ChicagoCondoResource

Things to Know About Recreational Cannabis in Your Condo Building

Details: Written by Lauren Peddinghaus; Category: What We're Thinking About Lately...; Published: 17 December 2019

On Tuesday, June 25, Illinois Governor JB Pritzker signed the Cannabis Regulation and Taxation Act (CRTA) into law. The CRTA will take effect January 1, 2020. Here are some important things to know about cannabis in your condo building.

Illinois residents 21 years or older will be able to purchase up to: 30 grams of cannabis flower, edibles totaling 500mg of THC and/or five grams of concentrated THC products.
It is illegal to smoke or consume cannabis in a public place, in a motor vehicle, on school grounds, near an individual under 21 years of age, and near an on-duty school bus driver, police officer, firefighter or corrections officer.
Only an Illinois resident 21 years of age or older who is a registered qualifying patient under the Compassionate Use of Medical Cannabis Pilot Program Act may cultivate cannabis plants, however a property owner or landlord may prohibit the cultivation of cannabis by a tenant.
Condo associations may prohibit or limit the smoking of cannabis within a unit owner's unit via their condominium instruments (declaration and bylaws) but may not otherwise restrict the consumption of cannabis by any other method within a unit owner's unit or the limited common elements.
Condo associations may restrict any form of consumption via their condominium instruments OR rules and regulations in the common elements.

For more information about Recreational Cananbis, see the following articles:

5 Things a Landlord Should Know About Recreational Cannabis in Illinois

The New “Reefer Madness”: Is Your Association Ready for the Legalization of Recreational Marijuana in Illinois?

How long should you retain your condo association documents?

Details: Written by Alexa Jackson; Category: What We're Thinking About Lately...; Published: 10 December 2019

Governing a condominium or HOA requires a great deal of documentation, including budgets, meeting minutes, owner info, voting records, insurance policies, and more.

Additionally, things like board turnover, unit owner issues, and liability highlight the importance of drafting and adhering to a record retention policy.

Certain records are mandated to be maintained by associations, but the length of time that they must be maintained for differs and it is important to keep those in mind.

To learn how long certain documents must be retained and how to create a record retention policy, click here.

Why Should You Raise your HOA Dues?

Details: Written by Alexa Jackson; Category: What We're Thinking About Lately...; Published: 02 December 2019

2020 is around the corner. Does your 2020 budget reflect an increase to monthly assessments? If the answer is no, your may not be adequately planning for your operating expenses and funding your reserves for long-term needs.

Keeping dues flat is often seen as an indication that the board is doing a good job, but there are valid instances where raising dues could be the right decision for the long-term prosperity of the community.

When it comes to operating expenses, the budget should at least increase to keep up with inflation and rising costs for the services and amenities provided by dues. Incrementally raising dues can help ensure a sufficient flow of funds into the operating budget in anticipation of those rising costs.

When it comes to reserve funds, industry sources cite that over 70% of community reserves are underfunded, primarily because monthly dues are not adequately allocated to the reserve budget. Incrementally raising dues to allocate adequate contributions to the reserve account allows the board to fund major expenses without imposing special assessments.

It is a challenging task for boards to strike the right balance between containing costs and enhancing communities. However, boards that realistically evaluate the state of their association’s finances are best able to manage their communities without financial surprises.

Learn more here.

How Can You Avoid Unruly Association Board Meetings?

Details: Written by Alexa Jackson; Category: What We're Thinking About Lately...; Published: 27 November 2019

Board members are often tasked with making the most difficult decisions for their community association. These decisions can sometimes lead to confrontation if there are differences of opinion.

Below, we have listed several ways to avoid upset, confrontational, or unruly homeowners during an association meeting.

Ensure that proper notice of the meeting is sent well in advance and encourage owners to submit all questions or issues in advance as well.
Hold meetings in a respectable location that fosters respect amongst homeowners.
Provide a concise meeting agenda that homeowners can review in advance. Be sure to include ground rules in the agenda to focus expectations.
Arrange the room so that board members sit in front of the homeowners, facing the attendees.
Holding a homeowner forum will allow time to address any issues. The board should set and explain the rules and regulations of the forum in advance.
When the homeowner forum is finished, the board should formally convene the open meeting and begin discussing association business.
Unit owners should be advised to submit legal issues in writing for the board’s review so as not to delay or postpone meetings.

To read more, click here.