me, it was not a problem and it would only be a conflict of interest if I was one of the board of directors. The ARC committee doesn't have any say on maintenance contracts.

Is there any kind of conflict of interests or law that says there is a conflict if an ARC member is earning money from a landscaping maintenance contract and if so, can I just resign from the committee?
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11/8/2010
Roger
Roger, Attorney
Category: Business Law
Satisfied Customers: 31,796
Experience: BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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Does the ARC review any work that your company would be performing?

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Customer reply replied 7 years ago
Absolutely not. The ARC only reviews requests from homeowners who want to make improvements to their properties. The ARC has no say in maintenance contracts and has no say in any kind of review of any work from performed by my company or any other maintenance company. Thank You, Lou

I don't think you will find a state law that would prohibit you from having this position and having a maintenance contract. If they claim there's a law, you should ask for the code number, statute or other proof of such a law. I don't think you'll be given one.

 

However, there may be a bylaw, CCR or other homeowners regulation that prohibits this, and if that's the case, you'll have to live with it.

 

If there is a conflict under some rule, you should be allowed to abandon your position and maintain your contract.

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Customer reply replied 7 years ago
There are no bylaws or any other restrictions in our covenants prohibiting me from performing this work. They did mention some new law or statute from January that says no committee member can earn money from their position. I don't see how me earning money from a landscape contract has anything to do with my positiion as an ARC member? Thank You.

I agree with you, and I would ask them to give you the name, statute or code for the law.

 

I have looked on Lexis for any such law and haven't found one. I'll give it another look and report to you.

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I have entered every search I can think of, and nothing is pulled up.

 

Even if what they say is true, you're not earning money because of your position. You've already said that your position doesn't have anything to do with your contract.

 

If you were directly benefitting from your position, there certainly would be an air of self-dealing or a conflict of interest.

Roger
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Category: Business Law
Satisfied Customers: 31,796
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Customer reply replied 7 years ago
Thank You for your time and your help
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Roger
Roger
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Category: Business Law
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