CONDO ASSOCIATIONS

The nature and workings of condo associations are some of the most frequent inquiries we receive at OwnACondo.com.

The association of a Chicago condo or suburban Chicago condo is the governing body of the entire property. The members of the association are the condo owners, with one vote per unit owned. Condo associations in Illinois are typically not-for-profit corporations that require an annual form to be filed with a token fee made to the state.

It is the condo association’s job to run the property efficiently, equitably and within the law. Condominiums have shared walls, shared mechanical systems, shared amenities and more, so a sensible governing and operating system is necessary and desirable.

Through an organizational document called the bylaws, the association's board of directors is authorized to regulate and administer the affairs of the property, especially in regard to maintenance and repair of the common elements.

The directors are condo owners who serve as the decision-makers of the condo association. They are chosen by vote by all the condominium owners in the association. Methods exist for absentee and proxy votes, when necessary.

Once elected, the directors then vote for officers. Officer positions typically include president, vice president, treasurer and secretary. The role of the officers is to carry out the decisions made by the directors. An example might include the following: The association is dissatisfied with the performance and/or the fees of the snowplowing service that clears the parking lot. The directors make the decision to seek another service provider. An officer (typically the president) will contact other providers and collect bids. This information is then brought to the directors for a decision, and the president will hire the provider the directors decide upon.

The condo association has the authority to assess and collect sufficient money to maintain the common areas and to ensure the financial stability of the condo property. The directors establish an annual budget and a condo association officer, typically the treasurer, receives the monthly assessment payments via mail or drop-box on the property.

Condo association directors must be particularly attentive to the need for a properly-funded reserve, which is how the condo association pays for infrequent but big-ticket issues such as the replacement of roofs, water heaters, etc. An improperly funded reserve account is detrimental to the financial health of the condo association and often results in one or more special assessments.

This brief overview is intended to serve as a general information resource for basic condo association terminology, as it may commonly apply to Chicago condos and suburban Chicago condos. The condo specialist Realtors® at OwnACondo.com can provide additional general information, but are not qualified to answer questions about a specific association, dispute, litigation or hypothetical situation. Please consider consulting an attorney familiar with condo law if necessary.