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Condo association president and owners fight over finance committee

Posted on Tue, Oct 12, 2010 @ 06:32 AM
  
  
  
  
  
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I live in a very large condominium complex in Chicago, IL. Recently, a recommendation was presented to our board president to have a finance committee that would assist the board in our financial affairs. There were five homeowners who expressed interest in being part of this important committee.

However, at an open meeting in front of the homeowners, the creation of a finance committee was rejected with no explanation. Our property management became part of the discussion and literally told the homeowners that the decision was made and that a letter would be sent to the homeowners who wished to be on this committee. Well, no letter was sent.  In matter of fact, our property management made a point that the board president has the right to refuse creating any committees. A comment was even made from our property management "to stop beating a dead horse to death" to end the discussion.

I read some related articles in our local newspapers by a Chicago lawyer who specializes in condo law, who indicated that "the board of directors of the association collectively appoints committees. And that the board president cannot veto the suggestion of a finance committee. Generally, any committee that can assist the board in reviewing association issues is helpful and promotes volunteer participation in the community." I personally feel that the board president is threatened by the creation of a finance committee, and doesn't want any committee that would question a president's authority and power. Unfortunately, it would be very difficult to get a petition going, because there are over 440 units in our property, and many homeowners do not attend the open meetings. Is the board president's veto of a finance committee a violation of the Condominium Act of Illinois. It was obvious that the board president was personally against this committee the moment it was proposed at the prior meeting.

What other avenues are there; other than a petition, or voting the board president out of office, which would also be very difficult? This HOA board is a very powerful board. There are no committees. The board president feels that there is no need to have them. Any responses would be greatly appreciated! I am a avid reader of the CondoAssociation blog. Thank you.

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Comments

Check what the Illionois Condominium Law says about adopting the budget. In most states it requires a majority vote of the unit owners. This could be the avenue you could use to throttle the board president. Of course the annual election could be a route to use to unseat undesireable members of the Board.
Posted @ Tuesday, October 12, 2010 7:47 AM by Telephonics
Generally the documents of all associations will state that committees are appointed by and serve at the pleasure of the board of directors. In a limited number of associations, the Nominating Committee is elected by the members at the Annual Meeting and serves until the next Annual Meeting. 
This said, an association is stronger when there are active committees. This is where leadership is often developed to eventually serve on the Board. The Treasurer is the director or officer who most benefits from the assistance of the Finance Committee. Committees should have "job descriptions" and these can be obtained from other associations who have developed such. Perhaps a one-on-one friendly conversation with the Treasurer after gathering information would garner support. 
The property manager was reactive and it indicates the possibility that he too was frightened off by the possibility of a committee becoming involved in the finances.  
Gather the information, develop a draft structure for all committees to follow, and then recruit a candidate for the board for your next Annual Meeting. Don't give up on bringing new insight into the condo. 
Posted @ Tuesday, October 12, 2010 7:50 AM by Nancy Jacobsen
This might be a good time to get a financial status report.Or even better, a financial audit. At the least, this would clarify just where things are today. Too much interference from the property manager and the president would make me uncomfortable. With 440 owners involved, there is a lot of money being collected.
Posted @ Tuesday, October 12, 2010 2:11 PM by Katherine Howard
FYI: 
 
 
 
There is nothing in the IL Condo Act about committees, therefore it is dependent upon what your bylaws or CCRs say. Mine say the Pres shall appoint committees.
Posted @ Monday, October 18, 2010 9:43 AM by mary
From your state con\ndominium act. If Board President wants tomeet this requirement of the law without help..??? 
 
 
 
(c) Budget and reserves.  
 
(1) The board of managers shall prepare and  
 
distribute to all unit owners a detailed proposed annual budget, setting forth with particularity all anticipated common expenses by category as well as all anticipated assessments and other income. The initial budget and common expense assessment based thereon shall be adopted prior to the conveyance of any unit. The budget shall also set forth each unit owner's proposed common expense assessment.  
 
 
 
(2) All budgets adopted by a board of managers on or  
 
after July 1, 1990 shall provide for reasonable reserves for capital expenditures and deferred maintenance for repair or replacement of the common elements. To determine the amount of reserves appropriate for an association, the board of managers shall take into consideration the following: (i) the repair and replacement cost, and the estimated useful life, of the property which the association is obligated to maintain, including but not limited to structural and mechanical components, surfaces of the buildings and common elements, and energy systems and equipment; (ii) the current and anticipated return on investment of association funds; (iii) any independent professional reserve study which the association may obtain; (iv) the financial impact on unit owners, and the market value of the condominium units, of any assessment increase needed to fund reserves; and (v) the ability of the association to obtain financing or refinancing.  
 
 
 
 
 
Posted @ Monday, October 18, 2010 10:43 AM by Charles Adler
Get enough owners together and call for a Special Meeting, that is how we deposed of our Pres. and developer. We had the same problem, but be prepared to step up and into a Board position. I am now the Pres/Treasurer and have called for a Special election for the position of Pres. Wish I could get more people involved in Assoc. business.  
 
I also believe in keeping Assoc. members informed in financial matters. We have regular Board Meetings which are open to all members, so they also know what is being discussed. 
 
Fight for your Rights
Posted @ Saturday, February 26, 2011 11:18 AM by dagmar
please tell me how to call a meeting together of the homeowners 
 
by mail email or phone 
 
our board and management co, refuses to give list of owners.
Posted @ Tuesday, August 02, 2011 10:01 AM by carolyn
Unless its a Committee that is specifically called for within the Governing Documents, the President is correct. Committees exist and are created at the direction and discretion of the Board of Trustees. Finance Committees exist to assist the board in providing financial advice for establishment of reserves, deferred maintenance and asessment levels for the dues assessments. Its NOT a vehicle for home owners to band together to play 'gotcha' over the monthly financials. If you have a gripe over how the association is run financially, then the Finance Committee is not the path to pursue. Your governing docs should allow you the right to request in writing to inspect the financials of the association. Use that to see whats going on.
Posted @ Tuesday, February 21, 2012 3:33 PM by Mark W
Make a motion at your bext Board meeting to establish the committee you want to be chartered. Have another unit owner prepared to second this motion. Also have as many unit owners who favor your idea present at the meeting. The President of the Board having had a motion proposed and seconded must allow discussion and after discussion is concluded ne must allow a vote ob the issue. A simple majority vote will determine the issue. Ribert;s rules govern and your Board president has no choice in this matter. His views and those of the management company atr not relevamnt to the discussion. In fact the President is, under Roberts,to act as an unbiased moderator and is not to engage in discussion not to vote-except in case of a tie-on any issue raised during a meeting. Get as many unit owners who supprt your view to attend so they may vatoe. It takes a simple majoroty vpte to have your motion approved. Good luck.
Posted @ Wednesday, February 22, 2012 10:35 AM by Charles Adler
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