There is No "I" in Board - The Collective Responsibility of Your Condo Board

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Condominium and common interest community associations operate under a board of directors typically comprised of three to seven owners, who then elect officers like president, treasurer, and secretary. The role of president is crucial, serving as the primary liaison between the board and professionals, setting meeting agendas, and leading discussions. However, the president's authority is not absolute; decisions are made by majority vote. Failure to recognize this collective responsibility can lead to issues such as personal attacks on officers, erroneous beliefs about individual liability, and difficulty in fostering a team environment.

To address these challenges, officers and board members must acknowledge their role within a team, collaborate on goals, lead by example, and emphasize collective achievements over individual contributions. Ultimately, successful governance relies on the unity and cooperation of the entire board, rather than any single member.

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Corporate Transparency Act Requires Condominium Associations to Submit Board Member Information by January 2025

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Congress has adopted The Corporate Transparency Act (CTA), requiring domestic reporting companies, including condominium and community associations, to submit information to the federal government regarding the beneficial owner of the corporate entity (i.e., the person who has substantial control or at least 25% ownership interest in the corporate entity) by January 1, 2025. The definition of "beneficial owners" has been extended to include board members of condominium associations.

Associations will need to take action to file necessary reports disclosing beneficial ownership information by the end of 2024. There are significant fines that may be levied for failure to complete this reporting.

The US Department of the Treasury's Financial Crimes Enforcement Network website can be accessed here: https://www.fincen.gov/ The required report can be submitted online.

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New Condoly Webinar on Thursday, May 30th - "Reserve Study Basics"

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Maybe you've heard the term "Reserve Study" and don't know what it is. Maybe you've never heard of a Reserve Study at all! If you live in a condominium building, however, this is a term you should know.

Reserve studies combine an inspection and funding plan that addresses all of the repair and replacement of your building's components over time. Many states are beginning to require Reserve Studies, and while Illinois is not currently one, that could change in the future. 

Join Condoly and their vendor partner on Thursday, May 30th at 6:30 pm to learn the basics of Reserves Studies.

Register your FREE Condoly account or Sign in to your existing Condoly account to register.

 

Will sales in your condominium association be complicated by Freddie Mac’s Not Eligible List?

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Freddie Mac has made its list of condominium and housing projects categorized as "not eligible status" accessible to authorized representatives of condominium associations or housing cooperatives, indicating potential noncompliance with lending guidelines. This could lead to problems for owners wanting to sell.

Condominium project eligibility is crucial as Fannie Mae and Freddie Mac support around 70% of the mortgage market. Freddie Mac utilizes green and yellow statuses for condominium projects, with green indicating compliance and yellow suggesting caution due to non-compliance with requirements. To determine eligibility status, authorized representatives must complete a form on Freddie Mac's website, including project details and, if appealing a "not eligible" status, supporting documentation. 

Learn more here.

Smoking in Community Associations: Carey v. The 400 Erie Condominium Association

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In the recent Rule 23 opinion Carey v. The 400 Erie Condominium Association, the Illinois Appellate Court addressed smoking nuisance cases in condominiums, indicating that smoking within units is permissible under certain conditions outlined in the association's rules, provided it does not cause a nuisance or unreasonable disturbance to others. The court emphasized the importance of objective evidence in proving breaches of fiduciary duty by the board and highlighted the need for fair and consistent enforcement of smoking policies while balancing the interests of smokers and non-smokers. The decision underscores the significance of drafting formal smoking policies that align with the community's needs and legal requirements. It also offers guidance for property managers and board members in handling similar situations within their associations, emphasizing the complexities involved in such cases and the importance of thorough investigation and communication with unit owners.

Learn more here