CAUTION be aware and be alert. This is commonly known as a conflict of interest. (your question did not include your HOA’s number of bids received on the job, let alone if the job was sent out for bids.) We will address the answer as if your director bid on the job and won the bid to do the work.

State laws and/or case decisions have held that contracts that an association enters into which result in a personal benefit to a particular director are either void or voidable unless:

(i) the material facts of the transaction and the director’s personal interest are fully disclosed to the association’s members, and the transaction is thereafter approved by the members without the interested director participating in the vote; or

(ii) the material facts of the transaction and the director’s personal interest are fully disclosed to the association’s directors, the transaction is just and reasonable as to the association, and the transaction is approved by the directors in good faith without the interested director participating in the vote.

Courtesy: Lawrence Szabo, Esq.