It is not uncommon to find that when a unit owner fails to pay his/her assessments, they are also not paying their mortgage. Thus, oftentimes foreclosures go hand-in-hand with the collection of delinquent assessments. Fortunately for associations, the Condo Act addresses the association’s options with regard to collection of delinquent assessments when a unit is […]
Illinois Appellate Court Clarifies Palm Decision Regarding Association Collections
In Lake Point Tower Condominium Ass’n v. Waller, 2017 IL App (1st) 162072, decided on June 28, 2017, the Association filed a forcible entry and detainer action against Defendant to obtain possession of Defendant’s condominium. Subsequently, Defendant filed a motion to dismiss the complaint. Without disputing that the assessments were due, the Defendant alleged that […]
Smoking Complaints-The Saga Continues
Given the municipal smoking ban in public places(1) and the proven harm of secondhand and third hand smoke, many Boards continue to be besieged with complaints from residents of transmission of smoke into their homes. These complaints can range from annoyance with smoke odors to complaints that smoke transmission is life-threatening and renders a home […]
Funding Your Future: Predicting & Budgeting Your Association’s Repairs & Improvements
All community associations require routine maintenance, repairs, and replacement over time to ensure they remain in good condition. The task of ensuring the Association retains sufficient funding to pay for this maintenance, repair and replacement work falls squarely on the shoulders of the Board of Directors. Balancing the Association’s financial and maintenance needs is a […]
Summer Safety
The summer season is a ready welcome every June given our Midwest winters. However, with the warmer temperatures are considerations your communities may face during this time of year. Here are some reminders for issues most common to the summer months. Read the article…………….
“Offensive, Rude, Annoying, Mean-Spirited & Ill-Advised” Blog Posts Aren’t Defamatory–Milazzo v. Connolly (IL)
This is another case study of the overly litigious world of homeowners’ associations. For example, a few months ago, I blogged about another lawsuit involving a condo association, its no-pet policy, and a string of vitriolic blog posts over residents who had emotional support therapy dogs. Read the article…………….
Another Illinois Case Decides When an Asset Purchaser is Responsible for Liabilities as a Mere Continuation of the Seller
In our Risk Management Update of December 23, 2015, we discussed an Illinois case that had to decide when a successor entity purchasing the assets of its predecessor became liable for the debts of the predecessor. (“Mere Continuation” Doctrine Applied to Transfer Liability to Successor Entity). In that case, the issue was whether an intermediary […]
How Should the Association Handle Emotional Support Animals in Individual Units
The law that applies to accommodations for an emotional support animal is primarily the Fair Housing Act (“FHA”). Please note that the American with Disabilities Act pertains to the state and federal government being prohibited from discriminating against people with disabilities in public places. It does apply to some types of housing situations, but is […]
Why Have a Professional Reserve Study
Every community association has three functions – to serve as a business, a government and a community. Community associations are generally nonprofit corporations, functioning in many ways as businesses with revenues (association dues, clubhouse rentals, revenues from golf course or restaurant, etc.) and expenses. As a business, the Board needs a business plan for the […]
Illinois Supreme Court Clarifies Snow & Ice Removal Act
Decided by the Illinois Supreme Court on December 1, 2016, Murphy-Hylton v. Klein Creek Condominium et al. held that the immunity granted under the Illinois Snow and Ice Removal Act for the negligent removal of naturally accumulated snow and ice does not also provide immunity for injuries caused by ice arising due to circumstances unrelated […]
Volunteers R.O.C.K.!
“Common areas do not automatically create a sense of community. Nurturing the community spirit is probably the greatest challenge facing community associations today.”—CLIFFORD TREESE, CPCU, ARM, CIRMS and community association guru extraordinaire So, how can an association nurture community spirit? Through its volunteers! This article will offer a few thoughts on how to encourage volunteerism […]
Managing Safety and Liability vs. Managing A Budget
Signed into law on September 8th, 2016, The Snow Removal Service Limited Liability Act changed the liability relationship between Community Associations and their snow services contractor. The act states, “Provides that any provision in a snow plow and de-icing services contract that purports to indemnify or hold harmless a promisee (client) from or against liability […]
Swimming Pools: Summer Fun or Summer Burden? (IL)
Many communities have swimming pools for residents to enjoy. A lot goes into maintaining a clean, healthy, safe and fun swimming pool facility. These community facilities can add great value to the properties, but are they fun, or a burden for those who are responsible for maintaining all necessary expectations for smooth operation? Below are […]
Case Update: Wing Street CA v. Kiss the Chef, LLC (IL)
In the case of Wing Street CA v. Kiss the Chef, LLC, the Illinois Supreme Court will review an issue pertinent to the collection of up to six months of a foreclosed owner’s assessments from a subsequent purchaser under Section 9(g)(4) of the Illinois Condominium Property Act. Under 9(g)(4), if the Association initiates collection activity […]
Water is an Enemy to Asphalt Paving
In the asphalt paving business we are asked many questions regarding proper maintenance of pavement surfaces for driveways, parking lots and roads. Our best advice is to be proactive about maintenance to ensure the life of your pavement surface. As we change seasons from winter to spring, one of the most frequent issues we encounter […]
The Bouncy House-Invitation to Liability
Residents in community associations often behave as if they still reside in single family homes. They tend to forget that liability exposures created through their personal activities will affect others. A perfect example is when a unit owner asks permission from the property manager or board of directors to rent a bouncy house for their […]
Don’t forget your Declaration: Appeals Court confirms necessity of the Declaration and Covenants in collection actions (IL)
The First District Appellate Court confirmed that Associations must be careful to enter their Declaration and Covenants regarding Assessment default into the record in a lawsuit to collect Assessments. In Blackstone Condominium Association v. Speights-Carnegie, (Feb. 3, 2017), the Appellate Court reviewed a judgment for unpaid Assessments where an Association sought to recover from an […]
Liability of Condo Associations for Damages Caused by Failure of the Common Elements
As a practitioner for many years in the area of association law, I have been aware of a long-standing difference of opinion among association attorneys as to the obligation of a condominium association to pay for damages caused to the Common Elements (CE), Limited Common Elements (LCE), and to the Units and personal property of […]
Seventh Circuit Finds Faulty Work Not a Covered “Occurrence”
In Allied Prop. & Cas. Ins. Co. v. Metro North Condo. Assn’ No. 16-1868, 2017 U.S. App. LEXIS 4107 (7th Cir. Mar. 8, 2017), the Seventh Circuit had occasion to consider whether claims of faulty workmanship could constitute “property damage” caused by an “occurrence” as required by the insuring agreement of a CGL policy. […]
Recovery of Attorneys Fees in Litigation
One of the first questions we are asked at the outset of litigation on behalf of a condominium association is whether the attorneys’ fees we will generate are recoverable from the opposing party. The answer to that question depends on a number of factors because Illinois is what is called an “American Rule” jurisdiction. The […]
Illinois Supreme Court Agrees to Decide Whether Third Party Buyer is Liable for Delinquent Assessments to Mortgagee’s Subsidiary
According to Section 9(g)(4) of the Illinois Condominium Property Act, any purchaser of a condominium unit who acquires a property either at a foreclosure sale or by post-foreclosure purchase from the mortgagee must pay the last six months’ worth of delinquent assessments on the unit. 765 ILCS 605/9(g)(4). So where the wholly-owned subsidiary of the […]
Spring is Coming…Is Your Property Ready?
Winter, even the mild one we are experiencing, can wreak havoc on your property! Between the snow, ice, wind and cold, lots of repairs are made in the winter that need to be readdressed in the spring. Why are we talking about spring already? Well, spring will be here before you know it and your […]
Invalid Board Does Not Have Authority to Bring Lawsuit on Association’s Behalf
The Appeals Court of Illinois recently held that an association’s board of directors does not have authority to bring a lawsuit on behalf of the association if it is not formed properly according to the condominium’s governing documents and the law. While this case is not binding in Washington, it may indicate how Washington courts […]
Planning and Conducting a Successful Annual Meeting
Happy Birthday to your Association!! The annual meeting can be a chance for the current board to shine on the past year’s performance, promote the plans of the community, and answer the myriad of questions that come with being a board member. This is usually the meeting with the most residents in attendance. A statement […]
The Association…Cashing In On Rent (IL)
When filing a forcible entry and detainer action, our offices will inquire with the Association whether or not there is a tenant residing in the unit. The purpose of this is to establish if the tenant is a paying renter so that the Association can ultimately collect the rental income to be applied to the […]
Help Your Board Stay Proactive in the Winter Months
Oftentimes Boards of Directors believe that after the holidays, they can catch a break for a couple of months prior to meeting and discussing Spring projects. They use Winter months as a ‘rest period’ from Board activities. Yet, the beginning of the year can be used to accomplish important tasks and administrative projects like improving […]
OK to sue condo association for not granting access to dog-free elevators (IL)
A Chicago federal judge has cleared the way for Holly Geraci, the wife of prominent Chicago bankruptcy lawyer Peter Francis Geraci, to proceed with her lawsuit against the association that manages the condo building in which she lives, saying Geraci has presented a strong enough case so far to be allowed to press ahead on […]
2017 Chicago Elevator Inspections & Recycling Ordinance Reminders
Previously, the requirement for the City Annual Inspection Certification (“AIC”) was that the elevators/devices in buildings located in the Central Business District were inspected on a yearly basis. The new requirement is for compliance (elevators must pass inspection before the deadline) by the due date assigned to your building by the City. Previously, the deadline […]
Illinois Supreme Court Limits Scope of Snow and Ice Removal Immunity
Illinois law provides that any owner, lessor, occupant or other person in charge of residential property who “removes or attempts to remove snow or ice” from sidewalks is immunized from negligence claims arising from his or her acts or omissions absent a showing of willful or wanton conduct. 745 ILCS 75/0.01. So does that mean […]
Illinois Condominium Property Act Amended to Streamline Association Loan Procedures
Condominium associations often choose to finance major common element repair projects by obtaining bank loans. This type of loan is typically secured by the association’s pledge to the lender of all or substantially all of the association’s assets, including the association’s assessment receivables, operating account and reserves. Effective January 1, 2017, the procedure for approving […]
Time to Update Your Association’s Declaration for 2017 (IL)
There have been quite of few changes to the Illinois Condominium Property Act (Condo Act) and the Illinois Common Interest Community Association Act (CICAA), effective January 1, 2017. In light of these changes, as well as the many changes made in 2016, associations should consider amending and restating their declaration to bring it current with […]
Best Practices for Protecting Association Data
Hacking can be defined as the breach of a computer system in an attempt to exploit weaknesses in a network. As online commerce continues to grow and individuals search for ways to make bill paying more convenient, security threats are inevitable. Monetary transactions, including association assessment payments, have become increasingly more susceptible to the risks […]
Dormant Season Pruning
Many of our associations were created and developed in the ‘80’s and ‘90’s. Trees and shrubs were part of the enhancements and have been thoroughly enjoyed over the years. Unfortunately, in all too many cases, they have been neglected over the years except to remove broken limbs and those that have fallen victim to rot, […]
Vague ruling means uncertainty for slip-and-fall ice lawsuits in Illinois
Can you be held liable if someone slips and falls on ice outside your house? The Illinois Supreme Court says … maybe. An Illinois Supreme Court opinion gives owners of icy sidewalks a reason to bust out some more salt. A 2007 case involves a suburban Chicago condo association and a woman who slipped on […]
Easy Way for Properties to Avoid Fines (IL)
With the holiday season upon us, many Associations are receiving numerous packages each day. As a result, the December and January months typically produce more waste and recycling than normal. With that in mind, there is an easy way for property managers to prevent Associations from being sued by the City of Chicago for violations […]
Guiding Homeowners through the Window/Door Architectural Request Process (IL)
One of the secrets to limiting the amount of conflict between the individual owners and the association at large is to be clear in guidance regarding the exterior standards for the association. For instance, in regards to window and door replacement request it is helpful for the association to offer a clear specification for owners […]
IL Appellate Court Determines Extent of Immunity For Associations & Managers Under IL Illinois Snow and Ice Removal Act
On December 1, 2016, the Illinois Supreme Court held that the Illinois Snow and Ice Removal Act (the “Act”), which provides immunity and limits liability for negligent removal of naturally accumulated snow and ice, does not apply to limit liability for negligently creating an unnatural condition that causes ice to accumulate. Read the article……………
IL Supreme Court: Law shields homeowners from suits over snow removal, not ‘unnatural’ ice
The Illinois Supreme Court has put the freeze on certain slip-and-fall suits, by affirming an appellate ruling that the Illinois Snow and Ice Removal Act immunizes homeowners against suits arising from weather-caused slippery sidewalks, but not from ice buildup caused by negligent drainage. Read the article…………….
Winter Is Coming…Is Your Association Entering Into a New Snow Removal and Ice Control Services Contract?
With the impending snow season rapidly approaching, it is important for associations to be aware of certain provisions of the Illinois Snow Removal Service Liability Limitation Act, which was signed into law and became effective on August 25, 2016. Most significantly, the Act now voids many of the all-too-common indemnification and hold harmless language, which […]
What’s the Deal With Ice Dams
If you’ve never seen an ice dam, it actually looks a lot like you would expect. It is an accumulation of ice on along the eave line of a sloped roof. The ice can build and build over the winter months until it is a solid wall that can be ice-damfeet thick and can span […]
Electric Vehicles Projected to be 35% of New Car Sales in 2040: What About the Electronic Charging Stations?
Governments from around the world, including, China, Germany, Japan, Netherlands, Norway, U.K. and the U.S. are taking steps to combat climate change by increasing access to clean energy technologies and reduce dependence on oil. One policy focus has been on programs that will accelerate the adoption of electric vehicles. Read the article………….
Management and Administrative Fees: Are They Collectible? (IL)
Oftentimes, management companies will include their own management fees (such as a collection turnover fee or trial witness fee) on the ledger of a delinquent owner’s account when collecting unpaid assessments. As courts are reviewing account ledgers with increasing scrutiny, it is important for associations to be aware of the law regarding an association’s ability […]
Judge won’t force condo association to allow woman to rent condo as ‘reasonable accommodation’ (IL)
A 94-year-old Oak Park woman could not get a federal judge on her side in a dispute with her condo association, who she says owes her the right, under federal law, to rent her condo while she undergoes medical treatments, despite association rules. Lillian Vignola owns a unit in the building run by the 151 […]
New Appellate Ruling Increases Residential Builders’ Exposure to Defect Liability in Illinois
Illinois law on the implied warranty of habitability (IWH) is continuously changing, and residential builders should take notice of a new opinion issued by the Appellate Court, First District, on October 26 in a construction defect dispute. Although the procedural history is convoluted (the opinion consolidated three separate appeals), the underlying fact pattern is fairly […]
Panel: Chicago commission OK to order condo association to pay lesbian couple’s $68K legal bills
The Chicago Commission on Human Relations acted properly in awarding more than $68,000 in legal fees to a lesbian couple who had complained their building’s owners association had harassed and discriminated against them for being lesbians, a state appeals panel has ruled. The Illinois First District Appellate Court issued its decision in an unpublished order […]
Navigating Electronic Notice and Voting (IL)
Generally, associations have the right to adopt reasonable rules and regulations regarding their procedures and the operations of the association. This comes from Section 18.4 of the Illinois Condominium Property Act and general references in the Common Interest Community Association Act suggest that homeowners associations may, too. Both Acts allow associations specifically to adopt rules […]
Caps on Special Assessments and Expenditures within Condominium Associations
In reviewing condominium association declarations over the past several years, on a number of occasions I noted a similar provision in many declarations which places a cap on the amount of a special assessment the board of directors can adopt without an owner vote. Typically, this provision provides that the board may adopt a special […]
Illinois Snow Removal Service Liability Limitation Act: Bad News for Associations!
The Snow Removal Service Liability Limitation Act became effective August 25, 2016, and eliminates common contractual remedies of associations. In a “nutshell,” certain indemnity agreements in snow and removal contracts are now against public policy and void. Any snow and ice removal contract entered into after August 25, 2016 can no longer require a service […]