House Bill 4134 Addresses Restrictions On Smoking In Condominium Units
Courtesy Jeramey
Illinois HB 4134, introduced on January 30, 2012 by Representative Sara Feigenholtz, would amend Section 18(k) of the Condominium Property Act. Section 18(k) provides that the by-laws of a condominium can include restrictions on the use of the units, designed to prevent unreasonable interference with the use of units by the unit owners. HB 4134 would add “Restrictions regarding the use of the units may include other prohibitions on, or the allowance of, smoking tobacco products.” Notably, there is no similar language proposed for the Common Interest Community Associations Act.
In any event, we will keep an eye on this one for sure.
Contributed by David M. Bendoff
David Bendoff Debuts His Daily Herald Column
Condo Talk will be featured every Saturday in the Chicago Daily Herald, written by Kovitz Shifrin Nesbit’s own David Bendoff.
His first column, There Are Different Types of Owner Groups, was published last week.
“I receive frequent inquiries from people who are not really sure what kind of homeowners association they live in. “I live in a townhouse association,” they say. “A townhouse is really more an architectural style, and not a type of association,” I reply, and thus the journey to determine what we are dealing with begins. Let me begin here, then, with a primer on the different types of homeowner associations in Illinois and the documents and laws that control them…”
For the full article, please visit the Daily Herald.
Recent Change to Illinois Condominium Property Act Leaves Small Common Interest Community Associations with Little Statutory Guidance
Courtesy Soldon
Recently enacted PA 97-0605 makes a very significant change to Section 18.5 of the Illinois Condominium Property Act (“Act”). The change eliminates Section 18.5(j) of the Act.
Section 18.5(j) made Section 18.5 of the Act applicable to common interest community associations, which resulted in conflicts between Section 18.5 of the Act and the relatively new Common Interest Community Association Act (“CICA”). Section 18.5(j) of Act was eliminated to resolve the conflict. As a result of the elimination of Section 18.5(j), Section 18.5 of the Act is only applicable to master associations; common interest community associations are governed by CICA.
This leaves a statutory gap for those small common interest community associations that are exempted from CICA. CICA does not apply to common interest community associations organized under the General Not For Profit Corporation Act of 1986 and having either 10 units or less, or annual budgeted assessments of $100,000.00 or less. Therefore, a small common interest community association that is exempt from the applicability of CICA is governed only by its Declaration, and potentially the provisions of the not for profit corporation act that were not drafted with common interest communities in mind.
However, CICA can be made applicable to otherwise exempt small common interest community associations by vote of a majority of the Board or Members. We can assist your common interest community association become compliant with CICA.
Contributed by David M. Bendoff
McHenry County Fall 2011 Seminar Series
Kovitz Shifrin Nesbit announces our McHenry County Seminar Series featuring:
Collections, Evictions & Foreclosures in Your Association presented by Julie A. Jacobson
Informative and effective ways to keep your Association financially viable through the collection of past due assessments, protecting your Association’s income flow, proactively dealing with foreclosures and remaining attractive to potential buyers.
September 26, 2011 | McHenry, Illinois
How to Improve Your Homeowner Association’s Property Value presented by Matthew L. Moodhe
Legal and practical advice on how budgets, reserves, maintenance, covenant enforcement and FHA certification effect your Association’s property value.
October 18, 2011 | Crystal Lake, Illinois
How to Avoid Being Successfully Sued as a Board Member presented by John H. Bickley
One of the primary fears of Board Members of Associations is the risk of being successfully sued by an association creditor or one of the unit owners. The seminar will focus on actions Board Members must take to avoid liability in these situations and otherwise to protect themselves from such exposure.
November 15, 2011 | Woodstock, Illinois
For more details on each of these seminars or to register, please visit http://ksnlaw.eventbrite.com/.
Amendment to the Illinois Common Interest Community Association Act and the Illinois Condominium Property Act
Courtesy Hoboken
Public Act097-0605, which became law today, provides many important amendments to the Illinois Common Interest Community Association Act (“CICA”) and one amendment to the Illinois Condominium Property Act (“Act”) (although the amendment does not affect condominium associations). The following is a brief summary of some changes that have been enacted:
- Common Interest Community Association Board members do not have to be elected by vote from among all members of a community association, nor must one-third of their terms expire annually.
- The Board of a Common Interest Community Association may now seek recovery of its court costs in addition to its attorneys’ fees from a delinquent unit owner. The original language of CICA only provided for the recovery of attorneys fees.
- Public Act 97-0605 creates a new definition for “Member” and “Membership”, defines “Prescribed Delivery Method” to include mailing, delivering, posting in an association publication or any other delivery method that is approved in writing by the unit owners and authorized by the community instruments. Associations now have the ability to comply with notice requirements through e-mail if they obtain the necessary unit owner approval and modify their governing documents accordingly.
- Boards of Common Interest Communities are no longer obligated to provide prospective purchasers with a statement concerning improvements or alterations to a particular unit or the common areas assigned thereto.
- Boards of Common Interest Communities now have greater flexibility with respect to the timing of notice to members of Board meetings called to adopt assessments (notice must be provided not less than 10 and no more than 60 days prior to the Board meeting).
- Boards of Common Interest Communities must provide a consolidated annual audit if unit owners are not provided an opportunity to review an annual accounting.
- CICA no longer applies to Master Associations, which remain governed in large part by Section 18.5 of the Act and their own governing documents, and Section 18.5 of the Act is amended so that Section 18.5 no longer applies to Common Interest Community Associations.
- CICA can be made applicable to otherwise exempt small Common Interest Community Associations by vote of a majority of the Board or Members.
Although Public Act 97-0605 is effective today, Common Interest Community Associations have until January 1, 2012 to comply with the provisions of the Common Interest Community Association Act.
For a complete copy of the Common Interest Community Association Act as well as full copies of other Association Law, you may always visit the Knowledge Center at www.ksnlaw.com
Elimination of Proxies Must Wait Until 2012
Courtesy MJB84
House Bill 3337, which was introduced on February 24, 2011 by Representative Elaine Nekritz proposing to ban voting by proxy in condo board elections will not be voted on this year. Committees are still reviewing the bill and it will be taken up again next January 2012 at the earliest.
HB3337 proposed to amend the Illinois Condominium Property Act to no longer allow one unit owner to vote on behalf of another. An owner would, however, be allowed to vote by mail.
The bill did not make it out of the Rules Committee by the deadline date, which means it is dead for this season. Many condo association residents and practitioners have concerns about proxy voting and the dishonesty and trouble it can cause during board elections. Of primary concern is that proxy voting allows unit owners, including candidates, to vote for themselves or friends, thereby ensuring the election of themselves or friends for office.
Contributed by Michael J. Shifrin
