Q: I am a unit owner in a high-rise condominium. Our board of directors recently approved several major projects to the tune of millions of dollars without any detailed presentation to the owners. The board did not give the unit owners a chance to provide input or ask questions. The project is being paid for out of the reserve fund. Can the board approve such a large project without any unit owner input?
A: From a legal standpoint, pursuant to section 18.4(a) of the Condominium Act, the condominium board has the authority to maintain, repair and replace existing common elements with only a board vote. The board may use reserve funds for that purpose. Board members must vote to approve contracts in an open board meeting, which unit owners may attend and listen.
From a best-practice standpoint, it is common for condominium boards to provide information to the unit owners about major capital projects, including the scope, design and timelines. Soliciting unit owner opinions is not so common because of the volume of different opinions that may be received, but allowing unit owners to ask questions about the projects is an appropriate step.
Q: I am a unit owner in a self-managed condominium association. Our condominium board is raising the budget, and thus our assessments, more than 7%, which our bylaws prohibit without unit owner approval. Is our bylaws restriction enforceable?
A: A bylaws restriction limiting a condominium budget increase to no more than 7% unless unit owners approve it is unenforceable because it’s not consistent with the Condominium Act and is therefore void, according to the provisions of that act. Section 18(a)(8) of the Condominium Act allows a condominium board to increase the sum of regular and special assessments over the previous year by 15% without unit owner approval or rejection rights. Only if the budget increase is more than 15% do the unit owners possess a right to reject the budget. That procedure requires 20% of the unit ownership to sign a petition delivered to the board within 21 days of the adoption of the budget, and unless a majority of the total unit ownership rejects the budget at a meeting called by the board within 30 days of the date of delivery of the petition, the budget is ratified.
Q: I am on the board of a small condominium association. Do you have any advice on how to handle an unruly board member who at times intimidates and bullies other board members?
A: All board members should act civilly and in good faith to each other. When situations arise where a board member does not show civility toward other board members, the first step is for professional management (if any) and/or the board president to speak with the board member privately and explain how their behavior is making others feel. Be specific with examples.
If the unruly board member doesn’t cooperate, the board could adopt a code of conduct to set expectations for how board members should act. As a last step, if a board member is continuously abusive, either the board or 20% of the unit ownership can call a unit owner meeting to remove the director from the board. Most governing instruments require two-thirds unit owner approval to remove a director from the board.
Got a question for the Condo Adviser? Email ctc-realestate@chicagotribune.com.