ChicagoCondoResource

2018 IL Condo Law Changes- Books and Records

Details: Written by Alexa Jackson; Category: What We're Thinking About Lately...; Published: 12 September 2017

This is one of a series of articles regarding changes in the IL Condo Act that will become effective in 2018.

Section 19 of the IL Condo Act governs the books and records that must be maintained for examination and copying by owners. Several changes have been made to the subsections. Here are highlights:

Subsection (a) (7) is amended so that the Board must maintain a list of the email addresses and phone numbers of all members for use by unit owners if requested for a purpose relating to the Association. This needs to be read in conjunction with Section 18.4 (s) which permits owners to consent to receive notices by e-mail, but permits an owner to designate an electronic address or USPS address, or both, as the unit owner’s address on any member list.
Subsection (b) is amended to expand the categories of documents that an owner is entitled to examine and copy, by simply making a request in writing. This will make it easier for owners to obtain the books and records identified in these subsections. (More detail on this item will be posted in a subsequent post in this series.)
Subsection (d-5) is added to define “commercial purpose” as the use of any part of a record, or records, or information derived from the records, in any form for sale, resale, or advertisements for sales and services.
Subsection (e) is amended to eliminate the requirement that an owner state a “proper purpose” to examine books and records. However, as a condition, the Board may require that the requesting unit owner certifies in writing that the information will not be used for any commercial purpose, or for any purpose that does not relate to the Association. The amendment permits the Association to fine anyone making false certifications. The Board must now respond to a request for records within 10 business days, instead of 30. Additionally, the Board may, but is not required to, charge the unit owner requesting the records for the cost of retrieving the records.

2018 IL Condo Law Changes – Surplus Funds

Details: Written by Alexa Jackson; Category: What We're Thinking About Lately...; Published: 05 September 2017

This is the first in a series of articles regarding changes in the IL Condo Act that will become effective in 2018.

The Illinois Condominium Property Act has created a new section that states, at the end of the Association’s fiscal year, and once the Association has approved any year end fiscal audit if necessary, and if the fiscal year ended with a surplus of funds instead of expenses, including budget reserve funds, then the Board had the authority to dispose of the surplus through the following methods:

Contribute the surplus to the reserve fund
Return the surplus to the unit owner as a credit toward leftover monthly assessments for the current fiscal year
Return the surplus to the unit owners in the form of a direct payment
Maintain the funds in the operating account, where funds are applied as a credit when calculating the coming annual budget.

If the fiscal year ends with a deficit, the Board has the discretion to address the deficit by incorporating it into the budget for the following year.

Unit owners can object to the Board’s decision as follows: If 20% of the unit owners object within 30 days’ notice to the action, the Board may call a meeting of the unit owners within 30 days of the date of delivery of the petition. At the meeting, unit owners may vote to select a different option than that chosen by the board. Unless most of the total votes of unit owners are cast at the meeting to reject the Board’s selection, and choose a different option, the Board’s decision is ratified.

Gray area surrounding condo law and foreclosures

Details: Written by Alexa Jackson; Category: What We're Thinking About Lately...; Published: 28 August 2017

In general, when a condominium unit is foreclosed, any assessment balances unpaid by the prior owner are extinguished by the foreclosure. IL law then allows associations to recover certain amounts from a third party purchaser if they have taken the proper steps.

A recent opinion from Illinois’ First Appellate District provides that “prompt” payment of assessments is required to extinguish pre-sale assessments under the Condominium Property Act. This means that, potentially, the bank could be held responsible for the prior owner's balance if they don't "promptly" start making assessment payments on the unit.

The problem, however, is that there is no strict definition of "prompt" established by law to determine whether or not the lien has been successfully extinguished by the bank.

Further guidance regarding the payment timing required to confirm the extinguishment of a condominium association’s lien will hopefully be provided in a pending Supreme Court appeal.

Read more about current events on this topic here.

Time to think about snow removal!

Details: Written by Lauren Peddinghaus; Category: What We're Thinking About Lately...; Published: 08 August 2017

While we're currently enjoying the dog days of summer, many snow removal companies are already locking in their contracts for the coming winter months. Once they fill up their schedules, they may stop taking new clients. If your condominium association has not yet put a snow removal contract in place, now is the time to do it. Having this information will also help you to budget for 2018.

Contact a HausFS Recommended Vendor now to get your snow removal contract in place and avoid the last minute scramble!