One of the biggest mysteries for Associations is often how much and what type of information that should be included in and excluded from the Minutes of the Association. And, one of the biggest mistakes that Boards make is that they do not understand that there is a big difference between Minutes vs. Newsletters. Minutes are a professional documentation of the business that took place, Newsletters are the appropriate venue for reminders to the owners.

So, why is it important to do Minutes correctly?

First off, Minutes become a historical record and should provide a concise summary of all decisions made by the Board. That said, Associations are corporations and should be run as such and according to the Association's governing documents and the Illinois Condominium Property Act. If the Board is not following proper protocols as required by condo law, any Board decision can be challenged by the owners.

Second, if done incorrectly, the Minutes could negatively impact the Association in legal matters. For example, let's say that it was included in the Minutes that a sidewalk needed repair and the Board decided to put off the expense to avoid a special assessment to the owners. Then, an owner tripped on the sidewalk, injured himself and subsequently filed suit against the Association. In this instance, the Minutes may have shown consideration by the Board in reviewing the problem and the financial impact to the owners, but could also be used to indicate negligence on their part for not making the repair and, therefore, negatively affect the outcome of a judgment in a court of law. In Minutes, less is more!

And, third, in a very competitive real estate market, smart buyers will want to review the last year of Minutes to determine if the Association is being managed properly and to ensure that it is going to be a smart investment.

As a matter of practicality, keep in mind the following tips: 1) The Minutes should follow in the same order as the Agenda for the Meeting; 2) Double-check accuracy; 3) Use of numbering, headlines and simple formatting will make it easier to read; 4) Timeliness of creating the Minutes will help to ensure accuracy; and, 5) Although not required, prompt distribution to all owners is a good way to communicate Board actions to the membership.

Kathleen Penland, partner of Penland & Hartwell LLC, has provided us with the below article to help explain how to create proper Minutes. Additional information can be obtained from their website by clicking on the graphic above.

With the recent unprecedented construction boom, many Associations are now or soon will be turned over from the developer to the owner-controlled Board. Time is of the essence but also remember... Developer Turnover is a process, not an event! It can sometimes take many years to resolve pending developer or transition issues, which can often be settled without litigation.

There are numerous misconceptions from both owners and developers alike including, but not limited to: 1) Turnover should be rejected or delayed until all common areas are completed and all issues are resolved; 2) Developer can decide to waive assessments until he/she turns over the property; 3) Owners have a right to be involved in and/or make decisions on behalf of the Association prior to the Turnover Meeting; 4) Lack of understanding about the importance of proper Association management and start-up protocols; and, 5) Guidelines as set forth in the Illinois Condominium Property Act do not apply to smaller properties.

Well, regardless of 3 to 700 units... neither party gets to make this stuff up! The developer is the first Board from the first closing date and has the same fiduciary duties as the owner-controlled Board will after Turnover. Section 18.2 of the Illinois Condominium Property Act is only one aspect of the equation as your warranty information is most likely included in the Sales/Purchase Contract between buyer and seller. For this reason, the statute of limitations may differ for each Association so should be individually reviewed by an attorney concentrating in condo law to ensure the Association is protected within the allowable timeframes.

Jeffrey Youngerman, partner of Flaherty, Jacobson & Youngerman, P.C. has provided us with the article below offering further information. You may also click on the photo above to obtain additional information from their website.

Chicago Association of Realtors
We are excited to announce that our New Construction & Conversions... Eliminate Liability & Increase Your Sales! seminars for CAR were so positively received that we have been asked to continue them this Winter. If you are a REALTOR®, whether representing the developer or buyer, this seminar is a must to help you protect yourself from liability and best represent your client.

These Member Profitability Programs are free to CAR members, but RSVPs are required as space is limited. Seminars will be held on Jan. 17/CAR-North; Feb. 14/CAR-South; and, Mar. 20/CAR-Northwest from 10am-12:30pm.

ACTHA Annual Conference & Trade Show
The Association of Condominium, Townhouse and Homeowners Associations will be holding their annual trade show on Saturday, March 29th. Shirley will be speaking from 1:15-2:15pm on the subject of Self vs. Professional Management-What's best for your Association? The conference will be held at Drury Lane in Oak Brook.

To learn more about these seminars, please go to the Events & Seminars page of our website. You can also obtain the Registration form for the CAR events by clicking on the CAR logo above.

The Annual Calendar, Operations Manual, Resident/Owner Info Updates & Winter/Spring Reminders are just a few examples of how to run your Association in the most efficient manner. If your Association doesn't understand or follow proper condo law protocols, then perhaps you'd benefit from our services! Below are just a few....

Project Management Do you have projects that haven't been implemented yet but need to be? We can act as an extension to management or the Board to assist with your projects from Criteria and RFP development to Vendor Pre-Qualification & Selection to Loan or Special Assessment Guidance and thru Project Completion.

Board Training & Developer Turnovers Are you a new Association starting up after a Developer Turnover? Or an existing Association that may not be working as efficiently as it could? Do you have Rules & Regulations in place to assist the Board in ensuring that all owners are treated equally and the community lives harmoniously? Do you have an Annual Calendar that includes all important administrative, financial and operational deadlines to ensure important items don't get forgotten? We can customize a training package to meet the specific needs of your Association, whether self or professionally managed.

Refresher Courses are now being offered to our past training clients. This is an excellent way to bring new board members up-to-speed with how to efficiently and accurately manage your Association to ensure everyone is on the same page and to avoid board member burnout.

"Do-It-Yourself" and "Management Coaching" Retainers are designed to provide on-going assistance to our self-managed Boards to encourage annual compliance with the Illinois Condominium Property Act, increasing efficiency and decreasing Board liability. Various service levels are offered on a monthly, quarterly or annual basis.

Management Searches Are you a start-up Association after the Developer Turnover looking to find new management? Or, perhaps your current management company may not be fulfilling the expectations of the owners, and the Board has exhausted its options trying to rectify the issues? We can assist by guiding the Board on the proper due diligence needed to help them make the most informed decision. Services include: Needs Analysis, RFP Development, Pre-Qualification, Interviewing, Contract Negotiations and Transitions.

What makes AAI different? We provide customized training designed for your specific association's needs, prompt responsiveness, and practical information to help empower the Board. Can you afford our services? Can you afford not to have them? Your home is most likely one of your biggest assets. We can help you save time, money and frustration while protecting and increasing the value of your property in today's very competitive market!