Ethics Policies
The Golden Rule for HOAs
Did you know our HOA has no ethics policy protecting homeowners? What’s more, did you know the current board leadership fights against efforts to create one?
Brought to you by Drew McManus, your neighbor in 7908.
Ethics Are Essential
Why is an HOA Ethics Policy Important?
An HOA ethics policy is essential to foster trust, transparency, and accountability among board members and committees tasked with creating and enforcing community rules.
HOA committees often wield significant power in determining the outcome of disputes between homeowners and the association. Without clear ethical guidelines that are commonplace at other HOAs, our processes risk being influenced by bias, favoritism, or even corruption.
An ethics policy ensures decisions are made based on the rules, not personal relationships or agendas.
Board President Scott Timmerman and House Rules Committee Chair Melinda McMullen oppose adopting an ethics policy for board members. They vote against such proposals and block the topic from being added to committee agendas, including the recent House Rules updates.
How Does An Ethics Policy Protect Owners?
While an ethics policy provides a framework for ethical behavior, it’s essential to understand common violations that occur within HOAs. Some of the most prevalent ethical breaches include:
- Conflict of Interest: Board members or committee members conducting business with the HOA or having a personal stake in decisions.
- Favoritism or Discrimination: Treating homeowners unfairly based on personal relationships or biases.
- Cronyism: Board and committee members benefiting themselves or their associates, such as dismissing rules violations against friends or family and asseritng undue influence inside committees.
- Misuse of HOA Funds: Improper spending of association funds for personal gain or unauthorized purposes.
- Retaliation: Taking actions against homeowners for exercising their rights or voicing concerns.
- Breach of Confidentiality: Disclosing private homeowner information without authorization.
Scott Timmerman and Melinda McMullen have argued that the HOA’s by-laws already covers how board members should act (this is called “fiduciary duty”). While fiduciary duty says board members have to act in the best interest of owners, it doesn’t tell them exactly how to do that. An ethics policy is like a rulebook that provides clear guidance on what is expected of board members. It helps prevent problems from happening in the first place and makes it easier to deal with issues if they do arise.
What Should an HOA Ethics Policy Include?
A comprehensive HOA ethics policy should cover:
- Conflict of Interest: Clearly outlines procedures for disclosing potential conflicts of interest and the process for recusal.
- Fairness and Impartiality: Emphasizes the importance of treating all homeowners equally and avoiding bias. This includes avoiding favoritism or retaliation against homeowners who voice concerns or dissent.
- Confidentiality: Protects sensitive homeowner information.
- Transparency: Requires open and transparent decision-making processes.
- Accountability: Establishes clear mechanisms for reporting and investigating ethical violations, such as a dedicated ethics committee or an independent ombudsman.
- Education: Mandates ongoing ethics training for board members and committee members.
During my previous term on the board, I repeatedly introduced a motion to adopt an ethics policy that ticked all the must-have boxes. Scott Timmerman and Melinda McMullen consistently opposed the proposals, aggressively criticizing them at every instance. Are owners’ interests best served with board leadership that believes they are above the need for ethical standards?
For All the Right Reasons
Ethics Is Currently A Hot Topic
The recent lack of an ethics code for the U.S. Supreme Court has hyper-focused public awareness about the importance of ethical guidelines for those in positions of power. It also illustrates what we risk when they aren’t present.
HOAs can learn from this situation by proactively implementing robust ethics policies to prevent similar issues from arising within their communities and eroding trust.
The Good News Is You HAve The Power
Here’s What You Can Do
I urge all residents to join in advocating for an ethics policy. Make your voice heard by sending a letter to Board President Scott Timmerman and House Rules Committee Chair Melinda McMullen using the following template:
Be respectful, concise, and clear in articulating the negative impact it has had on you and your fellow homeowners. You are welcome to use the example language as-is, but feel free to personalize the example message before you send.