Q. I am a member of a new condominium board. We had our turnover meeting from the builder in January.
The builder hired a management company to oversee operations of our condo. The company turned over the financial statements to the new board. There were unpaid association dues from owners, one bankruptcy of more than $1,000 and owners who were not charged late fees. Should all of these charges have been kept up to date by the builder or are we out of luck?
Also, when I was elected to the board at the meeting, a representative of the property management firm asked us who wanted to serve in different offices, such as president, vice president, etc. Shouldn’t the unit owners have decided who was to hold a certain office?
I am now a vice president. The president does not take my input on any questions; he simply rules. Who makes the final decision for the condo board?
A.The developer board has the same duties as a unit owner board. These directors must collect delinquent assessments. The managing agent should have retained an attorney to file demands for possession and eviction suits, if necessary. Depending on the type of bankruptcy filing, the association should have filed a proof of claim or sought court permission to lift the automatic stay and seek possession of the unit.
Following the election of the initial board, the directors elect their officers. If the owners are advised of a formal board meeting, the new officers are chosen at the directors’ meeting after the owners elect the board. Otherwise, the board must elect officers at a meeting called with notice to the ownership.
The president of a condo association carries out the decisions made by the majority of the board. The president does not set policy. Q.I have had a running argument with my cooperative board president for about five years on open voting for co-ops. It is my contention that our co-op board may meet as a quorum any time without proper notice to our shareholders, as long as no vote is taken. I believe that the board, with a quorum present, can meet to interview prospective owners or discuss building matters such as engineering firms and landscapers as long as no vote is taken.
Though having proper notice to shareholders would be better, can we, if the situation arises, meet without shareholder notice as long as no decisions are made?
A. Since the adoption of Senate Bill 2772 as Public Act 94-1099, meetings of a cooperative board, generally, must be open to any residential shareholder.
Effective Feb. 2, Public Act 94-1099 applies to cooperatives organized as either for-profit or non-profit corporations. A cooperative board meeting is defined in this law as the gathering of a quorum to discuss the business of the cooperative. This law requires the co-op board to hold open meetings except for portions held to discuss pending or threatened litigation, employment matters or rule violations.
Sometimes, the literal application of a statute is not practical. Interviews with prospective co-op shareholders are private matters that should not be the subject of an open meeting. Discussions with engineering firms and landscapers, however, should, under the new law, be done at an open board meeting.
Q. We are a smaller townhouse association. We have an owner who is very belligerent when speaking to board members and during open board meetings.
During our closed meetings, this owner insists upon being present, which, of course, we plan on allowing but are uncomfortable with. Can you please tell us how to handle this owner? Dealing with this individual has become very unpleasant.
A
If the owner cannot conduct himself in a civilized manner, ask him to leave the meeting. The owner should not attend closed board sessions.
One option is to provide an open forum for owners to speak to directors at the beginning of the meeting. After the open session, the board meeting begins. During the meeting, the board conducts the business of the association and the owners listen. If your neighbor cannot observe this guideline, the directors should bar him from the meeting. If he is belligerent, call the police or sue.
Board members do not receive sufficient compensation to tolerate abuse from owners.
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Mark Pearlstein is a Chicago lawyer who specializes in condominium law. Write to him c/o Condominiums, Real Estate, 4th Floor, Chicago Tribune, 435 N. Michigan Ave., Chicago IL 60611. You may e-mail questions to realestate@tribune.com. Sorry, he can’t make personal replies. Answers will be supplied only through the newspaper.
