Page 5 - New England Condominium May 2021

Should “Volunteers” Be Compensated?
Q
I am living in a small complex
in Massachusetts with 21 units.
Th ere are six residents serving
on the board, and I have heard that they
don’t pay the monthly maintenance fees.
To me, this sounds like they are getting
paid to do what I thought was a volunteer
job. Is it legal to get compensated to be on
the board and to not pay the fees? As a unit
owner, do I have the right to see the asso-
ciation’s fi nances to fi nd out if it’s true that
these “volunteers” are not paying the fees
in return for “serving” on the board?
—Feeling Cheated

A
“I note at the outset that
this writing is not intended
to provide actual legal ad-
vice,” says Gary M. Daddario, partner at
Marcus, Errico, Emmer & Brooks in Brain-
tree, Massachusetts. “Th e guidance con-
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QUESTIONS & ANSWERS
Legal
Q
A&
tained herein is based on only the limited
information provided. A more specifi c and
thorough response taking account of any
pertinent additional information should be
obtained from an attorney providing actual
legal representation. Th at said, although it
is not ‘illegal’ for board members at a con-
dominium to be compensated, it is not rec-
ommended.
“For one thing, it can provide a tangen-
tial motivation for people to serve on the
board (money) and that doesn’t particular-
ly help the association. Perhaps more im-
portant, Massachusetts law includes a case
in which it was decided that board mem-
bers of a condominium were not subject to
the Unfair and Deceptive Business Prac-
tices Act. Th e court noted that volunteer
association boards at condominiums are
not in ‘business’ for purposes of the statute.
However, the court noted that the outcome
might be diff erent if the board members
were compensated.
“In the event that board members are
compensated, it should be handled sepa-
rately and not comingled with their con-
dominium assessments. Th e Massachusetts
Condominium Statute is clear on there be-
ing a single method of assessing units their
proportionate share of the association’s
overall annual budget. Unit assessments are
based on the percentage of benefi cial inter-
est assigned to the unit. Even if the assess-
ments and the compensation are set at the
same amount and, thus, a ‘wash’ or a ‘net
zero,’ it is more appropriate for the records
to show all condominium assessments be-
ing levied properly, as well as any compen-
sation paid to board members.
“Members of an association do have
rights to review fi nancial information
and documents of the association. For a
condominium in Massachusetts, I recom-
mend reviewing the Massachusetts Condo-
minium Statute (Chapter 183A of Massa-
chusetts General Laws) and, in particular,
Section 10 thereof. Although boards are
allowed certain information on a confi den-
tial basis or as pertains to matters in execu-
tive session, generally an association’s bank
account statements are available to a mem-
ber and these do typically show income be-
ing deposited and expenses being paid.”
n