Board Won't Actfor

DebbiC (Illinois)
Posts: 10

Posted:

We recently purchased a condo in Chicago and found out that 2 home owners owing over $20,000 in assessments. The BOD is not doing anything because they say it costs too much money. We are self-managed at the moment. I have found a lawyer who will do it for a very reasonable fee. Is there any action that I can take to get the BOD to get these individuals to pay up?

JonD1
Posts: 2,350

Posted:

Well $20,000 is no small chunk of change. Under some documents in some states the legal cost of collections can be added to the judgement granted by the court. Sounds like some of the board members either need an education, to grow a pair or be replaced.

Here these owners would be in court and we would be seeking judgements which is required as in my view the board should protect the interests of the community including collecting assessments/dues from everyone.

You should be able to file a lien and begin foreclosure proceedings. But as an owner I would hold off taking legal action on my dime to force the board to start collections. Perhaps try convincing those board members this is part of their job in serving the community.

Or get some new board members.

BonnieG1 (Nebraska)
Posts: 1,186

Posted:

Another con for self management. We were self managed for three plus years. In my opinion it was a nightmare. But although we were self managed we did manage to place a lien on a unit due to non payment of fees. When the unit sold, we got the back fees. Placing a lien is time consuming.

DebbiC (Illinois)
Posts: 10

Posted:

Thank you for your replies, The board just doesn't seem to care. In fact, we are looking at a special assessment for new gutters, because we only have a reserve of $5,000 - we have 18 units, so they want to divide the costs once they get it amongst 16 of us. I will refuse to pay anyone's share, even if it is only .01.

And, by the way, we are getting new board members, because everyone resigned. When I brought up some issues that were wrong with the building and told them if they checked the IL Property Condo Act, they would find it, they didn't even know what that was.

Also,they let our incorporation lapse due to not filing the annual reports.

I think they thought it would look good to have "Pres" "VP" of Condo Board on their resume. They had no idea that Chicago had a set of condo rules as well, and when I told the pres where she could find it for free and this law firm would send it to her, her reply was, "I'm not interested in doing that."

So I told them once I was guaranteed that there was D&O Insurance, I would put my official interest in for a position. they barely knew what that was. And there is not listing on the Certificate of Insurance as having D&O.

I have been told by other home owners, that they have not done anything in 5 years that they have been board members.

Thank you for your advise.

DebbiC (Illinois)
Posts: 10

Posted:

Thank you for your replies, The board just doesn't seem to care. In fact, we are looking at a special assessment for new gutters, because we only have a reserve of $5,000 - we have 18 units, so they want to divide the costs once they get it amongst 16 of us. I will refuse to pay anyone's share, even if it is only .01.

And, by the way, we are getting new board members, because everyone resigned. When I brought up some issues that were wrong with the building and told them if they checked the IL Property Condo Act, they would find it, they didn't even know what that was.

Also,they let our incorporation lapse due to not filing the annual reports.

I think they thought it would look good to have "Pres" "VP" of Condo Board on their resume. They had no idea that Chicago had a set of condo rules as well, and when I told the pres where she could find it for free and this law firm would send it to her, her reply was, "I'm not interested in doing that."

So I told them once I was guaranteed that there was D&O Insurance, I would put my official interest in for a position. they barely knew what that was. And there is not listing on the Certificate of Insurance as having D&O.

I have been told by other home owners, that they have not done anything in 5 years that they have been board members.

Thank you for your advise.