Page 6 - Chicagp Fall EXPO 2019

6 THE CHICAGOLAND COOPERATOR —FALL 2019 CHICAGOCOOPERATOR.COM Setting Up a Charter for a Master Association Q I am president of a master as- sociation with 16 homeowner operating budget and all owners, includ- associations. Recently, our new ing those who do not use the elevators, assessed equally, or--just as with those on to discuss employment matters and cer- attorney recommended creating charters pay according to their percentage of own- for our master association and the advisory ership. In recent years the cost of eleva- committees. What are the advantages of this tor maintenance and repair has increased proportionate share should be less as and boards are not required to disclose over just creating policies and guidelines for and first-floor unit owners are asking why their usage is less than upper floors on to homeowners why an association em- them to follow? Should the master associa- tion also develop a charter? I have written use. one, but it so closely follows the declaration that I wonder about its worth. It does pull together the policies and guidelines, and I board to amend our declaration and de- like the idea, but the board may need better clare the elevators to be limited common reasons to go to this. —Seeking What’s Practical A “In the context of a home- owner’s association,” says units that use the elevators? attorney James Erwin of the Chicago-based firm Erwin Law, “a charter is simply a written document that governs the conduct of a committee. It should de- fine the duties, rights and obligations of the committee and its members. It should set out the committee’s relationship to the low an amendment to make the elevator board of directors and should set forth a limited common element,” says attor- a basic set of limits on the powers of the ney William Chatt of Cervantes Chatt & committee. And, it should be clear in that Prince P.C., which has offices in Chicago president of the board fired him three homeowners could file a lawsuit seeking the committee has no independent man- agement powers and merely serves in an who do not use the elevator may cringe at riod was up. The tenants requested a spe- advisory capacity to the board. Creating contributing to the elevator maintenance, cial meeting to find out why the super and using charters for committees is a other than buildings with penthouses that was fired. We believe the president has good idea so that everyone is clear on the have dedicated elevators for those units, personal issues with the super. We are role and capacity of the committee. “As for the master association (or any of the individual associations, for that from a practical standpoint it’s hard to matter), drafting and implementing a imagine the 24 units who do not have or charter would be ill-advised and point- less. The master association can only be be able to convince those unit owners who governed by the recorded declaration and use the elevator of such a change. Further, bylaws, and those documents can only be a limited common element is that portion modified by recorded amendments which of the common elements, which is for the Legal, P.C., in Chicago: “Aside from any have been approved in accordance with exclusive use of an owner such as would possible employment or labor law issues, the amendment provisions contained in be the case for a balcony or parking spot. from an Illinois condominium/communi- the declaration.” Elevator Maintenance Charges Q Ours is a 96-unit multi-unit would draft an amendment with language tions must operate in accordance with a building with 12 tiers of eight that states the elevator is no longer con- condominium units per tier. sidered a common element and moving In other words, business decisions such as There are two units on each floor in each forward a limited common element for the hiring and firing of employees must tier. Each tier has an elevator that serves tiers two through 11. Aside from draft- the second, third and fourth floor units ing the amendment, a new plat of survey rectors as a whole. and there is an elevator stop at grade level. will be required to reflect the elevator The first floor is a few steps above street becoming limited common element to to terminate the employee in fact was level and there is no elevator stop for the the affected units. The percentage owner- first floor units. There are two units that ship interest would need to change, which what actually occurred, the decision still have access to and use the elevators at would likely require a vote in favor of the should have been voted upon by the board each floor where the elevator stops. At present the annual cost for eleva- tor maintenance is included in the annual tain the elevator costs would also be nec- they are paying for the elevators they can’t a proportional basis? Additionally, while ployee has been terminated, any final hir- This raises two questions: 1. Does the Illinois Condo Act allow a still look to the association itself for com- elements assigned to the 72 units that use declaration to change the elevator. But not making decisions that are in the best the elevators? 2. How can the board amend the Dec- laration and/or bylaws so that annual declaration, that may make accomplish- maintenance cost is only charged to those ing the amendment difficult. The asso- —Searching for a Remedy A “The simple answer is yes, the Illinois Condominium Property Act would al- and Burr Ridge. “While those unit owners days before his six-month probation pe- this is a common occurrence. “In the instance cited here, however, management. What can we do? need elevator access to the elevator would Here, multiple owners would share in this ty association law perspective, one poten- portion of the common elements “But again, assuming enough unit tion president unilaterally making major owners are in agreement, the association association business decisions. Associa- amendment from all owners. “Language as to how the cost to main- essary. For instance, would each floor be applicable to associations allow boards the first floor not wanting to pay at all- -are the lower units going to argue their issues outside of open board meetings, the members of the association may agree ing or firing decision must be made by a to this arrangement, any municipality will board vote at an open board meeting. pliance with local code. “In sum, it is possible to amend the homeowners simply believe the board is there are a number of practical consider- ations, as well as requirements under the matic option for those homeowners likely ciation should work with its management ing of homeowners. The homeowners company and legal counsel to ensure it also could initiate procedures to remove follows all necessary steps according to board members. Exact board removal its declaration.” Save Our Super Q Our super was hired six months of two-thirds of all of the homeowners, so ago. He’s a hard worker and all the removal of board members can be dif- the tenants like him. But the ficult to accomplish. In an extreme case, being ignored by both the board and the —Speaking Out for a Friend A Says Scott Rosenlund, the founding shareholder at the law firm of Rosenlund tial point of concern could be the associa- proper corporate governance structure. be made by the association’s board of di- “It remains possible that the decision made by the board. But even if that is at a properly-noticed board meeting that was open to the homeowners. While Il- linois open board meeting requirements tain other limited categories of sensitive “If a board is not following proper board voting procedures, or if concerned interests of the building, the most prag- would be to mobilize and elect different board members at the next annual meet- requirements will depend upon the type of association and governing document requirements. But the removal of a board member may require the affirmative vote to compel the board to follow basic board voting requirements.” n Do you have an issue with your board? Are you wondering how to solve a dispute with a neighbor? Can’t fi nd information you need about a building’s fi nances? Our attorney advisors have the answers to all of your legal ques- tions. Write to The Chicagoland Cooperator and we’ll publish your question, along with a response from one of our attorney advi- sors. Questions may be edited for taste, length and clarity. Send your questions to: david@cooperator.com. Disclaimer: Th e answers provided in this Q&A column are of a general nature and cannot substitute for professional advice regarding your specifi c circumstances. Always seek the advice of competent legal counsel or other qualifi ed profes- sionals with any questions you may have regard- ing technical or legal issues. Q&A QUESTIONS & ANSWERS Legal A Q &