Condominium Property Act

P.A. 94-0384 (S.B. 0764): Act amended code sections 765 ILCS 605/9.2, 765 ILCS 605/18.4, 765 ILCS 605/18.5. Effective January 1, 2006.

Public Act 94-0384 (the Act) amends the Condominium Property Act in three ways. The first change affects 765 ILCS 605/9.2, which addresses the sharing of expenses among the unit owners and developer of a condominium. The Act does not allow the association of all the unit owners (association) to charge an individual unit owner for the costs associated with the collection of that unit owner's financial obligation to the association as part of the unit owner's common expenses. "Common expenses" are determined by the Board of Managers of the association and refer to the actual and proposed fees a unit owner pays that affect the property and reserves of the unit. 765 ILCS 605/2.

However, the association may charge a collection fee as part of a common expense under the following conditions: (1) the fees are attorneys fees; (2) the fees relate to the costs to collect common expenses; (3) the fees are set in a contract between the managing agent of the association and the association; and (4) the power to add such a fee is specifically granted in the bylaws or declaration ("the instrument by which the property is submitted to the provisions of this Act;" 765 ILCS 605/2) of the association. The Act also amends 765 ILCS 605/18.5(c) by inserting the provision it added to 765 ILCS 605/9, so that a master association may not charge unit owners for collection fees unless the fees fall into the categories above. A master association is a nonprofit corporation or association that the association delegates to do any of its powers. 765 ILCS 605/18.5(a).

Finally, the Act creates a duty on the Board of Managers of the association to accept service of notice for mechanic's lien claims when the claim relates to a contract the Board of Managers entered into or when the contract was made before the recording of the condominium declaration for properties with eight or more units. The Board of Managers should then notify the unit owners of the claim within seven days of accepting the service.

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