New Ordinance May Discourage Associations from Bulk-Selling Units

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Written by Alexa Jackson

Category: What We're Thinking About Lately...

Published: 26 August 2019

Under a recently proposed ordinance, condo owners in Chicago would have to persuade more of their neighbors to sell all building units to a developer.

For the past five years, developers have been buying up entire condo buildings in bulk in neighborhoods like Lakeview, Lincoln Park, and Gold Coast, with the intent of switching them to apartments. In that time, owners who are opposed to selling have complained about a “tyranny of the majority” in which everyone is required to sell if three-quarters of a building votes in favor.

Under this newly proposed ordinance, the percentage of association owners who would have to vote in favor for a bulk sale to go through will increase to 85%.

According to attorney, Craig Capilla, raising the bar for a vote to approve a sale might reduce the number of condo associations that try to sell in bulk.

The ordinance will not go anywhere until the next Chicago City Council meeting on September 18.

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FHA Releases Updated Approval Rules for Condos

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Written by Alexa Jackson

Category: What We're Thinking About Lately...

Published: 20 August 2019

 The US Department of Housing and Urban Development’s (HUD) has made changes to streamline the Federal Housing Administration’s (FHA) condominium project approval process.

These changes will allow the expansion of homeownership for many Americans, benefitting millions of homebuyers.

Important elements of this approval process include:

1. FHA will insure up to 10% of mortgages in condominiums without FHA approval if the condo is financially stable.
2. FHA approvals for condominium projects are extended to three years.
3. Condo projects seeking recertification are only required to update new information, as opposed to resubmitting all information.
4. Mixed-use condo projects with as much as 45% commercial space are eligible to apply for approval.
5. Condo projects with owner occupancy rates of 35% or higher will be eligible for FHA approval.
6. The FHA will insure up to 75% of condo unit mortgages.
7. The FHA will provide a 30-day commercial period before implementing future changes to the approval process.

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Which Governing Document is Correct?

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Written by Alexa Jackson

Category: What We're Thinking About Lately...

Published: 13 August 2019

Because a community association is bound by a variety of documents, confusion often arises when provisions or requirements across different documents conflict.

However, there is a hierarchy of governing documents that can help clear up some of the confusion. The hierarchy is:

1. The Illinois Condominium Property Act (IL Condo Act) and The Common Interest Community Association Act (CICAA)
2. Declaration
3. By-laws
4. Rules and Regulations

When there is a conflict between a provision of the Condo Act or CICAA and any other governing document, the Condo Act or CICAA will always prevail.

To ensure consistency and continuity with the Condo Act and CICAA, an association’s  governing documents should be regularly reviewed and updated to avoid conflicting provisions and confusion.

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Tax Appeal Window Open for Jefferson Township Condos

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Written by Lauren Peddinghaus

Category: What We're Thinking About Lately...

Published: 12 August 2019

Post Sponsored by Relias Law Group, Ltd.
150 S. Wacker Drive, Suite 1600
Chicago, IL 60606
(312) 428-3016 Office

Property assessment notices for Jefferson Township properties were sent to owners on August 5th, 2019. The deadline to file an appeal is September 6th, 2019.

Neighborhoods in Jefferson Township on Chicago's Northwest Side include the following community areas: Jefferson Park, North Park, Albany Park, Irving Park, Avondale, Hermosa, Belmont-Cragin, Montclare, Portage Park, as well as parts of Forest Glen, West Ridge, Lincoln Square, North Center, Logan Square, West Town, Humboldt Park, Austin, Dunning, the suburb of Norridge, the suburb of Harwood Heights, and Norwood Park.

Your assessment affects your real estate tax bill. Take this opportunity to file an appeal before it's too late to save on your taxes! Contact Relias Law Group today.