Q. The search committee of our condominium association has invited all association members to run for the board of directors. What do we do if we cannot get a minimum number of owners to run and serve on our five-member board?
Also, what determines the difference between an expense, a repair, and a capital improvement? For example, is the process of tearing off and replacing our 25-year-old roof a repair or capital improvement?
We also have a brick wall that is a landscaping feature of the property, but needs extensive work. We may have to remove and replace this wall. How is this work classified?
A–If your search committee cannot obtain enough volunteers to serve on the five-member board, the association can legally operate with less than the full complement of board members. The decisions of the board will not be void for failure to obtain the maximum number of directors provided in the bylaws.
Both the roof and brick wall replacement are repairs and improvements to the property. Under Section 18.4(a) of the Illinois Condominium Property Act, the terms repair, replacement or restoration are classified together as an expenditure to deteriorated or damaged portions of the condominium property. These expenditures may cover existing decorating such as a lobby, or structural components such as the roof and walls you describe.
Based on revisions to Section 18.4, spending limitations in a condominium’s bylaws do not apply to repairs, replacement or restoration of condominium property. Rather, these projects are subject to a unit owner vote by petition if such expenses exceed 5 percent of the annual budget.
The reason for the new law change is that extensive repairs may also result in an improvement over the quality of the materials originally installed on portions of the condominium property. In all likelihood, replacement of a roof, for example, will be an improvement because of the new quality of roofing materials.
Q–We live in a condominium complex of 170 units in a northern suburb. At the annual unit owners meeting, we were asked to vote for three candidates for the board of directors. Our management company conducted the election. Representatives of the firm distributed and counted our ballots.
Management announced only the names of the winners in sequence. At the end of the meeting, several unit owners asked for the number of ballots cast and the number of votes each winner received. We were denied this information.
As unit owners and shareholders, do we have the right to this election information?
A–You have the right to election materials, but management acted correctly by not producing the materials at the meeting. Under revisions to Section 19 of the Illinois Condominium Property Act, you must submit a written request to inspect the election materials.
The request must state the records you seek to review and a proper purpose for the request. If you satisfy these requirements, the board must make the election materials available to you within 30 days of the written request.
Note that the board of directors may provide you with access to the original election documents or copies of these records.
Q–I live in a four-unit condominium building. The unit above me is leased to a young couple. The couple told me their landlord promised them that their rent would never increase, no matter how long they stayed in the unit. They also advised me that much of the work in their unit has been done by the landlord, rather than outside contractors.
Several months ago, I noticed a portion of my drywall under their tub and shower stall was moist and peeling. The board hired a contractor to investigate the upstairs unit and advised the owner that three rows of shower tiles were deteriorated.
This firm then was hired by the owner to fix the tiles. However, the insurance company for the owner does not feel that he has any liability for the damage in my unit. Can you explain this to me?
A–The opinion of the insurance company is irrelevant to your damage claim. Section 9.1 of the Condominium Act states that a unit owner is liable for any claim or damage arising from the use or operation of a unit.
The operation of the shower in the upstairs unit damaged your residence and, thus, the upstairs unit owner is liable for your repair costs. If the insurance carrier for the owner chooses not to pay a claim under his policy, that is a matter of concern to the owner. The owner still is liable to you under the law without regard to whether his insurance carrier will reimburse him for your damage claim.
Concerning your neighbors’ claim that their rent will never increase, unless that promise is made in writing, there is a greater likelihood that both the Cubs and the Bears will win their respective world championships next year than that such a pledge will hold indefinitely.
Condo conference
The Community Associations Institute/Illinois Chapter will present its 16th Annual Conference and Trade Show from 9 a.m. to 4 p.m. Jan. 24 at the Wyndham Hotel, 400 Park Blvd., Itasca.
Conference highlights will include programs on Associations and the World Wide Web, Role of the Association President, Insurance, Associations Meetings, Reserves and a Legal Update. For further information call the chapter office at (630) 372-7510.
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Mark Pearlstein is a Chicago lawyer 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.
