Q–We have a three-building condominium complex. Although the association is occupied primarily by senior citizens, many grandchildren visit and use the facilities.
Recently, a person convicted of being a pedophile bought a unit under his wife’s name. He will be released shortly from prison. The board of directors is keeping this quiet.
What is the legal and moral obligation of the board to the building and the complex?
A–Leaving moral judgments to the board, from a condominium law standpoint, the directors can exercise the right of first refusal to purchase the unit if the declaration and bylaws provide for this right.
There is no basis under the Illinois Condominium Property Act or standard language in a declaration and bylaws for the board to prohibit an individual from purchasing a unit.
Unlike a cooperative, a condominium is limited to the powers contained in its governing documents and the state statute. If the declaration provides a right of first refusal, the board can recommend this step to the owners, which allows the association to purchase the unit at the same price offered by the seller.
Unless the declaration provides for a greater number, at least two-thirds unit owner approval must be obtained for the board to complete the transaction.
If and when misconduct occurs, the board can proceed against the owner and occupant for actions that are illegal or constitute a nuisance. The board cannot take legal action against an individual solely for past misconduct.
Interestingly, this exact subject was featured in an article appearing in the recent edition of Common Ground magazine published by the Community Associations Institute.
The article noted that 15 community associations in New Jersey are considering a ban on high-risk sex offenders, prohibiting them from residing in their communities. The ban would allow associations to seek eviction of such persons.
The article points out that New Jersey was the first state to enact Megan’s Law, which requires law enforcement agencies to notify schools and day care centers about the presence of convicted sex offenders in their area.
While the New Jersey proposal presents civil rights considerations, under current Illinois law, this concept would not be enforceable.
Q–One of our condominium unit owners recently had a death in her family and condolence calls were being made at her unit. The board of directors had a tray of food delivered to the unit at a cost of $150. None of the unit owners were told of this expenditure until the annual meeting when the item was listed on the final expense budget.
Does the board have the authority for this kind of expense without discussing it with the membership first? Nothing in our declaration or bylaws addresses matters of this nature.
A–At some point, strict legal requirements end, and common sense begins.
Examples of this nature, where the board shows compassion and good will, often generate more respect for the directors than strict enforcement of association rules. It is unnecessary for the board to discuss this matter with the owners or take a vote of the membership. The board can justify the expense as part of its role in administering the property.
Court dishes up antenna rights
The Federal Communications Commission continues to issue declaratory rulings on satellite dish installations. In its latest ruling, issued July 1, the FCC upheld the right of a tenant in a Los Angeles town home association to install a direct broadcast satellite antenna on the exterior wall of his patio.
In the matter of James Sadler and the Chatsworth County Townhomes Association, the installation of the dish was located on the outside wall of the townhome above the patio doors.
The FCC also ruled that association restrictions prohibiting antennas outside any unit were invalid, and invalidated the association rules requiring an application process fee and prior approval of the board of directors before installation of the antenna.
The FCC did uphold association requirements for the resident to sign an indemnification provision for installation of the antenna on individually owned property, and also upheld the right of the association to demand that a contractor installing the antenna have liability insurance.
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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.
