Condominum associations are often one of the more affordable living options in many areas of Chicago. Condos allow residents to focus on the maintenance of their own unit without worrying about larger maintenance issues, such as snow removal, landscaping, etc.
That said, purchasing a condo is a major investment in many respects. In addition to the monetary investment of an initial down payment and mortgage, there are also significant financial and legal implications involved.
To learn more, check out this article filled with answers to frequently asked questions from recent condo purchasers and those exploring the market.
We have been processing a large number of sales recently at Haus Financial Services, and in the process we are finding that many clients are unclear about how rental restrictions are handled in a condominium association. Board members are stating restrictions that do not exist in their governing documents, and therefore are not legally enforceable against unit owners.
It's important for buyers to be properly educated about any rental restrictions when they are considering a purchase in your builidng, and it's important for the board to understand how those restrictions must be implemented. Attempting to infringe on an owner's right to rent their unit without the proper documentation in place can cause major legal headaches for your association.
The best way to impose rental restrictions is via an amendment to your Declaration. This requires a super majority vote of at least 2/3 of your owners. The amendment document must be drafted by an attorney and properly recorded. Because the process of adopting an amendment is fairly involved, it is considered the most valid and legally enforceable way to enact rental restrictions.
If the association's Declaration is silent on the matter of rentals, the board may impose restrictions via Rules & Regulations, which are more easily adopted and also more easily changed. However, Rules & Regulations do not carry the same weight as an amendment and therefore are not considered the best way to legally enforce restrictions.
For more information on this topic, see this article.
On April 18, US Reps. Charlie Crist and Debbie Wasserman Schultz introduced the Securing Access to Finance Exterior Repairs (SAFER) in Condos Act of 2022, in response to the partial collapse of the Champlain Towers South in Surfside, Florida.
The legislation allows condominium homeowners to finance critical building repairs with loans backed by the FHA. It is inteded to reduce upfront costs to condominium homeowners facing special assessments to finance necessary building repairs.
Learn more about the SAFER in Condos Act here.
CAI Illinois is the Illinois chapter of Community Associations Institute, an international membership organization dedicated to building better communities. CAI knows that the best community associations have the best boards. The best board members are educated and prepared to lead their communities successfully.
Leading your association is challenging, and CAI's Condo/HOA Q&A is here to support you and help answer your questions. You can access a wealth of additional information and resources on the CAI Illinois website.
View all of their informative on-demand webinars here.