Simone Lawson
In Illinois, condominium associations are governed by the Condominium Property Act, which outlines the requirements for board meetings. While condominium boards are not subject to the Open Meetings Act or the Freedom of Information Act, they must adhere to specific rules and regulations. These include holding a minimum of four board meetings per year and providing notice to unit owners at least 48 hours in advance by posting notices in conspicuous places or through personal delivery, mail, or electronic means. Unit owners have the right to attend board meetings, but their participation and voting rights may vary. Certain discussions, such as litigation, employee matters, and rule violations, can be held in closed sessions. The Illinois condominium statute and bylaws dictate when a membership meeting is required, such as for budget adoption, rule enactment, and board elections.
| Characteristics | Values |
|---|---|
| Minimum number of meetings per year | 4 |
| Notice period | 48 hours |
| Notice method | Posting notices in conspicuous places, personal delivery, mail, or electronic means |
| Board meeting attendees | Board members, unit owners |
| Discussion topics | Budget, improvement projects, community issues, litigation, employment, violations of rules and regulations, unpaid common expenses |
| Voting | Secret ballots allowed |
| Quorum | 20% of percentage interests in common elements |
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Membership meetings
Frequency and Purpose:
Notice Requirements:
Proper notice is crucial for membership meetings. Notices must be provided to all unit owners within a specified timeframe. For annual meetings and meetings discussing rules and regulations, notices should be sent out no less than 10 and no more than 30 days in advance. This can be done through mailing, personal delivery, or electronic means if agreed upon by the unit owners. Failing to provide proper notice may render the decisions made at the meeting challengeable.
Participation and Voting:
Special Considerations:
It is worth noting that under the Illinois Not for Profit Corporation Act, if a contract is approved by the board involving a director or their immediate family with a 25% or higher interest, unit owners have the right to request a meeting to vote on the contract by gathering 20% of unit owners' petitions. Additionally, meetings can be called to address specific topics, such as work sessions or emergency meetings, ensuring that important matters are given the necessary attention.
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Board meetings
In Illinois, condominium associations are required to hold a minimum of four board meetings per year. These meetings are typically open to all unit owners, who must receive notice at least 48 hours in advance, either through posted notices, personal delivery, or mail. Unit owners within condominiums do not have an absolute right to comment at board meetings, but most boards allocate a portion of the meeting for their comments.
The annual meeting is of particular importance as it involves electing new board members and presenting the annual budget. Additionally, emergency meetings or work sessions may be convened to address specific topics in more detail.
It is worth noting that certain discussions can be held in closed sessions, exempt from public attendance. These include topics such as pending litigation, employment matters, rule violations, and unit owner's unpaid common expenses.
Proper notice must be sent before conducting a board meeting to avoid potential challenges to the decisions made. When adopting rules and regulations, the board must first call a meeting of unit owners to discuss the proposed rules, and then a subsequent board meeting to adopt them, allowing for any suggested changes.
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Open meetings
In Illinois, condominium board meetings are not subject to the Open Meetings Act, which applies only to public bodies, defined as legislative, executive, administrative, or advisory bodies of the state of Illinois. However, while the Open Meetings Act does not apply to condominiums, board meetings must be open to other unit owners under the Condominium Property Act and the Common Interest Community Association Act.
There are exceptions to the rule that every board meeting must be open to the public. Under the Condominium Property Act, condominium board meetings or portions of meetings can be held in closed session to discuss certain items, such as litigation, employment matters, rule violations, or a unit owner's unpaid common expenses. Similarly, the Common Interest Community Association Act allows for exceptions to open board meetings.
While unit owners in condominiums do not have an absolute right to comment at board meetings, most condominium boards set aside a portion of the meeting for limited unit owner comments. It is important to note that proper notice must be sent before conducting a board meeting, as decisions made without proper notice may be challenged. Notices must be provided to all unit owners at least 48 hours in advance by posting in conspicuous places, personal delivery, or mail, unless electronic notice has been agreed upon.
In addition to regular board meetings, there are also annual meetings required by the Illinois Condominium Property Act to elect new board members and present the annual budget. These open session meetings must be conducted in accordance with the association's governing documents, with proper notice given to the community.
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Closed sessions
In Illinois, HOA boards and condo boards have the right to hold closed-door meetings and closed sessions during otherwise open meetings. However, there are important rules and regulations that must be followed.
Illinois law allows only six matters to be addressed in a closed session, and no voting can take place during these meetings. These six matters are:
- Matters involving current or former employees or contractors, as well as the interviewing of potential employees or contractors
- Discussion of potential violations of community rules or an owner's unpaid assessments
- Review of the implications of pending or likely litigation
- Consultation with legal counsel
- Pending, imminent, or threatened litigation involving the association
- Delinquent unit owner assessments
It is important to note that meeting minutes must be kept for closed-door meetings. Under the Illinois Condominium Property Act, associations should record minutes of closed-door meetings and maintain those records for a minimum of seven years. The minutes should include:
- That the meeting took place
- A list of those in attendance
- The reason for the session
- That the closed session meeting qualifies for one of the exceptions to the open meeting requirements
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Board elections
The election of the members of the Board of Directors occurs each year at the Annual Meeting. The association is required to conduct an election each year and cannot skip it. The date of the Annual Meeting may be fixed or may be decided by the Board.
The Board of Managers elections are the most common exercise of Unit Owner voting. The Board may disseminate biographical and background information about the candidates to unit owners, as long as all reasonable efforts are made to identify all candidates, and the Board does not express a preference for any candidate. Elections may be conducted by secret ballot, and the Board must adopt reasonable rules for this.
In some associations, the governing documents contain restrictions on the rights of owners to run for the board or vote in the election. It is recommended that the eligibility of candidates is reviewed prior to the Annual Meeting. Owners may vote by submitting a proxy form or a ballot in person at the meeting, unless rules have been adopted to allow mail-in ballots.
The Board must ensure it follows the correct procedures as set out in the Act and governing documents. This includes issuing proper notice of the annual meeting, soliciting candidates within the correct time frame, and issuing the proxies and ballots within the proper time period.
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Frequently asked questions
No, unit owners within condominiums do not have an absolute right to comment at board meetings, but owners within common interest communities do. However, most condominium boards set aside a portion of the meeting for limited unit owner comments.
A board meeting is defined as a gathering where the community's operations, finances, and other business concerns are addressed. A board cannot make a decision unless it is at a board meeting.
Yes, the board can meet and discuss items outside the presence of non-board members, such as litigation, employment, violations of rules, and unpaid shares.
