The Community Association Manager Licensing and Disciplinary Act was adopted on July 1, 2010 after much anticipation. The intent, as stated in the Act, was to ensure that those who hold themselves out as possessing professional qualifications to engage in the business of community association management are, in fact, qualified to render management services of a professional nature, and provide for the maintenance of high standards of professional conduct by those licensed to provide community association management services.
The Illinois Department of Financial and Professional Regulation (Department) is charged with the responsibility of overseeing and implementing the Act, which includes its enforcement. The Act sets forth twenty-nine separate grounds for discipline and grants the Department authority to place on probation, reprimand, suspend, or revoke any manager’s license that is deemed to have violated the Act.
Tales of witch hunts, uninformed Department investigators and lengthy interviews more akin to interrogations has caused some managers to panic. Rest assured: The Sky is Not Falling! Exercising common sense, good judgment, and following my top ten best management practices will reduce the likelihood of run-ins with the Department.
- Review an Association’s governing documents before acting. The action the Board intends on taking must be supported and authorized by the Declaration, Bylaws, Rules and Regulations, or a Board Resolution. Furthermore, the action must comply with the specific procedures to be valid. There is no “one size fits all” approach to management anymore.
- Avoid engaging in the practice of law. Leave the lawyering to the lawyers and we will leave the managing to the managers. This generally means a manager should avoid drafting anything that contains a legal description or that will be recorded. It also is best to avoid interpreting statutes, case law, and questions about maintenance responsibility concerns.
- Consult experts whenever appropriate. Experts include lawyers, accountants, insurance agents, engineers, architects, bankers and the like. Encourage Boards to utilize experts when faced with difficult decisions to ensure they make educated and informed decisions.
- Avoid conflicts of interest. Bypass obtaining a quote for one of your Association’s from the painting company whose owner is your boyfriend. The likely outcome in the event his company is hired will be allegations of kickbacks and wrongdoing by the manager.
- Conduct oneself in a professional manner at all times. As tempting as it may be to scream at the unit owner in the front row that continually interrupts the Board during its open meeting, do not. Professionalism requires managers and industry professionals to maintain their composure in all situations.
- Always consider the Association’s best interest before acting. Situations may arise in which a manager’s best interest conflicts with that of the Association. The Association must have its interests placed first for the betterment and wellbeing of its members.
- Promptly notify the Board if a mistake is made and timely correct it. We are all human and mistakes can occur despite our greatest effort. Accepting responsibility, communicating openly and fixing it is prudent.
- Respond to inquiries from the Department timely and honestly. Delaying a response or misrepresenting information to the Department is an easy way to invite a complaint and investigation.
- Keep your license current at all times. This requires paying annual dues, attending necessary management education courses and reporting to the Department such information in a timely manner to prevent jeopardizing one’s license.
- Avoid drug and alcohol use while performing management services. Save your Appletini or single malt Scotch until the end of the day after the close of business when you can really kick back and enjoy it.
Although chances are good most managers will receive a complaint against them at some point during their career, due to the nature of our industry, exercising common sense and good judgment and following my top ten best management practices will reduce the likelihood of having disciplinary action taken against you.
Since 1983, KSN has been a legal resource for condominium, homeowner, and townhome associations. Additionally, we represent clients in real estate transactions, collections, landlord/tenant issues, and property tax appeals. We represent thousands of clients and community associations throughout the US with offices in several states including Florida, Illinois, Indiana, and Wisconsin.
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