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Condo owners, board members ask tough questions at ‘Condo School’

Photo by Steven Dahlman November 25, 2014 – Lack of transparency, theft of reserve funds, breach of fiduciary duties, power struggles with management companies, and complaints of illegal fines. Tough questions about these and other issues were asked at “condo school” last week at Navy Pier.

About 200 condominium unit owners and association board members attended an hour-long seminar that was part of the Chicagoland Condo, HOA, Co-op & Apt Expo real estate trade show.

How to Bulletproof Your Association’s Biggest Asset – The Money was presented by Sara Benson, president of a Chicago-based real estate data analysis firm.

Benson took questions from the audience, which included a treasurer who said $200,000 was missing from his board’s budget and the property manager was refusing to give him a complete accounting.

A newly elected board president said for the past five months, his management company has refused to give him copies of bank statements. A past board member was suing his association’s current board for breach of fiduciary duties and the board was refusing to give him copies of any accounting or insurance information.

A unit owner said he spoke out against his board’s lack of transparency and was fined $500.

“Most of these problems would entirely cease to exist if condo boards simply implemented transparency requirements and best practices as a deterrent against financial mismanagement,” said Benson (right). Sara Benson

Unit owners who attended the seminar received a 35-point “survival handbook” of financial procedures for board members. The free 12-page guide is also available at Benson’s website.

Her company, Association Evaluation, helps buyers of association-governed residences evaluate their purchase in advance by using a new scoring model called “Private Association Rating.”

Numerous Chicago-area associations have already been given a rating, called a PARScore. The company says the rating will eventually evaluate more of an estimated 324,600 homeowner associations in the United States.

Don DeBat, co-author with Benson of Escaping Condo Jail, a book about the risks of association-governed living, assisted with this article.

Photo: River Place condominiums from Chicago Avenue Bridge on October 10, 2013.

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