Board Must Keep Specific Records and Allow Members Access

Daily Herald (Arlington Heights, IL), May 7, 2011 | Go to article overview
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Board Must Keep Specific Records and Allow Members Access

We hear a lot about demands for "transparency" in government. Public access to records and files has become a mandatory obligation of units of government (subject to certain limited exceptions) under the Freedom of Information Act, or FOIA.

However, what are the rights of a unit owner in a condominium or homeowners association as to access to the books and records of the association?

Pursuant to Section 19 of the Illinois Condominium Property Act, Section 107.75 of the Illinois General Not For Profit Corporation Act, and Section 1-30 of the Common Interest Community Association Act, each association shall keep correct and complete books and records of account and shall also keep minutes of the proceedings of its members, board of directors and shall keep at its registered office or principal office a record giving the names and addresses of its members entitled to vote. All books and records of a corporation may be inspected by any member, or his agent or attorney, for any proper purpose at any reasonable time.

The Illinois Condominium Property Act also addresses condominiums, homeowner associations and master associations so as to compel the board to maintain the following records:

* The associations declaration, bylaws, and plats of survey, and all amendments of these;

* The rules and regulations of the association, if any;

* If the association is incorporated as a corporation, the articles of incorporation of the association and all amendments to the articles of incorporation;

* Minutes of all meetings of the association and its board of managers for the immediately preceding 7 years;

* All current policies of insurance of the association;

* All contracts, leases and other agreements then in effect to which the association is a party or under which the association or the unit owners have obligations or liabilities;

* A current listing of the names, addresses and weighted vote of all members entitled to vote;

* Ballots and proxies related to ballots for all matters voted on by the members of the association during the immediately preceding 12 months, including but not limited to the election of members of the board of managers; and

* The books and records of account for the associations current and 10 immediately preceding fiscal years, including but not limited to itemized and detailed records of all receipts and expenditures.

Thus, a duty is imposed upon an association to provide accessibility to association records. This is, in effect, a twofold obligation, as the board of directors is ultimately responsible for reasonable access to the books and records as well as being vicariously liable for its manager or agent hired for the purpose of maintaining them.

Failure to comply with a timely written request could subject an association to suit and the payment of an unhappy owners legal fees.

However, despite the appearance of uncontrolled accessibility, the association can still impose certain reasonable restrictions to maintain control of the situation. Initially, the law imposes a similar if not far greater duty upon public bodies for citizen access to public records. This right is guaranteed by federal and state statute, as well as the Constitution of the state of Illinois. However, even public bodies are permitted to impose certain restrictions on accessibility. Under Illinois law, a written request for records must be responded to within 30 days. The owner requesting records must state a "proper purpose" and the board is permitted to charge the cost of copies and the actual costs of returning and mailing records available. However, the city of Chicago had a three-day window and a recent Appellate Court decision held that the ordinance supersedes state statute on this point.

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