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8 THE CHICAGOLAND COOPERATOR —FALL 2019 CHICAGOCOOPERATOR.COM CONT... nation, Illinois law does in fact provide for the eviction of condominium owners. action can be brought to foreclose the lien moving a rental tenant from an investor going to court. “The association can seek “In Illinois, we have a unique remedy for that is similar to a mortgage foreclosure unit is no easy feat either. Schechter ex- eviction and collection of unpaid mon- etary obligations,” he says. “It is primar- ily for uncollected monthly assessments, ply the proceeds to payment of the debt. tenants, regardless of how offensive their to themselves, others or the property, you but could also include fines and charges It is important to note that in the event behavior may be. Even if the tenant were can get a civil commitment, which would of other kinds that the owner has failed to there is a first mortgage on the unit, the to be in constant violation of a provision get the resident out.” pay. In most jurisdictions, you cannot get bank’s lien is superior to the condomin- someone out with an eviction case. You ium’s lien. There may be one other step regulations, the condominium is still un- have to go through a lien foreclosure. In that can be taken to encourage the unit able to remove the tenant because the Illinois, we do have that remedy as well, owner to pay the money due. Depending condominium is not in privity with that but we use it sparingly.” Kim goes on to explain that the evic- tion does not transfer title for the prop- erty; it merely transfers possession. The statute was challenged in court many years ago, but was upheld and found to be constitutional. It’s similar to a landlord- tenant eviction remedy, but has distinct procedures. When an owner is evicted under the statute, there is a 60-day stay issued during which the owner can cure the offense by bringing his or her ac- counts current. If the owner is willing and able to do that, then the eviction order is vacated. If not, the owner is evicted from and regulations, it may be possible to sus- the premises. This procedure can be used pend certain non-essential services that such as blood, lease, or service. - to collect unpaid fines as well. Once the the unit owner receives.” condominium association has taken the unit, the association can lease the unit “While a unit owner in a condominium take action to evict the tenant.” out and collect rent from it. If the unit is cannot be removed for non-payment of already leased out and the tenant is desir- able, the association can choose to let the can be utilized by condo boards to ac- tenant remain and take an assignment of complish the same result. For example, buy a unit – so presumably, they’ve read the rent it is paying. Julie Schechter, a partner at the New minium can request the court appoint a never so much as glanced at those docu- York City law office of Armstrong Teas- dale, explains that a condominium asso- ciation has recourse against a unit owner and refuses to pay the rent ordered by that they and/or their tenants will comply only for monetary defaults issues – and the receiver, the condominium board can with those rules and regulations. Despite that means non-payment of common bring an action to remove the unit owner that, if the tenant violates the rules and charges, almost exclusively. Unlike co-op for failure to comply with the receiver’s regulations, the unit owner has an obliga- shareholders, condo owners cannot be order. If the action is successful, the unit tion to begin proceedings to remove the removed for bad behavior. She describes owner can be removed.” the process as follows: “When a condominium is owed com- mon charges, the board can file a lien ciates in Wyckoff, New Jersey, says that “The best leverage under most governing against the unit. Once the lien has been getting an owner out of their unit “is not documents is when an association stands filed, the board has two options: it can like a landlord-tenant situation. The only in the shoes of the owner. The owner has bring an action to recover the money due, way to remove an owner is if he or she a renter, the renter is a problem, but the or it can foreclose on the lien. Neither defaults and you can get a lien, foreclose owner doesn’t take action. Many times, is very fast, but a lawsuit to recover the the lien, get a sheriff’s sale, and dispose of an association’s governing documents say money due is less expensive and faster the unit.” In other words, a removal has the association may step into the own- than a lawsuit to foreclose the lien. If the to be for monetary default. “If it’s non- board is successful in a lawsuit to recover monetary, you can get sanctions and fees, That’s the best leverage over a renter.” the money due, it will obtain a money and maybe some monetary relief, but it’s judgment that can be enforced against virtually impossible to remove someone to the resolution process in condomini- bank accounts or other assets of the unit if they own the unit.” owner. The assistance of an enforcement official like a city marshal or sheriff is re- quired to enforce the judgment.” Alternatively, Schechter continues: “An unit may be nearly impossible – but re- action. If the action is successful, the re- sult is a judgment to sell the unit and ap- on the bylaws, and the community’s rules tenant. (Privity is a relationship between She also outlines a possible scenario: privity with his or her tenant, and can common charges, there are tactics that and regulations set forth in their commu- during a foreclosure action, a condo- receiver to collect rent from the unit. If ments, they can’t claim they didn’t know. the unit owner is still living in the unit Regardless, a reasonable expectation is Scott Piekarsky, Managing Member board. with the law firm of Piekarsky & Asso- Removing an Association Member’s Tenant Removing an owner from his or her iums be offered ADR in the form of pro- plains: “Condominium boards lack the never seen anyone forced out through in- legal standing to remove unit owners’ junctive relief though. If they are a danger of the condominium’s bylaws or rules and two parties that is recognized by law, Ed ) The condominium unit owner, however, is in Unit owners are locked into the rules nity’s governing documents when they and agreed to them. But even if they’ve tenant – not the condo association or its In New Jersey, explains Piekarsky: er’s shoes and take the necessary action. New Jersey law also adds another layer um disputes, which is an alternative dis- pute resolution (ADR). New Jersey state law requires that all owners in condomin- fessional mediation or arbitration before injunctive relief,” Piekarsky says. “I’ve Bad Behavior For Chicagoans, Kim describes anoth- er method of removal unique to Illinois. It is called involuntary sale and can be used when a unit owner’s behavior is tru- ly beyond the pale. “In the Illinois Con- dominium Declaration, there is an action called involuntary sale wherein if an own- er commits serious material default – not necessarily monetary, but rather a breach of covenants – an association can notify the owner and give notice of 10 to 30 days to terminate their right to possession and ownership. If the owner doesn’t sell their unit in that period, the association can institute an involuntary sale proceeding. They can ask for a judicial sale with a re- straining order to prevent the offending owner from redeeming the unit or buy- ing it back himself at the sale.” Of course, all outstanding lien holders are protected under such a sale, should it occur. Overall, the power of a condominium association is sharply limited in most states when it comes to removing trouble- some or non-paying owners and/or their tenants. When problem situations arise, associations should act quickly and turn to their attorney for help with a resolu- tion. Dawdling will only cause unpaid charges or offensive incidents to pile up. Ownership comes with rights and re- sponsibilities, as does the stewardship of board members. Both should be taken se- riously and acted on with alacrity. n A J Sidransky is a staff writer/reporter with The Chicagoland Cooperator, and a published novelist. REMOVING A ... continued from page 1 “In Illinois, we have a unique remedy for eviction and collection of unpaid monetary obligations. It is primarily for uncollected monthly assessments, but could also include fines and charges of other kinds that the owner has failed to pay.” — Michael Kim