They break numerous association rules, and while we fine them diligently (I'm on the association board of directors), they always pay the fines (to the tune of $3000+ per year). 

If it gets bigger you add in a regional director.

Today, the executive director told my wife that I would need to send my LLC mail to a post office box due to "gm and legal issues." 

It is a requirement, in addition to another set of courses specifically design to help, to become a director of a real estate agency.

In fact, he just forced his planning director to resign out of pressure from the development community, who aren't going to vote for him in the impending reelection next month anyway

We'd recommend against it.So long as there are no transactions between your two IRA's and they simply joint venture into a transaction, there is no issue with that.There can be no direct or indirect benefit between disqualified parties, however, and this falls into that indirect range.  

I also wanted to add in my area many banks board of directors from failed banks that the FDIC took over are now being sued for damages.The FDIC says they were given a compliance letter that there ratios were out of whack and they needed to change loan practices immediately to protect the health of the bank and shareholders.The FDIC contends they ignored their responses and are now suing them for negligence.Will have to wait and see how these cases proceed in court.Now you know why many banks won't touch non-vanilla stuff.

@Mary Joe the Board of Managers (or Board of Directors if you are at a co-op) does have insurance against lawsuits, which they are required to have.

@Bob BastingWhile you can read on the internet that a joint-venture between you and your self-directed IRA or 401(k) is possible, it is not generally something we would recommend.You are a disqualified party to your plan, and there can be no direct or indirect benefit between you and the plan, in either direction.  

The other factor is the director rate but that is country-wide and don't affect only Quebec market.May I ask why you want to buy in Quebec, particularly in this neighborhood?