Condo Association Management Blog

There are many things to consider in your situation. First, it usual and customary for a developer or in this case the bank to obtain a management company to get you up and running. However, it is also usual and customary for HOA's of 20 units or less to be self-managed, primarily due to cost of services rendered. We live in a condo of 12 units, two buildings. We have a president, secretary and treasurer according to our CC&R's and our bylaws. It's time consuming in the beginning however once you get going it becomes easier. Don't me wrong, it's still a responsibility however we're responsible with or without a management company or an individual property manager. As for remuneration, at this time it is simply not allowed. You cannot be a board member and get paid. If you were NOT on the board, the board could hire you as a property manager. You cannot do both...be on the board and get paid. I would be happy to help you through this transition stage and get you self-managed. How can I reach you?

I think perhaps an annual gift of appreciation around the holiday season may be allowed. Perhaps a gift certificate to a nice restaurant and maybe tickets to a movie? You'll have to check the Illinois Condo Act to see what may or may not be allowed. In know that when I lived in a large condo community in Woodridge, IL, the board members were given gifts. 
 
As far as a Management company; too expensive for a 4-unit place!

Board members are not suppose to get paid at ALL. They can be reimbursed for small amounts of money out of their pocket, like office supplies, stamps, and certified letters being sent out. We allow $200.00 for this per year. 
 
But to get paid for their services is a NO. But it dosen't stop them from dipping into the account when nobody else knows what they are doing. This is WHY our board is no longer and we all voted to go management to keep track of our finanicial intake of our dues and to keep track of the expenditures being spent. See me in about 6 months and I will let you know how that is working for us! Still smiling

Jody, thank you for your comments, and I appreciate your offer to help. The developer basically abandoned the building about a year before he declared his LLC bankrupt. He had stopped doing any maintenance and left the building with the roof leaking.  
 
 
 
He never turned over the 'association', such as it was. In reality, the 'president' of the association he set up was his wife. We never received any documents, bank records, or reserves, even though a portion of the assessments I had been paying for over 2 years were to go to the 'building reserves'. Are you beginning to get the picture? 
 
 
 
Actually, I already am self-managing the HOA, literally, all by myself. I have obtained a tax number for the HOA, set up an annual budget, opened a business account for checking and reserves, provide monthly statements to the other owner, research and contract with landscaping, snow removal, etc., sought insurance for the entire building, pay all the bills for the building, etc., etc. etc. 
 
 
 
As I wrote, the other owner, hasn't done a thing to assist, I am viewed as the landlord, not a fellow-owner.  
 
 
 
I appreciate the fact that it's MY responsibility, but in reality, it is not MY responsibility ALONE, I am only one owner, not the owner of the entire building. and, I would resign as president/treasurer/secretary if I thought the other owner would lift a proverbial finger to help . . .  
 
 
 
To C, thank you for the lovely thought, at least the fellow owners of your HOA showed some appreciation for the work the board did.  
 
 
 
To s, as I wrote, I am asking a legal question, are you an attorney with an IL license? In terms of being reimbursed, since I am the only one putting out any effort, you'd better believe I am reimbursing myself for building costs, it's bad enough that I am doing all the work, but I refuse to fund the building my myself as well! BTW, I have receipts, invoices, etc., for ALL expenses I have incurred on behalf of the building. They are further detailed in my monthly financial summaries.  
 
 
 
And yes, I too wonder how that management company will be working for you in 6 months . . . .

I hear your pain - big time! 
 
I too have done EVERYTHING - including landscape/cleaning/maintenance since no one else would do it and was elected Pres/Sec/Treasurer of our 7 unit HOA- I've tried to quit and have someone else do my job - no one wants it. The only interest shown was by the new husband of an owner 2 years ago when he suddenly wanted a vote to make him sole check signer! The bank advised against it and I got another reliable owner as secondary. The husband has since thwarted every effort to get anything done. 
 
That aside, the one solace I have is that so far our money has been managed well and not stolen and I managed to get 2 roofs replaced despite threats from the 2 trouble makers.. We were a REpo when I moved in 27 years ago. We never saw any previous funds collected and were told the old manager ran off with them. We were not charged anything by the bank until the bank released us - that was in the '80's -don't know what laws are now. We were mismanaged until 1998 when one owner and I took over after another "Prez" and owner sold and ran off with funds and most of our records. Since he was selling I was able to get those back. We now have to get management comany @$400.00 a month due to the 2 troublemaker owners. Since we lost so much reserve that we should have now for bigger jobs - we are looking at a special assessment to get needed maintenace done. Even with this the 2 trouble makers slipped in a questionable Property managment company and swayed 2 other ambivelant owners to follow them - convincing them I'd stolen funds! I just got a re-vote agreed on - since the 2 missing members at the vote meeting were told the questionable compnay was the only option to vote on! Now I've been unpaid all these years too! That's over $50K in 12 years. I finally started to reimburse myself for supplies. No one cares about how much was saved. They are supplied with full financial sheet several times during the year - with bank statments and no one will even look at these to see every penny is accounted for!  
 
I'd say weather this out and your biggest asset is you HOA By- Laws. In some case such as ours - a GOOD management comany is needed and worth the investment to protect your home investment. Once running smooth you can transfer back to self managment. Good LUck!

My company provides a scaled-down property management alternative for small buildings. Handling everything on your own can be a burden, even for a small association.  
 
We also have a Resource Website to help support self-managed associations: <a>http://www.chicagocondoresource.com<a>. The information is applicable to all IL condo associations, not just Chicago, though that is where we are located. 
 
To answer your question, your Declaration & By-Laws will indicate if you can be paid as a Board member. Generally, Boards are required to serve voluntarily. Receiving pay for your services as a Board member could jeopardize your D&O insurance coverage. Also, as a non-profit by default, the state of Illinois requires that you serve without compensation: 
<a>http://www.illinoisattorneygeneral.gov/charities/volunteers.html<a>.

Susan, thanks for your comments, support and good wishes. You're right, I am weathering this out since I sunk all of my $$$ into this unit. So, even if I'm the only one concerned about the building, I'm protecting my investment, such as it is. The one thing I did insist on was getting the other owner on the business account. This way, the books are as open as they can be, I have nothing to hide. I would consider handing this off to a management company, but have been told so many horror stories by friends and colleagues regarding these companies, I am extremely reluctant. Maybe it's just my state that seems to have so many bad companies. I know of at least 20 condo owners in different buildings who have had their association funds stolen by management companies, the amounts run into the millions of dollars. 
 
 
 
Lauren, thank you, your comments and information are most helpful. I understand about the insurance coverage, having just obtained a policy for my building. I really appreciate the link for the website, this is the kind of information I am looking for. I will definitely check your website, and you may indeed be hearing from me. Thank you again for your response!

Thank you too! My sentiments exactly - my investment and we've had former owners run off with the money. I'm in the midst now , of huge fight- big time now! A shady company was nearly voted in - they would move our funds into their account - they say for operations, but we have NO access. They will issue documentation of funds since I lose my online access- says "Bernie Maddox" to me.Only been in business 9 months - this company introduced by the 'trouble maker' owner and backed by another trouble maker, Trouble maker#1 is selling and trying to skip out on a pending assessment and not tell a future buyer. What totally mystifies me is how 4 other owners voted for this shady company! 
 
I'm trying to get a 'all hands' meeting -no vote , no more companies introduced, and now I'm getting personally threatened by this same owner - crazy! She goes door to door and gets everyone else fired up against me. Went through this when I got our roof replaced. 
 
The company I found after months of research and interviewing is fantastic! I started with consumer sites on the internet and only looked at top rated companies with lots of comments - BBB is another one to look at. A reliable property managment broker is another source. Some good companies haven't been rated so a careful interview is required. Length of time in business - knows your neighborhood etc. My Company also manages 30 other properties in the area and supplied me with the list, so I can contact them and get 1st hand info. My company has an open door policy - literally,come in any time and a website - secure - just for our condo with all docs etc on it. We keep our bank too, although this is rare, most will move some funds over for operations but, are more transparent than the shady company.And this is being voted down! The other 9 month old company is more expensive too.  
 
That's another negotiable item -the fee-with the management companies. Since you are so small - ask for a reduction in the monthly rate. Some will - some won't. Or a discount on the set-up fee. 
 
Good Luck to both us and may sanity prevail.

How can we request to have a board meeting or part of a board meeting without the hoa manager there. We have serious problems to discuss regarding the current manager and property management company and obviously it would not be comfortable or reasonable to expect owners to speak freely with the property manager there. Is it a requirement that the hoa manager be at every meeting. Can't we discuss things like this without him there? What are the legal guidelines, if any, about this.

Property managers operate only under the direction of the Board. If you do not wish to have the manager present at a meeting, you are not required to do so. 
 
In Illinois, any portion of a meeting held to discuss the hiring or termination of an employee (including management), must be done in a closed session. Only Board members can be present, and no minutes are taken. However, when an actual vote is taken by the Board to hire or terminate an employee, that must be done in an open meeting.  
 
I'm not sure if the law is the same in your state. However, in Illinois, the Board could meet in a closed session and discuss the matter, then add the vote to the agenda at an open meeting when a decision is officially made.  
 
Any property manager who insists on being present at all meetings and prevents the owners from discussing their services is acting outside of the scope of their authority. You should not feel that you are being held hostage by your property manager. If there are problems, there should be an evaluation process in place to ensure that the contracted services are being provided. I would suggest the association consult an attorney of their own choosing, however, if there are serious (i.e. criminal) issues afoot.

I have been managing my 4 unit condo and was able to get a stipend in the form of a reduced condo fee. My fee is reduced by $45 per month. None of the owners have a problem with it. I do everything-secretary, treasurer, etc. Two of the owners give me trouble. One owes money and doesn't follow rules. The other always writes letters of complaint about my services and my decisions. It is a headache but at least I know enough about building maintenance to make good decisions and I'm honest. We can't afford a property manager. Our fees are high enough as it is. I pay $175 and the other 3 owners pay $220 per month.

I am a homeowner of a townhome located in Illinois. We homeowners have had property managers for many years who have always done nothing to benefit us homeowners. My question to you.... 
 
1. Can a homeowner become the Property Manager aka working manager? 
 
2. if #1 is yes, can that person also be on the BOD at the townhome complex? 
 
Thank you