HOA Director Personal Liability for Not Correcting a Violation

People who volunteer to be a board member of their neighborhood homeowner association (HOA) usually have good intentions. But, many homeowners wonder if those individuals can be held accountable for their actions when things go wrong. Does a HOA director have personal liability for not correcting a violation?

Homeowners standing to send demand letters to a homeowners association for breach of fiduciary duty are often frustrated by strict rule enforcement that borders on harassment. A minor noise complaint or nuisance violation can quickly escalate, causing tension between the homeowner and board members.

There are several ways to handle a homeowners association dispute, but unfortunately, it is usually time-consuming, frustrating, and hard to navigate on your own. While some boards will offer a simple HOA complaint form, others have lengthy guidelines in the bylaws that address how disputes get handled. In most cases, many residents don't know where to turn for assistance.

DoNotPay can help you file a complaint from the convenience of your home computer. There are no forms to fill out, meetings to attend, or calls to make. After answering a few simple questions, DoNotPay will file a complaint or appeal a violation on your behalf. If you have been the victim of discrimination against renters or want to know how to dispute homeowners association late fees, DoNotPay can help!

The information below will help you address concerns with your HOA and help you determine if your HOA director has personal liability for not correcting a violation and if a complaint is worth pursuing.

Can You Send Demand Letters To HOA for Failure of Duty to Act Within the Scope of Authority?

Although board members can be named as plaintiffs in a lawsuit against the HOA, it is rare for them to be held personally liable. The only time a board member will be held accountable is when they are found in breach of their fiduciary duty.

A homeowner would have to prove the board member acted with:

• Negligence
• Willful misconduct
• Bad faith
• Outside the board's authority

The case will be dismissed against an individual board member if there is not enough supporting evidence to convict them of wrongdoing.

Can the HOA Insurance Company Send Demand Letters To the Board of Directors for Non-Compliance?

If the association purchased directors and officers (D&O) insurance, the HOA board members are covered individually by the HOA insurance company.

Upon reviewing the details of a case, an insurance company will decide if board members need personal representation. If the board of directors are not compliant with their fiduciary duties, the insurance company could seek retribution depending on the claim.

What You Can Do When HOA Director Does Not Correct a Violation

If you believe a board member has not acted in good faith, you can file a complaint with the HOA. Before filing a lawsuit, there are several things you can do:

1. Gather Supporting Evidence

Collect as much supporting evidence as you can to support your claim. Talk with neighbors to see if they are having the same difficulties and document all conversations.

In the case of a violation, retain a copy of the notice received from the HOA board. Also, make a copy of all correspondence shared between both parties.

2. Attend an HOA Meeting

Find out when the next HOA meeting is in your neighborhood and attend, prepared to present your complaint to the board. Some HOAs will not allow residents to speak at board meetings. If there is not an upcoming general session scheduled, you can request a special meeting to present your case.

3. Internal Dispute Resolution

Here’s what can happen:

• If the board refuses to listen to your concerns, you can officially request an Internal Dispute Resolution (IDR). At least one board member must be part of a negotiation effort to listen to your concerns.
• If dispute resolution proves unsuccessful, you can escalate the matter to alternative dispute resolution (ADR) proceedings. This usually involves bringing in a third-party mediator to resolve the issue.

When an arbitrator becomes involved, the final decision is binding, and both parties must conform.

Deal With HOA Concerns With the Help of DoNotPay

Dealing with HOA board members is often very difficult, especially when they are your neighbors. DoNotPay takes the emotion out of the equation and deals directly with the problems at hand.

Our easy-to-use automated system makes it easier than ever to file a complaint without time-consuming meetings, phone calls, or forms.

Here’s how to file a complaint with your HOA using DoNotPay:

1. Choose and describe the nature of your complaint (neighbors, maintenance, etc).

2. Explain how this problem has negatively affected you and how you want the HOA to address the problem.

3. Tell us how long you've been a member of this HOA.

4. Confirm your home address so we can generate state-specific arguments on your behalf!

And that's it! DoNotPay will generate your complaint letter on your behalf with a two-week deadline for their representatives to either resolve the issue or contact you with more information. All you have to do is drop the letter off to your HOA manager!

If you're struggling with unfair fees from your HOA, DoNotPay can also help you appeal them! Just use the "Appeal a HOA Fine" product to have DoNotPay mail a demand letter on your behalf. If you don't receive a timely response, you can escalate the issue to small claims court using our "Send Demand Letters To Now" product.

What Else Can DoNotPay Help You With?

DoNotPay is available 24/7 from the convenience of your home computer. With the few clicks of a button you can determine if your concerns regarding HOA violations are worth pursuing. Take action today, with DoNotPay behind you every step of the way!

In addition to helping you resolve HOA issues, DoNotPay can help with all kinds of tasks, such as:

Visit DoNotPay to see how you can save time, money, and effort with the tasks you need to accomplish.