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Illinois condo association board budget spending without approval

Posted on Thu, Nov 06, 2014 @ 07:00 AM
  
  
  
  
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I live in a 30 unit self-managed Illinois condo association. There are three officers, and all are close friends. They do a fine job at making sure bills are paid and repairs are completed. However, when the President decides he wants something done, he simply does it because the checks are written by his friend and co-officer. Is there a spending limit on property improvements that can be made? For example, they want to rebuild the parking lot and send out a special assessment of over $3,000 without taking a vote from other condo owners. The parking lot is in bad shape and needs repair. Can the officers make a big decision like this on their own? Our bylaws are over thirty years old and I think I’ve read that there is a $3,000 credit limit available for use without approval for repairs.

The condo association has lawyers on retainer, but only the President has access to them. The officers also hold meetings when they want, and there is nothing stated in the bylaws about how this business should be conducted. I’m interested to know if the owners have any recourse in this type of situation.

12 Comments Click here to read/write comments

How can condo association deferred maintenance accounts be used?

Posted on Tue, Oct 14, 2014 @ 08:09 AM
  
  
  
  
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What exactly can condo association deferred maintenance and unallocated interest accounts be used for? I've always understood that these 2 accounts can be used for any reserve spending, such as elevator upgrade, painting, carpeting, roofing, paving, etc.

5 Comments Click here to read/write comments

How should condo association reserve funds be invested?

Posted on Tue, Oct 07, 2014 @ 11:18 AM
  
  
  
  
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What is the best policy for investing condo association reserve funds? Should we do CDs, bonds, or equity?

9 Comments Click here to read/write comments

Dues collector too aggressive for condo association owners

Posted on Tue, Sep 02, 2014 @ 06:51 AM
  
  
  
  
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We have a special assistant to the treasure going and "collecting" dues the day after from other Condo Association Members. She is demanding payment and intimidates older owners into paying, and the board won't tell her to stop. Is this discrimination?

9 Comments Click here to read/write comments

How is simple interest calculated on condo fees and late charges?

Posted on Mon, Jul 07, 2014 @ 07:04 AM
  
  
  
  
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I am an owner in a condo association that is self-managed. I have agreed to help the Board of Directors with a spreadsheet that will track dues, payments, late charges and interest charges. The attorney for the condo association says that a simple interest calculation should be used instead of a compounding calculation.

I am a software developer and have programmed both simple and compound interest for mortgages, etc., but am not sure of how simple interest is calculated on dues and late charges. Can anyone help me with a specific step-by-step procedure?

7 Comments Click here to read/write comments

Types of condo association board of directors meetings

Posted on Fri, May 30, 2014 @ 07:31 AM
  
  
  
  
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What notice must be given for condo association board of directors meeting? Is there a difference for budget, capital spending, and general meetings? What constitutes capital spending?

7 Comments Click here to read/write comments

How to transition from a foreclosed condo owner to a new owner

Posted on Tue, May 27, 2014 @ 07:22 AM
  
  
  
  
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A condo owner was foreclosed on the 15th of the month. They had paid that month's assessment fee and were in good standing. The new owner who bought the condo unit at auction does not take possession of the unit until 30 days after a deed is issued, which is a week after the sale.

Should the original owner receive a refund of half a month? If so who should pay the second half of the current month assessment and going forward until the new owner takes possession? The condo association is in Du Page County, Illinois.

11 Comments Click here to read/write comments

Condo association considering combining separate reserve accounts

Posted on Fri, May 02, 2014 @ 07:40 AM
  
  
  
  
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We are a condo association with 72 condo units in Florida. We have $523,000 in six separate reserve accounts – Roofing, Paving, Painting, Building, Carports, and Recreation Facilities. The condo association property manager wants to combine the accounts into one that can be accessed for any of the six reserve expenses, claiming that accounting is easier and that it would provide more flexibility.

I’m concerned that pooling these reserve accounts will reduce accountability and clarity, and may lead to financial problems. Does anyone have experience with pooled reserves?

17 Comments Click here to read/write comments

HOA board members reimburse themselves without owner consent

Posted on Wed, Feb 12, 2014 @ 07:58 AM
  
  
  
  
I’m on the board of a 200 unit Condo Community which has unit over unit homes. Our Treasurer’s unit which has a unit over it, suffered water damage in November and she Had to move out of her unit for three months. I was told that the water damage was caused by the upstairs neighbor moving out and leaving water running in the laundry room when the movers Disconnected the Clothes washer. At our last board meeting, I noticed a check written to the Treasurer for $7800. I asked the Manager and the Treasurer what it was for and they said they got push back from the upstairs neighbor when they tried to get her to take responsibility, so they said the HOA had to reimburse the Treasurer for some things not covered by her insurance policy. We have experienced a few of these unit to unit damage bailouts in the past, however the Board of Directors Has always had an opportunity to vote on whether they wanted to get involved if it involved common area damage. Another issue I have is that the $7800 was expensed to “materials”…..this also seems improper that the BOD was not given the opportunity decide whether to demand that payment from the upstairs neighbor. I would like other’s views on whether these actions seemed improper

14 Comments Click here to read/write comments

Condo association denies owner right to see bank statements

Posted on Fri, Sep 06, 2013 @ 08:48 AM
  
  
  
  
I live in a 420 unit town home community in Illinois, the lawyer for our condo association says we are not governed by the condo act and therefore my request to see bank statements was denied. Our by laws says we are a not for profit association. I am very concerned about our financial situation and from my research I believe the condo act supersedes . Am I correct?

14 Comments Click here to read/write comments

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