Understanding rights and obligations for small community associations

Q. We are a small common interest community association, organized as a not for profit corporation, with a very outdated declaration of covenants. Our annual assessment income budget is less than $100,000.00. Is our association covered by the Common Interest Community Association Act? If not, is there a way for the association to be covered?

A. Yes. A common interest community association organized under the General Not for Profit Corporation Act that has either 10 units or less, or annual budgeted assessments of $100,000 or less, is exempt from the Common Interest Community Association Act (CICAA). However, the association can elect to be covered by the law. This requires a vote of either a majority of the association’s board of directors or of a majority of the members of the association. An election by an association to be covered by this law could create some needed direction and guidance for an association whose governing documents are sparse or antiquated. Adopting CICAA may also allow the board an easier method to amend the association’s declaration and bring it into conformity with current laws.

Q. A unit owner in our association is refinancing his unit, and the owner has requested copies of the association’s declaration and all amendments to forward to the lender. We do not have all of these documents. Is the association required to provide these documents? If so, can we charge the owner the fee charged by the recorder of deeds to obtain copies of the documents?

A. The board of an Illinois condominium, master, or common interest community association is obligated to maintain certain records for examination and copying by owners. These records include copies of the declaration and all amendments.

So, yes, the association is required to provide the owner with copies of the recorded declaration and all amendments, as requested. Further, the board has to obtain these documents from the recorder’s office, at association expense. The board can, however, charge the owner a reasonable fee for copying the requested documents.

Q. Our development is comprised of many small condominiums that are part of a master association. Can these individual associations be merged into a single condominium association?

A. The Condominium Property Act provides a procedure to merge associations with approval of two thirds of the owners. However, as a practical matter, and because percentages of ownership would be changed, the merger of associations that would be governed by a single declaration requires approval of all owners in all of the associations. Further, the mortgage holder for each owner may also have to consent. Practically speaking, the merger of condominium associations is difficult to accomplish.

Q. We own a condominium unit in the suburbs that has various amenities such as tennis courts, a party room, an exercise room, and a swimming pool. Due to a large insurance claim, the association cannot obtain liability insurance that will cover the swimming pool. As a result, the board has closed the pool. Can the association take away an amenity like the swimming pool without a vote of the owners?

A. The board of managers of a condominium is responsible for the maintenance, repair, replacement, and improvement of the common elements, such as the pool you describe. In general, a board cannot make the unilateral decision to eliminate such an amenity. However, a temporary closure of the pool, while the board diligently sorts out the insurance issue and obtains liability insurance that would cover the pool, seems defensible in light of the risk of loss to the association if it does not have liability coverage on the pool.

The board should review Section 12.1 of the Condominium Property Act that establishes the Condominium and Common Interest Community Risk Pooling Trust Act, with its counsel. That act might offer your association relief in this situation.

• Matthew Moodhe 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.