Are You Self-Governing If You Have A Manager Who Is Not Employed by a Property Manager Company?

Started by KathrynJ • 2 replies • 1412 views

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KathrynJ (Illinois)
Posts: 1

Posted:

We're up to eyeballs in trouble with our HOA in IL which is still in the declarant control of the developer. The developer has placed our HOA in "no mans land". Our latest problem is that they fired the original Property Management Company (PM) that they hired stating, "the HOA was paying premium prices, but not receiving premium services." Okay, no argument from the homeowners on that point. On 6/22/2012 this was announced along with the fact that all the current management company employees working in our Community (with the exception of the property manager) had been offered jobs with the new property management company and had accepted, and a new property manager already had been contracted. We confirmed with the Board that they were going to be employees of the new PM and NOT direct employees of the HOA. Then about a week later, the Board announces that all the employees now will be direct employees of the HOA, but that the PM Company will handle payroll, but not manage the staff. Are we now technically a "self managing" HOA since the community management staff are not employed and/or managed by the property management company? Also, we just found out that the new property manager is neither certified nor licensed as a community association manager as per IL law. Is this allowed if the manager is not employed by a PM company?

MikeS1
Posts: 521

Posted:

Most states have certificaton requirements (like VA) for PMs. I did find this information below - It almost appears that they are trying to skirt the law. Personally, I would want a certified PM that is a member of CAI. The laws change to fast and it's hard to keep up otherwise.

http://www.allpropertymanagement.com/propertylaw/property-management-law-in-illinois.html

Must Illinois community association managers have a real estate brokerâ€™s license?

NO. However, a community association manager license is required to for any person who handles, collects or disburses funds or who maintains financial records or a budget for a community association in Illinois. A â€œCommunity Association Managerâ€ is anyone who, for compensation, administers the financial, administrative, maintenance or other duties for the community association.

Are there any exceptions to the requirement that an Illinois community association manager have a CAM license?

YES. For example, community and condo association directors, officers or members are exempt if they provide the services without compensation. In addition, a CAM license is not required if the homeownerâ€™s association is 10 units or less.

Other exceptions also apply. For more information please contact the Illinois Department of Financial and Professional Regulationâ€™s Community Association Manager webpage.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Kath

While the declarant is in charge, they can pretty well set things up the way they want to set them up with owners having little to no input.

When the transition from declarant to owners takes place, you all will then be able to set it up to your liking.

As an aside, what is it you do not like about the new setup?

Thanks

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