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CODE OF ETHICS, DUTY
OF CARE
Preamble …
"Where ever it is that we live, it's the place we call
home".
It is prudent to recognize that the
interests of the homeowners require their homes be protected,
their homeowner associations united and the value and enjoyment
of their property assured. Homeowners require their properties
to be properly maintained they expect a healthful living environment,
they anticipate the Board of Directors will function efficiently
and effectively and provide a financially sound organization.
Accordingly, the services provided by the Board of Directors
require honesty, impartiality, fairness and equity, and must
be dedicated to the protection of the public health, safety,
and welfare. Board of Directors must perform under a standard
of professional behavior that requires adherence to the highest
principles of ethical conduct. These expectations impose solemn
obligations beyond those of day-to-day living. They impose
serious social responsibilities and a devoted duty to which
"Board Members" should dedicate themselves, and
for which they should be diligent in preparing themselves.
Board Members, therefore, must be eager to maintain and improve
the standards of their calling and share with their fellow
homeowners a common responsibility for its integrity and honor.
In recognition and appreciation of their obligations to homeowners,
Boards of Directors must continuously strive to become and
remain informed on issues affecting homeowners and community
associations and, as knowledgeable semi-professionals, they
willingly share the fruits of their experience and interaction
with other homeowners. They identify and take measures, through
enforcement of this Code of Ethics and by assisting appropriate
regulatory bodies, to eliminate practices which may damage
the homeowners or which might discredit or bring dishonor
to community association living. Board members having direct
personal knowledge of conduct that may be in violation of
the Code of Ethics involving misappropriation of association
funds or property, willful discrimination, or fraud resulting
in substantial economic harm, bring such matters to the attention
of the appropriate authority, Board of Directors or the Association
of Homeowners.
The term "Board of Directors" has come to indicate
competency, fairness, and high integrity resulting from adherence
to a proud ideal of moral conduct in association and business
relations. No inducement of self-benefit or profit and no
instruction from homeowners or residents ever can justify
departure from this ideal.
In the interpretation of this responsibility, Boards of Directors
can take no safer guide than that which has been handed down
through the centuries, embodied in the Golden Rule, "Whatsoever
ye would that others should do to you, do ye even so to them."
Accepting this standard as their own, Boards of Directors
pledge to observe its spirit in all of their decisions and
to conduct the business of the association in accordance with
the creed set forth below.
Duties to Homeowners
Article I
When representing the homeowners, Board of Directors pledge
themselves to protect and promote the interests of their homeowners
and homeowners association. This obligation of absolute fidelity
to the association's interests is primary, but it does not
relieve Board of Directors of their obligation to treat all
parties fairly and honestly. When serving a homeowner, resident
or other party, Board of Directors remain obligated to treat
all parties fairly and honestly.
Duty of Care 1-1
Board of Directors, shall remain obligated by the duties imposed
by the Code of Ethics.
Duty of Care 1-2
The duties the Code of Ethics imposes are applicable when
Board of Directors are acting in a legally recognized capacity
except that any duty imposed exclusively by law or regulation
shall not be imposed by this Code of Ethics on Board of Directors
acting in their capacity. As used in this Code of Ethics,
"Homeowner" means the person(s) on title of the
property for which the homeowners association is constituted
and with whom the Board of Directors has a legally recognized
relationship.
Duty of Care 1-3
The obligation of the Board of Directors to preserve confidential
information as defined by state law regarding their homeowners
in the course of their relationship recognized by law continues
after termination of the relationship. Board of Directors
shall not knowingly, during or following the termination of
professional relationships with their homeowners or other
residents: I) reveal confidential information of the homeowners
or other residents; or 2) use confidential information of
the homeowners or other residents to the disadvantage of the
homeowners or other residents.
Duty of Care 1-4
Board of Directors shall, consistent with the generally accepted
duties of their office, competently manage the property of
homeowners with due regard for the rights, responsibilities,
benefits, safety and health of residents and others lawfully
on the premises.
Duty of Care 1-5
Board of Directors shall exercise due diligence and make reasonable
efforts to protect the investment property of the homeowners
and the homeowners association against reasonably foreseeable
contingencies and losses.
Duty of Care 1-6
When entering into contracts or agreements, Board of Directors
shall exercise due diligence and care to protect the homeowners
association.
Article II
Board of Directors shall not accept any commission, rebate,
or profit in any way on expenditures or activities made for
and in behalf of the homeowners association. When recommending
services or products such as homeowner's insurance, projects,
maintenance or landscape contracts, Board of Directors shall
disclose any financial benefits or fees that may be derived
from such activities.
Duty of Care 2-1
Board of Directors shall not recommend or suggest to the homeowners
association the use or services of another organization or
business entity in which they have a direct interest without
disclosing such interest at the time of the recommendation
or suggestion.
Duty of Care 2-2
Board of Directors members shall disclose to the homeowners
association if there is any financial benefit or fee the Board
Member or its company or firm may receive as a direct result
of having recommended services.
Article III
Board of Directors shall keep in a special trust account,
in an appropriate and insured financial institution, separated
and exclusive from their own funds, monies coming into their
possession or control for the homeowners association, such
as homeowner's dues or other monies, and like items.
Article IV
Board of Directors, for the protection of all parties, shall
assure whenever possible that contracts or agreements shall
be in writing, and shall be in clear and understandable language
expressing the specific terms, conditions, obligations and
commitments of all the parties. A copy of each contract or
agreement shall be made available to each homeowner upon request
Article V
Board of Directors shall not deny equal professional services
to any person for reasons of race, color, religion, sex, handicap,
familial status, or national origin. Board of Directors shall
not be parties to any plan or agreement to discriminate against
a person or persons the basis of race, color, religion, sex,
handicap, familial status, or national origin.
Board of Directors shall not volunteer or provide information
regarding the racial, religious or ethnic composition of any
homeowner or resident.
Article VI
Board of Directors shall not undertake to provide specialized
professional services concerning matters or service that is
outside their field of competence unless they engage the assistance
of one who is competent on such types of matters or service.
Any persons engaged to provide such assistance shall be so
identified to the homeowners and their contribution to the
assignment or undertaking shall be set forth.
Article VII
If charged with practice or asked to present evidence or to
cooperate in any other way, in any professional standards
proceeding or investigation, Board of Directors shall place
all pertinent facts before the proper tribunals or council
and shall take no action to disrupt or obstruct such processes.
Duties of Board of Directors
Article VIII
Board of Directors shall not knowingly or recklessly make
false or misleading statements about homeowners or other residents.
Article IX
Board of Directors shall not engage in any practice or take
any action inconsistent with the homeowners association.
While the Code of Ethics establishes obligations that may
be higher than those mandated by law, in any instance where
the Code of Ethics and the law conflict, the obligations of
the law must take precedence
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