Prospect Heights homeowners sue to block condo deconversion

Condominium owners in Prospect Heights are suing to block their homes from being converted into apartments.

Board members of the River Trails Condominium Association want sell the 16-building, 360-unit complex to developers interested in deconverting the condos located south of Palatine Road and west of Milwaukee Avenue. But homeowners, who say they weren't consulted about the plan, have been fighting the sale since May.

A vote in August failed to remove the board of directors. Though homeowners argued they had enough support, an attorney for the condo association said not enough people attended the meeting to oust the board.

According to the bylaws, board members may be removed with a two-thirds majority vote of homeowners at a special meeting. Homeowners interpreted that to mean if they could establish a quorum - 20 percent of unit owners - then two-thirds of those in attendance would need to vote in favor of the board members' removal.

After the vote, however, the condo board's lawyer, Stuart Fullett, said two-thirds of all homeowners, not just those present, needed to vote for any removal to occur.

The lawsuit filed in Cook County court in late August claims the attorney's interpretation of the bylaws was incorrect.

Converting condos to apartments has been trending in the Chicago area as developers see opportunities for higher profits in a depressed condo market. Occupancy rates for apartments have been historically high, and developers have been seeking to fill demand for residents who want to rent rather than own property.

Fullett was not immediately available for comment Friday morning.

The homeowners are represented by Schain, Banks, Kenny and Schwartz in Chicago.