Q: I am a unit owner in a condominium association. Our condominium declaration restricts leasing to 25% of the units at any one time. If the unit is solely occupied by someone other than the unit owner without payment of rent or if the unit is occupied by a relative, for instance, is it considered a leased unit?
A: Leasing restrictions contained in a condominium association’s declaration and bylaws are held valid by the courts. The terms of a leasing restriction exclusively depend on the language contained in the leasing restriction itself. There is no provision in the Condominium Act or Illinois law that imputes leasing restrictions in condominium instruments.
Many leasing restrictions contain express provisions about occupants and when occupants other than a unit owner will be deemed a leased unit. Generally speaking, in the absence of language in the leasing restriction stating otherwise, relatives of a unit owner living in the unit or an occupant who is not paying rent would not be considered tenants, and would not deem the unit leased.
Q: I live in six-unit, three-story condominium association. Each two condominium units on the same floor have the same unit percentage. A unit owner of one condominium unit felt their unit percentage should be less than the other unit on their floor because the other unit has an additional storage area that is part of their unit, and thus, wants to have their percentage interest in the common elements decreased. Is the disgruntled unit owner entitled to have a lower unit percentage?
A: Section 4(e) of the Condominium Act governs how percentage interests in a condominium association are set by the condominium developer, and how they may be revised by the unit owners thereafter. Percentage interests are computed based upon the value of each unit in relation to the value of all the units as a whole when the association was created, not square footage. Thus, two units initially set at the same price at the time of the creation of the association would properly have the same unit percentage despite the fact they have slightly different square footages. Additionally, after unit percentages are set, Section 4(e) states that unit percentages shall remain constant unless 100% of the unit owners agree to an amendment to revise them. Therefore, unless all unit owners agree to a unit percentage change (and it is unlikely any unit owner will voluntarily agree to pay more in perpetuity), the disgruntled unit owner is not entitled to decrease their unit percentage.
Q: I am a board member of a small, self-managed condominium association. All unit owners have historically paid their assessments on time; however, we have a new unit owner that is delinquent in the payment of assessments. What do we need to know to collect delinquent assessments?
A: Section 9.2 of the Condominium Act grants condominium boards the legal right to collect assessments and recover legal fees and costs incurred for the collection, and condominium declarations and bylaws also expressly contain that remedy. Condominium associations must follow the statutory requirements of the Illinois Eviction Act to collect unpaid common expenses.
Additionally, it should be noted that the Illinois legislature recently approved amendments to the Condominium Act and Common Interest Community Association Act that will significantly impact how condominium and common interest community associations pursue collection of unpaid assessments. The legislation will become law if it is either signed by the governor or not vetoed by the governor by Aug. 17, 2026. It is expected the legislation will become law shortly and the effective date for the new law will be Jan. 1, 2027.
The approved legislation requires Illinois condominium and community associations to adopt a policy concerning the collection of unpaid assessments and requires that such policy be delivered to prospective purchasers of units. Failure to have a properly adopted policy will be an impediment to an association from successfully pursuing legal action to collect unpaid assessments. For a condominium association, a copy of the collection policy must be provided with the 22.1 disclosure, and for a community association, a copy of the collection policy must be provided with the disclosures pursuant to the Section 1-35 of CICAA.
At a minimum, the policy must address the following: when assessments are due and when they are considered late; late fees and interest charges; fees for returned checks; payment plan availability and terms (if offered); the timeline before referral to legal counsel; how payments are applied to outstanding balances; and a description of the association’s legal remedies for unpaid assessments.
Got a question for the Condo Adviser? Email ctc-realestate@chicagotribune.com.
