Associations have remedies to collect unpaid assessments
By David M. Bendoff
Q: I have fallen behind in the payment of my assessments. As a result, my condominium association issued me a 30-day demand for the unpaid assessments. They then filed a suit against me to evict me from my condominium when I could not pay.
I admit I owe this money, and I have not paid it yet for various reasons. Now I have been given notice of eviction and that my belongings will be removed from my unit on a certain date.
I own my condominium unit and I have no mortgage. Can the association actually evict me even if the amount owed by me to the association is far less than the value of the condominium?
A: I have written about this issue numerous times over the years, and owners are often surprised by the response.
Illinois is unique in that it allows condominium and common interest community associations to use the forcible entry and detainer (eviction) lawsuit to collect unpaid assessments from unit owners. This is similar to the legal action that a landlord takes against a tenant who is not paying rent. This legal remedy allows an association to obtain an order of possession of the owner's unit.
If the owner does not satisfy the judgment within a time set forth in the court's order, the sheriff will evict the owner from the unit and the owner's possessions will be removed from the unit, and the sheriff will deliver possession of the unit to the association.
However, let me underscore that the association takes temporary possession of the owner's unit. The association does not take ownership of the unit. So, the value of the unit, compared to the amount of the judgment, is not legally relevant.
Once the association takes possession of the unit, the association leases the unit to a third party. The rent received pays the judgment. Once the owner's account is brought current, possession of the unit can be restored to the unit owner. The forcible entry and detainer action is very effective and the potential for eviction can persuade owners to satisfy a judgment to avoid being evicted.
Further, since the association is entitled to recover its attorney's fees from the defaulting unit owner, it can be a very expensive situation for the owner.
Q: My association levied a large assessment that will be due in a lump sum of several thousand dollars in a few months. The special assessment is needed to pay a contractor to replace the roof. If an owner is unable to meet that payment, does the owner have any options?
A: Some associations levy a special assessment that is due and payable in installments over a period of time. However, if the funds are needed immediately, the special assessment is likely to be due and payable in a lump sum.
You could speak to your association and ask whether it will work out some sort of payment plan with you. However, that is less likely to happen if the association needs the money immediately to pay a contractor.
An owner who is unable to make the lump sum special assessment payment to the association should speak with their bank about getting something like a home-equity loan. That way, the assessment will be paid to the association, and you will be able to repay the loan to your bank over a period of time in what are hopefully more affordable monthly amounts.
However, if you fail or refuse to make the special assessment payment to the association when due, you could find yourself in the unenviable position of the person in the question above.
• 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.