Owner changes mind about who will vote
Q. I gave my proxy to another owner to vote on my behalf in the upcoming election at our association. It now appears that I will be able to attend the annual meeting in person. If I attend the annual meeting, can I vote or do I have to permit the person to whom I gave my proxy to vote on my behalf?
A. You can rescind the proxy you gave to a third party by doing so in writing. However, you could generally vote in person at the annual meeting anyway. You should advise whoever is checking people in at the annual meeting that you are there and will vote, so that a ballot is not given to the person to whom you gave a proxy.
Q. I have a procedural question. The terms of all five board members expire at end of this year. Solicitations for candidates have been issued, and we anticipate we will have more than five candidates for the five positions on the board.
Does the ballot and proxy issued by the association need to identify the candidates who have responded to the solicitation for candidates?
A. Yes, the ballot and proxy prepared by the association needs to identify the known candidates who have timely responded to the solicitation for candidates. The ballot and proxy must also include blank lines for owners to write in additional candidates, in case they are so inclined to do so. Note that the proxy would be distributed with the notice of the annual meeting, and the ballot would be distributed at the annual meeting to owners (or their proxy holder) who are present in person.
Q. I have a question regarding master associations and the Illinois Condominium and Common Interest Community Ombudsperson Act. Are master associations required to comply with that law?
A. The short answer is yes. This answer is based on the definitions section of the Condominium and Common Interest Community Ombudsperson Act. Section 15 of the act defines "condominium associations" to include "a master association as defined in subsection (u) of Section 2 of the Condominium Property Act." That subsection of the Condominium Property Act states that a master association "means an organization described in Section 18.5 of the Condominium Property Act."
As a result, master associations are among the associations that must adopt a written policy for resolving complaints made by unit owners under the Condominium and Common Interest Community Ombudsperson Act. My Nov. 10 column was devoted to the Ombudsperson Act, so I won't repeat the requirements here.
Q. We are an Illinois master association of well over 100 units. I read section 18.10 of the Illinois Condominium Property Act regarding generally accepted accounting principles. As a master association, are we required to comply with that section of the Condominium Property Act?
A. The short answer is yes here, as well. Section 18.10 of the Condominium Property Act states that "(a) n association subject to this Act that consists of 100 or more units shall use generally accepted accounting principles in fulfilling any accounting obligations under this Act."
While a master association is not a condominium association, it is subject to Section 18.5 of the Condominium Property Act. As such, a master association would have to use generally accepted accounting principles for any accounting obligations required in Section 18.5 of the Condominium Property Act (e.g., the accounting in Section 18.5(c)(2) ). Note that the GAAP requirement would not apply to any additional accounting requirements in the master association declaration.
The board should speak with its accountant as to what GAAP requires the association to do.
As an aside, Section 18.5 of the Condominium Property Act was a move by the legislature many years ago to bring master associations under some statutory requirements, rather than creating a stand alone statute for master associations.
• David M. Bendoff is an attorney with Kovitz Shifrin Nesbit in the Chicago suburbs. Send questions for the column to him at CondoTalk@ksnlaw.com. The firm provides legal service to condominium, townhouse, homeowner associations and housing cooperatives. This column is not a substitute for consultation with legal counsel.