New Hampshire Code of Ethics, Duty of Care of Board of Directors of Homeowners' Association

• Category: Real Estate - Community Associations
• State: Multi-State
• Control #: US-1127BG
• Format: Word; Rich Text

Description

Homeowners require their properties to be properly maintained; they expect a healthful living environment; and they anticipate the Board of Directors will function efficiently and effectively and provide a financially sound organization. Accordingly, the services provided by the Board of Directors require honesty, impartiality, fairness and equity, and must be dedicated to the protection of the public health, safety, and welfare. Board of Directors must perform under a standard of professional behavior that requires adherence to the highest principles of ethical conduct. Board Members, therefore, must be eager to maintain and improve the standards of their calling and share with their fellow homeowners a common responsibility for its integrity and honor. As such, Boards of Directors pledge to observe its spirit in all of their decisions and to conduct the business of the association in accordance with the creed set forth.

The New Hampshire Code of Ethics outlines the principles and guidelines that govern the conduct and responsibilities of the Board of Directors of a Homeowners' Association. It sets forth the Duty of Care that board members must adhere to while carrying out their duties and making decisions on behalf of the association. The Duty of Care requires board members to act with the highest level of care and diligence when making decisions that affect the association and its members. They must make informed and reasonable decisions that are in the best interest of the association and its residents. This duty includes thoroughly reviewing and understanding important documents such as bylaws, contracts, and financial statements. In New Hampshire, the Code of Ethics emphasizes the board's fiduciary duty, which means that board members must put the interests of the association and its members above their own personal interests. They should avoid conflicts of interest and give priority to transparency and fairness in all decision-making processes. Additionally, the New Hampshire Code of Ethics may include specific guidelines for board members regarding their behavior, professionalism, and respect towards other board members and homeowners. It may highlight the importance of confidentiality and the responsible handling of sensitive information. Different types or variations of the Code of Ethics and Duty of Care within the board of directors may include: 1. Code of Ethics for Executive Directors: This specifies the ethical principles and standards that executive directors of homeowner associations should adhere to. It may outline their responsibilities and roles within the association, including the management of financial affairs, enforcement of community rules, and communication with homeowners. 2. Code of Ethics for Committee Members: This focuses on the ethical standards and expectations for members of specific committees, such as the architectural control committee or finance committee. It provides guidance on their decision-making processes, responsibility towards the association, and impartiality in their role. 3. Code of Ethics for Homeowners: This code may address the ethical conduct expected from homeowners and their responsibility to comply with association rules and regulations. It might include guidelines on respectful communication, property maintenance, and participation in community activities. By adhering to the New Hampshire Code of Ethics and embodying the Duty of Care, the board of directors of a Homeowners' Association can effectively fulfill their responsibilities, maintain the trust of homeowners, and ensure the harmonious functioning of the community.