Yesterday, in a move that recognizes the voluminous complaints lodged by community associations across Illinois, the Governor amendatorily vetoed Senate Bill 2664 to allow for some concessions for community associations.
As many of you may know, last Spring, the Illinois legislature passed SB2664 despite the immense lobbying efforts of those in the community association industry. As originally drafted and approved (barely) by the legislature, SB2664 would have prohibited condominium associations from collecting certain charges and expenses from a third party purchaser of a foreclosed condominium unit following a foreclosure sale. The list of prohibited expenses included special assessments and chargebacks. The bill also sought to limit the collection of late fees, attorney’s fees and court costs.
In essence, although the bill expanded a condominium association’s right to collect unpaid regular assessments on foreclosed units from 6 months to 9 months, the proposed bill would have prevented many associations from collecting amounts that were being collected by associations under the existing law. Following the passage of the bill in May, community associations and organizations across Illinois engaged in a campaign against the signing of the bill. Many groups proposed amendatory language to Governor Quinn in an attempt to lessen the blow that the original draft of SB2664 would have on community associations.
In a statement issued to the Illinois House of Representatives on August 19, 2014, Governor Quinn explained that his decision in issuing this amendatory veto was motivated with the intent to “ensure that the interests of homeowners are protected and that the proper entity bears the costs when someone loses their home.”
Although the Governor did not enter an outright veto of SB2664, his amendatory veto – if passed- will require third party purchasers to pay up to 9 months of regular assessments and the remainder of charges will fall on the banks to pay.
At this time, the Senate sponsor can move to accept the Governor’s modifications to the bill, move to override the veto, or not act at all, which would allow the current law to remain in full force and effect.
We will continue to keep you informed of the progress of this bill and the effect it will have on your community association.
Since 1983, KSN has been a legal resource for condominium, homeowner, and townhome associations. Additionally, we represent clients in real estate transactions, collections, landlord/tenant issues, and property tax appeals. We have four office locations, serving hundreds of clients and thousands of communities throughout Illinois, Indiana, and Wisconsin. Our attorneys are also licensed in Arizona, Florida, and Missouri.
If our law firm can be of assistance, please call 855-537-0500 or visit www.ksnlaw.com.