News & Announcements

News & Announcements

FRA Shareholder Scott Rosenlund Authors Legal Update

On January 23, 2017, the Illinois Chapter of the Community Associations Institute published an article authored by FRA shareholder Scott Rosenlund. To read the article, entitled “Illinois Condominium Property Act Amended to Streamline Association Loan Procedures,” click here.

FRA Attorneys Attend 2017 National CAI Law Seminar

FRA shareholders Stuart Fullett, Scott Rosenlund and Jeff Swanson recently returned from the annual Community Associations Institute Law Seminar in Las Vegas. The Law Seminar provides an opportunity for community association attorneys from across North America to discuss emerging trends and issues important to the practice of community association law. Highlights of the Law Seminar included sessions discussing national developments in fair housing enforcement, case law relating to rogue board members and how community associations can avoid exposure to intellectual property claims.

FRA Shareholder Scott Rosenlund Quoted in The Chicagoland Cooperator

FRA shareholder Scott Rosenlund was quoted in the January 2017 issue of The Chicagoland Cooperator. In the article, Scott commented upon some of the legal issues which will affect community associations in 2017. To read the full article, click here.

LEGISLATIVE UPDATE

The Illinois Condominium Property Act (“Condominium Act”), the Illinois Common Interest Community Association Act (“CICAA”) and the Illinois General Not For Profit Corporation Act of 1986 (“NFP Act”) were recently amended. A summary of the changes is provided below.

Condominium and CICAA Association Board Meeting Requirements

In response to widespread concern regarding the strict open board meeting requirements established by Palm v. 2800 Lake Shore Drive Condominium Association, the circumstances under which a condominium board or a CICAA association board may meet in closed session have been expanded. Two important aspects to these changes are discussed below.

First, condominium and CICAA association boards will be authorized to discuss certain sensitive subject matter either at a closed portion of a noticed board meeting or outside of a noticed meeting. In other words, boards will be able to meet in closed (“executive”) session to discuss specified topics without calling an open board meeting. With very limited exceptions, boards still must vote on matters discussed in closed session at noticed, open board meetings.

Second, the categories of topics which may be discussed in closed session have been broadened. Condominium and CICAA association boards will have the authority to engage in the following conduct in closed session: discuss pending or probable litigation; discuss the appointment, employment, engagement or dismissal of an employee, independent contractor, agent, or other provider of goods and services; interview a potential employee, independent contractor, agent, or other provider of goods and services; discuss rule violations; discuss assessment collection matters; and consult with association legal counsel. CICAA association boards also may meet in closed session to “discuss third party contracts.”

In our opinion, these changes will be of significant practical benefit to associations. While we continue to advise our association clients to limit use of closed sessions to appropriate circumstances, the changes make it clear that boards may, for example, conduct violation hearings and meet with their attorneys without having to call open board meetings, so long as voting occurs at open board meetings.

These changes will take effect on January 1, 2017.

Ombudsperson

The Condominium Act and CICAA have been amended with respect to state ombudsperson’s office requirements. All associations subject to the Condominium Act (including master associations) or CICAA now have until January 1, 2019 to adopt a written policy for resolving complaints made by homeowners. The previous requirement that associations register with the Illinois Department of Financial and Professional Regulation has been repealed. These changes took effect on August 12, 2016.

Condominium Association Loan Authority

Subsection 18.4(m) of the Condominium Act has been changed to provide that condominium associations will have the right to pledge substantially all of the assets of the association by a majority vote of the board, regardless of restrictions requiring unit owner consent which may appear in the condominium instruments. This important change will eliminate a common impediment to condominium association common element repair loan transactions. This change will take effect on January 1, 2017.

Board Size

The NFP Act has been amended to expressly provide that the Illinois Secretary of State may cause a not-for-profit corporation to be dissolved if the corporation fails to maintain at least three directors. This change took effect on July 1, 2016.

Successor Developers

The Condominium Act and CICAA have been amended to provide that assignments of developer rights to a successor developer must be in writing and recorded with the office of the county recorder. These changes will take effect on January 1, 2017.

CICAA Association Community Instrument Amendments

CICAA has been amended to clarify technical requirements for amendments to community instruments. This change will take effect on January 1, 2017.

Technology Clarification

Minor language clarifications relating to the use of technology have been made to the Condominium Act and CICAA. These changes will take effect on January 1, 2017.