Legal Question in Real Estate Law in Maryland
Is it considered a conflict of interest if an HOA president gets elected, hires his or her spouse to do the landscaping for the community and the following year raises HOA dues with a nice chunk of the money going towards "landscaping"?
Granted the ledger is sent to all home owners and they can contest the allocations prior to their approval, however what if it was never disclosed that the this is kind of self serving?
I am trying to find out what the law is about this. Thank you for your help.
1 Answer from Attorneys
Yes, this sounds like a very big conflict unless the amounts being paid for landscaping are in line with what other landscapers would charge. In any event, your HOA bylaws should not allow any one officer to raise dues--generally that is something that is put to a vote of the association or at least to a vote of the board. The relationship certainly should have been disclosed and at least some competitive bidding should have occurred before awarding a contract. Your remedy is to challenge this through your bylaws at the annual meeting or by requesting a special meeting or referendum on this issue.
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