Property Management Company Resigned After We Asked For A Meeting.

Location: South Suburbs Chicago, IL

So recently, my neighbors and I who all live in the same condo complex received a bill for 5,600$ per unit from our property management company for “building repairs” No further explanation was provided. They offerred to split up this special assessment into monthly payments over 6 months.

When the charge was mailed to us, multiple owners of these units including myself started asking each other whether they also received this letter, whether they knew what the repairs were for etc. Basically this charge raised a ton of questions.

After meeting and organizing and looking into our options one of the unit owners reached out to the property management company. We asked why these repairs weren’t being processed through insurance, and they told as that the deductible was 10,000$ and that there was not enough funds to cover the deductible. This was surprising considering they’ve been collecting a hefty monthly HOA fee from over 30 units. When we asked for information on what our fund balance was and for financial statements, we were told that any and all information on, repairs, funds, budgets, etc. would have to go through the board members that we have in place.

For context 2 of the 3 board members have been in their positions for 10+ years, longer than any of us have been owners of these units. When we contacted those 2 board members, we were met with resistance. They basically told us that they wanted nothing to do with our objective to obtain more information and refused to do anything to assist us getting more information on this whole situation. The third member was more cooperative but she informed us that she was contacted directly by the property management group asking if she wanted to be a part of the board. When she asked what the position entailed the simply told her “oh you won’t have to do anything.”

Since the board members were not cooperating with our requests we sent a formal letter to the property management group yesterday at about noon, informing them that we would like to set up a meeting with the property management group in order to have the current board members replaced, and elect new board members to take their place.

At around 5 PM the same day we received a one sentence response from the property Management group.

“Effective immediately (property management group)resigns from managing your properties”

Now I might be wrong, but all of this seems extremely suspicious and my neighbors and I are just curious as to what options we have in regards to figuring out what the hell has happened to all the money that has been being sent to the property management company for years?

Also some unit owners already sent checks for November’s HOA fees. They are refusing to take our calls, or respond to our emails.

Is there a specific type of lawyer that would be able to handle this situation? Is court the only way we can get them to provide financial statements for their time managing our properties?

Any and all advice or information would be greatly appreciated. Thanks you in advance.

UPDATE 1: The owners just had a meeting and a letter was sent via the Property Management Company’s attorney formally stating that they will no longer be representing our association effective the end of the Calendar year. In the same letter they also informed us that the two uncooperative board members have resigned.

The third board member that was being more cooperative was also present at this meeting. She claims she was completely unaware she was formally made secretary of the board. According to her they just asked her if she would like to join. She never gave a full commitment, and no documents were ever provided to her notifying her that she was secretary of the board. Nor were any other members notified of her appointment.

She was apparently made secretary in May this year, and when the period came around to choose a secretary multiple homeowners claimed to have offered themselves for the position only to not be considered. There was also no formal vote for this position either.

We’re voting tomorrow for a complete overhaul of the board and will most likely lawyer up from there.

We’ve also looked further into the management company, and have learned that they’ve been caught doing shady business practices with other home owners associations in the past.