State Supreme Court Holds Key in Condo Assessment Case (tenants, 2013, fees)

[LynnHarris]

This is definitely an interesting case for all HOA condo communities in the Chicago area. This ruling could also potentially spark cases in other states.


"High court ruling could allow owners to withhold payments if associations fail to maintain building..."

http://www.chicagotribune.com/news/l...,4795580.story[/SIZE]

[rational1]

> But the appellate court sent Carlson's case back for a new trial, ruling that if an apartment tenant facing eviction for nonpayment of rent can use a landlord's failure to maintain the building as a defense, condo owners should have the same option.

Curious case. I wonder whether this will survive (or get) further review. Equating landlords and a tenant association seems to be a stretch.

I wonder whether a suit to force the association to make the repairs would have been a better use of legal help.

[middle-aged mom]

While I am in the greater Chicago areas, I do not work the area where this situation has been playing out.


What's missing in this particular story is why the association did not take care of the roof when it first began leaking. If reserves were inadequate to fund repairs or a replacement, state law empowers the association to impose a special assessment on all owners.


If on the other hand, the association's accounts receivable were substantial, it's less likely a bank would have given the association a loan to take care of business.


If the association's accounts receivables were substantial it's also more likely the association was using reserves to take care of routine business due to cash flow problems.

Given at some point she paid off her obligation, it appears this is all about rights and remedies.

It will be interesting to watch how this pans out.

[IC_deLight]

Originally Posted by rational1

> But the appellate court sent Carlson's case back for a new trial, ruling that if an apartment tenant facing eviction for nonpayment of rent can use a landlord's failure to maintain the building as a defense, condo owners should have the same option.

Curious case. I wonder whether this will survive (or get) further review. Equating landlords and a tenant association seems to be a stretch.

Except that Illinois treats condo owners as tenants as opposed to "owners". Illinois permits an "eviction" action to evict a condo owner from their own condo for failure to pay assessments.

This is largely the result of an aggressive, greedy industry that lobbied for laws that treated homeowners as tenants to begin with. You are correct that the condo corporation is not a landlord nor is it an owner. The law was written to treat homeowners as renters for the benefit of the condo management companies and attorneys trade groups. The natural result is that homeowners should have the same defenses that a renter has if they are going to be treated as renters under Illinois law.[/quote]

I wonder whether a suit to force the association to make the repairs would have been a better use of legal help.

Not paying is a more cost effective way of bringing down the condo corporation. When you sue, the condo corporation might have insurance that provides the cost of defending whereas the owner will be out of pocket for the lawsuit plus assessments.