Summary of new Ombudsperson Act

As noted in last week's column, laws were enacted last year, effective Jan. 1, affecting Illinois condominium associations and common interest community associations. Today's column will focus on the changes to the Common Interest Community Act, and the new Condominium and Common Interest Community Ombudsperson Act.

With respect to the Common Interest Community Act, there is really only one change. A new Section 1-90 is added that provides that every common interest community association, except for those exempt from this Act under Section 1-75, must comply with the Condominium and Community Interest Community Ombudsperson Act and is subject to all provisions of this law. Notably, this new section is automatically repealed July 1, 2021.

Note that amendments to various sections of the Common Interest Community Association Act were effective in 2015. Not too exciting, but they provide that a common interest community association can be organized as a limited liability company, established by articles of organization, and governed by an operating agreement. As such, the articles of organization and operating agreement are included among the books and records available for examination and copying by members of the association in Section 1-30(I). Affiliation with a limited liability company is added to the list of entities with whom the board member conflict of interest provisions of Section 1-30(b) apply.

Let's discuss the Condominium and Common Interest Community Ombudsperson Act.

On July 1, 2016, the Condominium and Common Interest Community Ombudsperson Act will go into effect. It establishes the Office of the Condominium and Common Interest Community Ombudsperson. This regulatory division is designed to educate and assist condominium and common interest community owners and managers about the Condominium Property Act and the Common Interest Community Association Act.

The "Ombudsperson Act" also tasks the division with responsibilities, including association registration, legislative reform, complaint resolution and enforcement. Notably, complaints can't be filed by unit owners until July 1, 2019, and the law will be automatically repealed July 1, 2021. That said, unit owners and associations will need to be aware of this limited life legislation and its effect on their community.

Here are some of the highlights of the Ombudsperson Act.

• By Jan. 1, 2017, associations must adopt a written policy for resolving complaints made by unit owners. The policy must include a sample form upon which owners can make complaints, a description of the process by which complaints are to be delivered to the association, the association's timeline and manner of making final determinations in response to a unit owner's complaints, and requirement that the final determination made by the association response to a unit owner's complaint be in writing, within a reasonable time after the unit owner's original complaint, and marked clearly conspicuously as "final."

• On or before July 1, 2018, the Ombudsperson must offer training, educational materials and courses to unit owners, associations, boards of managers and boards of directors in subjects relevant to the operation or management of condominiums and common interest communities under the Condominium Property Act and the Common Interest Community Association Act.

• Beginning July 1, 2019, qualifying unit owners may make complaints to the Ombudsperson for assistance in resolving a dispute between a unit owner and an association that involves a violation of the condominium or common interest community acts. Notably, the Ombudsperson may not accept requests for resolutions of disputes with community association managers, or of disputes for which there is a pending complaint in any court or administrative tribunal.

• In order for a unit owner to make a complaint, they must meet various qualifications, including that they must not owe any funds to the association unless those funds are central to the dispute, the dispute must have occurred within the past two calendar years, and the owner must have followed the complaint procedure within their own association and received a final adverse decision. The requirements of what must accompany the complaint are also outlined.

• Every association is required to register with the Department of Financial and Professional Regulation. A registration is effective for two years, and the initial registration for an association existing on July 1, 2016, is due within one year, or at such later time as the department has adopted rules and forms for registration.

Do note that common interest community associations that are exempt from the Common Interest Community Association Act are exempt from the Ombudsperson Act.

The foregoing is a limited summary of the new Ombudsperson Act and each condominium and common interest community association should become familiar with the full version of this new law.

• David M. Bendoff is an attorney with Kovitz Shifrin Nesbit in the Chicago suburbs. Send questions for the column to him at CondoTalk@ksnlaw.com. The firm provides legal service to condominium, townhouse, homeowner associations and housing cooperatives. This column is not a substitute for consultation with legal counsel.