Last week, we explored recent Illinois legislative, judicial and executive developments affecting condominium associations. Today, we take a look at more developments.
Associations must allow special process servers access to their properties. The Illinois Code of Civil Procedure was amended to require employees of a residential housing community, including condo or community associations and residential cooperatives, to grant licensed process servers entry into the community to serve legal papers on a defendant or a witness who resides in the gated community or building. This will be effective Jan. 1.
The association’s right to rent a unit is clarified. Effective Jan. 1, an amendment to the Forcible Entry and Detainer Act clarifies an association’s right to rent a unit it has obtained through an eviction proceeding. The amendment provides that the commencement date of the lease must be within eight months of the date the stay of an order of possession expires. Otherwise, the association must obtain approval from the court to enter into a lease.
An association is still entitled to lease the unit for 13 months. If the assessment delinquency owed by the subject unit has not reached a zero balance after 13 months and the lease needs to be extended beyond 13 months to pay off the assessment balance, then the association must seek approval from the court.
Rule amended on leasing. The Common Interest Community Association Act was amended to require an owner to provide a copy of a lease of his or her unit to the community association unless otherwise provided in the association’s governing documents. This will be effective Jan. 1.
Foreclosures and unpaid assessments. On Aug. 12, the Illinois Appellate Court affirmed the trial court’s ruling in 1010 Lake Shore Association v. Deutsche Bank National Trust Co., 2014 IL App. (1st) 130962. The decision held that if a buyer of a foreclosed condominium unit does not pay the assessments starting the first day of the month after the foreclosure sale, as required by Section 9(g) of the Condominium Act, the condo association’s statutory lien against the unit is not extinguished and the buyer is responsible for all assessments owed by the previous owner.
While the court’s opinion is not clear as to when payment is deemed timely or untimely, it is incumbent upon management and the board to send the purchaser of a foreclosed unit timely monthly assessment invoices providing them an opportunity to pay current assessments. If the new owner fails to pay the assessments in a timely manner, the association is entitled to collect its entire assessment lien against the condominium unit from the new purchaser.
It is recommended that management and a condo board obtain legal advice after a foreclosure to ensure the association collects the maximum amount of delinquent assessments allowed under the law.
