HOA Directors Must Avoid Conflicts of Interest

A common issue that homeowners associations deal with involves recognizing and addressing conflicts of interest on the part of the association’s directors. A situation that involves a potential or actual conflict of interest occurs when a board member is placed in the position of participating in decision making on behalf of the association that furthers the director’s personal interests as opposed to the interests of the homeowners association. An example of such a situation would be when a director enters into or votes in favor of a contract with a vendor that results in a personal benefit to the director.