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Does 3rd party contract require voting

Started by VadR • 6 replies • 131 views

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VadR (Illinois)
Posts: 7
Posted:
Our HOA (Illinois) is considering renewing the contract with Comcast for bulk internet and cable services, with the cost billed in the assessment, without much discussion or voting. I read (https://www.reddit.com/r/HOA/comments/dso6nw/forced_to_pay_for_cable_internet) that HOA acts in other states dictate that signing contracts require voting by supermajority; can someone advise if similar provision exists in Illinois?
From my point of view, bulk internet is good deal, but forcing one particular provider of entertainment is not, given today's market and variety of offerings of streaming services - unlike even 5+ years ago when the current contract was created. The proponents of the deal motivate it by the age of the most residents, who supposedly are too old to navigate through that choice.
ElleN (Idaho)
Posts: 1,335
Posted:
First, the Illinois Condo statute does not have such a requirement, with one exception: If a director has an ownership interest in the cable company, then the owners can take steps to require a vote to approve this.

Second, I would have to scour the covenants to see whether the covenants say the board can lawfully arrange for cable services for all units. Often covenants do have a clause about 'essential utilities' and similar. Today bulk internet and cable might reasonably be considered an 'essential utility.' You should do the scouring and then consider reporting back here what you find.

Third, and on the one hand:
If the contract provides a service that the covenants do not require the HOA to provide, then arguably first a vote of the owners would be necessary to amend the covenants.

On the other hand, it appears the HOA has been providing cable service for at least the last five years. No one really complained, right? This greatly complicates the legalities here.

If someone wanted to make a stink about the HOA providing services not listed in the covenants, and if push came to shove and this went to court, it's hard to say which way this would go.
KerryL1 (California)
Posts: 14,550
Posted:
"The proponents of the deal motivate it by the age of the most residents, who supposedly are too old to navigate through that choice." Ridiculous! I know many over-70 y.o. residents in my HOA who navigate the streaming choices with ease. And several who've gotten off cable entirely.
DeanJ
Posts: 1,786
Posted:
I suspect the HOA purchased the fastest speed internet offered and a very basic low cost CTV. Most owners are going to need to purchase their own streaming service to get the programming they desire.

The board does not need a vote of the owners for this contract. Why the HOA would separately bill each owner for this service is a bit baffling. This is like any service provided by the HOA and the cost should be included in the assessment.

DeanJ
Posts: 1,786
Posted:
Quote:
Posted By KerryL1 on 03/27/2025 6:59 PM
"The proponents of the deal motivate it by the age of the most residents, who supposedly are too old to navigate through that choice." Ridiculous! I know many over-70 y.o. residents in my HOA who navigate the streaming choices with ease. And several who've gotten off cable entirely.

There are a lot of seniors who financially struggle with the cost of these services and the navigation issue is financial not technological.
VadR (Illinois)
Posts: 7
Posted:
Quote:
Posted By DeanJ on 03/27/2025 11:19 PM
Why the HOA would separately bill each owner for this service is a bit baffling. This is like any service provided by the HOA and the cost should be included in the assessment.

This is exactly how it is - the cost is included in the monthly assessment.
The deal is in fact very good - _if_ Comcast is your choice - $40/month instead of $120 or so. And 10+ years ago when Comcast was pretty much the only game in town, it was brilliant idea. But not today.
DeanJ
Posts: 1,786
Posted:
Quote:
Posted By VadR on 03/28/2025 1:14 PM
Posted By DeanJ on 03/27/2025 11:19 PM
Why the HOA would separately bill each owner for this service is a bit baffling. This is like any service provided by the HOA and the cost should be included in the assessment.


This is exactly how it is - the cost is included in the monthly assessment.
The deal is in fact very good - _if_ Comcast is your choice - $40/month instead of $120 or so. And 10+ years ago when Comcast was pretty much the only game in town, it was brilliant idea. But not today.

I live in a home in an affluent area of an urban county. Currently I have a choice between a legacy provider and 1 fiber optic provider. A 3rd wants to install service. 85% of the community signed a petition requesting the 3rd company not provide service to the community because of the mess these companies cause during installation. Besides sod damage, irrigation and electric lines get cut and getting the damage repaired is not a quick process.

For a condo board to accept all the new bells and whistles, buildings are involved. . A condo board chooses wisely to get the deal IMO. Currently no one in my HOA is very happy how the fiber optic company installs the cable in their homes.

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