Condo Living Made Easy

The Illinois Unclaimed Property Act, originally enacted in 1961 and significantly revised in 2017, serves as a consumer protection law that mandates how businesses and organizations in Illinois handle and report abandoned or unclaimed property. For condominium associations in Chicago, this legislation is particularly pertinent, as it outlines specific responsibilities to ensure compliance and protect the rights of property owners.

What Constitutes Unclaimed Property?

Under the Act, unclaimed property encompasses various financial assets that have remained unclaimed by their rightful owners for a specified period. Common examples include:

• Uncashed refund checks
• Security deposits
• Overpayments
• Residual balances from foreclosures or evictions

For instance, if a unit owner overpays assessments or fails to cash a refund check and no contact is made for three years, the association is required to report and deliver those funds to the State of Illinois.

Condominium associations, regardless of their incorporation status, there are a number of obligated responsibilities including:

• Identify Abandoned Property: Regularly review financial records to detect any assets that may be considered unclaimed.
• Due Diligence: Before reporting, send written notifications—often referred to as "Due Diligence Letters"—to the last known address of the property owner, informing them of the unclaimed assets.
• Annual Reporting: File an annual report with the Illinois State Treasurer detailing the unclaimed property.
• Transfer of Property: After the due diligence process, transfer the unclaimed property to the State of Illinois, where it will be held until claimed by the rightful owner or their heirs.

Failure to adhere to these responsibilities can result in interest charges, penalties, and potential audits by the State Treasurer's office.

Navigating the financial and regulatory complexities of the Illinois Unclaimed Property Act can be daunting for many associations. That’s where Haus Financial Services comes in. As a trusted partner to Chicago condo associations, HausFS offers comprehensive financial management services, including:

• Regular account reconciliations to identify potential unclaimed assets
• Preparing and sending due diligence letters
• Managing annual reporting requirements
• Ensuring timely and accurate transfer of unclaimed funds to the State

Non-compliance with the Illinois Unclaimed Property Act can have significant repercussions for condominium associations, including:

• Financial Penalties: Associations may incur interest charges on the amount due and additional penalties for failure to report or deliver property.
• Legal Scrutiny: Non-compliance can lead to increased scrutiny or audits from the State of Illinois Treasurer’s office.

By understanding and fulfilling their obligations under the Act, condominium associations can avoid these pitfalls and ensure they are acting in the best interests of their members. The Illinois Unclaimed Property Act underscores the importance of diligent financial management within condominium associations. By proactively identifying unclaimed assets, conducting due diligence, and adhering to reporting requirements, associations can maintain compliance and uphold the trust of their community members.

If you are in need of more financial support, Haus Financial Services can help your association stay compliant, avoid costly penalties, and maintain transparent financial practices that build trust with your owners.

For more detailed information or assistance, associations can refer to the official Illinois Unclaimed Property Reporting Guidelines

While eviction is usually associated with renters, condo associations in Illinois may also find themselves needing to remove one of their own owners in rare but serious circumstances. Whether due to chronic rule violations, disruptive behavior, or serious delinquency, evicting a fellow owner is a legal and financial challenge—and one that must be handled with care.

Yes, Condo Owners Can Be Evicted

In Illinois, condominium associations have the legal authority to evict an owner under certain conditions—most commonly for nonpayment of assessments. According to state law, if an owner fails to pay common expenses for more than 60 days, the board can initiate legal action that may ultimately result in eviction and leasing of the unit to recover unpaid fees.

Other situations, such as repeated rule violations or dangerous conduct, may also lead to an eviction attempt, though these cases are more complex and often face higher legal hurdles. Boards must demonstrate that an owner’s behavior violates the governing documents and materially affects other residents’ right to peaceful enjoyment of their homes.

Steps to Take—Before It Gets to Court

Eviction should always be a last resort. Most situations can be resolved through communication, documentation, and clear enforcement of rules. Here’s what your association should do first:

• Document everything: From missed payments to written warnings about behavior, documentation is key. 
• Follow your governing documents: Ensure all notices, warnings, and fines are issued in accordance with your declaration and bylaws.
• Consult your legal team: Before moving forward with legal action, get professional advice to make sure your association is protected.
• Talk to your financial experts: If the issue is related to nonpayment, Haus Financial Services can help boards assess the situation, determine recovery options, and navigate financial planning during delinquency.

What Happens After Eviction?

If an eviction is granted by the court, the board may lease the unit to recover the debt owed—but ownership of the unit remains with the delinquent owner until foreclosure or sale. This creates ongoing management challenges that require professional oversight. That’s why it’s essential to have the right systems and support in place. Haus Financial Services can help your board stay on top of budgets, delinquency trends, and reserve planning—so you’re not caught off guard when issues arise. And with Condoly.io, you can find, hire, and manage a team of professionals for all of your HOA needs. 

Eviction Is a Last Resort—But It’s Sometimes Necessary

No board wants to pursue eviction. But when an owner’s actions threaten the well-being of the community—whether financially or through repeated violations—boards have a responsibility to act.

By staying informed, seeking professional guidance, and leveraging digital tools that keep your operations organized and transparent, you can navigate these difficult situations with greater clarity and less risk.

For more information, check out the article from CooperatorNews Chicago: Evicting an Owner or Shareholder

It's officially summer in Chicago - and we have the temps to prove it! The 4th of July is just around the corner, and the opportunity to see (and hear) fireworks will be everywhere. It's important for condominium and homeowner association (HOA) boards in Chicago to proactively manage fireworks usage within their communities if they anticipate activity close to home.

Fireworks are regulated at multiple levels of government. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) classifies fireworks into two categories: display fireworks, which are used in large public displays and require professional handling, and consumer fireworks, which are available to the general public. Federal law prohibits certain types of fireworks, such as M-80s and cherry bombs, due to their high explosive content. In Illinois, the Pyrotechnic Use Act further restricts the use of specific fireworks, including sparklers and smoke devices, with violations potentially resulting in fines up to $2,500 and imprisonment for up to one year.

Steps your association should follow to keep residents safe

1. Establish clear communication around firework usage: To ensure safety and legal compliance, associations should develop and clearly outline policies regarding fireworks usage in their governing documents. Once established, communicate these policies effectively to residents through newsletters, emails, and community bulletin boards, especially ahead of major holidays.
2. Promote safety and responsibility: If fireworks are permitted within the community, promoting safe practices is crucial.
3. Review your insurance and liability coverage: Fireworks-related incidents can lead to property damage or personal injury, potentially resulting in liability for the association. Board members should review the association's insurance policies to ensure adequate coverage for such events.

By understanding the legal landscape, establishing clear policies, promoting safety, and ensuring proper insurance coverage, Chicago condominium and HOA boards can effectively manage fireworks usage within their communities. These proactive steps not only help prevent accidents and legal issues but also contribute to a safe and enjoyable environment for all residents during festive occasions. For more detailed guidance on managing fireworks in community associations, refer to the full article by Kovitz Shifrin Nesbit.