Q: Our condominium association consists of four units. The board coordinates lawn maintenance and snow removal services; however, the board has assigned unit owners to maintain the common elements inside the building and move the garbage cans to an area where the trash collectors will pick them up weekly.
What remedies does the board possess against unit owners who do not perform the tasks assigned to them?
A: There is no basis under Illinois law for a board to require unit owners to maintain the common elements themselves. Section 18.4(a) of the Condominium Act expressly states the board shall administer the common elements, which includes maintenance, repair and replacement.
Therefore, there is no remedy the board may impose on a unit owner who refuses to clean the hallways or move garbage cans for trash collection. The board may hire a contractor to perform such work and include the costs in the annual budget. Then each unit owner would be responsible to pay their unit’s pro rata share of such cost.
Q: Our condominium association is in the process of hiring a new property management company. In reviewing the management contract, we are concerned that some of the information the management company has requested invades the privacy of unit owners. For example, the board has been asked to provide bank information and unit occupancy information. We feel the new management company is too nosy.
A: Management companies are partners with condominium association boards to assist with the administration of the community association. If the board is distrustful of the management company before retention, the board might be best served to reconsider whether that management company is the appropriate partner.
It is absolutely customary for the managing agent to have in its possession books and records of account and unit-occupancy information. In fact, Section 19 of the Condominium Act requires the board to make available to a requesting unit owner the association’s books and records for the current and 10 immediately preceding fiscal years, among other documents.
Unless the board intends to maintain records for unit-owner inspection, it is appropriate for the managing agent to hold association records.
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Q. How much money can, and should, the association have in reserves?
A. Under Illinois law, there is no limit on the amount of money an association may hold in reserves for the benefit of the association. Pursuant to Section 9(c) of the Condominium Act, the board must maintain a reasonable amount of reserves for capital expenditures and deferred maintenance for repair and replacement of the common elements.
The board may consider various factors in determining the amount of necessary reserve funds, but the heaviest weighted factors are the estimated cost and remaining useful life of property for which the association is obligated to maintain, repair or replace. Other factors the board may consider are the return on investment, the financial impact on unit owners and the ability of the association to obtain financing.