NEWS
from the Illinois General Assembly
State Senator Susan Garrett
State Rep. Elaine Nekritz
FOR IMMEDIATE RELEASE
April 12, 2006
FOR MORE INFORMATION
Susan Garrett (847) 433-2002
Elaine Nekritz (847) 257-0450
GARRETT AND NEKRITZ SEND CONDOMINIUM LEGISLATION
TO GOVERNOR

SPRINGFIELD – Because of concerns of condominium owners from Des Plaines to Lake Forest, State Senator Susan Garrett (D-Lake Forest) and State Representative Elaine Nekritz (D-Northbrook) have sponsored legislation addressing issues affecting condominium owners and associations. House Bill 5267 provides greater flexibility for condominium associations in amending their governing documents. Senate Bill 2570 provides protection for condominium associations when a unit goes into foreclosure. Both bills have been approved by both chambers of the General Assembly and will now be sent to the Governor for his approval.

House Bill 5267 prohibits a condominium declaration from requiring more than a three-quarters majority vote to amend the declaration or by-laws. Previously, condominium developers could stipulate in the declaration that 100% of owners had to agree to a change in by-laws. This meant that a developer could exercise undue influence over the formation and operation of the condominium association as long as the developer retained ownership of even a single unit.

HB 5267 resulted from a discussion at a January meeting of the Des Plaines Condominium Alliance where numerous residents expressed concerns to Senator Garrett and Representative Nekritz about a range of problems with developers, homeowners associations, and condominium declarations.

“We are pleased that our colleagues recognized this bill as an important measure for condominium owners,” said Representative Nekritz.  “The legislation will give condominium associations more flexibility in amending declarations and by-laws and in ensuring these documents meet the needs of the homeowners in the association.”

Senate Bill 2570 provides that when a condominium unit goes into foreclosure, the purchaser will be responsible for payment of up to six months of association fees. Previously there was no provision for payment of these fees in cases of foreclosure, and condominium associations often had to absorb them. This bill also arose from discussions with constituents, this time in Lake Forest.

“With the growth in the condominium industry, we need to make sure owners and associations are fully protected and have the ability to resolve issues without a myriad of unnecessary restrictions,” Senator Garrett said.

In the metropolitan Chicago area, 54,993 condominium units were sold in 2005, a 9.6% increase over the 50,162 units sold in 2004, according to the Illinois Association of Realtors. A similar increase was noted from 2003 to 2004.