What happens when your condo or HOA board stops functioning—when board members resign, stop responding, or disappear altogether?

This situation, sometimes referred to as a “headless association,” can leave communities in limbo—without leadership, financial oversight, or the authority to make essential decisions. The recent article from CooperatorNews sheds light on this increasingly common issue, and how communities can begin to take action.

How can you tell that your board may be dysfunctional or headless? A headless board doesn’t necessarily mean there are zero board members left—it often means the board is no longer meeting, managing finances, or addressing property needs. Common warning signs include:

• Lack of communication from board members or the management company
• Unpaid bills or service disruptions
• No budgeting or planning for future expenses
• Missed annual meetings and vacant board seats

Without proper oversight, associations can quickly fall into disrepair—financially and physically.

If your association is in disarray, there are ways to restore leadership:

1. Check your governing documents for protocols around board elections and special meetings.
2. Call a special meeting if you can gather enough owners to meet quorum and nominate new board members.
3. Seek legal support if necessary, especially if the board is completely inactive.
4. Partner with experienced professionals to stabilize finances and reestablish structure.

Rebuilding a non-functioning board starts with restoring financial control. Haus Financial Services specializes in big support for small condo associations by providing budget-friendly management support designed for buildings up to 20 units. HausFS bridges the gap between self- and full-service management with a unique solution that puts your board at ease and they know exactly how to help communities recover from leadership gaps. 

Whether your board is active or teetering on the edge, it’s important to stay proactive to prevent board breakdown:

• Regularly recruit and train new members
• Maintain open communication with owners
• Find reliable professionals on Condoly who can support your board's workload
  
  

Need Help?

Chicago Condo Resource is proud to partner with organizations like Haus Financial Services and Condoly who offer the resources you need to rebuild stronger.

If your board has gone quiet, now is the time to act. The sooner you restore leadership and accountability, the better your chances of protecting your property—and your investment.

When a board member sells their condo, it creates a vacancy that needs to be filled. This transition is a valuable opportunity to engage new owners early and help them understand their role in the community. With the right tools and support your association can streamline the transition and empower new owners to become actively involved.

For many first-time condo owners, the shift from renting to owning in a shared property is significant. Unlike renting, condo ownership means becoming part of a collective community, where decisions are made by the board—fellow owners who volunteer their time to manage and maintain the property.

Best Practices for Filling Board Vacancies

1. Schedule a Board Meeting and Elections After Closing:
   • Once the sale is finalized, organize a board meeting and election and get a jump on filling your vacant board seat.
2. Provide Educational Materials:
   • Share resources about board member roles and responsibilities, including financial and administrative duties. Show that your board is organized and professional - this will motivate a new owner to participate!
3. Extend a Personal Invitation:
   • In addition to sending required notices to all owners, reach out directly to the new owner to ensure they have received notice and encourage them to attend.

By engaging new owners early, you can:

• Educate them on board responsibilities: Clarify how the board operates and how owners can influence community decisions.
• Encourage participation: Inspire them to consider filling board vacancies or joining committees.
• Build stronger connections: Early involvement fosters a sense of belonging and collaboration.

Filling board vacancies and onboarding new owners can be time-consuming and complex. Fortunately, Haus Financial Services provides solutions that simplify the process:

• Haus Financial Services:
  • Helps condo associations manage finances seamlessly, ensuring new board members step into a well-organized financial environment.
  • Offers expert support with budgeting, financial reporting, and cash flow management, giving new board members confidence in their financial oversight responsibilities.

If your association has recently had a board member sell their unit, consider this an opportunity to welcome and engage new owners. With Haus Financial Services supporting your board, you’ll build a stronger, more efficient, and better-managed condo community.

As shared in a recent article by Condo Law Watch, Illinois homeowners and community associations now have a unique opportunity to enhance their properties while supporting local wildlife. With the Illinois Homeowners’ Native Landscaping Act in effect, associations are encouraged to adopt native plants that promote biodiversity, reduce maintenance costs, and create more sustainable environments.

For associations looking to improve their green spaces, embracing native landscaping is a practical and eco-friendly choice. Other advantages to incorporating native plants into your association’s landscaping includes:

• Promoting Biodiversity: Native plants attract essential pollinators such as bees, butterflies, and hummingbirds, contributing to a healthier local ecosystem.
• Reducing Water Usage: Unlike non-native species, native plants are naturally suited to Illinois’ climate, requiring less irrigation and helping conserve water.
• Lowering Maintenance Costs: Native landscaping typically demands less mowing, fertilizing, and pesticide use, which can lead to long-term cost savings.
• Enhancing Curb Appeal: A thoughtfully designed native landscape adds natural beauty, with seasonal blooms and vibrant colors creating an attractive, welcoming environment.

What the New Law Means for Associations

The Illinois Homeowners’ Native Landscaping Act gives property owners the right to plant and maintain native vegetation, even in communities governed by homeowners’ associations (HOAs) or condo associations. While associations can still enforce certain aesthetic guidelines, they cannot prohibit native landscaping altogether.

This is a great opportunity for associations to rethink their landscaping policies, embrace more sustainable practices, and potentially reduce maintenance expenses.

Transitioning to native landscaping requires thoughtful planning and expertise. By partnering with the right landscaper, your association can transform its outdoor spaces into a sustainable, wildlife-friendly haven. If your association is ready to embrace native landscaping, consider using Condoly to connect with experienced, local landscapers who can bring your vision to life.

In today's diverse condominium communities, fostering a culture of mutual respect and open dialogue is essential for harmonious living. Recognizing this need, the Community Associations Institute (CAI) introduced the Community Association Civility Pledge, a framework designed to promote civility within community associations. 

The Civility Pledge encourages associations to commit to principles that ensure respectful interactions among residents, board members, managers, and all community stakeholders. Key commitments include:

• Accountability: Encouraging individuals to take responsibility for their actions and words.
• Respectful Interactions: Promoting civil discussions, even when opinions differ.
• Open Expression: Providing opportunities for all community members to voice their views without fear of antagonization.
• Community Engagement: Urging residents to be informed, participate in meetings, and understand community guidelines.
• Guided Principles: Recommending a review of CAI’s "Rights and Responsibilities for Better Communities" as a foundational document.

There a number of benefits that associations can experience from embracing the Civility Pledge:

• Enhance Communication: Establish a foundation for productive and respectful conversations, even amidst differing viewpoints.
• Strengthen Community Bonds: Foster an environment where all residents feel valued and heard, leading to a more cohesive community.
• Promote Effective Governance: Enable boards to make well-informed decisions that reflect the collective interests of the community.

Incorporating the Civility Pledge is more than a symbolic gesture; it's a commitment to creating a thriving, inclusive, and respectful community for all residents. 

If your association is looking for financial well-being, reach out to our team at Haus Financial Services. You can also find, hire, and manage professionals for all your HOA needs on Condoly, HOA Vendor Manager. 

Condominium 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 15th this year. If your association has not filed a return in the past, now is the year to begin!

Need help compiling your 2024 financials and filing your tax return? Request Accounting services on Condoly to explore your options.