Q: I am an owner in a condo association where I have lived for 10 years. We had a board that did a fantastic job. The directors held meetings four times a year, completed many improvements and were always active. They were hard-working and dedicated, but they grew tired of the beating their heads against a wall for owners who did not appreciate the effort.
Now those who complained have the opportunity to run for the board, but we have no volunteers.
What happens when an association does not have a board? Will the state take over? I am very concerned.
A: You should be concerned. A condo association cannot operate without a board. If owners do not volunteer to serve on the board, there are two alternatives: The property ceases to be a condominium by a vote of the ownership or a court will appoint an individual to run the property.
Section 16 of the Condominium Act says that owners may vote to remove the property from the provisions of the act. For your association, 75 percent of the ownership may then vote to sell the property. In that case, owners will receive a share of the total purchase price equal to their percentage of ownership.
Condos also are subject to the Illinois Not-for-Profit Corporation Act. Section 112.50 of that permits a court to dissolve a corporation if it is unable to carry out its purposes. A non-profit condo association with no directors cannot function. If asked by an owner, the court may appoint a receiver or custodian who will exercise the powers of the directors. In that case, association members will have to pay from their assessments the fees of the receiver or custodian, the attorney for the receiver and possibly a management firm.
The complaints and apathy of the ownership will cost equity in the units or higher assessments to pay for a third party to operate the association.
The entire article can be found here.