Keough & Moody, P.C.


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Volume 5 Number 1 January, 2016 
In This Issue
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This month our feature article discusses the Appellate Court ruling in the  Alliance Property Management, Ltd. v. Forest Villa of Countryside Condominium Association  case, which was tried and argued at the appellate level by Gabriella Comstock of Keough & Moody, P.C. The decision in this case is a reminder that Palm v. 2800 Lake Shore Drive is here to stay!

Please ch eck out our event schedule below for information on upcoming events and educational opportunities. 

It is our pleasure to provide you with this newsletter and the information therein.  We welcome your suggestions for articles or other content which may benefit you.  Please feel free to respond to this message and we will gladly consider all comments.  

Lindsey Daehnke
  Marketing Coordinator
   Keough & Moody,P.C.

Recent Ruling by the Appellate  Court 
Reminds Associations that 
Palm v. 2800 Lake Shore Drive is Here to Stay
By Gabriella R. Comstock

Following Palm v. 2800 Lake Shore Drive Condominium Association, the Illinois Appellate Court recently ruled that a Board of Directors must strictly comply with the association's bylaws and that the authority vested to a Board of Directors is limited to that granted to it by the Illinois Condominium Property Act and/or the association's governing documents. Alliance Property Management, Ltd. v. Forest Villa of Countryside Condominium Association, 2015 IL App (1st) 150169.

Alliance Property Management entered into a management agreement with Forest Villa of Countryside Condominium Association. The term of the agreement was for three (3) years. The management agreement provided that Alliance would handle the day-to-day management of the building, prepare financial reports, organize association meetings, oversee Board elections and perform periodic inspections of the property. It also provided that Alliance would guide and assist the Board in their fiduciary duties and obligations and assist in the administration of the association's governing documents. After managing the Association for approximately two (2) years, but prior to the expiration of the original term of the management agreement, Alliance and Forest Villas extended their agreement for another three (3) year term. All other terms of the agreement remained the same.

Sometime thereafter, read more
Upcoming Opportunities 
to meet attorneys and staff from
Keough & Moody P.C. include:

Rolling Meadows
Thursday, January 14, 2016
7:00 PM to 8:30 PM

We will discuss legislative changes to the Illinois Condominium Property Act and Common Interest Community Association Act, which become effective in 2016. Topics will also include discussion on the 1010 Lake Shore case and the Ombudsperson Act.   Topics will also include:
~ The impact of 1010 Lake Shore Association v. Deutsche Bank
~ A summary of Case Law from 2015
~ Requirements of the Ombudsperson Act for Associations
~ Changes to the FHA Approval Policy

Click here to register.

Save the date for CAI-Illinois 2016 Condo HOA Expo
February 26 - 27, 2016

Click here for a guest pass.
Highlights of the Ombudsperson Act

          Effective July 1, 2016, the Ombudsperson Act (735 ILCS 615) creates an office of the ombudsperson for condominium and common interest communities.  The ombudsperson shall be charged with offering training and other resources to unit owners, Associations and Boards.  They are required to post specific information on the Department's website.  
 - The act requires that every association covered by the Act must create and enact an internal dispute resolution policy on or before January 1, 2017. 
 - Each Association will also be required to register with the Ombudsperson, with renewal every two years (no fee required).  There may be a fee imposed for failing to register or registering late.  Additionally, if an association fails to initially register two years after the effective date or fails to renew its registration on three or more occasions, the association's right to enforce its claim for unpaid assessments may be suspended during the period of non-registration.
Learn more about this act and other legal updates
at our seminar on January 14th.  Click here for details.

FHA Condo Approval Updates

FHA made some revisions to their condo guidelines in November on Mortgagee Letter 2015-27. It addresses allowing 2nd homes to be considered as owner-occupied under certain criteria which is expanded from their previous 2nd home requirements. They now allow co-insurance under certain parameters as well as pooled insurance and state run plans. Lastly, they revised their required re-certification documentation and do not require legal documents (Declaration and Bylaws and amendments) that were previously submitted and accepted by FHA as long as it is from the last approval and is within their current re-certification requirements. However, the legal documents will still need to be reviewed to be certain they are still compliant with current FHA guidelines and interpretations. Click here to review the highlights of these changes.

If your association would like to consider FHA approval, click here to request a proposal.


  Keough & Moody, P.C. ("Keough & Moody" or "we" or "us") provides its newsletter for informational purposes only. The information contained in this newsletter is not legal advice.  Your communication with us through this Newsletter, or by other means, does not create an attorney-client relationship between us. Please do not disclose any confidential information to us in response to this newsletter, or otherwise, because we will have no obligation to keep that information confidential unless and until a formal attorney-client relationship is established with you.  ATTORNEY ADVERTISING MATERIAL.