[OMS_MANAGERS] Facade Improvement Loans

[STUART Sheri * OPRD]

The protocol would also be in your adopted Conflict of Interest policy. If you don't have one, the IRS has a model policy. 

Here's their sample procedure for addressing the conflict of Interest: 
a. An interested person may make a presentation at the governing board or committee meeting, but after the presentation, he/she shall leave the meeting during the discussion of, and the vote on, the transaction or arrangement involving the possible conflict of interest.
b. The chairperson of the governing board or committee shall, if appropriate, appoint a disinterested person or committee to investigate alternatives to the proposed transaction or arrangement.
c. After exercising due diligence, the governing board or committee shall determine whether the Organization can obtain with reasonable efforts a more advantageous transaction or arrangement from a person or entity that would not give rise to a conflict of interest.
d. If a more advantageous transaction or arrangement is not reasonably possible under circumstances not producing a conflict of interest, the governing board or committee shall determine by a majority vote of the disinterested directors whether the transaction or arrangement is in the Organization's best interest, for its own benefit, and whether it is fair and reasonable. In conformity with the above determination it shall make its decision as to whether to enter into the transaction or arrangement.

You can find the whole policy at: 
http://www.irs.gov/instructions/i1023/ar03.html 



-----Original Message-----
From: OMS_MANAGERS [mailto:oms_managers-bounces at listsmart.osl.state.or.us] On Behalf Of kendallbell945 at gmail.com
Sent: Friday, August 21, 2015 1:38 PM
To: Oregon Main Street program managers
Subject: Re: [OMS_MANAGERS] Facade Improvement Loans

Peggy,  Where can I find the handbook?   I am not having any luck on my initial search on line!
Thank you everyone for your thoughts!
Kendall

Sent from my iPad

> On Aug 20, 2015, at 4:16 PM, Peggy Moretti <PeggyM at restoreoregon.org> wrote:
> 
> This would technically be a conflict of interest, since a board member is benefiting financially.  There is probably a good way to resolve this by having them recuse themselves from the discussion and vote.  The non-profit handbook should have proper protocal spelled out.
> 
> Peggy
> Peggy Moretti, Exec. Director
> RESTORE OREGON
> 503 243-1923
> 
> -----Original Message-----
> From: OMS_MANAGERS [mailto:oms_managers-bounces at listsmart.osl.state.or.us] On Behalf Of kendallbell945 at gmail.com
> Sent: Thursday, August 20, 2015 2:52 PM
> To: oms_managers at listsmart.osl.state.or.us
> Subject: [OMS_MANAGERS] Facade Improvement Loans
> 
> Hello Everyone,   I am interested in learning how other communities handle the following situation.   We are now a 501(c) 3.  We are considering offering a Facade Improvement Loan.  One of the key properties on the entrance to our Main Street that is in great disrepair is owned by a board member.  They would like to apply for a loan.  
> Any suggestions or thoughts??
> Kendall in Klamath Falls
> 
> Sent from my iPad
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