Q–We have 18 units in our townhouse complex. Each individual owns a unit and the adjacent lot. There is no common ground. We are governed by a declaration of covenants, easements and restrictions. We have tried to follow this document, but have a problem interpreting its provisions for one particular situation.
A major source of conflict among the owners revolves around the trees in the complex.
Before our area was developed, it was a small forest. The developer took down most of the trees to build the homes, but left several trees on each lot.
Some of the trees that existed before the property was developed are 40 to 50 years old. Many have been damaged during construction, and some are diseased.
We have had to remove approximately 15 trees so far. The cost to remove each tree is $1,700 to $2,500. Although the board has agreed to pay half the cost for removing some trees, we do not believe the association should pay for removal of trees the association may have to replace in the future. It is just too expensive.
Residents are evenly divided on this issue. I have enclosed copies of our declaration which indicate what policy applies to landscaping.
I also suggested that the board hire a condominium lawyer, but the members could not agree.
Our assessments are $85 a month, and most owners do not want to increase this charge. The association also has a $10,000 certificate of deposit for emergencies, and many owners and board members do not want this sum used for tree removal.
What is the solution to this difficult situation?
A–The answer is to hire a lawyer to review the declaration, because the portions of the document you enclose clearly provide that landscaping is a common expense.
Your declaration states that landscaping and lawns, as originally installed, shall be maintained, repaired and replaced by the association. The specific powers of the board of directors of the association include landscaping.
The covenant for maintenance assessments in your document says such income shall be used for, among other things, the improvement and maintenance of landscaping.
The declaration does not permit the board to charge unit owners for removal of the old trees. This is an expense which the board will need to include in current and future budgets.
Unit owners are not being realistic if they expect the assessment rate will remain at current levels. The board should consider using the certificate of deposit for landscaping expenses, because it appears that this will be the major upcoming cost for the association.
Q–I have two questions concerning our condominium. The association maintenance man installed valves for heat in two condominium units. The condominiums are heated by a water boiler which we replaced in 1996. It provides baseboard heat, which is is included in the condominium assessments.
What I can’t determine is whether the valves are a proper expense for the association or the responsibility of individual unit owners. Are the valves part of the unit or the common elements? I cannot find a specific reference in the condominium declaration.
Because I am on the board of directors, I also would like to know what is the rule for audits. Our association has not had an audit in seven years. I suggested an audit, but was told if it ain’t broken, dont fix it.
A–To determine the cost responsibility for the valves, first check your declaration to determine whether this item is classified. If there is no reference in the declaration, Section 4.1 of the Illinois Condominium Property Act provides that equipment which is located within and serves only one unit is part of the unit. In that case, the valve replacement is a unit owner expense.
As for your second query, condominium associations are not required to have audits. The law only requires a condominium board to supply the owners with an annual statement of income and expenses. Nevertheless, associations should have some form of annual accounting report, whether it be a review, compilation or an audit.
There is no specific monetary requirement or rule of thumb for association audits. It has been suggested that associations with income of more than $250,000 should have this detailed form of examination.
However, the board must determine whether the cost of this higher priced examination is an expense which the association can and should incur in light of its financial condition.
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Mark Pearlstein, is a Chicago attorney who specializes in condominium law. Write to him c/o Condominiums, Real Estate Section, Chicago Tribune, 435 N. Michigan Ave., Chicago, Ill. 60611. Sorry, no personal replies.
