Q. We live in a senior adult community consisting of 350 home sites with single-family units and town homes. We pay assessments for the clubhouse, landscaping and snow removal. The developer pays nothing.
In a recent election, owners were allowed to vote for seven candidates out of 10 owners running for election to the board. The developer cast 257 votes for each of the candidates, and sought to elect people it felt could benefit its interests.
Does the recent Common Interest Community Association Act allow the developer to cast all of its votes for each of the candidates?
A. The Common Interest Community Association Act does not permit a developer to cast all of its votes for each of the candidates. This new law, which was enacted last year as Public Act 96-1400, applies to single-family and town home associations. The statute permits voting by the same method as condominiums, namely by votes in person or by proxy or absentee ballot. There is no reference in this statute to any form of cumulative voting in the manner described by your question.
Since the community is not a condominium, the developer may be exempt from paying assessments on unsold units and lots.
Q. My sister and I inherited our mother’s condominium. We put the unit on the market two years ago because we were told by the association at that time that no rentals were allowed. One year later, the association reversed this policy because of some supposed change to Illinois law. When I requested permission to rent the unit in 2009, my request was denied because the 20 percent rental limit in the association had been reached. There are two rental units in our 12-unit building. One of the renters is the daughter of a man who owns the unit.
Is it proper for the association to consider this person to be a renter and deny my application for a lease? We would like to rent our condominium because we cannot sell it.
A. Association documents generally exempt transfers between family members from lease restrictions and rights of first refusal. Occupancy by immediate family members is not considered a lease under most condominium documents. The lease of your unit should fall within the association’s leasing limitation.
Q. My condominium does not allow FHA buyers, since we are not an FHA-approved complex. It appears that the owners and the board do not want FHA buyers to purchase units in our development. The board claims that if we allow FHA buyers, we must allow renters.
Is it possible that our complex can allow FHA buyers? I feel this is hindering the sale of my unit, since FHA loans make up a significant portion of the current mortgage market.
A. Under current regulations, the association must qualify for FHA loans. Spot loan approval for individual applications has been eliminated.
The requirements for FHA qualification include a limit of 50 percent for leased units. Thus, the board may allow leasing of units. The directors should consider qualifying for this program because, with a mortgage limitation of $417,000, FHA financing presents an attractive funding mechanism for potential buyers in this challenging market.
Q. What is the general rule of thumb concerning recommended percentage of rental units in a building? We have found conflicting opinions on the Internet regarding the ability of buyers to secure mortgages if too many units are occupied by renters.
A. There is no rule of thumb for the number of rental units in a condominium building. The answer differs with individual communities. Directors should obtain input from local Realtors, lenders and fellow owners regarding the maximum number of leased units appropriate for the community.
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