Home Condo Living A-Z Turnover/New Associations Post Turnover To Do Checklist
 

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Post Turnover To Do Checklist PDF Print E-mail

Now that you've completed your turnover and elected a new Board, there is some administrative work necessary to complete the transition from the developer to the owner-controlled Association.

1.                  Have your financial information audited

This is a vital first step for new Associations.  Find out more here.

2.                  Open an Association bank account

Whether or not the developer has established a bank account in the Association’s name, it’s wise to open a brand new account.  At least two Board members will need to be listed as signers on the account.  You should do a bit of research before choosing your bank.  The bank should be conveniently located for the Board member(s)—most importantly the Treasurer.  You’ll need to determine if the bank will charge maintenance fees, if minimum balances are required and if the bank will waive fees if the signers maintain personal accounts at the same bank.  A good online bill payment website is also recommended.  Banks often extend special offers for new business accounts—you may even get up to several hundred dollars when you open a new account.

After you get a handle on your finances, you can determine if you should move funds to interest-bearing accounts where money put aside for reserves can accumulate and gain interest.

3.                  Review Association Incorporation and file Change of Registered Agent

If your Association is incorporated, the developer should have turned over the original recorded Articles of Incorporation.   If you did not receive this document, you can look up your Association’s incorporation status online with the IL Secretary of State. 

The Corporation File Detail Report will tell you if your Association is in good standing and list the name and address of the registered agent.  The registered agent is the individual who will receive the IL Annual Report each year, which must be filed to retain your incorporation, and any other business correspondence on behalf of the Association. 

To change the Registered Agent, you must file Form NFP 105.10/105.20 in duplicate with the required filing fee. Once the document has been processed by the IL Secretary of State, the duplicate will be returned to the new Registered Agent.  The document must then be recorded with the Cook County Recorder of Deeds.  Recording fees will apply.

Keep in mind that if a Board member elects to serve as the Registered Agent, this process must be repeated any time a Board member leaves the Board or the building altogether.

If the Corporation File Detail Report indicates that the incorporation status is “Active” and shows an Annual Report Filing Date that has already passed, you will also need to file your IL Annual Report to avoid Involuntary Dissolution and retain your incorporation.

Remember to keep copies of all Change of Registered Agent forms and IL Annual Reports that are filed and recorded!

4.                  File prior year’s Refuse Rebate

If your condo is over 4 units and you have private waste removal service as well as a recycling program in place, you can file for the City of Chicago Condo Refuse Rebate.  Your Association will receive up to $75/unit annually if you file.  It is important to get started as soon as possible as the city is often very behind in sending out rebates.   However, if you consistently file every six or twelve months you will receive your full rebate every year.

5.                  Review your Association’s insurance policy

Please see Jim Taylor’s “The New Condo Association Insurance Checklist."

6.                  Change the name and mailing addresses for all vendors

Once the owners have taken control of the Association, it’s important to update all vendor accounts to reflect the Association name and to change the mailing address so that the responsible Board member will receive the Association bills.  Different vendors have different requirements when it comes to changing the name and mailing address on invoices.  You may need to fax written confirmation, provide your EIN or Articles of Incorporation, or set up an entirely new account.  Developers often set up Association accounts under the name of the development company.  If this is the case, utility companies in particular (such as ComEd, Peoples Gas and the Dept. of Water) will require the Association to set up a new account under the Association name and may require a deposit.

7.                  Review all vendor contracts & cancel contracts if necessary

Associations have the right to cancel certain contracts that were entered into prior to the election of the first owner-comprised Board if they extend for a period of more than two years.  The Board has 180 days from the date of the turnover to exercise this right.

8.                  Have all owners update their mailing addresses for property tax bills

To ensure that individual unit owners receive their property tax bills directly, they will need to update the mailing address associated with their PIN with the Cook County Treasurer’s office.  They will need their PIN to do this.  PINs can be found through an address search on the Cook County Assessor’s website.

Once you’ve completed the Post-Turnover To Do Checklist, it’s time for the Board to establish some Best Practices for the Association to help it run more efficiently!
 

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