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Subject: Attn IL HOAs – new: Common Interest Community Association Act signed 7/29/2010
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BonnieE
(Illinois)

Posts:331


08/10/2010 5:59 AM  
From: http://www.ksnlaw.com/?t=11&la=1776&format=xml&p=1672

“The Common Interest Community Association Act was signed into law on July 29, 2010. Illinois is now one of the few states that has a separate law governing homeowner and townhome associations. …….”

http://www.ilga.gov/legislation/publicacts/96/PDF/096-1400.pdf

from definitions:

"Common interest community" means real estate other than a condominium or cooperative with respect to which any person by virtue of his or her ownership of a partial interest or a unit
therein is obligated to pay for the maintenance, improvement, insurance premiums or real estate taxes of common areas described in a declaration which is administered by an SB3180 Enrolled LRB096 20251 AJO 35836 b Public Act 096-1400 association. "Common interest community" may include, but not be limited to, an attached or detached townhome, villa, or single-family home, or master association.”

My condo HOA is apparently not affected, but we are also in a Master HOA which evidently would be affected, as may be the 3rd HOA under the Master HOA which I think is a townhome association (IMO).

Bonnie
MarieL
(Illinois)

Posts:77


08/10/2010 2:37 PM  
Hi Bonnie,
I live in Illinois ,in a townhouse association. We are incororated as a not-for -profit corporation.. How does this new act affect us and what does it mean to an association like ourscannot find any information on it, but I should explain I am visually imparied and have difficulty with the computer.Can you offer me any help or ideas of whatimpact this act has on our association and how its managed and admisistered to.
Thank you very much for any assistance.
MarieL
MaryA1


Posts:0


08/10/2010 3:58 PM  
Marie,

The fact that your HOA is a nonprofit corp has no effect on the law. You still must abide by the State nonprofit corp laws plus this new law that is specific to HOAs. If there is a conflict between the two sets of laws I would think the HOA laws would take precedence.
MarieL
(Illinois)

Posts:77


08/10/2010 6:26 PM  
Hi Bonnie,
Thank you so much for the valuable information.I managed to get on an attorney's website that gave me some information about the new Illinois Common Interest Community Association Act. Enough to know it will be a great asset to our pitifully run HOA.Where we're kept in the dark about finances, haven't had an audit of the books in years, board members paying themselves for phony services, hiring friends to work in the complex, who are not licensed,bonded orinsured and serving on the board for years and years,without change This Act should stop all this and many other questionable issues in our small association of 34 units, with 9 unchanging board members controlling it. ...
BonnieE
(Illinois)

Posts:331


08/10/2010 6:50 PM  
Hi Marie,

I only just found this new law and have not yet read it completely. The information I am providing is IMHO (I'm not an attorney). If your HOA is a condomium, then it probably does not affect you. My HOA looks like 2-story townhomes with about 5 per building, but we are condominiums.

Here is some information I found. I would suggest first determining whether you are a condominium HOA or a community interest HOA. If yours is a condominium HOA (regardless of what it looks like), then the new law (IMHO) does not apply as the new law excludes condominium HOAs. This is in the definitions section, under “common interest community” of the new law.

I also found this KSN article (KSN is al IL law firm specializing in HOA law) which describes the types of homeowner associations:

http://www.ksnlaw.com/?t=11&la=1139&format=xml&p=1672&pub=pp

I have copied a portion here:

“In response I explained that the physical structure of the building does not define whether your Association is a condominium, townhouse or homeowners association. The way to tell is to review the Declaration of Covenants, Conditions and Restrictions for your Association. In the first few pages of the documents there should be a section entitled "Recitals". If the Association is a condominium, the Recitals should state that the building and property are subject to the provisions of the Illinois Condominium Property Act ("Act"). If it does not, your Association is generally not a condominium association.

Further, under the Act, the name of the Association must contain the word "condominium". For instance, if your Association is called ABC Townhome Condominium Association, your Association is most likely a townhouse style association which is a condominium under Illinois law. However, I have reviewed several Declarations which are submitted to the Act which do not have the word "condominium" in the name of the association. In these situations, I believe the association is still a condominium and the name of the association should be amended to add in the word "condominium".”

Based on what the article states, you should be able to check your Declaration to determine which type of HOA you are.

Do you have a property manager? S/he may be able to help. Ultimately, if it is unclear which type of HOA you are, or if you believe you are a common interest HOA, you should probably ask your attorney as you might need to update your Declaration (IMHO, based on what KSN states about the new law).

I hope this helps.
Bonnie

PS – I also agree with what Mary said.

PPS – What types of difficulties do you have with your computer due to being visually impaired? I do not know if any of these would be of any help, but will share as FYI:

Windows has built-in tools to help with vision impaired;

the webanywhere site reads web pages aloud for free: http://webanywhere.cs.washington.edu/

and, the Foxfire web browser (free) delivers navigation for those who are vision or motor impaired
(I did a search on the KimKomando.com web site for this info – that is my “go to” site for information about computers)
BonnieE
(Illinois)

Posts:331


08/10/2010 6:52 PM  
Hi Marie - looks like we were responding at the same time.

Good luck with your HOA and the good changes that should be coming.

Bonnie
MarieL
(Illinois)

Posts:77


08/11/2010 6:27 AM  
Bonnie,
Thank you so much for all the information you provided. It is greatly appreciated.
Our association is a common interst community. It was formed in 1969 and our documents are very old. I am on the board,have only been on since January, but served at least 4 times in the past, but never with such unknowing members as there now are. We don't have an attorney and they are reluctent to spend the money to hire one. But perhaps with these new laws they will realize we need one now. We have a meeting tonight and I have advised them of the new laws and this should be our main topic of conversation.I will let you know how it turns out.
Thank you so much for all your info and help.
Marie
TishS
(Washington)

Posts:116


08/11/2010 8:15 AM  
If your HOA has been around since 1969. You need to have an attorney review your docs. Trust me I am living the results of not doing this it is expensive and not pretty. Spend the money for a few hours of advice and use this information to correct any potential problems. I would also go to the state and get a copy of your Articles of Incorporation and double check what is actually filed with the county...these are not surprises that are easily dealt with later when they cause a problem.

Do not trust what a title company may be providing, most title companies provide this information for only as a courtesy. It is your job to make sure it is accurate.
MarieL
(Illinois)

Posts:77


08/12/2010 4:27 PM  
Hi Bonnie,

Had our board meeting last night and it went well.Thanks to you I was able to inform the board of the new laws and they responded well. we will finally be hiring an attorney to revise our 41 year old CC&R's. which have long been out of date I have been assigned the task of finding the attorney and will start working on this Monday.Thanks again for your valuable info.
Marie....
BonnieE
(Illinois)

Posts:331


08/14/2010 6:35 AM  
Hi Marie,

Glad to hear your Board meeting went well. Wishing you the best in finding an attorney and getting your governing documents updated.

Bonnie
ReneeD
(Illinois)

Posts:201


08/17/2010 2:33 PM  
Hi, Bonnie. This new law quite interesting; thanks for sharing. No reference to Condominium is to be found in our Decs/ByLaws. Our Recitals only make reference to our association's name as "CSH Homes"; further down, only mentions Illinois Not For Profit Act. I sent an email to our CAM to see how much she knows of this. -Renee
JanieH1
(Illinois)

Posts:1


07/08/2011 4:15 AM  
I've recently been elected to our HOA Board as Treasurer, and literally stumbled on this site. Thank you so much for the insights about the new CICAA. Oddly enough, I think I'm in the unfortunate position of having to cite the requirements under this new law to the Board - specifically because I have been requesting the year-end audited financials and Treasurer's report for 2 months, and still don't have the "tools" to perform the duties of Treasurer. I'm also amazed that the other Members don't really understand how this new law impacts what we do, and our responsibilities, as Board members.
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Forums > Homeowner Association > HOA Discussions > Attn IL HOAs – new: Common Interest Community Association Act signed 7/29/2010



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