This is the first in a series of articles regarding changes in the IL Condo Act that will become effective in 2018.

The Illinois Condominium Property Act has created a new section that states, at the end of the Association’s fiscal year, and once the Association has approved any year end fiscal audit if necessary, and if the fiscal year ended with a surplus of funds instead of expenses, including budget reserve funds, then the Board had the authority to dispose of the surplus through the following methods:

  1. Contribute the surplus to the reserve fund
  2. Return the surplus to the unit owner as a credit toward leftover monthly assessments for the current fiscal year
  3. Return the surplus to the unit owners in the form of a direct payment
  4. Maintain the funds in the operating account, where funds are applied as a credit when calculating the coming annual budget.

If the fiscal year ends with a deficit, the Board has the discretion to address the deficit by incorporating it into the budget for the following year.

Unit owners can object to the Board’s decision as follows: If 20% of the unit owners object within 30 days’ notice to the action, the Board may call a meeting of the unit owners within 30 days of the date of delivery of the petition. At the meeting, unit owners may vote to select a different option than that chosen by the board. Unless most of the total votes of unit owners are cast at the meeting to reject the Board’s selection, and choose a different option, the Board’s decision is ratified.

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