You may display an American or military flag

Q: Our association has very strict rules regarding the display of flags by owners. With Independence Day here, are there any Illinois laws on this issue?

A: The display of flags is governed by Section 18.6 of the Illinois Condominium Property Act and Section 1-70 of the Illinois Common Interest Community Association Act. A board of a condominium or common interest community association may not prohibit the display of the American flag or of a military flag, or both, or the installation of a flagpole, on or within the limited common areas and facilities of a unit owner, or on the immediately adjacent exterior of the building in which the unit of an owner is located.

This applies regardless of any provision in the declaration, bylaws, rules, regulations or agreements or other instruments of a condominium association or a master association or a common interest community association.

The American flag that is permitted to be displayed is defined in Chapter 1 of Title 4 of the U.S. Code. It states that "The flag of the United States shall be thirteen horizontal stripes, alternate red and white; and the union of the flag shall be forty-eights stars, white in a blue field." The Code further states that "(o) n the admission of a new State into the Union one star shall be added to the union of the flag." Hence, there are fifty stars on the American flag.

"Military flag" means a flag of any branch of the United States armed forces or the Illinois National Guard made of fabric, cloth or paper displayed from a staff or flagpole or in a window, but "military flag" does not include a depiction or emblem of a military flag made of lights, paint, roofing, siding, paving materials, flora or balloons, or any other similar building, landscaping or decorative component.

Nonetheless, a board may adopt reasonable rules and regulations, consistent with the United States Code, regarding the placement and manner of display of the American flag, and of a military flag, and regarding the location and size of flagpoles.

Q: The board of our condominium association is in the process of preparing rules regarding the display of signs in windows. Our declaration states that "No 'for sale' or 'for rent' signs, advertising or other displays shall be maintained or permitted on any part of the property except at such locations and in such form as shall be determined by the board." What sort of restrictions can the board adopt?

A: In the case of Boucher v. 111 East Chestnut Condominium Association, the Illinois Appellate Court held that condominium unit owners have a right to freedom of speech, and that an association's rules and regulations cannot impair an owner's right to exercise such rights, as confirmed by Section 18.4(h) of the Condominium Property Act. Balancing the language of the declaration with First Amendment rights of condominium unit owners, the board should be able to adopt reasonable time, place and manner restrictions on the display of signs on the property, including the windows.

Q: Our fiscal year ended June 30. However, the board was unable to adopt a new budget before July 1. What happens if the board does not adopt an annual budget before the start of a new fiscal year?

A: 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.