Board member uses his own credit card for HOA purchases

Q: When I was on the homeowners association board, I used my credit card a lot, and then I would get reimbursed by the HOA. I even did a large amount when buying a large purchase from an out-of-state company we had never dealt with, as it is much safer than sending the check and hope we get the merchandise.

Now a resident has filed a complaint that may go to the Ombudsman’s office saying I may have benefited with points from the credit card purchases. This certainly was not the reason I did this. Has this been addressed before to your knowledge?

A: I have not seen any written opinion on this issue by the Nevada Real Estate Division.

Most associations do not have debit or credit cards. Often, purchasing online can substantially reduce the prices of materials and equipment that an association may require. Not too many online companies even accept payment by checks. While you may have received some points from the credit card purchases, you also bear the liability of the purchase as to interest being charged on your account if the association does not promptly reimburse you. Over the years, I have even seen a few associations argue over the expense (for a variety of reasons) that was incurred by the board member or a committee member where they did not want to reimburse the member.

I don’t know how you can avoid a member receiving points from credit card purchases unless he is using a charge card that does not offer them. There is more liability to the association for having its own debit or credit card.

My recommendation, prior to an association member using their credit card for an association expense, would be to disclose to the board that they would be receiving points with the credit card purchase.

Barbara Holland is a certified property manager, broker and supervisory certified association manager. Questions may be sent to holland744o@gmail.com.