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Home Business • Finance

Condo Adviser: Condo boards are not legally required to hire management companies

by Edinburg Post Report
March 26, 2023
in Business • Finance
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Q: I live in a sprawling, suburban condominium association that comprises 25 separate buildings with condominium units in each building. The association is self-managed because the board has refused retaining a professional management company to save money. Does Illinois law require a management company to be retained if there are a certain number of buildings or units that comprise a condominium association?

A: Illinois law does not mandate that a condominium board hire a management company for any size condominium association. The hiring of other professionals such as accountants, engineers or attorneys is also not required. Of course, there is a persuasive case for a condominium board retaining professionals to obtain advice for the board to make sound business decisions. As far as management companies, it is common for large condominium associations to retain a management company to assist with the administration even though it is not legally required.

Q: I just became a director of the condominium association where I own a unit. The board meets quarterly, but at the first scheduled quarterly board meeting in February, only two of five directors appeared, including me, and no unit owners attended. Due to not reaching a quorum of the directors, no board business could be conducted. What can I do to make sure the board meets to properly administer the association?

A: Fortunately, being so early in the year, there is plenty of time for a quorum of the board to meet and conduct board business the required four times annually per section 18(a)(10) of the Condominium Act.

Directors who actively want to participate in conducting board business should work with the management company to reach out to the nonparticipating directors to have a candid discussion regarding the expectations and obligations of being a condominium board member. If directors are unable or unwilling to meet the requirements of Illinois law to hold board meetings, such directors might consider resigning so the board can fill the vacancy with individuals who will meet expectations and comply with the law. It should be noted that for a five-person board, three directors would constitute quorum and be able to conduct business even if there is apathy with one or two directors.

Q: I live in a condominium association where one unit owner became violent and damaged the door to a unit to gain unauthorized access to the unit. The police were called, and that person is in jail, but I am curious if any changes to the condominium declaration can be made to protect one unit owner from another unit owner for violent conduct.

A: It is not common nor customary for condominium documents to contain specific provisions about possible violence between unit owners. However, all condominium declarations and bylaws contain a provision that prohibits noxious and offensive activities that are a disturbance or nuisance to other unit owners or occupants. The noxious and offensive prohibition would cover conduct such as threats or unauthorized touching against another person while on association property, and also unauthorized forced entry into a unit by a unit owner.

Besides the remedy of levying significant fines and legal fees associated with enforcing the condominium documents for such conduct, depending on the facts of the circumstance, the board also possesses the remedy of, not the obligation to, filing a declaratory lawsuit to seek judicial intervention for a court order to deal with grave violations of the governing documents.

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

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