2010 amendments to the Illinois Condominium Property Act

2010 saw relatively little new legislation directed at condominium associations, and only two amendments to the Illinois Condominium Property Act (“ICPA”) were enacted. Instead, much of the legislative activity in 2010 focused on non-condominium homeowners associations, including passage of a completely separate Act to govern those associations.

Voting of Parking and Storage Units in “30/50” Situations

When a relatively small number of units represents a majority of the total percentage ownership interests in an association, allowing those owners to vote on a percentage ownership interest basis can result in unfairness to the other unit owners. To address this special situation, ICPA Section 18(p) has for many years provided that when 30% or fewer of the units hold more than 50% of the total percentage ownership interests in an association — a “30/50” situation — each unit’s vote has equal weight, and percentage interests are disregarded.

The recent proliferation of associations with large numbers of parking space units and storage space units has made this so-called “30/50” situation more common than in the past. Section 18(p) was amended by Public Act 96-0977 to provide that when a 30/50 situation exists, each residential or commercial condominium unit casts one vote, but a total of one vote is allocated collectively to all — not each — of the parking units and storage units, with each parking unit and storage unit entitled to its proportionate share of that one vote.

The Homeowners’ Solar Rights Act

The Homeowners’ Solar Rights Act, 765 ILCS 165, was enacted to encourage the development and use of solar energy in private residences in condominium and other common interest community associations. Effective January 1, 2011, this law makes it unlawful for a board to adopt rules or other restrictions that prohibit a homeowner from installing a solar energy system for his or her home.

However, this law does not apply to any building which is more than 30 feet in height, and also allows the association to determine the specific location where a solar energy system may be installed on the roof of a building within certain parameters specified in the Act. The Act provides protocols for adopting a solar energy policy statement, solar energy standards and an approval process, as well as penalties for violations.

Recovery of “Six Months” by Non-Condominium Associations in Foreclosures

Illinois law provides that when a condominium unit is sold at a foreclosure auction, the new unit owner must pay the condominium association up to six months of assessments owed by the foreclosed former unit owner if certain conditions are met. However, this special recovery right was not granted to townhome associations and other non-condominium homeowners associations. Effective as of July 14, 2010, new ICPA Section 9(g-1) entitles non-condominium homeowners associations to recoup the “six months” on the same basis as condominium associations.

Criminal Convictions and the Community Association Manager Licensing Act

The Community Association Manager Licensing and Disciplinary Act was enacted in 2009, but no one has been licensed because regulations to implement the Act have not yet been adopted. Nevertheless, the Legislature amended this law in 2010 to provide that the regulators charged with licensing and disciplining property managers may take a manager’s conviction of a crime into consideration when acting on a license application or disciplining the holder of a manager’s license.

The Common Interest Community Association Act

For the last 25 years, non-condominium homeowners associations have been governed by sub-sections “c” through “h” of ICPA Section 18.5. Effective July 29, 2010, non-condominium associations now have their own Act.

The Common Interest Community Association Act (“CICAA”) , 765 ILCS 160, governs non-condominium common interest community associations, including townhome associations, master associations, single-family home associations, lake associations, and other non-condominium associations. CICAA includes most of the provisions of sub-sections “c” through “h” of ICPA Section 18.5, with some variations. However, further legislative action is needed on CICAA to address numerous gaps and glitches, and the Legislature still needs to repeal sub-sections “c” through “h” of ICPA Section 18.5.

A searchable and downloadable copy of the Common Interest Community Association Act is available by clicking here.