Proposed budgets must be submitted in advance

Q. I thought the proposed budget had to be mailed to the owners 25 days prior to the board's adoption of the budget, for all types of owners' associations in Illinois. Is that correct?

A. There is no uniform statute in Illinois governing all the different types of associations. Condominium associations are governed by the Condominium Property Act, common interest community associations are governed by the Common Interest Community Association Act, and master associations are governed by Section 18.5 of the Condominium Property Act. The provisions of these various laws are not the same.

As a result, the requirement for when the proposed budget needs to be provided to owners is different for condominiums, master associations and common interest community associations. Here are the specific requirements for each type of Illinois association.

In a condominium association, each unit owner must receive, at least 25 days prior to the adoption thereof by the board of managers, a copy of the proposed annual budget together with an indication of which portions are intended for reserves, capital expenditures or repairs, and payment of real estate taxes. (See Section 18(a)(6) of the Condominium Property Act.)

In a master association, each unit owner of a condominium subject to the authority of the board of the master association must receive, at least 30 days prior to the adoption thereof by the board of the master association, a copy of the proposed annual budget. (See Section 18.5(c)(1) of the Condominium Property Act.)

In a common interest community association, each member must receive through a prescribed delivery method, at least 30 days but not more than 60 days prior to the adoption thereof by the board, a copy of the proposed annual budget together with an indication of which portions are intended for reserves, capital expenditures or repairs and payment of real estate taxes. (See Section 1-45(c) of the Common Interest Community Association Act.) Note too that if a common interest community association is exempt from the Common Interest Community Association Act, the time frame would be as set forth in its declaration and bylaws.

Why is it that these time frames are different for each type of association, you ask? Good question …

Q. Our association has always had three candidates for the three open seats on the board every year. The candidates are simply announced as the members of the board - it's quite informal. This year, we have five candidates for the three positions? What do we do?

A. The association is going to have to hold an annual meeting of the owners to elect the required number of board members from among the various candidates. This will require the association to issue a notice of the annual meeting to the owners that identifies the date, time, place and purpose of the meeting. Owners will be able to vote at the annual meeting in person, and may generally vote by proxy. The appropriate notice of meeting, proxy and ballot will have to be prepared. There is a lot more to it than this "nutshell" response. The board should review the association's bylaws and the applicable statute, and consult with counsel, for the details.

Q. We have a small association, and there is not a lot the board needs to do. We can probably take care of all the business in two meetings a year. Is there a minimum number of times that the board of our association must meet?

A. Yes there is. The requirements for an Illinois condominium and a common interest community association are the same. The board must meet at least four times a year. Many association boards meet more frequently, often monthly. The actual number of meetings held each year, over and above the required minimum, should depend on the business that needs to be conducted.

• 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.