Summit View Meadows HOA

Responsible HOA Governance & Conflicts of Interest

Responsible Homeowners Association Governance & Conflicts of Interest 

Under House Bill 1124 signed into law on 4-13-2011, each Colorado community associations is required to adopt a Conflict of Interest Policy regarding the management of the homeowners association and the involvement of board members in the HOA management.  The following is in accordance with the Colorado Common Interest Ownership Act, Article 38,33.3-209.5.  In the
interest of full disclosure, the Board of Directors of Summit View Meadows Homeowners Association (SVMHOA) on November 19, 2011, hereby acknowledge our responsibility to prevent conflicts of interest between the Board, HOA management, and HOA funds by adopting and publishing the following measures:

No Board member may render services for the management of SVMHOA or the upkeep of SVM
common areas for which he/she expects to be compensated financially or otherwise.  All services performed by SVMHOA Board members must be done voluntarily and without pay.

Immediate family members of the SVMHOA Board, likewise, may not be employed by the
HOA for paid services.  Immediate family members include spouses, domestic partners, and children/ dependents of Board members.

If Board members or their family members volunteer to perform an HOA service for SVM for
which they need legitimate and reasonable supplies, they may be reimbursed for those supplies (i.e. paper and ink to print HOA letters, postage stamps, and weed killer for common areas). Receipts
for supplies must be provided and kept on file for at least a year from date of purchase. These records will be available for SVM homeowners to review upon request.

If a conflict of interest is suspected, the Board member in question must recuse him or herself from voting on the matter.  The remaining Board memberswill then vote to resolve the issue.

If an HOA management company is used, that company must provide the SVMHOA Board with
clear monthly financial statements and records of all checks written and costs incurred by the HOA as well as payments made to the HOA.  These statements must also be easily accessible by any SVM homeowner.  If the Board desires, they may request additional financial documentation (i.e. canceled checks, bills) from the HOA management company or conduct a financial audit.

If the SVMHOA Board deems that their HOA management company's or HOA Treasurer's
financial reports are suspicious or inaccurate, if they note discrepancies, or if they suspect the HOA management company or HOA Treasurer is abusing their financial power with HOA funds, they may
immediately terminate the HOA management company or insist that the HOA Treasurer retire from service.  In such a case, the Board may elect to assume management of the HOA finances, elect a new Treasurer, and/or employ a different HOA management company.

It is the duty of the SVMHOA Board to regularly monitor and protect the HOA's financial assets, even if it is being managed by a paid company.

At any time, SVM homeowners in good standing (current dues are paid and voting privileges are active) may initiate a financial audit of SVMHOA records.  If an HOA Board member is found at fault in financial mismanagement of the HOA, the Board member may be removed and replaced by the HOA members through a quorum vote (20% of SVM households represented in person or by proxy).  Another homeowner must be willing to step up and fill the vacant Board seat.