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Home Business • Finance

Condo Adviser: Calculation of assessment increases is governed by the law

by Edinburg Post Report
October 9, 2022
in Business • Finance
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Q. I live in a small condominium association and assessment increases are calculated by unit percentage of the annual budget. We have one of the larger units in the association and already pay one of the highest assessments. Is it possible for a condominium board to increase assessments a flat amount per month (i.e. $100) for all unit owners or adopt a special assessment in a flat amount where everyone pays the same (i.e. $1,200)? Why should percentage of ownership be used when we all benefit from the same roof, for example?

A. The condominium regime is governed by a recorded declaration and bylaws as well as the Condominium Act. A fundamental aspect of finances in a condominium regime is that units are responsible for their pro rata share of everything, including the budget and special assessments, which means that units must pay their unit percentage share of the budget and special assessments. Simply stated, that is the law.

There is an exception for user charges in most condominium declarations that allow a condominium board to assess a user charge equally to each unit, such as a rental fee for a party room or bulk internet or basic cable cost; otherwise, unit percentage is the appropriate method to calculate assessments increases.

Q. I am a unit owner in a condominium association and recently requested to inspect two documents; a copy of the approved minutes of a recent board meeting and the sign-in sheet of that same board meeting. I was told there would be a $20 charge to fill each request that will be put on my assessment invoice. Is the board allowed to charge for those items?

A. Document requests by unit owners are governed by section 19 of the Condominium Act. Per section 19(a)(4), unit owners are entitled to inspect, and get a copy of, minutes of all meetings of the association and the board of directors for the immediately preceding seven years; however, unit owners are not entitled to a copy of sign-in sheets to board meetings as that is not an enumerated document per section 19 to which unit owners are entitled.

As far as the charges to procure document requests, section 19(f) of the Condominium Act states that the actual cost to the association of retrieving and making the requested records available for inspection and examination may be charged by the association to the requesting member. Additionally, the requesting member may be charged the actual cost to the association of reproducing the records. If $20 reflects the actual cost of retrieving and copying the records, it may be assessed to the requesting owner.

Customarily, most associations do not charge unit owners to produce a copy of the board meeting minutes and, in fact, many associations post approved board meeting minutes on secure association or management company websites.

Q. I live in a 100-plus unit town home association and our annual budget is more than $100,000 annually. Please comment on what is the applicable statute that governs our association and what authority would govern whether the owner or the association is responsible for maintaining, repairing and replacing landscaping on town home lots.

A. Unless a town home association was expressly submitted to the terms of the Condominium Act through its declaration, town home associations are not condominium associations, but are considered common interest community associations. The Common Interest Community Association Act (CICAA) applies to all common interest communities unless the association is exempt. A common interest community association organized under the Illinois not-for-profit act that has less than 10 units or an annual budget of $100,000 or less is exempt from CICAA. However, a 100-plus unit town home association with an annual budget of more than $100,000 is subject to CICAA.

The obligation for maintenance, repair and replacement of landscaping in a common interest community is governed by the declaration and bylaws, not CICAA.

Got a question for the Condo Adviser? Email ctc-realestate@chicagotribune.com.

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