Q: I have a hypothetical scenario and question to run past you. A community in Las Vegas has old-style (non-LED) street lights. One of the HOA board members heard about a possible rebate offered by the local power company by converting to LEDs. The board member contacted the power company and confirmed that a rebate was available.
The board member then asked the community manager to contact the local power company to find out more about the rebate. The community manager immediately stated it was likely not available to an HOA, which runs as a nonprofit. It was likely only available for businesses but that she would try to get information.
After a little while the community manager said she made three attempts to get information and never got a response. The board member who knew about the rebate program then emailed the power company contact and copied the community manager. The power company responded within one day and confirmed the rebate was available to the HOA community.
The community manager then reprimanded the board member, saying the board member was out of line and was trying to act on behalf of the community/board by contacting the power company without the board’s consent and it was the community manager’s job to take care of such things.
Is the board member out of line for gathering information from a potential vendor that is beneficial to the community and then sharing that information with the board and community manager? That’s especially when the board member believes the community manager was cutting corners by simply stating that she tried three times and no one got back to her.
I know you are not an attorney, but I am curious of your opinion. NRS 116.3103 says, “Officers and members of the executive board are fiduciaries and shall act on an informed basis, in good faith and in the honest belief that their actions are in the best interest of the association.” And NAC 116.405 (8e) when determining if an individual board member has fulfilled their duty mentions if they “caused the association to consult with appropriate professionals as necessary before making any major decision affecting the association or the common elements.”
Do these law references allow an individual board member to consult experts independently (solely for the purpose of being informed)? Is there any law that forbids an individual board member from fact checking information being presented to the board from the community manager by consulting independently with experts?
A: As long as the individual board member only obtains information to be shared at the board meeting, there is no violation of the law. The problem occurs when an individual board member takes action based on the information without consulting the entire board and without placing the action item on the board’s agenda.
Q: My HOA has two maintenance workers on the property and have decided to have a volunteer read our electric meters. He is on full-time disability. I do not hire any unlicensed, uninsured people to enter my property. Do I have to allow this?
A: He would be able to read meters if he is a unpaid volunteer and if your association has a workers compensation policy that covers volunteers.
Barbara Holland, CPM, CMCA, AMS, is an author, educator and expert witness on real estate issues pertaining to management and brokerage. Questions may be sent to holland744o@gmail.com.
