M.B. from New London County, Connecticut writes:
Dear Mister Condo,
I live in a supposed self-managed community but the three-member board has appointed a member of the association to act as managing agent. He collects fees, signs contracts, sets budgets and is being paid monthly. He has no clue about condo CIOA Act or condo law and has made many very costly mistakes. The board also has appointed a person who lives in Florida and is not an elected member of the Board as Treasurer. I am deeply concerned about the failure of the Board to understand the importance of following CT CIOA Laws as well as current By-Laws and Documents of the Association. They claim they have been told by their attorney that this is permissible because they are a smaller community and as such they can hire this person as a managing agent.
Mister Condo replies:
M.B., the term self-managed simply means that the association has not hired an outside firm for management. You live in a self-managed association. The Board has hired a managing agent, which is their right. It isn’t ideal that the person they hired is also a unit owner because other owners may feel there is a conflict of interest, especially if the manager handles repairs and maintenance of his/her own unit in a preferred manner over other units. That being said, it isn’t a forbidden practice. The same is true for the hiring of a person to act as Treasurer although if the person is also a voting member of the Board that was neither elected nor appointed, that is a problem. As for adherence to CIOA, if you or any other member of the association feels their rights have been violated, a lawsuit would be in order. If the Board is getting advice from their attorney that they are acting within the scope of the law and the association’s governing documents, this discussion may be moot. I am not an attorney and if the association’s attorney is locally knowledgeable and claiming all is well, I would assume it to be so. All the best!