The past
year has been a very active one in case law and legislation related to
community associations.
There is a
current, on-going case, now at the Illinois Supreme Court level, which would
allow unit owners to withhold assessment payments if the Association fails to maintain
the common elements. The lower courts
have sided with the unit owner. This is
a very important case and if the lower court decision is upheld by the Illinois
Supreme Court, every association will have to take a hard look on any differed
maintenance. If you would like to learn
more about this case, there is a well written article published on The
Slater Firm. ACM will also keep you
posted on any new developments.
Another
court decision allows an association to file a claim in certain cases, against
a sub-contractor for construction defects if the general contractor becomes
insolvent.
The Illinois
Court of Appeals ruled in the 100
Roberts Road Business Condominium v
Khalaf case, that if a unit owner is evicted due to a forcible entry &
detainer action, and the unit owners do not dispute the action, they cannot
later allege that the association brought the suit without a proper
motive.
In new State law, House Bills 2374 and 1773 amend the Common
Interest Community Associations Act (CICA).
CICA covers Townhome and Homeowner Association that are not
condominiums. The new amendments state that
the association may not enter into a contract with an existing board member or
a corporation or partnership in which that board member or his/her immediate
family member has a 25% or more ownership unless prior notice is given to the
members, who then have the right to petition for a referendum on that proposed
contract was amended to clarify restrictions placed on them in executing
contracts with Board members or their families.
Immediate family members include spouse, siblings, parents and
children. Although these Bills change
the CICA, there are also restrictions & notification in the Condominium
Property Act and ACM recommends that all boards & associations seek a legal
opinion should they consider entering into any such agreements.
A recent
court decision ruled that an owner could file a claim of Slander of Title if an
association files a lien in an amount greater than what is actually owed.
In Act 3390,
the State gave a condominium Board the right to install, or license the installation
of solar energy systems and wind energy devices on common elements though there
are certain approvals the association must receive from any effected unit
owners. ACM recommends that all boards
& associations seek a legal opinion should they consider any such projects.
Act 595 updates
the Community Association manager Licensing and Disciplinary Act. The Act now
requires Property Management firms to obtain a company license and to employee an
individual licensed as a Supervisory Community Association Manager. The requirements will not go into effect
until the rules are established by the state.
Once the rules are set, Property Management Companies will have 12
months to comply.
In the case
of Poris v. Lake Holiday Property Owners Association, the Plaintiff was
ticketed by the association’s security officer while driving on a road owned by
the association. The Illinois Supreme
Court ruled that the association was within its authority to create and enforce
rules related to speed limits on association property. In this case, the Plaintiff was going 34 mph
in a 25 mph speed limit.
In a court
case involving the City of Chicago’s document request ordinance, the courts
ruled in favor of a municipal condominium ordinance being enforceable, even
though State law may differ. So, while
State law requires an association to produce documents requested by a unit
owner within 30 days, the City of Chicago says that a City association must
comply with that request in 10 days.
This article
is provided for general information only and does not constitute legal
advice. Please contact your legal
counsel for specific questions, problems or legal concerns.
No comments:
Post a Comment