Thankfully, at thispoint, we havenot seenmass “assessment strikes” sending Associations to ruin. This is likely due to an understanding that payment of assessmentsf


rights of Associationsf to proceed under the Eviction


is a


statutory and contractual obligation existing independently of thef Act.


Despite the pandemic, Associations must handle their collection activities with reference to Section 18(o) of thef Illinois Condominium Property Act (“Act”) which provides that Boards “shall have no authority to forbear the payment of assessmentsf


there can be no straight up “forgiveness” of assessmentsf


by any unit owner.” What this means is or


“holding off” on collection activity—the assessments must be collected. Not collecting assessments, despite potential hardships, may leave a condominium association without the funds necessary to meet its ongoing expenses, affecting unit owners’ investments


Assessments are calculated based on anAssociation’s approved budget, consisting of fixedf


expenses for operating


the association; from paying utility bills to keeping the lights on in common areas, elevators operating, payroll for staff, insurance, necessary maintenance, repairs and replacements of thef


common elements, and other costs.


The Associations that continue to keep reasonable balance sheets and post consistently lowy


w delinquency


rates despite the suspension of judicial remedies in my view, possess the following attributes:


• Associations succeed in this environment when they have clear and nimble collection policies that lets Unit Owners know exactly the steps that will be taken upon a delinquency. The consistency by which Associations have delegated their policies to managers and other professionals takes away any concern or discretion that the Board is not acting in a fully predictable/transparent manner.


• By the same token, the pandemic has given associations the opportunity to revisit the content of their respective collection policies to provide a wider range of optionsf eviction moratorium.


necessitated by the current


• Given the uncertain timeline by which the Governor will re-institute evictions, well-functioning Boards will have policies that are realistic and flexible enough to allow for collections under the unique circumstances currently presented in the pandemic.


• Entering into realistic payment plans withdelinquent Unit owners is one way to achieve an acceptable resolution to delinquencies. The drafting of a comprehensive payment plan may give the board better leverage in the case of af breach that could save the Associationfunds down the road from having to file and serve court actions. Consequences for failure to abide by payment plans can include accelerations, confessions of judgmentf


and other


agreements that put the Association in the same functional position as obtaining a court order in the event of af departure from the payment terms in a payment plan.


• For special cases, Associations have turned towards the possibility of filing actions for amounts owed by Unit Owners based on contract alone. While these actions will not result in the Judgment for Possession that actions brought pursuant to the Eviction Act will provide, they will result in a simple money judgment based largely on factors similar to those used in eviction actions. Depending on the amount owed, Associations should consider whether such actions would result in judgments that can be collected.


• We still recommend the placing of liens on units early in the collection process. The liens will protect the association in collecting amounts owed should the unit be transferred with a delinquent balance.


• Late fees are, in certain circumstances, something that might be waived in a pandemic in exchange for cost certainty. Although it should not be a regular board practice, it may serve as a means to obtain a payment plan that provides the incentive for a lower total payment in exchange for curing the delinquency over time.


The judicial protections occasioned by the pandemic will likely last through the winter of 2020-2021.f


Associations


should continue to aggressively pursue their collections policies during this time with a closer eye towards understanding different opportunities to resolve matters within Boards’ legal rights.


As always with issues such as this, a strong relationship with the Association’s manager, attorney, and accountant can assist Boards in staying on top of their obligations during this unprecedented time.


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