The Board's Non-Compliance with our Governing Documents and Pennsylvania Law
A board member has a fiduciary duty of undivided loyalty to the association and its membership, and must avoid any conflict of interest or self-dealing. When acting as a fiduciary, a homeowner serves in a representative capacity, and must put the interests of the community first. Board members must also use sound business judgment and handle certain association matters and information with confidentiality. This includes a duty to also manage the financial and business affairs of the HOA with ordinary prudence.
Board members can breach their fiduciary duty by failing to perform the regular tasks involved in governing the association, such as holding regular meetings, keeping adequate financial and business records, properly collecting assessments, maintaining common areas, and adhering to the association bylaws. A breach of their fiduciary duty as a board members of the HOA can have legal consequences.
Even if they unknowingly or unintentionally breach that duty, they be personally liable in addition to the association by an aggrieved homeowner. Certain breaches of fiduciary duty can also negate any protection the HOA’s Officers and Directors liability policy may afford.
- Citing Violations without following Due Process
- Spending from Reserve Funds in Violation of PA Statutes
- Signing Contracts that have precedence over our Governing Documents
- Refusal to provide Inspection of Basic Documents of the Association by Members
- Questionable Documentation of the Board's Activities and Decisions