Vendor Contracts, HOA Transparency, and the Risk of Financial Misconduct

A homeowner recently reached out to me and asked, “What should I do about vendor requests?”

When homeowners ask to see their HOA’s vendor contracts, the request is not just about curiosity — it’s about accountability. Georgia law, specifically O.C.G.A. § 44-3-231(b), requires that “all financial and other records” of the association — including vendor contracts and agreements — be made reasonably available to homeowners upon request.

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Why Vendor Contracts Matter

Vendor contracts reveal:

• Who the HOA is paying

• How much the HOA is paying

• What services are being provided

• Whether contracts were competitively bid

These details tell homeowners whether their dues are being spent wisely — or wasted.

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Why HOAs May Not Want to Disclose Contracts

In some cases, HOA boards resist sharing vendor agreements because:

• The same vendor has been used for years without competitive bids.

• Payments may appear inflated compared to market rates.

• The vendor could be a friend, family member, or even a business tied to a board member.

• Homeowners might uncover conflicts of interest or questionable spending.

Lack of transparency fuels distrust. When an HOA refuses to share contracts, homeowners are left to wonder: What are they hiding?

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A Real-Time Example: Contractor Vans at a Board Member’s Home

Just recently, I noticed something troubling — a contractor’s work van, hired for subdivision work, has been parked at a board member’s house for several days. Naturally, this raises the question: Is this their business?

If so, this presents a clear conflict of interest concern.

Board members have a fiduciary duty to act in the best interest of the community. Contracts should be awarded based on fair pricing, quality of service, and competitive bidding — not personal profit. When homeowners see vendors tied too closely to board members, red flags emerge:

• Is the board member profiting from HOA dues?

• Were other vendors given a fair chance to bid?

• Was this relationship ever disclosed to homeowners?

Even if no law is technically broken, the appearance of impropriety undermines trust. This is why requesting vendor contracts is not just a right but a necessity — it keeps everyone honest and accountable.

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Can HOA Board Members Be Paid?

Under most governing documents, HOA board members serve voluntarily. They are typically not paid for their role as board members. However, nothing stops a board member (or their family) from owning a company that provides services to the HOA — for example, landscaping, security, or property management.

While technically legal if disclosed and approved properly, this creates serious ethical concerns:

• Conflict of Interest – A board member may steer contracts to their own business or relatives.

• Self-Dealing – Decisions may be made for personal financial gain rather than the community’s best interest.

• Perception of Corruption – Even if services are fairly priced, homeowners may see it as favoritism or misuse of power.

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Allegations of Financial Misconduct

When HOAs pay board members, friends, or family for services, they open the door to potential allegations of financial misconduct, including:

• Misuse of association funds

• Kickbacks or under-the-table deals

• Breach of fiduciary duty to homeowners

Even the appearance of impropriety can damage trust and lead to costly legal battles.

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The Bottom Line

Homeowners should always request and review vendor contracts. Transparency protects not only the homeowners but also the HOA itself from suspicion and allegations. If your board resists, remember that Georgia law is on your side — financial records belong to the community, not just the board.

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Template to Request Vendor Information

If you’re ready to make a request, here’s a template you can use:

Subject: Request for Vendor Contracts/Agreements

Dear [HOA Board/Management],

I am formally requesting access to review copies of all current vendor contracts and agreements entered into on behalf of our Association.

Under Georgia law, specifically O.C.G.A. § 44-3-231(b), associations are required to maintain complete and accurate records of all financial matters and “other records” of the association. Vendor contracts fall under this requirement as they involve the expenditure of association funds.

Please provide access to these records within a reasonable timeframe, or confirm a date and time when they will be available for inspection. If there is a cost for copies, kindly advise in advance.

Thank you for your prompt attention to this request.

Sincerely,[Your Name][Your Address / Lot #]

👉 Call to Action for Readers:

Have you requested vendor contracts from your HOA? Have you ever noticed vendors tied to board members and wondered if it was a conflict of interest? Share your story — your experience may help another homeowner demand accountability.