Privacy Laws

I want to begin by saying that this site is wonderful!
I have a question hopefully someone can answer, we have a not for profit condo association in illinois. Recently, rumor is that there are a couple families in our building (over 200 units) that are section 8. The building is mostly owner occupied but many have rented their units out. The only way anyone would have found this out is through the management company or a board member, because all unit owners are required to provide a copy of the lease. I am afraid that privacy laws have been violated and if these families find out that members are gossiping about their situation, are we opening ourselves up to litigation. Also, because of this information, the board is recommending that we go 100% owner occupied. The reason was not stated that this is the reason but this is the rumor, leaked by either management or a board member. So..

1. Is the association open to litigation?
2. Did the manager and/or board member violate privacy laws?

The Section 8 Rental Voucher Program increases affordable housing choices for very low-income households by allowing families to choose privately owned rental housing.

thanks georgia.. i can add that to my knowledge base. Never heard of that before.

First, thank you for your responses. I ask because,yes, they have definite proof, its in the lease agreement, which must be provided to the management office, per our by-laws. The people are new in the building and dont know anyone yet, and I dont think they would advertise their financial situation to anyone- this is an affluent community.

I personally dont have a problem with this family. I have tried to explain this to the gossipers in question because, when you have section 8 the government guarantees the payment of the rent on time every month for this family. They must in turn, abide by all rules and not violate the lease in any way, or they lose their section 8 voucher, which to me protects the building more so than the regular renters that have broken the rules and have damaged our property to the extent that they had to be evicted.

Let me point out that this is a minority family and only 1 of 2 in the entire building.

I personally dont care about the background of the owners or renters unless they are criminals, sex offenders, etc. My concern is if this family hears about the rumor somehow, are we open to litigation? This had to have been leaked by the manager or one of the board members, they are the only ones who are privy to this information.

I am currently running for the BOD and a lawsuit is something I do not want.

P.S. I do not gossip or spread rumors, I find it disgusting and inappropriate. Unfortunately I cant stop others from doing it.