If you live in a community association, you’re sharing property and finances with strangers. You hope those people have similar standards for neighborliness and market appreciation. But you don’t know for sure.
How much information about its residents is an association entitled to? And what can you do with it? It’s a murky subject, and industry professionals don’t agree on all points.
“There are those who believe that an association is entitled to all kinds of information, from employment and financial information, through credit checks, from personal through bank references, and particularly, Social Security numbers,” said association attorney Shelley Barnett of Barnett and Goldberg in Elgin. “There are others, and I am one, who believe that an association is entitled to only minimal information,” such as identification of a unit’s occupants or a copy of the sales contracts in associations whose declarations give them the right of first refusal.
Association attorney Jordan Shifrin of Kovitz Shifrin Nesbit in Buffalo Grove says that for some associations, criminal background and credit checks may be in order, and that in some cases, residents could be removed for drug use and felonious behavior. As examples, the Schaumburg Residential Rental Ordinance and the Illinois Forcible Entry and Detainer Act permit eviction for criminal activity.
“As in all instances, the board must act reasonably,” he said.
Reasonable types of information include:
– Census data. Associations are entitled to know who lives on the property. Names, phone numbers, vehicle descriptions and copies of leases are valid requests.
“We ask for pet information in case something happens to the pet or the pet does something to someone else,” said Don Kekstadt, vice president of property management for Lieberman Management Services in Buffalo Grove. “E-mail addresses enhance our ability to communicate and present a cost savings to the association.”
In most cases, asking for the ages of homeowners isn’t advisable.
“You can’t ask anyone’s age unless yours is a 55-and-over community,” said Shifrin. “They have restrictions on how many under-55s they are permitted to maintain their status.”
– Emergency contacts. If disaster befalls a resident or a unit while the owner is away, management needs to know who to call.
Residents should be given the choice whether to supply medical information or not. Requiring the information could imply that the association is assuming a protective role toward those who require assistance and could cast liability on an association that doesn’t provide it, Barnett said.
Residents who request accommodation because of health needs should be expected to explain those needs, Shifrin said.
– Insurance. Many governing documents permit associations to require owners to carry liability and property insurance and to periodically submit proof of that insurance.
– Interviews. Shifrin is wary of requiring interviews before a sale closes. If the transaction goes awry, the association could be blamed, particularly if either party is a member of a protected class. He prefers orientation sessions after move-in.
“That way it’s more of an educational session, where you are indoctrinating someone to the community and explaining how things work so they fit in better and feel more comfortable, rather than asking questions because you’re nosy,” he said.
To avoid challenges to their requests for information, associations should establish policies and enact rules, along with a fining procedure for violations. They must apply those policies and rules to all residents.
Associations also must handle resident information with care, said Shifrin.
“There should be a small control group that has access to homeowner files and policies in place how it can be used,” he said. “Then if someone violates those standards, they may be personally liable for them.”
Meeting
The Association of Condominium, Townhouse and Homeowners Associations hosts its 2004 Fall Conference and Trade Show from 8 a.m. to 3:30 p.m. Sept. 18 at the Holiday Inn Chicago Mart Plaza, 350 N. Orleans St.
The event includes a vendor trade show, educational seminars and lunch. The cost is $50 for members and $120 for non-members. Group discounts are offered. Call 312-987-1906 or log onto actha.org.
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