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SamB6 (Illinois)
Posts: 14
Posted:
I am in Illinois. The present president has raised our Hoa payment $20 per month. She said they need more money in case a big item , like furnace or hot water goes out. I asked her how old the furnace is , I think it's not that old. She wouldn't tell me so I put it in a request to see the receipt and check for purchase of the furnace. She said she doesn't have to show me because it was bought when the previous president was president. The present president has been president starting in 2019. Is she correct in that she doesn't have to show the records for the purchase of furnace? Also I may add that in other matters she has been hard to get along with.
GeorgeS21 (Florida)
Posts: 3,808
Posted:
Sam,

Condo? How many?

Do you have a Reserve Study? Plan for replacing association owned capital equipment?

Are you on the board or responsible committee?
KerryL1 (California)
Posts: 14,550
Posted:
Same questions as George, Sam.

Also, in HOAs, boards vote. The president has no more authority than any other director UNLESS a lazy, inimidatd or ignorant Board let's the prez dominate.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Sam

Increase need or not, receipts desired, etc are valid questions but I have never heard of a case where the President alone can raise dues. Is there or was there ever a Reserve Study?
SamB6 (Illinois)
Posts: 14
Posted:
No. There was never a reserve study. And can she refuse to show me the purchase of furnace and check that was written because she says she doesn't have to because it was purchased before she was president? Shesbonly been president since 2019.
SamB6 (Illinois)
Posts: 14
Posted:
I am not on the board. And she didn't have a reserve study. I will request that she gets a reserve study. There is $8,500 in reserves and it's a 12 unit condo building
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By SamB6 on 08/04/2020 4:50 PM
I am not on the board. And she didn't have a reserve study. I will request that she gets a reserve study. There is $8,500 in reserves and it's a 12 unit condo building
Is the condo association responsible for roof replacement? If so, how old are the roofs, and how many units have roofs on them? Roofs are usually the single most expensive reserve component.
SamB6 (Illinois)
Posts: 14
Posted:
The roof was replaced in 2012. So it is fairly new. The building doesn't need a roof.
SamB6 (Illinois)
Posts: 14
Posted:
Roof was replaced in 2014 not 2012.
SamB6 (Illinois)
Posts: 14
Posted:
Is she o ligated to show me the date of furnace purchase with receipt and check used to pay for it? The reason I am asking is that she stated that the furnace may need to be replaced but I really don't think it's that old
JohnT38 (South Carolina)
Posts: 1,631
Posted:
Quote:
Posted By SamB6 on 08/04/2020 5:29 PM
Is she o ligated to show me the date of furnace purchase with receipt and check used to pay for it? The reason I am asking is that she stated that the furnace may need to be replaced but I really don't think it's that old

I agree it would be best to show you. However, I'm not sure I understand your logic. Suppose the furnace is brand new. At $20 a month it would take a lot of years to cover the replacement. The whole point of the reserve fund is to plan for the replacement.
SamB6 (Illinois)
Posts: 14
Posted:
But is it true that she doesn't have to show receipts , she says she doesn't have to because she wasn't president at that time. Also, at $20 a month increase comes out to $2800 a year in our building. We already have $8500 in reserves. So I'm just trying to figure out why she wants to raise the HOA dues. She just said she's raising them because of large expenses that may happen in the future
JohnT38 (South Carolina)
Posts: 1,631
Posted:
Quote:
Posted By SamB6 on 08/04/2020 6:23 PM
But is it true that she doesn't have to show receipts , she says she doesn't have to because she wasn't president at that time. Also, at $20 a month increase comes out to $2800 a year in our building. We already have $8500 in reserves. So I'm just trying to figure out why she wants to raise the HOA dues. She just said she's raising them because of large expenses that may happen in the future

If your goal is to figure out if the $20 increase is justified then you are asking the wrong question. You need a Reserve Study to answer this. The roofs could need to be replaced in as little as 14 years. What do the roofs cost? What's the monthly amount that needs to be saved for them? What other responsibilities for repair and maintenance are there? What do they break down to on a monthly basis? $20 a month may very well be chump change compared to what's needed.

I suspect that she would have to show you the info on the furnace but I'll let the legal experts here weigh in on that. However, if you want a real answer this alone will not provide it.
AugustinD
Posts: 5,144
Posted:
SamB6,

-- How many directors are on your condo's board?

-- Do you understand that major decisions are normally made by vote of a board majority? You keep referring to the director-president as the one making decisions here. Do the other directors just let the director-president call all the shots?

-- The Illinois Condominium Act says that the association is supposed to retain receipts for all expenses pertaining to the common area (like this boiler). See 765 ILCS 605/18.5 (d) (1) (ii) at https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2200&ChapterID=62

-- You must follow the law regarding records requests. The Illinois Condo Act says this on the subject:

=== Start excerpt from Illinois Condo Act ====
(d) Records
(1) The board of the master association shall maintain the following records of the association and make them available for examination and copying at convenient hours of weekdays by any unit owners in a condominium subject to the authority of the board or their mortgagees and their duly authorized agents or attorneys:
.
.
.

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

(3) A reasonable fee may be charged by the master association or its board for the cost of copying.

(4) If the board of directors fails to provide records properly requested under subdivision (d)(1) within the time period provided in subdivision (d)(2), the unit owner may seek appropriate relief, including an award of attorney's fees and costs.
=== End Excerpt ===

Make the request for the receipt in writing as described above. Send the request certified mail, return receipt requested to the condo manager. Your letter should read something like the following:

================
Dear Association Manager,

Pursuant to Illinois statute, 765 ILCS 605 Section 18.5 (d), please provide me with a copy of the receipt(s) showing the cost(s) for the last time the furnace was replaced.

Thank you,

name
address
phone
email addie
================

After 30 days have passed, report back.

On the other points, I concur with the other vastly experienced HOA/condo veterans posting to this thread.

SamB6 (Illinois)
Posts: 14
Posted:
There has been other things happening that I question about how the money is being spent. Its alot to go into. There were never Hoa meetings until this year because I finally let her know and the former president that HOA meetings are mandatory in the State of Illinois
SamB6 (Illinois)
Posts: 14
Posted:
We only have a board of 2 people. The president and the treasurer. They make all the decisions. We only have 12 units. They never had Hoa meetings until this year because I let them know they needed to have them according to Illinois law. Also they show account balances every 2 months by placing a sheet under our doors. The sheet shows what they paid but they don't provide receipts or copies of checks. And And I question some payments.Also the reserve account is down on the sheet, and the total is always the same.
SamB6 (Illinois)
Posts: 14
Posted:
I meant to say the reserve total is always the same. Also they when I ask about sabout something, they act like I'm causing a problem
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By SamB6 on 08/04/2020 1:55 PM
Is she correct in that she doesn't have to show the records for the purchase of furnace?


Quote:
Posted By SamB6 on 08/04/2020 5:29 PM
Is she o ligated to show me the date of furnace purchase with receipt and check used to pay for it?


Did you get your questions answered?
SamB6 (Illinois)
Posts: 14
Posted:
No. I stop asking.I tried for at least a year to get them to have quarterly Hoa meetings.She acts hostile to asking things
AugustinD
Posts: 5,144
Posted:
Is English your second language?
SamB6 (Illinois)
Posts: 14
Posted:
No. English is not my second language
SamB6 (Illinois)
Posts: 14
Posted:
Thank you for advice. She says she doesn't have to give me any information pertaining to purchase of the furnace because she wasn't president at that time. Is this true? I am very confused by her answer.
SamB6 (Illinois)
Posts: 14
Posted:
Can she tell me she doesn't have to give info on furnace because she wasn't president at the time it was purchased? She's only been president since 2019
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By SamB6 on 08/05/2020 4:30 PM
Thank you for advice. She says she doesn't have to give me any information pertaining to purchase of the furnace because she wasn't president at that time. Is this true?
Nope. See my second post to this thread. The law is clear on this point. You seem either not to have read it, or you did not understand what I posted. This is why I asked about your English.

If you do not understand the law I cited, ask a question about it.
GeorgeS21 (Florida)
Posts: 3,808
Posted:
Sigh ... perhaps the current prez does not have information from the previous prez?

Sam - you need to run for election to be a director on your board.
SamE2 (New Jersey)
Posts: 310
Posted:
Have you read your documents? How do they break tie votes with only 2 board members. If the reserve balance does not change they are not collecting money for the reserve account and they should be. $8500 seems to be too low of an an amount to be in reserve account for a 12 unit building building, but without knowing what the HOA is responsible for it is hard to say. To answer your question she has to make the records available to you but to me that means you may have to search through them to find the invoice you are requesting. My gut tells me she should have raised the dues more than $20 if that is the only money they are collecting for capital work.
GeorgeS21 (Florida)
Posts: 3,808
Posted:
$8500 reserve with 12 units is: $708 per unit.

This seems, on the surface, to be ridiculous ... unless every single item of condo association owned equipment, building, windows, doors, roof, HVAC, etc, has just been replaced.

SamB6, can you provide additional background on reserves, how the situation evolved into what appears to be a lack of Board management, excerpts from your docs which show what the association owns and must replace, what your annual budget is?

If possible, also why the focus on the $20 increase per month? Annualized, and assuming the $20 went only into reserves, this is $240 per owner x 12 owners = $2880 per year. over five years this is $14,400, and over 10 years $28,800 ... even $28,800 seems low for 12 units ...not even enough to pay for a new roof, right?

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