Neighboring Association falling

Started by TerryL3 • 14 replies • 1266 views

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TerryL3 (Illinois)
Posts: 13

Posted:

I need some advise! I am Treasurer of a Homeowners Association in Illinois. We only have 3 buildings (12 units) and we manage it very professionally. However, there is an association next door to us with only 1 building (5 units) that doesn't even have a board. There is a lady that lives in one of the units that is collecting dues and paying for all the maintenance and probably the insurance, but she doesn't pay dues because she does all this "extra" stuff. I am told that there are no reserves to maintain the exterior of the building. That is my concern. Here we are doing all the right things with budgets and reserves and next door to us is a building that in time will begin to look shabby because they will not have the funds to fix anything. What if anything can I do about this? Isn't there some law that would make them either get a board together or get the association managed? I've searched all over and can't find anything. Please help if you can.

Terri

DonnaS (Tennessee)
Posts: 5,671

Posted:

TerryL,
You have lots of options.
1) Look the other way as it is not something that you have money invested in.
2) Get onto the "Clerk of Circuit Court" web site for your County and find the original filed C.C.&Rs for the building. That's if they even have them. This could be just a privately owned building? Are you sure there is an association?
3) Talk to some of the owners and get any specifics from them as to documents.If indeed they are and association, clue someone in. Only 5 residents should be easy to get information from. Basically tho, they could tell you to go away. Then what you would have to do is just keep an eye on the place and call your County zoning if it starts to look poorly.

TerryL3 (Illinois)
Posts: 13

Posted:

I have talked to a unit owner, and plan on talking to another, and yes they are an association. This is where I found out that this is going on. The unit owner is very upset about it and is looking into legal action. I would like to do something so that the building doesn't deteriorate. This lady owns one of the units in this association and also owns one in my association...I told her it would be a no brainer as to which one I would sell! But even so, I want this association to do the right thing, not only by the owners of the building, but also to the neighbors. About 10 years ago they asked to join in our association and we declined because we felt that the building would too much of a liability to us due to the construction of it. Not bad, just not as well built as ours. (different builders). Question - C.C. & R.'s for this association - is that a public record that I can get? I didn't realize that. I have the unit owner e-mailing me a copy of her Declaration and By-laws. I'm guessing that it's similar to ours, but you never know.
Thanks,
Terri

DonnaS (Tennessee)
Posts: 5,671

Posted:

Yes Terry, The C.C&R's are the governing documents for their association. There it should spell out restrictions and amount of people on that Board, etc. Apparently with only 5 members, no one has stepped up to the plate to pitch in or question this self appointed ruler. This should be a "no brainer" with only 5 owners. More than likely, they are violating their CC&Rs. What state are you and is this a "not for profit corp? If not that, what are you filed under?
Donna

DJ1 (Ontario)
Posts: 798

Posted:

Don't you have enough to worry about without getting involved in another HOA? I mean you could go on and on to other homes further and further from your HOA when things may deteriorate, even to non-HOA homes that fall under municipal control.

RobertR1 (South Carolina)
Posts: 5,164

Posted:

I side with DJ1. Not being curt but you state your association is run professionally and then state you didn't know there was a place in the Court house that has a copy of your association deed, and does that include other documents that created your HOA. I would also do a through search there and via internet check your state business filings and see if your are listed and how. I have no right to judge your effort or your qualification, but to my knowledge there are Official documents that run with the associations that should be on file and maintained. Among them the legal papers that your association accepted when the developer turned the property over. You need to know how you are incorporated, you neeed the State Statute on HOA,s, your declaration, your Master Deed with exhibits, By-laws, Rules and regulation Meeting records, financial statements, a regular report of income and expenses, and I'm sure there are other requirements. Now if you mean you have a management company or hired manager, you need to try and see if you can't cut that expense and do it yourselves. The very best in your efforts.
If I am ringing bells then regroup and do some research.

TerryL3 (Illinois)
Posts: 13

Posted:

Thanks Robert! I have all the copies of my association records - What I was saying is that I wanted to get a copy of the neighboring associations record! And, since I have the one for my association, I was curious if I could get theirs and yes, we manage our own association. I stepped into this job, and am trying to do the best I can. I am by no means a professional at managing an association, but I'm trying. We have our regular meetings, budgets, financial statements and so on. Our association is well run...my concern is the neighbors that may be in jeopardy. And yes, I've probably got enough on my plate, I am just concerned. Thanks for your help. Terri

JC3
Posts: 290

Posted:

Donna said "Apparently with only 5 members, no one has stepped up to the plate to pitch in or question this self appointed ruler."

MAYBE, she's not a "self appointed ruler" but rather, the only one who would do the work. There is a difference. MAYBE, the others stepped back and let her fill the job, or didn't show up at all.

DonnaS (Tennessee)
Posts: 5,671

Posted:

JC3,
Thank you for seeing the other side of the coin. I am suspicious tho because she (the neighbor lady) is collecting all of the money but is not paying dues herself because she is doing all of the work. HUMMPH,

JC3
Posts: 290

Posted:

According to whom?

PaulM (Pennsylvania)
Posts: 1,347

Posted:

TerryL3: I can understand your concern over a neighboring community becoming rundown because it will perhaps bring down your own property value. However, I don't understand your concern being taken to the degree that it has you investigating this community's documents.

Is there another reason which fuels your interest in how they are (or are not) running their community? If you do get a copy and review their official documents, what do you hope to accomplish as an outsider?

JC3
Posts: 290

Posted:

Some of the wealthy areas of the US are surrounded/bounded by slums:
Chicago's Gold Coast and Washington DC, to name couple. I would bet there are many areas in many cities like that. My own modest hoa is bounded by a less than perfect area on one side, a city landfill that was closed several years after people moved in on another, and two higher priced hoas to the south. I suppose to them, we are the slums...

Why the need to control something that is not your business?

DonnaS (Tennessee)
Posts: 5,671

Posted:

JC3,
According to Terry in the ORIGINAL POST

TerryL3 (Illinois)
Posts: 13

Posted:

Yes, my concern is the value of our Associations property falling. That is my main concern...There is one owner in this association who is also concerned and I'm trying to help her out as well. I've guided her to the Illinois Condominium Association Act. She is willing to step up to one of the positions, but the other unit owners are not at all interested in the association as a whole, and if she can't get some help, she wants to get it taken care of professionally. That's where I'm at. Thanks

RobertR1 (South Carolina)
Posts: 5,164

Posted:

Terri,
At this stage I don't think you can help except be supportive of your friend and stay out of entanglements. She (and you by association) have no dragon to slay. Let her get professional advice and see if she can set up an HOA. Then, working from those documents, you might be able to advise her privately but certainly not as an official representative of your association. Long range work toward merging with this wayward group if economic factors can be resolved.

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