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,”
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,
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.
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.
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.
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.
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.