Recent Change to Illinois Condominium Property Act Leaves Small Common Interest Community Associations with Little Statutory Guidance
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