Unit owners who purchase property in your Chicago condo association must also agree to the association’s bylaws and rules and regulations. Included in these documents are pages upon pages of important information, but they can easily be forgotten or disregarded…until an issue arises.
To prevent unwanted disputes, it’s important to maintain consistent communication with owners and remain transparent with all board decisions. Financial decisions tend to draw the most heat from owners, so if there’s ever an area that requires utmost transparency, it’s the budget.
Ensuring Budget Transparency
Illinois condo board members are required to act as fiduciaries for their association. That means they must make budgetary decisions that are in the members’ best interest and do their part to serve the community as a whole.
Dues collected from association members must be allocated appropriately, and their intended use must be included in the annual budget. Each unit owner should receive a copy of the proposed annual budget at least 25 days prior to the board meeting in which the budget will be adopted. Within the budget, dues should be allocated for annual expenses as well as money to fund the reserves.
When owners fail to make their required dues and assessment payments, a collection process will be initiated. Your association should have clear and accessible documentation that outlines the steps for dues collection. Failure to make on-time payments to the association could lead to foreclosure, so it’s imperative to be transparent with this process. As a condo association board member, it’s your duty to maintain accurate financial records. Consider working with a condo association management company that can help you prepare budgets and financial statements. To learn more about how we at First Community Management can help your association, get in touch with our team today.