August is National Civility Month, a time to reflect on the importance of respectful and courteous behavior in our daily lives. While we often think about civility on a large scale, it's the small, everyday interactions in our communities that truly matter. For residents of a Chicago condominium, fostering a civil environment is key to a harmonious living experience.

What is Civility? Civility goes beyond simple politeness. It's about showing respect for others, especially when you disagree. In a condo community, where you share walls, amenities, and common spaces, this can be the difference between a thriving community and a tense one. Civility means:

• Being considerate of your neighbors' schedules and lifestyles.
• Resolving conflicts with a focus on mutual respect rather than blame.
• Communicating openly and honestly with your condo board and property manager.

Creating a more civil community starts with each of us. Here are some simple actions you can take:

• Be Mindful of Your Neighbors: Condo living means being aware of how your actions impact those around you. Keep noise levels down, especially during quiet hours. If you have a package delivered, be sure to retrieve it promptly to avoid cluttering the lobby. Small acts of consideration go a long way.
• Respect Common Areas: Common spaces like the gym, pool, or rooftop deck are shared by everyone. Treat them with care. Clean up after yourself, follow the posted rules, and be mindful of others using the space.
• Communicate Respectfully: If you have an issue with a neighbor or a question for the condo board, approach the conversation calmly and with a focus on finding a solution. Avoid gossip and heated arguments. A respectful dialogue is more likely to lead to a positive outcome.
• Know the Rules: The rules and bylaws of your condo association are in place to ensure a peaceful and orderly community for everyone. Take the time to read them and understand your rights and responsibilities. Following the rules is a fundamental act of civility.
• Participate and Engage: Attend community meetings, get to know your neighbors, and participate in events. Being an active and engaged member of your community helps build trust and makes everyone feel more connected.

Sometimes, the biggest threats to civility aren't personal disputes, but systemic issues like financial confusion or inefficient maintenance. Fortunately, professional partners can help volunteer boards streamline operations, leading to less stress and more trust among residents.

• Financial Clarity: A lack of financial transparency is a major cause of conflict in condo associations. Haus Financial Services helps small condo boards manage their finances with professional accounting, budgeting, and financial reporting. By ensuring that your association's financials are clear, comprehensive, and understandable, HausFS helps your board lead with confidence and builds trust among owners, creating a more peaceful environment.
• Streamlined Operations: Dealing with maintenance and vendor management can be a huge source of friction for a board. Condoly is a digital platform that makes finding, hiring, and managing vendors for all your maintenance and project needs simple and transparent. By taking the stress out of these tasks, Condoly frees up board members to focus on bigger-picture goals for the community, reducing a major source of potential conflict.

By embracing the principles of National Civility Month and leveraging the resources of trusted partners, you can help create a Chicago condo community that is not just a place to live, but a place to belong. A little kindness and respect, backed by clear processes, can make a huge difference in creating a positive and welcoming home for all. Read more on National Civility Month on the Community Association Institute’s blog.

Voting is the cornerstone of governance in condominium, homeowner (HOA), and townhome community associations. It empowers residents to shape their communities by electing board members, approving budgets, amending governing documents, and deciding on capital improvement projects. However, to ensure a fair, transparent, and legally compliant process, board members and property managers must navigate several considerations.

1. Key Issues Subject to Voting

Community association members often vote on various critical matters, including:

• Board Member Elections
• Amendments to Governing Documents (e.g., changes to bylaws, covenants)
• Capital Improvement or Addition Projects (e.g., building a playground, renovating a fitness center)

These decisions significantly impact the community's quality of life and financial health, making informed participation essential.

Note that the majority of association business is handled by the board, and not subject to a vote of all owners.

2. Understanding Voting Methods

Associations can employ various voting methods, each with its advantages and challenges:

• In-Person Voting: Traditional and allows for immediate results but may limit participation due to scheduling conflicts.
• Mail-In Voting: Offers convenience but can involve logistical challenges and longer processing times.
• Proxy Voting: Enables absentee members to participate but requires clear guidelines to prevent misuse.
• Electronic Voting: Increases participation and efficiency but necessitates reliable technology and robust security measures.

Board members should assess their community's needs and resources to determine the most appropriate voting methods.

3. Meeting Quorum Requirements

A quorum—the minimum number of members required to conduct official business—is essential for validating votes. Quorum requirements are typically outlined in the association’s governing documents, such as bylaws or covenants. Failure to meet quorum can delay decisions and necessitate additional meetings, affecting the association's efficiency. Board members should familiarize themselves with these thresholds to plan and manage voting procedures effectively.

4. Determining Voting Eligibility

Voting is dependent on ownership status - individuals not on a deed cannot vote (though they may be appointed as a proxy by an owner for the purpose of voting on a particular matter. Associations typically stipulate that only one vote per unit is allowed, regardless of the number of owners. As an example, co-owners of a unit must decide among themselves who will cast the vote. Maintaining accurate records ensures that only qualified members participate, preserving the integrity of the voting process.

5. Ensuring Transparency and Proper Recordkeeping

Transparent voting processes and meticulous recordkeeping are vital. Associations should: Keep detailed records of voting results, including ballots and proxies. Implement secure storage solutions for both physical and electronic records. Establish clear policies for document retention and disposal. These practices not only uphold transparency but also provide a verifiable audit trail if disputes arise.

6. Effective Communication and Adherence to Deadlines

Clear communication about upcoming votes, deadlines, and procedures encourages member participation and ensures compliance with legal requirements. Boards should provide timely notices and detailed instructions, allowing members to make informed decisions.

7. Leveraging Technology for Efficient Voting

Incorporating technology, such as electronic voting platforms, can streamline the voting process, increase participation, and reduce errors. However, associations must:

• Ensure their governing documents permit electronic voting.
• Implement secure and user-friendly platforms.
• Provide training and support to members unfamiliar with the technology

By embracing technological solutions thoughtfully, associations can enhance engagement and operational efficiency.

Voting is a fundamental aspect of community association governance, enabling residents to have a say in decisions that affect their daily lives. By understanding the key considerations outlined above, board members and property managers can facilitate fair, transparent, and effective voting processes, fostering a more engaged and harmonious community.

Partnering with Haus Financial Services, LLC can help your board ensure that they are addressing voting properly and have provided proper notices and ballots. HausFS focuses heavily on legal compliance for its small condo and HOA clients and provides supportive services to ensure voting is done correctly.

For more detailed guidance on voting in community associations, refer to the full article by Kovitz Shifrin Nesbit: Voting in Community Associations: Seven Considerations for Board Members.

Managing a condominium community brings its share of challenges, one increasingly common issue is the rise of cannabis use. With shifting state laws and unchanged federal restrictions, boards need to stay informed to ensure smooth community living.

Although many states now allow medical or recreational cannabis, it remains a controlled substance at the federal level. This creates a legal gray area that boards must navigate carefully. To address this effectively, associations should review their governing documents; such as declarations, rules, and smoking policies, and consult with legal counsel to ensure compliance with current laws and fair enforcement practices.

Crafting cannabis-related policies that are both enforceable and community-sensitive is critical. Popular approaches include prohibiting smoking in common areas like hallways, clubhouses, and pool decks. Nuisance concerns, such as smell and noise, are heightened in close quarters, so clear language in policies is essential to protect residents and prevent disputes.

Boards must strike a thoughtful balance between respecting medical cannabis users, while maintaining a clean, healthy environment for all residents. That means avoiding blanket bans that could conflict with disability accommodations under federal law, while upholding rules around odor control and peaceful enjoyment of common spaces.

To summarize, here are a few points for boards to consider to create a successful cannabis policy in a community association:

• Legally sound: aligned with both state laws and federal obligations.
• Clearly defined: especially regarding smoking, nuisance, and cultivation.
• Enforceable and fair: considering individual needs and overall community wellbeing.

Tip: Work with experienced legal counsel to tailor policies that match your association’s values and needs.

Managing complex policies and sensitive issues like cannabis use requires both legal clarity and streamlined financial operations. Haus Financial Services specializes in supporting small condo associations (20 units or less) with tailored financial and administrative solutions that bridge the gap between DIY and full-service management. From basic financial administration to supplemental services and new-association support, they help boards navigate complex policies—such as cannabis use—with clarity, efficiency, and stability. Our team’s expertise ensures compliance, smooth operations, and a harmonious community. Keep your building well-managed and your residents happy, contact the HausFS team today.

When it comes to operating a condominium association in Illinois, one of the most important requirements is ensuring your association remains in Good Standing with the state. For both newly formed associations and long-established buildings, proper incorporation and ongoing compliance with the Illinois Secretary of State’s office are critical to protecting your association’s legal rights and financial health.

Let’s start with defining “Incorporated” and “In Good Standing”. Incorporation in Illinois means that your condo association has filed Articles of Incorporation with the Illinois Secretary of State and is recognized as a not-for-profit corporation. This legal structure gives the association the ability to enter into contracts, own property, sue or be sued, and collect assessments from unit owners.

However, simply incorporating once and forgetting about it is not enough. To remain in Good Standing, associations must file annual reports and keep a registered agent on file. Failure to do so can result in the association being dissolved administratively, which can expose the board to liability and create problems with banking, insurance, or pursuing legal action.

There are a few common reasons why associations lose Good Standing, including:

• Failure to file annual reports with the Illinois Secretary of State.
• Unpaid fees or penalties associated with past due filings.
• Outdated registered agent information, especially after board transitions.
• Misunderstanding incorporation requirements for self-managed associations.

When your association loses Good Standing status, it may be prohibited from initiating legal proceedings—such as collection of unpaid assessments—and may face complications with obtaining loans or renewing insurance policies.

Wondering if your association is in Good Standing? You can check your association’s status online at the Illinois Secretary of State's website. If you’ve fallen out of compliance, steps to reinstate Good Standing may include:

• Filing any past-due annual reports.
• Paying outstanding penalties or fees.
• Updating your registered agent and address.
• Filing for reinstatement, if administratively dissolved.

It’s essential to act quickly, especially if your association is planning a capital project, refinancing a loan, or pursuing legal collections.

The best strategy is to take preventative steps for long-term compliance. As an association, there are a few steps to take to ensure you stay in Good Standing:

• Mark your calendar: Annual reports are due before the first day of the anniversary month of incorporation.
• Assign responsibility: Make sure a specific board member or manager is in charge of handling Secretary of State filings.
• Use a professional registered agent: This ensures continuity even as board members change.
• Conduct periodic reviews: Check incorporation status annually to catch issues early.

If your association is in need of help to navigate the process, Haus Financial Services can assist in navigating the incorporation and compliance process to ensure you're protected and empowered. Whether your association is new or needs help regaining Good Standing, we can file annual reports, act as your registered agent, and provide the financial clarity you need to stay on track.

Contact us today to make sure your condo association is operating on solid legal and financial ground.

When it comes to buying or refinancing a condo, the financial health of the association matters—a lot. Lenders don’t just look at the borrower’s creditworthiness. They also scrutinize the condominium association’s records to determine whether they’ll approve the mortgage. If an association has too many red flags, it can end up on what’s known as the Do Not Lend list—a designation that can dramatically reduce property values and buyer interest.

But how does an association get on this list in the first place?

The “Do Not Lend List” isn’t a single, centralized list. Rather, it refers to internal lists maintained by lenders that identify condominium buildings considered too risky to finance. If a building is on the list, buyers may find it nearly impossible to secure a mortgage for a unit there, and current owners may struggle to refinance. Let’s review a few of the common reasons associations end up on the Do Not Lend List:

• High Delinquency Rates: If more than 15% of units are behind on assessments, lenders get nervous. This signals poor cash flow and potential instability in meeting operating or reserve needs.
• Insufficient Reserves: Associations are expected to maintain adequate reserve funds for capital repairs and emergencies. Underfunded reserves are a red flag for deferred maintenance and special assessments.
• Pending Litigation: Lawsuits—especially those involving construction defects, insurance claims, or disputes with developers—can put a building on the list. Lenders are wary of unknown liabilities.
• Too Many Investor-Owned Units: When a large percentage of units are non-owner occupied (usually over 50%), lenders may classify the building as “non-warrantable,” making loans harder to secure.
• Deferred Maintenance or Structural Concerns: Visible disrepair, outdated engineering reports, or failed inspections can all contribute to blacklisting.
• Lack of Financial Transparency or Poor Recordkeeping: Lenders often review budgets, meeting minutes, insurance policies, and reserve studies. Missing or incomplete documentation can lead to rejection.

As a Board, what can you do to stay off this list?

• Stay Current on Financial Best Practices: Keep assessment collections up to date and ensure regular contributions to reserve funds. Maintain Detailed, Accurate Records: Budgets, audits, and meeting minutes should be readily available and professionally maintained.
• Communicate Openly with Unit Owners: Transparency builds trust and reduces conflict. Proactive communication also helps avoid legal action.
• Invest in Preventative Maintenance: Routine upkeep not only preserves the building—it protects the value of every unit.
• Consult with Experts: Work with experienced property managers, accountants, and attorneys who can help you navigate compliance and lending requirements.

Once a building lands on the Do Not Lend list, it can take years to get off it. That’s why proactive financial management, transparency, and strategic planning are essential for every condo board. By understanding what lenders look for, associations can protect their reputation, their residents, and their long-term viability.

Need help evaluating your association’s risk or improving your financial health? Haus Financial Services offers expert support for small condo associations. From budgeting and collections to reserve planning and financial reporting, we help condo boards stay compliant—and stay off the Do Not Lend list. Contact us today to learn how we can support your board!