Video doorbell in condominium raises privacy issue
Q. We installed a video doorbell on the door of our condominium unit. Our neighbor in the unit across the hall, whose door is directly across from our door, complained to the board saying she felt we were spying on her. The board had us remove the video door bell. Was that proper?
A. The neighbor in the hall across from your unit has a reasonable expectation of privacy. To the extent the video from the video door bell captures the inside of her unit, her privacy is being invaded, and it was proper for the board to request that it be removed.
In a situation where the video camera merely captures the common elements/common area, it's less likely that an owner has a reasonable expectation of privacy.
Q. My association is considering amending the declaration to prohibit various things that were permitted when I purchased my unit. These include leasing of units and ownership of dogs. I don't lease out my unit or have a dog now, but I may want one later. Since leasing and dogs were permitted when I bought my unit, would I be bound by this amendment?
A. Yes. Appellate court decisions have made clear that owners purchase units subject to the ability of the association to amend the governing documents. An association can amend the declaration to prohibit dogs from being kept on the property. Because of the potential for a challenge, the association must carefully follow the amendment procedures described in the declaration. Such an amendment should include appropriate "grandfather" language.
Q. Our condominium bylaws provide that if an owner is in default for 30 days, the association may assess a late charge of 4 percent of the outstanding assessment and charges for each month, or part thereof, that there is a balance on the owner's account. Is that permitted?
A. Section 18.4(l) of the Illinois Condominium Property Act states that a board may impose charges for late payment of a unit owner's proportionate share of common expenses, or any other expenses lawfully agreed upon.
There have been a couple of appellate court cases on late fees (referred to as a "service charge" in your documents). The bottom line with respect to the levying of a late fee is that it cannot be compounding.
That is, the late fee can only be charged in the month that an assessment is paid late or not paid all. It cannot be charged for each month there is simply an outstanding balance of assessments or other charges - as provided in the bylaws. Therefore, the provision of your association's bylaws violates Illinois appellate level case law.
Further, the late charge must seek to cover the lost value of money and the administrative costs and lost income attributable to pursing delinquent payments. The late fee can't be punitive. So, there is liability risk if the association levies a late charge for every month that there is simply an outstanding balance.
I don't know what 4 percent of your monthly assessment is, so I can't comment further as to its "reasonableness."
Q. It's almost April and the board of our association has yet to adopt the budget for 2019. What assessment amount should owners be paying to the association?
A. I can't imagine too many legitimate reasons for a board not to have adopted its 2019 budget by now. That said, the typical provision of an association's declaration or bylaws provides that if the budget is not adopted by the beginning of the new year, the monthly assessments would continue at the then existing amount until the budget for the new fiscal year is adopted. Once a new budget is adopted, any change in assessments for the full year would be spread over the remaining months of the new fiscal year.
• 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.