Developers retain control of new condominiums
By David M. Bendoff
Q: I purchased a new condominium in the Northwest suburbs about a year ago. I have spoken with a couple of owners about some issues we should address. They say we can't do anything at this time as the association is under developer control. What does that mean?
A: "Developer control" means control of the association prior to the election of the board of directors that is provided for in Section 18.2(b) of the Illinois Condominium Property Act. The election of the first board made up of unit owners must be held not later than 60 days after the conveyance by the developer of 75% of the units, or three years after the recording of the declaration, whichever is earlier.
Until election of the initial board of managers that is comprised of a majority of unit owners other than the developer (first unit owner board of managers), the same rights, powers, privileges, duties and obligations of the board under the declaration and bylaws are performed by the developer.
Q: Is the board of our condominium required to hold a meeting of the owners to review the proposed annual budget for next year?
A: The board of directors of your condominium is not required to hold a meeting of the owners to review the proposed annual budget. Under the Illinois Condominium Property Act, here is the condominium budget adoption process in a "nutshell."
Owners must receive a copy of the proposed annual budget at least 25 days before it will be adopted by the board. Written notice of the board meeting at which the board will adopt the annual budget must be given to owners at least 10 and not more than 30 days before the meeting where the board will adopt the annual budget. Carefully planned, the copy of the proposed budget can be sent with the notice of the board meeting at which the board will adopt the annual budget, to avoid multiple mailings.
Note that each unit owner of a condominium subject to the authority of the board of a master association, must receive, at least 30 days prior to the adoption thereof by the board, a copy of the proposed annual budget. Written notice of the master board meeting where the board of the master association will adopt the proposed budget must be given within the same time frame described above.
Q: Our condominium association has collected email addresses of owners over the years, and we probably have them for all owners. The condominium board is confused about whether the association can send notice of the annual meeting to owners by email. This would save a lot of time and money associated with issuing meeting notices. Can you clarify?
A: Section 18(b)(6) of the Illinois Condominium Property Act describes the requirements for notice of meetings of the members of the association.
Written notice of any membership meeting must be mailed or delivered giving members no less than 10 and no more than 30 days' notice of the time, place and purpose of such meeting. However, notice may be sent, to the extent the declaration or bylaws or rules adopted thereunder expressly so provide, by electronic transmission (email or text) consented to by the unit owner to whom the notice is given, provided the director and officer or his agent certifies in writing to the delivery by electronic transmission.
While recently drafted declarations or bylaws tend to provide for electronic transmission of notice; most do not. Therefore, the board will need to adopt rules that provide for electronic transmission of notice, and an owner would need to consent to receive notice this way.
Such rules and consent, if carefully drafted keeping Section 18.8 of the Act in mind, can permit the use of acceptable technological means in other situations as well.
• David M. Bendoff is an attorney with Kovitz Shifrin Nesbit in the Chicago suburbs. Send questions for the column to him at CondoTalk@ksnlaw.com. The firm provides legal service to condominium, townhouse, homeowner associations and housing cooperatives. This column is not a substitute for consultation with legal counsel.