Gold Coast condo association issued three citations over records requests
Loop North News


10-Oct-16 – A condo association that allegedly did not allow a unit owner to inspect tax returns and other financial documents has received three citations from the city.

Notices of ordinance violations have been sent by the Department of Business Affairs and Consumer Protection to The State Parkway Condominium Association, a 160-unit residence near the north end of State Street and about one block from Lake Shore Drive.

Michael Novak says over the past year he has asked in writing to see his association’s federal and state tax returns for 2004, 2005, and 2006, along with a property manager’s financial report and financial statements, but has received just three federal returns.

By city ordinance, homeowner associations have 30 days after a written request to make financial books and records available to unit owners at no charge. After 30 days, a unit owner may sue to enforce compliance and, if successful, recover damages and attorney’s fees. The association can also be fined by the city. Repeated offenses can land condo board members and property managers in jail for up to 180 days.

Hearings are scheduled for November 2 and December 14 to address the complaints.

Michael Novak Novak (left), a former CPA with an MBA in Finance, says the tax returns he did see, in August after the city started looking into his complaints, “confirmed the presence of massive federal income tax evasion via the claiming of hundreds of thousands of dollars of falsely inflated deductions.”

Novak also says his condo board recently passed a 12 percent assessment increase, on top of a seven percent increase last year, but refused to answer his questions about garage operations.

“They say I’ll find out when other unit owners find out,” says Novak, but the details he seeks are “buried” in a general “repairs and maintenance” category.

State Parkway expenses and liabilities are sometimes understated, he claims, because invoices for “tens of thousands of dollars” are intentionally unrecorded.

 Previous story: Supporters of stalled condo board bill will try again next year

By Steven Dahlman | Loop North News |

Published 10-Oct-16 11:38 PM

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