Q–Could you please go into more detail concerning Senate Bill 844, which, as passed, allows master associations and other homeowner associations to levy fines?
What organizations are considered master associations and other homeowner associations? I live in a 180-unit complex consisting of 28 buildings. Is our association considered to be in either of these categories?
A–Senate Bill 844, enacted as Public Act 90-229, permits master associations and common interest communities to levy fines.
A master association, as defined in Section 18.5 of the Illinois Condominium Property Act, is a non-profit corporation or association that exercises certain powers for one or more condominium associations.
The best example of a master association is found in a complex where condominium associations share common areas and a recreational facility.
Master associations maintain and charge assessments for these areas used by residents of the condominium associations, while the individual condominium buildings administer their own particular common elements.
A common interest community is defined in Section 5/902 of the Illinois Code of Civil Procedure. The term covers any property, other than a condominium or cooperative, where the owners are obligated to pay assessments for common expenses.
The community is administered by an association under a declaration and encompasses town homes and single-family associations formed after Sept. 21, 1985. If formed prior to that date, the board of directors of the association may elect to become a common interest community.
Prior to the new law, master associations or common interest communities could levy fines only if the power was contained in their documents. The new law permits this method of enforcement without the need to reference the power in association documents.
In your case, if the group of 28 buildings is organized as a condominium association, the board already has the power to levy fines. If a separate organization governs areas for one or more condominium associations, it is a master association which may now levy fines.
Q–Here’s an odorous situation: I moved into a condominium several years ago that had garbage disposals in each unit and a trash chute in the hallways. The trash chute was for all garbage that could not be put in the unit disposals.
There are at least two units that removed the disposals, while others don’t use them. These owners put all their garbage into the trash chutes.
As a result, owners are complaining constantly about the foul odors coming from the chutes. While the chutes are washed down periodically, owners are asked to put perishables in the disposals and reserve the garbage chutes for non-food material.
Can the association legally insist that all units have working disposals in their residences?
A–Yes. Because the elimination of the garbage disposal is causing odors in the common element hallways, the board can insist that all units have working disposals.
Under standard provisions in the declaration, the board of directors has the power to eliminate conduct that is a nuisance or an annoyance to others. Putting food in the trash chute, when it can be eliminated by a garbage disposal, has resulted in a substantial nuisance.
While the board has limited power to control the actions of an owner within a unit, there is a valid basis to restrict any conduct that ultimately creates a nuisance in the common areas.
Q–Our 18-year-old apartment complex was converted to condominiums two months ago. I am a senior citizen who hired a small maintenance company to do some decorating repairs in my unit.
I had a ceiling crack in my living room and walls in my entrance area needed repairs. I received an estimate of $350 to do the work.
I paid the contractor in cash. As it turns out, the job in certain areas was so poor I had to ask one of the contractor’s laborers to repair the area.
I was charged an extra $80 for the repair work in the entrance area and $50 to put a small window in my kitchen.
How do I recover the money I have paid over the estimate? Should I go to small claims court? I gave the contractor cash, but I don’t have a receipt for payment.
A–It is not practical to do anything at this point. You paid the contractor $130 more than the estimate. You have no written contract, nor any receipt for payment. The work has been corrected and, apparently, except for the extra charge, is satisfactory.
The lesson from this incident is never have anyone perform home repair work without a written contract or proposal, and always obtain a receipt for all material and labor payments.
Q–When a developer converts a rental building into a condominium, is he legally obligated to start paying assessments on the unsold units from the very first month of the conversion?
Does this law apply only to new construction or a conversion of an existing building?
A–The law is quite clear. The developer must pay assessments for unsold units starting with the first sale. The obligation of the developer applies to both the sale of new construction or a condominium conversion of an existing building.
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Mark Pearlstein is a Chicago lawyer who specializes in condominium law. Write to him c/o Condominiums, Real Estate Section, Chicago Tribune, 435 N. Michigan Ave., Chicago, Ill. 60611. Sorry, he can’t make personal replies.
