Update on Bills Altering the Condominium Property Act

Posted on April 30, 2008 by Ashley Brandt
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The two bills we've been tracking regarding the Condominium Property Act have had some modifications in the past few weeks.

 

On April 28, 2008, HB 5037 had a second amendment introduced which modifies the proposed changes to grant greater rights for notice regarding the owners of the condominium properties found to be in "distress."  The first amendment to the bill updated and clarified different provisions regarding the nature of distressed properties and elaborated on findings regarding "distress."

 

On April 18, 2008, HB 5189 was completely modified by a second amendment that modifies the rules concerning governing boards clarifying the rules on leasing units and also inserts a grandfather clause for unit owners who may be leasing at the time the governing board may enact rules regarding leasing.  The clause would allow the leasing unit owner to continue leasing until they sell the unit.

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The Statute of Repose and Mine Subsidence

Posted on April 11, 2008 by Ashley Brandt

In Ambrosia Land Investments, LLC, v. Peabody Coal Company (7th Circ., Doc. No. 07-1945) the Seventh Circuit tackled the fascinating question of whether or not the Illinois Construction Statute of Repose applied to a coal mine.  While we may not think this would be interesting to everyone, the construction statute of repose is actually a fun topic, and the 7th Circuit did a great job of covering the topic.

Along with a poignant discussion of the relevant Illinois case law regarding the statute, the court held that a coal mine on a piece of property would constitute an "improvement to real property for statute of repose purposes."  The court went on to find that the former mine owner was being sued as an owner of the mine and not as a party engaging in construction-related activities, so the plaintiff's case for damages to its property from mine subsidence did not fall under the activities covered by the statute.


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Proposed Amendments to the Condominium Property Act

Posted on February 29, 2008 by Ashley Brandt

Two new bills have been introduced to change the Condominium Property Act.


  • HB 5037 - Will allow municipalities the ability to appoint receivers for distressed condominium properties and eventually have the properties sold.  Of interest is the definition of  "distressed condominium property":

"Distressed condominium property" means a parcel containing condominium units which are operated in a manner or have conditions which may constitute a danger, blight, or nuisance to the surrounding community or to the general public, including but not limited to one or more of the  following conditions:  

(A) the building is substantially unoccupied, or  has serious violations of any applicable local building code;  

(B) 60% or more of the condominium units are in foreclosure or are units against which a judgment of foreclosure was entered within the last 18 months;

(C) there has been a recording of more condominium units on the parcel than physically exist;

(D) any of the essential utilities to the parcel or condominium units is either terminated or threatened with termination;

(E) there is a delinquency on the property taxes for at least 60% of the condominium units; or

(F) the board of managers has not met within the last 12 months or is otherwise not functioning."

While the act gives the receiver the power to enter into a sales contract for the property with court approval, it appears to be silent regarding any applicable standards for pricing the sale, or achieving any form of FMV.   

  • HB 5189 - In a possible response to a fluctuating real estate market, the bill would amend the act to statutorily provide that owners can rent up to 20% of the properties and that no condo board can enact rules to the contrary. 
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