Publications
What makes a good board member?
Published October 11, 2003 as
Check qualifications of candidates for board seats
One of the frequent issues faced by associations is the ability to entice owners to run for a seat on the board. While many find it to be a rewarding experience, the time commitment is not insignificant and the pay is non-existent.
When someone “volunteers” to have his or her name put on the ballot, it is easy to just accept the name without thinking and move forward through the election process. Some veteran board members have advised me that they spend anywhere from 20 to 25 hours per month on association business. Therefore, a good candidate for the board must first be willing to make the time commitment.
From time to time a board will receive a candidacy application from someone whose ownership credentials are called into question. Or perhaps their “standing” in the community is suspect, let alone whether they are willing to put in the time for the good of the community. Sometimes, people will submit their name for office and they are not even owners.
Three questions that members of associations must deal with when considering the filling of board positions are (1) who can legally serve on the board of directors, (2) what happens if someone who is not legally qualified to serve gets elected or (3) what if someone is not properly elected or appointed and they do something questionable while serving?
The Illinois Condominium Property Act requires that all members of the board of directors of a condominium association be owners of units within the association. In the event the unit is owned by more than one person, the owners must select a candidate from within their group. Under this rule, for example, a husband and wife can serve on the same board only if they own multiple units.
In situations where units are held in trust or owned by some type of business entity, the board must look to the declaration and by-laws for guidance. Many documents will allow a legal entity like a trust, partnership or corporation to select a representative who does not even have to be an owner, or even a resident.
We are often asked whether or not a renter can serve on the board. Theoretically, if a unit was owned by a corporation and the appropriate language was in the declaration, a renter could serve on the board – provided they have the necessary documentation. That is the key. Whenever anyone’s credentials are called into question, the board can request proof of authorization or ownership to qualify any candidate.
Frequently a director’s ownership is called into question and upon verification we find that the spouse owns the unit. This director would either have to resign or have an interest in the unit conveyed to them.
Along those same lines, a frequent question is whether directors must reside at the property. In other words, if a unit is owned for rental purposes and the owner resides elsewhere, can they legally serve on the board? Many association declarations impose the requirement of both ownership and residency. Some legal authorities, however, rely on the commentary in the Condominium Act to imply these restrictions are unconstitutional. Until the law is changed or an appellate court rules otherwise, this debate will continue.
Does a member have to be current in the payment of their assessments to serve on the board? A common rule among associations is to limit board membership, and even voting rights, to “members in good standing.” The prerequisite for implementing such a policy is that the board must adopt it in an open meeting in advance of sending out notice of the election. All members of the association should receive notification of this requirement before it actually takes effect, and have the right to bring their account current by the nomination cut off date.
Of course, in dealing with cooperatives, townhome associations and homeowner associations, the declaration and by-laws will always determine board qualifications. In some of these documents ownership is not even a requirement to serve on the board.
Finally, the question may be asked as to what happens when a current board member is in violation of association rules (perhaps they become delinquent in assessments), or what happens if a board member sues the association?
The credibility of the individual and the entire elected board comes into serious question when a board member who was elected to enforce and enact rules for the benefit of the members of the association is doing something that is detrimental to that same association. Because of this, it is only appropriate that board members who violate the rules and regulations be requested to submit their resignation. If they do not, measures can be taken to remove them from the board. Certainly if it is a lawsuit or a pending covenant enforcement dispute, they should be excluded from any discussion of related matters and/or should abstain from voting on any issue where they have an interest in the outcome.
Whether dealing with issues related to the collection of delinquent assessments, the ability of owners to rent their units or the qualifications needed to run for and serve on an association’s board of directors, having the proper rules in place are essential. These rules must follow the by-laws and the local law, and they must be known to all members of the association. This way no one can ever claim that the rules were adopted after the fact or that they had no knowledge of their existence. Although some associations are desperate to fill board seats, it is more important that all sitting directors are legally qualified to do so.