Board meetings are the backbone of any condominium association. They provide a forum for directors to make decisions, manage community business, and keep owners informed. But not all meetings are created equal. Associations often need to balance transparency with confidentiality, which is where the distinction between open meetings and closed meetings (also called executive sessions) comes in.

Open Board Meetings

Open meetings are just what they sound like—meetings that all owners are invited to attend. According to the Illinois Condominium Property Act (765 ILCS 605/18(a)(9)), board meetings must generally be open to all unit owners, except under limited circumstances. These sessions typically cover the bulk of the association’s business, such as:

• Reviewing financial reports
• Discussing maintenance projects
• Approving budgets
• Addressing community concerns

Open meetings are essential for fostering trust, encouraging owner participation, and keeping the community informed about board decisions.

Closed Board Meetings (Executive Sessions)

Sometimes, the board must address sensitive issues that cannot be discussed openly. In these cases, the board may go into a closed session (also called an executive session). The Condominium Property Act allows closed meetings only for specific purposes, including:

• Pending or ongoing litigation
• Delinquent assessments and collections
• Employee or personnel matters
• Contract negotiations

As the Community Associations Institute (CAI) notes, these sessions should be limited to confidential topics that legally or reasonably require privacy, and the board should return to open session once the matter is complete.

It is vital to note that all board votes on association matters must be conducted in the open portion of the meeting. Closed session is for discussion only on the specific topics noted above. 

Striking the Right Balance

While closed meetings are sometimes necessary, the majority of board business must remain open to owners. Boards that rely too heavily on private sessions risk creating mistrust and even potential legal challenges. As KSN Law emphasizes in its guidance on condominium meetings, transparency is critical to maintaining owner confidence and compliance with state law.

For healthy governance, boards should be transparent whenever possible but know when privacy is essential. Owners should expect most association business to be handled in open meetings, while respecting that some topics must remain confidential to protect the community.

👉 Need help managing your association’s finances and governance with confidence? Haus Financial Services provides expert financial management and consulting for Chicago condo associations. 

Rules and regulations are a valuable tool for condo associations. They spell out the community’s “do’s and don’ts” and often clarify what’s already in the declaration. But here’s the key: rules can’t conflict with the declaration. If they do, they won’t be enforceable.

A recent article by Keough & Moody, P.C. reviewed two recent Illinois cases make this clear. In Kubik v. Darien Club Owners Association (2025), the association’s manual prohibited fences, even though the declaration allowed them with committee approval. The court ruled that the manual couldn’t override the declaration. Similarly, in Stobe v. 842-848 West Bradley Place Condominium Association (2016), the board tried to impose a leasing cap by rule. Because the declaration already addressed leasing, the rule was struck down.

The lesson: If your declaration covers a topic, the only way to change it is by amending the declaration itself, not by adopting rules.

Skipping that step can lead to unenforceable rules and costly disputes.

Before adopting new rules, ask:

1. What does the declaration already say?
2. Could this rule conflict with it?
3. Should we seek legal guidance first?

Getting it right up front saves time, money, and headaches later.

At Haus Financial Services, we know that strong financial and governance practices go hand in hand. Our team helps community associations stay compliant, financially stable, and focused on the long-term. If your board needs support navigating rules, declarations, or the financial side of condo management, we’re here to help.

Investor ownership is becoming increasingly common in Chicago condo associations, and with it comes a unique set of challenges for boards to manage. As laid out in this recent article by Kovitz Shifrin Nesbit, while investors bring value to the real estate market, their presence can shift the dynamics within a building, impacting governance, finances, and the sense of community.

One key issue is the rise of short-term rentals. Platforms like Airbnb and Vrbo can increase building traffic, create security concerns, and place added strain on shared spaces. Boards need to review their governing documents, ensure alignment with Chicago’s short-term rental ordinances, and clearly communicate expectations to both owners and renters. Proactive enforcement helps maintain a safe and stable living environment for all residents.

Communication is another area where associations must be diligent. Investor-owners often live off-site, leaving renters to interact with the building on a daily basis. Without clear guidance, tenants may unknowingly violate association rules, leading to frustration and conflict. Providing easy-to-understand materials, welcome packets, or regular updates can bridge this gap and foster better cooperation.

Financial planning may present the greatest long-term challenge. Investor-owners sometimes prioritize short-term cost savings over larger capital projects, but delaying maintenance only increases costs down the road. Healthy reserves, transparent budgeting, and ongoing education about the importance of preventive care are essential for protecting property values and avoiding unexpected special assessments. Associations should also be mindful of how higher percentages of rental units may affect insurance costs and coverage options.

By anticipating these issues and taking steps to address them early, boards can ensure that their communities remain strong, financially stable, and welcoming to all residents.

For boards seeking additional support in navigating these complexities, Haus Financial Services offers expert guidance in financial planning and reserve management tailored specifically for Chicago condo associations.

Artificial Intelligence (AI) is becoming a valuable tool for condo associations and property managers. While it may sound technical or futuristic, AI is essentially software designed to analyze information, recognize patterns, and provide useful recommendations. As stated in CAI-HOA Resources article, for community associations, this means streamlining operations, improving communication, and making financial planning more accurate.

At its core, AI is about efficiency. Instead of replacing human decision-making, it takes on repetitive or time-consuming tasks so that managers and board members can focus on bigger priorities. For example, an AI program can help draft resident communications, summarize meeting minutes, or provide quick answers to frequently asked questions through a chatbot. These tools reduce the amount of time managers spend on routine work while ensuring that residents receive timely and consistent information.

AI is already showing clear benefits in the management of condo associations, including;

• Automated communication tools can improve the clarity and consistency of notices and newsletters.
• Predictive maintenance programs use historical data to help associations plan ahead for repairs, avoiding costly emergency fixes.
• Financial forecasting tools can assist boards with reserve planning, ensuring that budgets are based on data rather than guesswork.
• Security is being enhanced through AI-powered monitoring systems that alert managers to unusual activity in real time.

Whenever new technology is introduced, questions naturally arise. One concern is whether AI might replace people. The reality is that AI works best when paired with human oversight. A computer can help analyze numbers or draft an email, but only a person can decide how to apply that information in a way that reflects the values and needs of the community. Another concern is accuracy and security. Like any new tool, AI should be adopted gradually, with safeguards in place to review its work and protect sensitive data.

For condo associations interested in exploring AI, the best approach is to start small. Identify a common challenge, such as slow communication with residents or difficulties in budgeting, and test a simple AI tool that addresses that area. Many association management platforms already include built-in AI features, so it may be possible to begin using them without major additional cost. By tracking results and measuring improvements, boards can decide whether and how to expand their use of AI over time.

If financial planning is a particular challenge for your community, working with a partner can make all the difference. Haus Financial Services specializes in helping small condo associations in Chicago manage their finances with clarity and confidence. Their team understands the unique needs of smaller buildings and can help boards adopt modern tools, including AI-driven insights, that keep communities stable and well-prepared for the future.

Board members play a crucial role in the smooth functioning of a condominium association, but what happens when a member's behavior turns toxic? Dealing with a board member bully can create a stressful environment for both residents and fellow board members, turning meetings into battlegrounds and driving away valuable volunteers.

Let’s look at a few strategies for handling this challenging situation:

A good place to start is in trying to understand the bully. Bullies often operate from a place of insecurity. Their behavior, whether it's through intimidation, constant criticism, or manipulation, is a way to seize control when they feel they lack it. Some ‘identities’ bullies can take on a range from the "expert" who always has to be right, to the "troll" who engages in destructive behavior to undermine the board.

Bullies often operate from a place of insecurity. Their behavior, whether it's through intimidation, constant criticism, or manipulation, is a way to seize control when they feel they lack it. Some ‘identities’ bullies can take on a range from the "expert" who always has to be right, to the "troll" who engages in destructive behavior to undermine the board. Ignoring the problematic behaviors will only make them worse. The most effective approach is a combination of direct confrontation and establishing clear, structured procedures.

• Confront the Behavior, Not the Person: When addressing the bully, focus on their specific actions. For example, instead of saying, "You are a bully," say, "When you interrupt other members, it prevents us from having a productive discussion." This criticizes the behavior, making it more difficult to dismiss.
• Establish a Code of Conduct: A formal code of conduct for board members can set clear expectations for behavior, civility, and respect. Training on board responsibilities can also help reinforce these standards. Here is a sample code of conduct.
• Run Structured Meetings: Use parliamentary procedure to keep discussions on track. A clear agenda, with set start and end times, limits opportunities for a bully to hijack the conversation. The board chair should actively manage the meeting, ensuring everyone gets a chance to speak and addressing all communication directly to the chair.

If a bully's behavior persists, it may be necessary to explore options for their removal. Your association's bylaws should outline the procedures for removing a board member. While a difficult and last-resort measure, it may be essential for the health of the association.

By being proactive, setting clear boundaries, and utilizing formal procedures, condo associations can effectively manage and mitigate the negative impact of a board member bully, ensuring a more harmonious and productive environment for everyone.

If your association needs assistance with financial management and navigating the complexities of your condominium association, visit Haus Financial Services. The team at HausFS uses a unique approach to condominium management with a focus exclusively on buildings up to 20 units. Contact us today!