Q–When I bought my condominium a half-dozen years ago, I received a homeowners handbook from the builder. One section was entitled “Declaration of Condominium Ownership and Bylaws.”
According to these bylaws, the board is supposed to consist of five members, including a president, treasurer and secretary. But our board has one member who holds both the jobs of secretary and treasurer. Is this legal?
Our board members tell me that the material in the handbook, because it came from the builder, no longer applies to the building.
Meanwhile, at our annual meeting, we were told that no minutes had been taken at the previous annual meeting. What’s more, we were told no minutes would be taken at the latest meeting.
I asked a board member how I would know what was going on, and was told, “you will need to attend the meetings.”
As I understand it, minutes are supposed to be taken and retained for seven years. Yet it appears no minutes whatsoever have been taken at board meetings. What should we do about this situation?
Our building has a nicely furnished lobby, which is being occupied every night for several hours by three or four owners who invite guests from other nearby buildings.
Our building has 50 units, and most of us think this is an abuse of the lobby privilege. It certainly gives a poor impression to our visitors.
Now the board is talking about building a meeting room, apparently for those who gather in the lobby. Unless the lobby is walled in, there is no space to build such a meeting room. It probably would have to be added to the outside of the building.
Does the board have the authority to make such a structural alteration to our building?
Even though the board controls the use of the property, isn’t this a matter on which we residents have a right to vote?
A–Contrary to what you were told, the material provided to you by the builder certainly does apply. The declaration and bylaws govern the current operation of your association.
Because you live in Chicago, the handbook most likely was a property report. Developers of conversion condominiums in Chicago must prepare and submit this document for projects with more than six units.
A member of the board can serve as both secretary and treasurer of the association. However, Illinois law pertaining to not-for-profit corporations, such as your condominium association, state that the same person should not hold the office of president and secretary.
The board must keep proper minutes of all meetings of the owners and the directors. Minutes are required by the Illinois Condominium Property Act and the Illinois Not-for-Profit Corporation Act.
Both statutes require the directors to keep minutes for inspection by the unit owners.
Minutes are the official records of the operations of the association. Without minutes, the directors have no record to show what they have accomplished or to defend their actions.
If the association secretary doesn’t want to take minutes, the board should hire an outside service or individual to act as a recording secretary.
If the board refuses to keep minutes, it’s time to replace the members.
This can be done through a special meeting, with votes by two-thirds of the unit owners, or by electing a new board at the next annual meeting.
Keep in mind that failure of a condominium board to keep minutes is an invitation to disaster.
As for the gatherings in the lobby that you described, I see no harm in this situation. People are not disrupting the association, just being neighborly.
However, the alteration of the structure of the building to create a meeting room will require the approval of the unit owners. Additions and alterations to the common elements which are not included in the annual budget are subject to approval by two-thirds of the unit ownership.
Your declaration may contain some additional provision requiring a unit owner vote for expenditures which are considered building alterations or additions.
Q–I live in a north suburban condominium association. Unit owners took over control of the board in 1991.
In early 1996, we discovered that the first floor apartment facility, which is above the garage, was unsafe. Apparently, the builder-developer, who still resides in the building, installed an inferior floor.
A year ago, all the owners who paid $15,000 apiece for a parking space were forced to vacate that area while repairs were made. Those of us in this situation have had to park on the street, which is more than a minor problem for some of our senior citizen residents.
The lower level of the garage is controlled by the former developer.
Now get this: he wants to charge unit owners who were forced to vacate their spaces $100 a month to rent the parking spaces he controls. Our village board has not responded to this rent gouging.
The board will continue with the garage repairs while we park on the street.
Does the builder have a right to force owners to pay for renting his portion of the garage? Is there an agency or board to which we can turn for help or advice?
A–First, determine whether the developer actually owns the parking spaces in the lower level of the garage. It is possible these are limited common elements that are assigned to the units he owns in the building.
If the developer does, indeed, own the spaces, he can rent them to residents at any negotiated price.
If the spaces are limited common elements and are not occupied by particular residents, the former developer may be subject to rules adopted by the board for interim parking during the construction repair project.
Limited common elements are part of the common elements of the property. These common elements are controlled by the board.
Owners with rights to limited common elements always are subject to rules adopted by the board.
Unlike in Florida, there is no agency in our state government that deals with the administration or operation of condominiums.
Florida has a much larger population of homeowner associations, so that state deemed it necessary to regulate a significant portion of its housing community.
The increasing number of community associations in Illinois may, at some point, justify the expense of creating a state agency for this purpose.
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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, he can’t make personal replies.
