Property manager is allowed to own unit in the building
Q: Our association is professionally managed. The manager assigned to our property by the management company is an owner of a unit in our association. Can the property manager for our association also be a homeowner in the association? Wouldn't this be a conflict of interest?
A: The property manager assigned to the association by the management company can be an owner in the association. This is not a common situation, but it does happen occasionally. It is not a conflict of interest.
Whether the board wants to have a property manager who is also an owner assigned to the association would be a business decision of the board of directors. Many associations would actually contend this arrangement results in better service to the association.
Q: Can the board of our association elect officers at the annual meeting of the owners where the board members were elected? This has been our typical practice, but I have been told it is not correct.
A: No. the annual meeting of the owners would not be the appropriate forum in which the board can elect the officers of the board. The officers would need to be elected by the board at a board meeting; not at a meeting of the owners. Many associations schedule a board meeting immediately following the annual meeting of owners for this purpose. Other associations schedule a board meeting a few days after the annual meeting of owners for this purpose. It's personal preference of the board. However, the new officers of the board should be elected sooner rather than later.
Q: I was looking at the bylaws for our association. Board members in our association are elected for a term of two years, on a staggered term basis. However, officers are elected for a term of one year. Shouldn't the term of officers be two years as well?
A: The provisions of your bylaws to which you refer are fairly standard. Staggered board terms means there is an election for some of the board members every year. Because the composition of some positions on the board may change annually, it is typical to provide that the board elect its officers annually.
Q: I live in a common interest community association. However, the board has advised the members of the association that we are not governed by the Illinois Common Interest Community Association Act. Can you explain why this would be the case?
A: Small common interest community associations may be exempt from the Illinois Common Interest Community Association Act; however, an association that is exempt may nonetheless elect to be governed by that Act.
More specifically, a common interest community association organized under the General Not for Profit Corporation Act of 1986 and having either 10 units or less or annual budgeted assessments of $100,000 or less is exempt from the Act.
However, the association can nonetheless affirmatively elect to be covered by the Act, either by a vote of a majority of its directors or members. This is all set out in Section 1-75(a) of the Act.
Q: I don't hear much these days about the Condominium and Community Interest Community Ombudsperson Act. Is it still in effect?
A: The Illinois Condominium and Community Interest Community Ombudsperson Act is still in effect. Every condominium association, and every common interest community association (except for those exempt from the Illinois Common Interest Community Association Act), must comply with the Condominium and Community Interest Community Ombudsperson Act and is subject to all provisions of this law. Do note that this requirement is currently due to be repealed effective July 1, 2024.
• 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.