Editor’s note: this series of questions and answers are being provided to you in an effort to show that ‘we are not alone” and that many of the problems we face right here at home, are the same as in other parts of the state, or in this case, country.

Special assessment, not president, should cover bills

CONDOMINIUMS   BY MARK PEARLSTEIN

August 31, 2008

Question: I live in a nine-unit condo building in which two units are in foreclosure with $7,000 owed to the association. As a result, we received shut-off notices from several utilities. The association president paid most of these bills with her credit card. She now wants to apply a special assessment to the remaining unit owners for reimbursement.

Can the president force this special assessment on the remaining owners? I am grateful for what she did, but I think it would be easier for one person to recover the expenses that were owed from the banks that have taken over the foreclosed units, rather than having all the owners involved.

Answer: While generous, the gesture by the president is not the right way to resolve an assessment shortage. As stated in Section 18(a)(8) of the Illinois Condominium Property Act, the board may levy a special assessment to raise additional revenue when expenses exceed income. The delinquent status of these units has forced the board to levy the assessment. The association may recover the past-due assessments from the purchasers of the units after the foreclosure sale, but that date is uncertain. The board should have determined the association's cash needs for utility bills, transferred money from reserves and then levied the special assessment to replenish the reserve fund.

The president should not be in a position to personally recover her advance. The board must adopt a resolution to reimburse the president from association funds.

Question: The condo board I'm on would like to know what we need to provide with regard to ethnic stations in our cable television package.

Answer: Associations have no obligation to provide particular stations. Owners expect a TV package that includes the major stations plus channels that come with a basic TV package and reflect the preference of the community's residents.

Question: How many people do we need on our board? How many owners need to attend a meeting to hold a vote?

Answer: The owners must elect the number of directors specified in the bylaws. For associations that are non-profit corporations, state law requires at least three. The Condominium Act requires at least 20 percent of the ownership to be present in person or by proxy for a valid owners meeting.

Mark Pearlstein is a Chicago lawyer who specializes in condominium law and is chairman of the legislative committee of the Illinois chapter of the Community Associations Institute. Write to him c/o Condominiums, Chicago Homes, 4th Floor, Chicago Tribune, 435 N. Michigan Ave., Chicago IL 60611. You may e-mail questions to real estate@tribune.com. Answers will be supplied only through the newspaper.