Know the red flags associated with fraud
Condominium associations are often the unfortunate targets of fraud. Assocation bank accounts often hold enticingly large sums of money, and without proper oversight that money can be suddenly or slowly drained by individuals with access.
At Haus Financial Services, we know that a lack of transparency can be a major red flag, indicating possible fraud. Our services are designed with the goal of high transparency between our company and the board, and the board and the owners.
To learn about other red flags that may indicate a risk of fraud and ways to protect your association, see this article from Kovitz Shifrin Nesbit.
2022 Income Tax Returns for Condo Associations Due April 18th
Condominiums associations are considered corporations in the eyes of the IRS. As such, they are required to file an annual tax return (either an 1120 or 1120-H).
Condo associations showing taxable income on their federal returns are also required to file an IL-1120 with the state of Illinois.
Tax returns must be postmarked by April 18th this year. If your association has not filed a return in the past, now is the year to begin!
Can a condo association do away with proxies?
Most associations allow for the use of a "proxy" for owner votes. A proxy is a document that assigns voting rights to another individual or to the board and may be used for elections, votes on amendments or other matters subject to owner votes. Generally, a proxy extends the power to vote on behalf of the owner for a specific matter and period of time. Proxies cannot be granted for voting on matters that are restricted to the board, however.
Prospective candidates have been known to solicit proxies from owners in order to gain the right to vote on their behalf. This practice is often controversial. Would your condominium association board be allowed to adopt an "anti-harassment" rule that prohibits an owner from contacting other owners to solicit proxies for the board election?
Find out here.
Education for Condo Board Members from CAI - March 7th and 14th Online
The Illinois chapter of CAI (Community Association Institute) is offering a virtual Board Development Workshop geared toward educating board members so they can confidently serve their communities.
The course takes place on Tuesday, March 7th and Tuesday, March 14th from 5:30-8:30 p.m.
We have found that few board members are truly prepared for their roles, particularly in small condominium associations. Education such as the DCAL (Dedicated Community Association Leader) course series, available through CAI, can help board members to perform their responsibilitites more effectively and successfully support their communities. Condominium association budgets should include a line item for the cost of board member education.
For more information and to register, visit the CAI Illinois website.