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MarieL (Illinois)
Posts: 82
Posted:
I'm a 36 year owner in an Illinois Common Interest Community. For 35 of these years the board provided HO's with copies of the minutes and treasurer reports every month, at least a week or so before the next meeting. This suddenly stopped in April of 2011 , after a partial audit of the books was undetaken and there were questions surrounding it still unanswered,

My questions are can the board stop this long, legally established precedent of circulating minutes and treasurer reports to HO's without reason or explanation? And was circulating these reports to HO's just a favor by the board?
Thank your help.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Hi Marie:

Were they submitted via paper or via electronic? It might be that the board is looking at costs (most are at this time due to economy) and have eliminated providing monthly to save money. An owner has the right to request and be provided with certain information, so if you want to review or have a copy of the records then I would suggest a polite request (but can be reasonably charged for the copies).

Here is a link to your states common interest ownership act and which states in part:

http://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=076501600HArt%2E+1&ActID=3273&ChapterID=62&SeqStart=100000&SeqEnd=1850000

(765 ILCS 160/1-30)
Sec. 1-30. Board duties and obligations; records.

(i) Board records.
(1) The board shall maintain the following records of the association and make them available for examination and copying at convenient hours of weekdays by any unit owner in a common interest community subject to the authority of the board, their mortgagees, and their duly authorized agents or attorneys:

(i) Copies of the recorded declaration, other community instruments, other duly recorded covenants and bylaws and any amendments, articles of incorporation, annual reports, and any rules and regulations adopted by the board shall be available. Prior to the organization of the board, the developer shall maintain and make available the records set forth in this paragraph (i) for examination and copying.

(ii) Detailed and accurate records in chronological order of the receipts and expenditures affecting the common areas, specifying and itemizing the maintenance and repair expenses of the common areas and any other expenses incurred, and copies of all contracts, leases, or other agreements entered into by the board shall be maintained.

(iii) The minutes of all meetings of the board which shall be maintained for not less than 7 years.

(iv) With a written statement of a proper purpose, ballots and proxies related thereto, if any, for any election held for the board and for any other matters voted on by the unit owners, which shall be maintained for not less than one year.

(v) With a written statement of a proper purpose, such other records of the board as are available for inspection by members of a not-for-profit corporation pursuant to Section 107.75 of the General Not For Profit Corporation Act of 1986 shall be maintained.

(vi) With respect to units owned by a land trust, a living trust, or other legal entity, the trustee, officer, or manager of the entity may designate, in writing, a person to cast votes on behalf of the unit owner and a designation shall remain in effect until a subsequent document is filed with the association.

(2) Where a request for records under this subsection is made in writing to the board or its agent, failure to provide the requested record or to respond within 30 days shall be deemed a denial by the board.

(3) A reasonable fee may be charged by the board for the cost of retrieving and copying records properly requested.

(4) If the board fails to provide records properly requested under paragraph (1) of this subsection (i) within the time period provided in that paragraph (1), the unit owner may seek appropriate relief and shall be entitled to an award of reasonable attorney's fees and costs if the unit owner prevails and the court finds that such failure is due to the acts or omissions of the board of managers or the board of directors.

SusanW1 (Michigan)
Posts: 5,202
Posted:
Marie - You used the word "provided" - seems like you were very lucky to have the minutes sent to every HO by the board all these years.

You can request them, but the board is under no obligation to send them out.

A quarterly newsletter could have summarized the minutes.

TimB4 (Tennessee)
Posts: 21,059
Posted:
Marie,

As an HOA, Common Interest Community Association Act.

Additionally, if your Association is incorporated as a nonprofit corporation, IL General Not For Profit Corporation Act of 1986 would need to be complied with.

I could not locate anywhere within these documents that required the board to print and mail copies of meeting minutes and/or treasurers report to every member. Therefore, unless your governing documents require this to happen, your board has the option of continuing that practice or not. Note: A member does have a right to inspect these records but the member must initiate the request and (if asking for copies) may be charged a reasonable fee to cover costs of the inspection.

Based on what you posted, I agree that the Association has created the perception of hiding something. However, perceptions are not always correct. It could be as simple as the Board trying to cut down on expenses by minimizing the printing and mailing costs.

Have you asked the Board why they quit doing this?

Tim
BonnieG1 (Nebraska)
Posts: 1,186
Posted:
We provide the minutes and financial report each month. We place a copy of them on the East end of the second fl and on the West end of the third fl. The first fl only has two apartments. We do not mail them to absent owners. Of course if any absent owner asked for a copy of the minutes and financial report we would gladl mail it to them.
TimB4 (Tennessee)
Posts: 21,059
Posted:
@ Bonnie,

We post the approved minutes and all attachments on the Association web site as a courtesy.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
I am presently looking at ways of keeping our 120 single home HOA members up to date on everything including the minutes of each and every BOD meeting.

Does anyone have any suggestions how to do so?

JanetB2 (Colorado)
Posts: 4,219
Posted:
John ... best method is to consider having a HOA website. Any and all items can be posted as needed for members to review. This reduces costs of paper, printing, postage, etc. Otherwise in most states HOA's are required to provide annual information or members can request hard copies as desired.

MarieL (Illinois)
Posts: 82
Posted:
My thanks to all of you for your kind responses

We are a small HOA,34 units covering about a square block. The minutes and treasurer's reports were putin our front door mail slots.The are no public places to post or put these reports.

We have a web site where minutes were being posted, but this lasted for only a short time and now the web site is mostly unused . Few HO's know it exists or know how to access it.The user name and password changes, without notification..

As a former board member and president of this HOA, who always provided HO'sthis info,I'm not happy with the abrupt stopage of circulating minutes and treasurer reports, without any kind of notification beforehand, of this long established legal precedent. And how this only ceased after an audit was undertaken in 2011 and there were questions surrounding the books, kept by a hired bookkeeper, not the treasurer.But because the by-laws and CC&R's do not say this must continue,then there is little the HO's can do about it.

Again thanks to all of you...
TimB4 (Tennessee)
Posts: 21,059
Posted:
Marie,

perhaps you can offer your services to maintain the website and post that information there.
Since most things are menu driven anymore, it's easier to create and maintain a site than it use to be.

Tim
JohnC46 (South Carolina)
Posts: 14,265
Posted:
All

Thanks

I want to stay away from websites, hosting, who owns the domain name, maintenance, etc., etc. I half understand all that and it can get very tricky (especially if there are issues) thus I want to avoid it form the get go. Not that I expect issues, but I want to KISS....Keep It Simple Stupid, especially for me...LOL

Help......

JanetB2 (Colorado)
Posts: 4,219
Posted:
John:

Unless you send out via US mail, Email, or hand deliver about the only other method I can think of would be to have in a common area an enclosed posting board. I would recommend one which opens and closes via clear door with a key to keep garbage from being posted on it by just anyone.

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Janet

I am showing my petticoats here.....while I know computers and chats (such as this one), there are some I looked at and did not like such as Facebook for "selective" privacy reasons.

I want to use electronic communication in out HOA. Open, candid, and plenty of it, but:

1. No one person/entity owns the site, such as a web/domain site. If all is kissy cozy, that is one issue, but the owner can hijack the site if a falling out. Like someone thrown off the BOD and they can hijack the site. Been there, seen that in a business/social website and it has been referenced out here.

2. Some sort of control so a password, list (homeowners), etc. is required to access the site, meaning some "control" on who can post (not read maybe, but post) in there.

3. Maybe just informational only meaning one way communication like you can read and get information versus respond to it. Such as read the BOD minutes, see meeting schedules, etc. but you cannot respond.

While sounding like control, I view it as using ones experience in preventing issues down the road...like after being married a few times...and havind stuff...wanting a pre-nupt....LOL

JanetB2 (Colorado)
Posts: 4,219
Posted:
I would respectfully disagree in that if done correctly the Non-Profit Corporation owns the corporate asset. This then gives the corporation and corresponding directors the legal authority regarding said asset.

Hijacking comes into play when an individual member puts the asset in their personal name. In which case they would legally own and can do with it as they please.

LOL ... having said that the next time you have a question you potentially should start your own thread. Asking a question on someone else's thread is considered "hijacking".
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Janet

I did hijack the thread...sorry...it is more about communication then how communicated....LOL

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