Condo owner believes association is not compliant with state law

Ilyce Glink and Samuel J. Tamkin, Tribune Content Agency on Dec 5, 2024

Q: We live in a high-rise in downtown Chicago. Although the building is well maintained, there are issues with transparency and perceived conflicts with state law and our association’s declaration and bylaws. We are wondering if our interpretation is incorrect. Every time we ask, the management company simply says that the association is compliant.

For example, our bylaws call for the annual election to take place within 30 calendar days of the anniversary date of the initial annual meeting by the first board. Our first meeting was at the end of September some years ago. However, our annual meeting is usually held in December. Second, when they close out the fiscal year, the board doesn’t distribute the financials. I believe that those financials should be distributed to all unit owners. They do release them to any unit owner that requests them.

Finally, they don’t post the meeting times in a conspicuous place 48 hours before each meeting as required by state law, but more importantly as a reminder to unit owners that the meeting is taking place. How do we get the condo association to follow the law?

A: We can quibble on the details, but believe it or not, you’re one of the lucky condo owners. Your building appears to be well maintained, has its annual meetings and distributes or makes information available to you when needed. Our inbox is full of letters from readers telling us about HOA board meetings held without notice, information that is withheld and never handed out, and meetings that never take place.

As we see it, it seems that your association may have a good reason to hold its annual meetings in December. We understand that you believe that the first meeting might have been in September and would then expect your annual meetings to be in October. But does it make a difference as long as they occur every year in December?

When it comes to giving notice, many homeowner and condo association boards now announce meetings via email. Some states have come to recognize this means of communication as better than posting a sheet of paper on a bulletin board near a mail room or another place in your building. Perhaps your bylaws predate changes to recent changes in your state law that allow boards to communicate with owners via email.

When it comes to association finances, many also distribute these by email rather than print up paper copies. Does your state require the association to distribute financials for the preceding year by mailing that information to owners? Or, does it require only the proposed and final budget for the association be distributed.

You might be correct that your condo documents require different actions by your board. It’s also possible that the laws in your state have been updated to give the board some flexibility in how they communicate with their owners and have overruled some of the requirements in your bylaws.

Some larger homeowners associations, or associations with professional management companies, will put information about the financials of the association along with announcements and board minutes on the association’s website. Have you checked? That would be the fastest and easiest way to manage the flow of information.

In the grand scheme of things, your building seems well run and organized. You certainly can investigate the issue further. If you choose to do so, then look to hire an attorney that specializes in community association issues.

Instead, perhaps you can focus that energy on developing the means to distribute information electronically and get it posted on the website for the homeowners association, where all unit owners can access it. The board can send out email reminders to all of the meetings along with reminders that information about the association is available on the website.

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(Ilyce Glink is the author of “100 Questions Every First-Time Home Buyer Should Ask” (4th Edition). She is also the CEO of Best Money Moves, a financial wellness technology company. Samuel J. Tamkin is a Chicago-based real estate attorney. Contact Ilyce and Sam through her website, ThinkGlink.com.)