Adopting a new budget for your Chicago condo association is a process that happens annually and requires the support of at least a majority of board members present at the meeting. Read on for more information about how a condo association’s budget is approved in Illinois.
What to Know About Budget Approval for Illinois HOAs and COAs
Each individual condo association will have its own rules and regulations related to its budget process. You should first familiarize yourself with what’s in your association’s governing documents as you prepare for annual financial planning.
It’s also imperative to follow local and state laws. Associations are like “mini-governments,” but they must still adhere to state requirements. The Illinois Condominium Property Act (765 ILCS 605/1) governs associations in and around Chicago.
Who Gets to Vote on the Budget?
Approving an annual budget for your condo association comes down to a board vote. While only the board votes on the budget, all unit members get to vote on who sits on the board. (Hint: if you’re not happy with who’s sitting on the board and have good reason to seek their removal, there are procedures you must follow to remove a board member in Illinois).
Per the Illinois Department of Financial and Professional Regulation, the budget must be approved by at least a majority of the board members present at a properly noticed open board meeting, at which a quorum of the board is present during the entire meeting.
Once the budget is approved, ongoing financial management is a must. That’s where a full-service association management company like us at First Community Management can help. To learn more, please contact us today.