Design Review Committee Conflicts

QUESTION: We have a situation that is occuring in our Design Review Committee meetings that is causing quite a bit of anger amongst our homeowners who have had their applications turned down. It seems that when an application has been turned down some of the professional architects on the committee who just participated in the discussion and vote then hand their cards to the homeowener and solicit business. I’ve reviewed the AZ NonProfit Statutes and I am wondering if this falls under the conflict of interest parameter. It has opened up the Design Review Committee for criticism that their desire for business is influencing their vote. Is this something that puts the HOA at risk. Is it unethical in the parameters of HOA statutes. Thanks!

ANSWER: The Board and its Officers (including Design Committee Members) must act “reasonably” and have a duty to treat all members the same. Any design committee member that hands out professional business cards to the same homeowners whose applications he/she considered has a…

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