The February 2016 decision of the First District Illinois Appellate Court in Stobe v 842-848 West Bradley Place Condominium Association has cast some doubt on the ability of an Illinois condominium board to limit leasing of units through its rule making authority. Article VII of the declaration in Stobe covered the “sale, leasing or other alienation” of units. It contained a statement that if a proposed unit tenant agreed to abide by the declaration, the board’s rules and the Condominium Property Act, the board would have no right of first refusal.

The leasing article of the Stobe declaration did impose specific restrictions on leasing for hotel or transient purposes or for terms of less than six months and imposed limitations on leases of parking spaces. The article did not expressly refer to the right of the condominium board to regulate leasing by rule. The court then stated: “With that said, article VII did not expressly state that owners had the right to lease their units either.”

The appellate court in Stobe affirmed the trial judge’s grant of summary judgment striking down the attempt of the condominium board to restrict leasing by rule, interpreting the declaration’s intent to be that owners had the right to lease their units without restrictions other than those specifically enumerated in the declaration. The Stobe court said: “As stated, the declaration expressed certain limitations on leasing. If owners had no right to lease their units, the enumerated limitations would be meaningless.”

The court went on to point out: “The article on leasing did not specify that it was subject to further regulation by the Board, unlike other provisions in the declaration that did. While this omission would not alone require a determination that owners possess leasing rights, the declaration’s intent is clear when considered in its entirety: Unit owners have the right to lease their units subject to the declaration’s limitations.”

Feel free to contact a Logan Law, LLC condominium attorney, if you have any questions regarding the ability of your condominium board to impose rules restricting leasing or if you need assistance or advice regarding other areas of condominium law.

The Illinois Supreme Court has affirmed the Appellate Court’s 2014 decision in 1010 Lake Shore Drive Condominium Association v Deutsche Bank, which had held that an Illinois Condominium Association’s right to collect pre-foreclosure assessments is not necessarily wiped out by the confirmation of the foreclosure sale. The Supreme Court held that the assessment lien for pre-foreclosure assessments is only extinguished if two things occur, (i) the foreclosing lender names the condominium association as a party to the foreclosure suit and (ii) the purchaser at the foreclosure sale pays the assessments as they accrue beginning the month following the foreclosure sale.

The Supreme Court held that the payment of assessments after the foreclosure sale is essential “to confirm the extinguishment of the lien created by the prior owner’s failure to pay assessments.” The Supreme Court emphasized that the Illinois Condominium Act protects mortgage lenders by allowing the lender “from time to time (to) request in writing a written statement *** setting forth the unpaid common expenses with respect to the unit covered …” by the loan. Associations are cautioned to respond promptly to any such request to avoid giving a lender a possible defense to an action for pre-foreclosure assessments.

Associations with units delinquent in assessments which are being foreclosed are advised to consult legal counsel in order to make sure they recover the maximum amount of delinquent assessments available in this change area of the law. Feel free to contact a Logan Law, LLC condominium attorney, if you have any questions regarding collection of delinquent condominium assessments or if you need assistance or advice regarding other areas of condominium law.

The 2014 Appellate Court decision in Palm v 2800 Lake Shore Drive Condominium Association held that discussions of condominium business and taking action on matters at meetings closed to unit owners by a quorum of Association Board members was improper except under very limited circumstances. Effective June 1, 2016, the Illinois Condominium Property Act (ICPA) has been amended to clarify the power of an Illinois Association Board to take action in emergency situations.
A new section 18(a) 21 has been added to the ICPA to cover this situation. The new section specifically provides that “The intent of adding this paragraph (21) is to empower and support boards to act in emergencies”.

The new section permits the Board to ratify and confirm actions of board members taken in response to an emergency. The section requires that within seven business days of the occurrence of an emergency event, board members give notice to unit owners of the occurrence of the emergency as well as a general description of the actions to address the event.

Logan Law, LLC condominium attorneys have represented Illinois condominium associations for forty five years and have a depth of experience and knowledge of Illinois condominium law. Feel free to contact a Logan Law, LLC attorney whenever you need an attorney experienced in condominium or community association law.

The 2014 Appellate Court decision in the long running dispute  Of Gary Palm v 2800 Lake Shore Drive Condominium Association will have long lasting and deep effects on the conduct of the Board of Managers of Illinois condominium associations.  The decision will change the way most Boards conduct their business.  Until Palm, most condominium associations and condominium law attorneys believed that a Board could meet in “closed session” telephonic or in person meetings or e-mail exchanges to discuss association business, so long as no final decisions were made or votes taken.

The Palm decision has turned that belief on its head, by holding that any meeting of a quorum of board members to discuss association business, including by telephone or e-mail, had to be held as an open meeting of the board, with proper advance notice to unit owners.  The only exceptions to this rule were the three specific exceptions to the open meeting rule set forth in the Illinois Condominium Property Act, which are meetings:

•  To discuss pending or threatened litigation involving the association;
• To consider information regarding the hiring and firing of employees; or
• To discuss rule violations or unpaid assessments.

Association Boards should be sure to consult their legal counsel regarding the rules of the post Palm II “brave new world” and to set up procedures to make sure that they do not run afoul of the law.  Feel free to contact an experienced Illinois condominium law attorney at Logan Law, LLC, if you have questions about the Palm II decision or any other area of condominium association law.