Knowledge is Power

Published on May 2016 | Categories: Types, Research | Downloads: 27 | Comments: 0 | Views: 137
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KNOWLEDGE IS POWER>>>> BE A PART OF SHAPING YOUR NEIGHBORHOOD Knowledge of corporate laws and state statutes is essential to a properly-run HOA, and for the happiness of its community… don’t let OTHERS decide. If you think fighting over garbage cans, grills on balconies, or the current flood of violations is bad… We have far more pressing issues to conquer before worrying about our neighbor… (805 ILCS 105/) General Not For Profit Corporation Act of 1986.
(805 ILCS 105/110.05) (from Ch. 32, par. 110.05) Sec. 110.05. Authority to amend articles of incorporation. (a) A corporation may amend its articles of incorporation at any time and from time to time to add a new provision or to change or remove an existing provision, provided that the articles as amended contain only such provisions as are required or permitted in original articles of incorporation at the time of amendment.

What’s at Stake? • • • • • • • • • • • Do you know the difference between Common areas and “LIMITED” areas? Do you want the use of your home space to live less restricted? Association monies to maintain land we do not own or control. Knowing what more plans and policies the Board may be planning to execute. Do want to see assessment fees go down or up? Did you know that each unit owner is responsible for their own seal coating? The pending Reserve study may show a radical increase as a result of seal coating. “Limited” areas belong to the Unit owner, if the driveway is mine- then its mine? The desperate need to change property management provider! If there’s no quorum at any meeting, there should be NO meeting or decisions. Minor personal changes can be ‘grandfathered’?

We must pay for a Reserve Study-- required by the Ill Condo Property Act. However, the Builder's board NEVER had one done- even though it has been required since July 1, 1990! Let’s hope we have the necessary amount in our Associations funds !! Illinois Condo Property Act:
Art 18 (20) b (5) “Special meetings of the members can be called by the president, board of managers, or by 20% of unit owners; (6) that written notice of any membership meeting shall be mailed or delivered giving members no less than 10 and no more than 30 days notice of the time, place and purpose of such meeting”

A quorum must be present or meeting is adjourned. As the Chicago Lawyers' Committee for Civil Rights Under the Law Handbook suggests, check the by-laws to find out how many members are necessary for a quorum. For most agenda items, association members have the opportunity to vote affirmative with a simple majority (or 2/3 on some issues).
18.4 (l) To impose charges for late payment of a unit owner's proportionate share of the common expenses, or any other expenses lawfully agreed upon, and after notice and an opportunity to be heard, to levy reasonable fines for violation of the declaration, by-laws, and rules and regulations of the association.

18.1 d (Master Association) must provide:
A list of all litigation, administrative action and arbitrations involving the association, any notices of governmental bodies involving actions taken or which may be taken concerning the association, engineering and architectural drawings and specifications as approved by any governmental authority, all other documents filed with any other governmental authority, all governmental certificates, correspondence involving enforcement of any association requirements, copies of any documents relating to disputes involving unit owners, originals of all documents relating to everything listed in this subparagraph.

IN A MEETING ! www.ehow.com/how_6356901_conduct-board-directors-meeting.html#ixzz1WWW8pHeB Ask if board members reviewed minutes from the previous meeting and if changes are suggested. Then ask other members if they agree with the changes. Note agreement and disagreement. Then vote on whether the changes should be made. If the majority votes yes, announce that the changes will be made and circulated to all members for approval at the next meeting. Vote on motions made by board members to accomplish a task. Examples of motions are hiring a consultant to write grants, approving check lists and financial statements….and any rules proposed. CLOCK IS TICKING… 180 days from July 27th (when board elections took place)…
Upon election of the first unit owner board of managers, any contract, lease, or other agreement made prior to the date of election of the first unit owner board by or on behalf of unit owners, individually or collectively, the unit owners' association, the board of managers, or the developer or its affiliates which extends for a period of more than 2 years from the date of the election, shall be subject to cancellation by a majority of the votes of the unit owners other than the developer cast at a special meeting of members called for that purpose during the 180 day period beginning on the date of the election of the first unit owner board. At least 60 days prior to the expiration of the 180 day cancellation period, the board of managers shall send notice to every unit owner, notifying them of this provision, what contracts, leases and other agreements are affected, and the procedure for calling a meeting of the unit owners for the purpose of voting on termination of such contracts, leases or other agreements.

Homeowners Associations: allows a civil municipality to increase its tax base, but without requiring it to provide equal services to all of its citizens. Membership in the homeowners association by a residential buyer is typically a condition of purchase; a buyer isn't given an option to reject it. Some homeowner associations hire and retain property management companies. http://en.wikipedia.org/wiki/Homeowners%27_association

Double taxation
Most homeowners are subject to property taxation, whether or not said property is located in a planned unit development governed by a homeowners' association. Such taxes are used by local municipalities to maintain roads, street lighting, parks, etc. In addition to municipal property taxes, individuals who own private property located within planned unit developments are subject to association assessments that are used by the development to maintain the private roads, street lighting, landscaping, security, and amenities located within the planned unit development. A non-HOA property owner pays taxes to fund street repairs performed by the city; the HOA property

owners pay these same taxes, but without the same benefit, since the local government will not maintain the streets to their homes. Thus the HOA property needs to pay a second time, to privately maintain the street. The proliferation of planned unit developments has resulted in a cost savings to local governments in two ways. One, by requiring developers to build 'public improvements' such as parks, passing the cost of maintenance of the improvements to the common-interest owners; and two, by planned-unit developments being responsible for the cost of maintaining infrastructures that would normally be maintained by the municipality. Professor at Washington University disputes the claim that HOAs protect property values, stating, based on a survey of Harris County, Texas (which had an unusual legal regime regarding foreclosures): “Although HOA foreclosures are ostensibly motivated by efforts to improve property values, neither foreclosure activity nor HOAs appear linked with the above average home price growth.”

HERE’S JUST ONE RECOURSE OPTION: Once notified by a homeowner, attorney or other government official that an HOA organization is not meeting the state's statutes, the boards have the responsibility to correct their governance. Failure to do so in certain states can result in the levy of misdemeanor charges against the board and open the board (and HOA) to potential lawsuits to enforce state laws of governance. In some instances, a known failure to rectify the board's governance to meet the state's statutes can open the board's members to personal liability as most insurance policies indemnifying the board members against legal action do not cover willful misconduct. Decisions can NOT be voted electronically- without very specific protocols !!! http://articles.chicagotribune.com/2010-03-21/classified/ct-mre-0321-condo-adviser-restate20100321_1_unit-owners-open-meeting-board
What ownership percentage is required to change our By-Laws? Q. I am in Illinois and our condo is in the process of changing our bylaws according to Section 27 of the Illinois Condo Act. Section 27 states that there 20% of membership is a quorum and that a change will pass with 2/3 vote of those present. Our bylaws or rules do not change these numbers. Our association's lawyer said that we need 2/3 of all owners to approve a change to the bylaws due to the definition of "majority". Which is the correct reading of Section 27? A. If your Declaration does not provide for a higher percentage, the requirement to pass an amendment to your By-Laws must be consistent with the IL Condo Act, which requires a 2/3 vote from all members. The IL Condo Act states: 27. (a) If there is any unit owner other than the developer, the condominium instruments shall be amended only upon the affirmative vote of 2/3 of those voting or upon the majority specified by the condominium instruments, together with the approval of any mortgagees required under the provisions of the condominium instruments, except in cases where this Act provides different methods of amendment or with respect to property whose declaration is recorded on or after July 1, 1984, no condominium instrument shall require more than a three-quarters vote of unit owners to amend the bylaws. Except to the extent authorized by other provisions of this Act, no amendment to the condominium instrument shall change the boundaries of any unit or the undivided interest in the common elements, the number of votes in the unit owners' association, or the liability for common expenses

appertaining to a unit.

While other matters may be approved by a majority of owners present at a meeting called for that purpose, provided a quorum is achieved, amendments to the Declaration or By-Laws must be approved by at least a 2/3 vote of all owners by ownership percentage. Your governing documents may require a higher percentage but cannot exceed 3/4. This is known as a "supermajority." The logic behind the requirement is that if at least 2/3 of all owners have voted in favor of the change, it is considered reasonable and therefore would become legally enforceable. Obtaining 2/3 vote of owners present at a meeting where only 20% attendance is required would allow a minority of owners to approve changes to the governing documents. Because these documents are so vital to the operation of your association, it wouldn't be reasonable to allow such a minority to make those changes. http://www.chicagocondoresource.com/ask-the-expert/ask-the-expert-qaa/421-what-ownershippercentage-is-required-to-change-our-by-laws

Meetings should be conducted by Roberts Rules. Learn more to ensure protocols are being followed (Also read OUR Declaration and ByLaws) http://www.robertrules.com/ IRONY… While vigorously pursuing our neighbors for violations – that are probably ‘grandfathered’ by virtue of no prior enforcement—and eager to impose and create more Rules & Policies – or finable violations –Leadership of the board can’t seem to follow any of the rules and processes in place by higher authorities that govern !

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