Unit owners have a 'say' in rule changes

Q. The board of our condominium is preparing revisions to the association's rules. Do the proposed revised rules need to be sent to the owners for review and comment before they are adopted by the board?

A. The adoption of rules does not require a unit owner "review and comment period," per se. However, Section 18.4(h) of the Illinois Condominium Property Act provides that there must be a meeting of the unit owners called for the specific purpose of discussing the proposed rules before there is a meeting of the board to adopt the changes. The two meetings can be held back-to-back on the same evening. No quorum is required at the meeting of the unit owners held to discuss the proposed revised rules.

Written notice of the unit owner 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. The notice of the unit owner meeting must also include the full text of the proposed rules and regulations.

Notice of the meeting of the board to adopt rules would have to be issued to the board members (and to the owners if required by the declaration) and posted on the property at least 48 hours in advance of the board meeting.

Q. We are a self-managed association and the former treasurer of our association has many years' worth of the association's financial records. He refuses to return them to the association. Rather, he says, he will make them available for examination by the board or will make copies for the board at association expense. Does the former treasurer need to return the records to the association?

A. The treasurer of an association has the responsibility to keep the financial records and books of account of the association. These books and records are not the personal property of the treasurer, and the treasurer serves as the custodian of the association's books and records.

As such, the former treasurer must deliver, to the association, all the original financial records and books of account in his custody or control. Failure to do so would be a breach of fiduciary duty. The association could seek a court order requiring the return of the books and records and damages, if any, suffered as the result of the former treasurer's failure here. A written demand should be made on the former treasurer to deliver the books and records by a stated deadline, and the demand should describe the consequences of failing to comply.

Q. Can the board of our association adopt restrictions on the number of dogs that are permitted to be kept in a unit?

A. If the association's declaration is silent on pets, the board can adopt a reasonable rule establishing limits on the number of dogs that can be kept in a unit. Similarly, if the declaration permits pets, and includes a provision permitting the board to adopt rules regulating the number of dogs that can be kept, the board can probably impose the limit by rule.

However, if the declaration includes a pet provision, Illinois case law provides that the limitation on the number of dogs that can be kept in a unit must be imposed by way of an amendment to the declaration approved by the owners, and not merely by way of a rule adopted by the board. A rule alone establishing a limit on the number of dogs, when the declaration permits pets without restriction, could be subject to successful challenge.

• 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.