How do we sell or get rid of old HOA equipment and furniture?

By OurHOA · General information · Revised September 29, 2026

How an HOA board sells, donates or scraps old equipment and furniture: who may approve it, fair pricing, directors who want to buy, recalls, records and a motion.

Part of the HOA board handbook: vendors, projects and upkeep.

The short answer

Old clubhouse chairs, a replaced treadmill, the riding mower the landscaper made unnecessary: every association ends up with things it no longer needs. Get rid of them the same way you would spend money. Make an inventory, get a board vote, offer the items to everyone on equal terms, collect payment into the association's account, and write it all down. Two situations need extra care. The first is a director or a director's relative who wants to buy something, because that is a conflict of interest under state law. The second is anything that has been recalled or is unsafe, which the association should not sell or give away at all. The rest is paperwork. Rules vary by state and by your governing documents, and this guide is general education, not legal advice.

Confirm the association can let it go

Start by sorting what you have. Movable things the association bought, like furniture, gym machines, tools, holiday decorations and a golf cart, are personal property, and the board can usually sell them under its general powers. Colorado's statute says it plainly: an association may acquire and convey real or personal property in its own name, with separate limits on the common elements (38-33.3-302(1)(h)). Things attached to the land or buildings are different. A playground bolted into concrete, a pool heater plumbed into the system or a built-in sauna may count as part of the common elements, and conveying common elements in Colorado takes the agreement of owners holding at least 67 percent of the votes (38-33.3-312). Removing and scrapping a worn fixture as part of a replacement project is routine maintenance, but selling off part of the common area is not. Then check three more things before you list anything. Read the bylaws and declaration for any cap on what the board can sell without an owner vote. Pull the lease or finance agreement for any equipment you did not buy outright, because a leased copier or a financed mower belongs to someone else. And look for strings on donated items, such as a memorial bench given on the condition that it stays at the pool.

Set a fair price before anyone bids

Make a one-page list: each item, its condition, a photo, the year bought if you know it, and an asking price. Price from what the same item sells for used on local listing sites, not from what the association paid, and write down how you got the number. For anything likely to bring more than a few hundred dollars, like a mower, a golf cart or commercial gym equipment, get a second opinion from a dealer or ask for sealed bids with a minimum. Then offer everything to every owner at the same time, with the same deadline, before it goes to the public. An owner notice keeps the sale from looking like an inside deal, and owners often want the furniture more than strangers do. Sell as is, with no warranty, and say so in writing. If nobody bids, lower the price once, then donate or haul away. A treasurer's time is worth more than the last $40 for a folding table.

When a director or a relative wants to buy

A sale to a director is a transaction between the association and a board member, and the conflict-of-interest statutes cover it. In Texas, section 22.230 of the Business Organizations Code says a contract between a nonprofit corporation and one of its directors, officers or members stays valid if the material facts are disclosed and a majority of the disinterested directors approve it in good faith, or if it is fair to the corporation. Property Code section 209.0052 adds stricter conditions for association contracts with a board member, a close relative or a company they control: at least two other bids, no access to the other bids, and no part in the discussion or the vote. It is written with vendor contracts in mind, but following the same steps for a sale costs nothing. In Florida, section 720.3033(2) requires the board to comply with section 617.0832, record the disclosure in the minutes, approve the transaction by a two-thirds vote of the directors present, and disclose it to the members at the next member meeting. Section 720.3033(6)(b) also requires a director to disclose any possible conflict at least 14 days before the vote, so it cannot be decided on the spot. In Colorado, section 38-33.3-310.5 applies the nonprofit rule in 7-128-501, which covers a spouse, sibling or other related party as well, and protects the deal when the facts are disclosed and a majority of disinterested directors approve it, or when it is fair to the association. The safest practice everywhere is simple. Directors buy only after the item was offered to all owners, at the same posted price or through the same sealed bid, and the interested director leaves the room for the vote. Our guide on HOA conflict of interest rules covers the wider topic.

Recalled, broken and hazardous items

Check every item against the recall list at cpsc.gov/recalls before you sell or donate it. The Consumer Product Safety Commission's guide for resellers says it is illegal to sell any recalled product under section 19 of the Consumer Product Safety Act, that its rules reach individuals at yard sales, and that people who give away used products for free cannot pass on products that do not meet the law. Its advice for recalled or hazardous products is to destroy them, not sell or give them away. For an association, the likely hits are fitness equipment, patio heaters, space heaters, playground pieces and children's items left in a clubhouse. Anything that failed, like a treadmill with a frayed cord or a pool lift that no longer locks, goes to scrap with a note in the file saying why. Leftover pool chemicals, paint and batteries are not furniture. Call the city or county solid waste department and ask how a business or nonprofit disposes of them, because household drop-off days often turn away associations.

Paperwork and money

Every sale gets a short bill of sale: the item, the price, the buyer's name, the date, the words 'sold as is, where is, with no warranty,' and the signatures of the buyer and an officer. Take payment by check or electronic transfer payable to the association, never cash to a director's pocket, and deposit it the same week. Update three lists afterward. Remove the item from the insurance schedule if it was listed there, from the reserve study if it was a component, and from any fixed-asset list the treasurer keeps. Tell the tax preparer. On Form 1120-H, only dues, fees and assessments from owners count as exempt function income, and the IRS instructions say capital gains from selling association property are taxable. Most used furniture sells for less than it cost, but the preparer should make that call, not the board. For donations, get a written receipt from the charity listing the items. Our guide on whether an HOA has to file a tax return covers the rest of the filing.

A motion and an owner notice to copy

Motion: 'Moved that the association offer the items on the attached surplus list dated [date] for sale to owners at the listed prices, by sealed bid for items marked with a minimum, with offers due [date]; that items not sold by [date] be donated to [charity] or disposed of; that any recalled or unsafe item be disposed of and not sold; that all sales be as is, paid to the association, and documented with a bill of sale; and that any director or related party who bids disclose the interest and not take part in the award.' Owner notice: 'The association has replaced the clubhouse furniture and has older pieces for sale to owners first. The list, photos and prices are attached. To buy, email the secretary by [date]. If two owners want the same item, the higher sealed offer wins, and ties go to the first email received. All items are sold as is and must be picked up by [date]. Payment is by check to the association. Items left after [date] will be donated.'

Mistakes boards make

Letting the president take the old mower home for $50 after a hallway conversation, which is the classic conflict-of-interest complaint. Selling something the association was only leasing. Treating a fixture as furniture and removing part of the common area without an owner vote. Setting prices by guesswork and never writing down the basis. Taking cash at the curb with no receipt. Donating recalled equipment to a charity, which hands the problem to someone else. Forgetting to take a sold golf cart off the insurance policy and paying a premium on it for two more years. Each of these costs more than the item was worth, and the inventory, the vote, the owner notice and the bill of sale prevent all of them.

Sources

These guides are general education for HOA boards and residents, not legal, tax, or financial advice. Rules vary by state and by your community's governing documents - check with a professional for your situation.

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