In the recent Rule 23 opinion Carey v. The 400 Erie Condominium Association, the Illinois Appellate Court addressed smoking nuisance cases in condominiums, indicating that smoking within units is permissible under certain conditions outlined in the association's rules, provided it does not cause a nuisance or unreasonable disturbance to others. The court emphasized the importance of objective evidence in proving breaches of fiduciary duty by the board and highlighted the need for fair and consistent enforcement of smoking policies while balancing the interests of smokers and non-smokers. The decision underscores the significance of drafting formal smoking policies that align with the community's needs and legal requirements. It also offers guidance for property managers and board members in handling similar situations within their associations, emphasizing the complexities involved in such cases and the importance of thorough investigation and communication with unit owners.

Learn more here. 

Have owners who have unpaid balances? Not sure what the board can do to get the owner caught up? Learn about the legal remedies available to condominium associations at Condoly's next free webinar on Thursday, April 25th at 6:30 pm.

Ensuring the financial of your condominium association is a key responsibility for board members. The board has a fiduciary duty to collect all amounts owed, but it can be tricky addressing unpaid balances with your neighbors. Here are a few things the board can do to reduce delinquencies and maintain financial stability for your association:

• Establish a Collection Policy. This should be a written policy that applies a penalty for a late payment and states that balances more than 60 overdue (or whatever the board decides) will be referred for debt collection. Include this policy in your Rules & Regulations and communicate it to all owners.
• Be proactive. The longer an account goes unpaid, the harder it can be for an owner to get caught up. Reach out to the delinquent owner and try to get a payment plan agreement for getting caught up before the balance grows. It's always best to work out an arrangement with an owner, if possible, before you take further action. (Be sure to get any agreement in writing and signed by the owner and the board!)
• When needed, call in an expert. Engage an attorney or debt collector to take action if an owner is unresponsive or defaults on an agreement. Sometimes it is simply necessary to turn the account over to a professional to collect.

Enforcing payment for unpaid charges can be a challenge, but understanding the process can make it easier for the board to effectively uphold its fiduciary responsibily to collect what is due. 

A Condoly partner attorney will review the legal process for collecting unpaid balances from unit owners, and field general legal questions (time permitting). 

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The Board of Directors is responsible for enforcing the terms outlined in the Association’s community instruments. While some violations are straightforward to identify and address, such as unauthorized improvements or improper parking, others, particularly those concerning nuisance clauses like noise or smoking, pose complexities.

A recent legal decision, Carey v. The 400 Condominium Association, sheds light on these challenges. In this case, a resident alleged that the Association failed to address smoke infiltration from a neighboring unit, leading to legal action. The court emphasized the importance of objective assessment in determining if a violation exists.

The ruling highlights key considerations for Board members and community managers, including the need for thorough investigation before issuing violation notices, distinguishing between ordinary and unreasonable nuisances, incorporating clear language and procedures in community rules, and upholding a fiduciary duty to all owners with fairness and objectivity.

Learn more here.

Excessive rentals in a small condominium can create a lot of problems for owner occupants and the board. Absentee owners may not participate or be engaged in the operation and maintenance of the property. Renters may contact the board inappropriately for issues that should be handled by the owner. And when it comes to reselling your unit, a high proportion of rentals could restrict a buyer’s mortgage options.

Restricting the number of rentals in your association, which must be done by adopting an Amendment, is a good move. However, the board needs to think beyond the Amendment to navigate a restriction effectively. This is where Rules & Regulations can help.

Assume you’ve capped rentals at 3. How do you determine who gets those slots? Is there a limit on how long a unit can be rented? What happens when that limit expires? Who has the right to rent when a spot opens? What are the expectations for owners and tenants in rented units?

These are all questions that can be addressed via Rules & Regulations. Join Condoly for a free webinar on Thursday, April 11th to learn more.

Rules & Regulations are vital to every condominium association. Many small associations do not have Rules & Regulations in place, however, simply because they lack knowledge about what they are and how they are created. Here’s what you need to know:

• Rules & Regs (as they are commonly known) exist as a separate document that falls below your Declaration and Bylaws in the legal hierarchy of your governing documents.
• This document dictates how residents are expected to conduct themselves in the community and sets forth the consequences for violations, including fines.
• Rules & Regs are drafted and adopted by the board, which must follow a specific process to make them legally enforceable.
• Rules & Regs can address many topics, including pets, leasing and smoking. They are specific to the issues that exist for your community.

On Thursday, April 11th at 6 pm, Condoly is hosting an educational webinar with its vendor partners to discuss how to create and adopt Rules & Regulations for your condominium association. Condoly will also introduce a DIY tool to help you effortlessly create your own Rules & Regulations document!

Sign up for a Condoly account to access the webinar and Condoly’s vendor matching platform.