Chicago’s recent record-breaking cold temperatures presented associations with unique challenges and questions. Specifically, are associations liable for slip-and-fall cases that arise from accumulation of snow and ice?

The Illinois legislature passed the Snow and Ice Removal Act in 1979 to incentivize homeowners to remove ice and snow by providing associations with immunity from liability resulting from their efforts to remove snow or ice. However, recent case law has limited the scope and extent of the immunity. Therefore, it is important that associations understand the situations where the act does not provide immunity. They include:

  1. Slip-and-fall cases that were caused by defective conditions of the property, such as building defects.
  2. Slip-and-fall cases that were caused by negligent maintenance of the premises. The act does not provide immunity from omissions in the care of the premises.
  3. Associations will not be protected from liability for shoveling areas that are not municipal sidewalks that borders their property. In these cases, associations may be exposed to claims that the association’s efforts in removing the snow or ice were negligently performed.

The best course of action that associations can take is to be proactive regarding the condition of the property, as well with the maintenance of the premises.

To learn more, click here.

The issue of smoking in condominium buildings seems to have heated up lately. This may be a result of the legalization of medical marijuana in the state of Illinois or the increasing acceptance of marijuana use in general. Whatever the reason, the issue of smoke nuisances (of any kind) in condominium buildings continues to plague buildings large and small.

Condominium boards struggle with resolving smoke problems between units. It can be difficult to determine the source of the problem without clear documentation. And while the board can regulate how owners behave in common elements, they do not have complete authority to restrict how owners behave within units. This is a bit of a gray area, however, as smoke that originates within a unit very easily travels to common areas and other units, thus affecting neighbors and creating a nuisance that can arguably be forbidden by the association's governing documents.

The board has two options for remedying complaints about smoke. It can put forth an amendment to the Declaration to prohibit smoking in the building, or it can use Rules and Regulations to fine owners whose smoking affects the common elements.

In the case of an amendment, an affirmative vote of 2/3 vote of the owners would be required to prohibit smoking. Your condominium documents may required a higher percentage but the requirement cannot exceed 75% per the IL Condo Act.

If the board chooses to address the problem through Rules and Regulations and apply fines, they must follow the proper procedures for adopting and enforcing those Rules and Regulations.

Absent action by the board, owners have the right to seek legal counsel and attempt to resolve the issue via the courts.

For more information on addressing smoke in your building, click here.

For more information about the legal aspects of prohibiting smoking in Illinois, click here.

 

In our work with self-managing condominium associations, we've noticed that clients often have vendors providing services with no clear written agreement in place detailing expectations and compensation.

Haus Financial Services recommends that all vendors, no matter how "small" the service may seem, be provided with a written contract. A written contract is vital for the following reasons:

  • It documents the expectations of the vendor and allows the board to accurately review the work that is being done. If you aren't sure what is covered by the fees, how can you know that you are getting what you are paying for?
  • It creates a history of the regular maintenance required by the building for reference by future board members. This makes it easier for a new board to review regular maintenance needs and ensure they are being met.  
  • It eliminates questions about fee increases. If a vendor is suddenly charging a different amount from what is expected, the board can refer to the existing contract to determine if the increase is valid and if a new contract should be created to document a new fee agreement.

A vendor agreement or service contract does not need to be overly complicated to be useful. The key items to include are:

  • Begin and end date of the agreement
  • Detail of services to be performed
  • Amount of compensation
  • Frequency of compensation
  • Any items not included that can be expected to be invoiced separately

The board should draft a written agreement and have it signed by both parties, then retain it with the association's records.

Your condominium association may have turned over from the developer years ago, but there's a chance that you still have a financial connection to that developer. 

Many developers took the opportunity to continue to profit from their new construction or converted condominium project by retaining commercial space within the building and renting it out. But even if the space remains vacant, the developer has a financial obligation to the association, and many condo boards aren't aware that they are owed.

There are two different ways the commercial portion may have been handled. The first would be for an ownership percentage to be allocated to the units, in which case the units are a part of the association and subject to the same financial obligations as residential owners. Assessments are charged to the retail owner based on the ownership percentage assigned.

The second option is for the developer to omit the commercial portion from the association and create a separate legal agreement between the residential units and the commercial units that dictates what expenses are chargeable to the commercial owner and to what extent. This is generally known as an "Easement Agreement" and must be recorded with the county recorder along with the association's Declaration. An Easement Agreement creates a bit more accounting work for the board and can easily be overlooked by board members who have not had prior experience in addressing commercial units.

If your association has commercial units and has confusion or difficulty in charging the developer and/or collecting those funds, Haus Financial Services can help.  Contact us and start putting more money in your bank account!

The City of Chicago Shared Cost Sidewalk Program opens for applications at 12:00am on Tuesday (January 8). Applicants can apply by calling 311 or creating a request online.

The SCSP allows property owners to split the cost of needed sidewalk work with the city. Senior citizens and persons with disabilities are eligible to receive an additional discount. The application period closes quickly, so be sure to enter your request as early as possible on Tuesday morning.

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