Cambridge Place
Condominium Association Tinley Park, Illinois 60487
August 23, 2010
TO: All Unit Owners
RE: Cambridge Place Condominium Association
Proposed Amendment to the Covenants
Enclosed for your review is a copy of a proposed update to the No Lease Amendment to the Association’s Covenants, which will help close a loop-hole in the No Lease Amendment previously approved by the General Membership several years ago.
The purpose of this update to the No Lease Amendment is to close a loop-hole in the previously approved amendment in that it prohibits a current Owner from selling a percentage of the unit to a third party who then occupies the unit for a short period of time (most often a year) and then sells back the percentage to the Owner of the unit. An Owner normally will sell 1% of the unit to a “tenant” who then sells back the 1% at a pre-arranged price, however, while that “tenant” owns the 1% they are legally considered a Unit Owner under the terms of the Condominium Property Act. This procedure actively gets around the previously approved No Lease Amendment.
In addition 1) the economic environment has changed since the approval of the initial No Lease Amendment previously approved by the Membership. As such this updated amendment includes a “Hardship” provision in that the Board can now consider a Unit Owner’s request for a “hardship” exemption to the No Lease Amendment on terms and conditions approved by the Board at that time and 2) the Association is not prevented from leasing a unit taken over by the Association via the Forcible Entry & Detainer Act. This provision of the Act allows the Association to rent a unit whereby the Court has awarded to the Association “possession” of a unit (not title to the unit). This provision is used to re-capture unpaid assessments from a unit owner via the leasing of the unit until all delinquent balances are paid after which the unit reverts back to the Owner’s control (possession is relinquished).
This updated Amendment is the result of discussion with the Membership at the May meeting. In addition the recent proposed amendments to the Condominium Act which would have allowed Investors to rent up to 20% of the units was not signed into law, thus the Association can now proceed with the voting on the proposed updated amendment as discussed at the May meeting.
If you agree with the proposed amendment you are encouraged to return the enclosed Appointment of Proxy in the self-addressed return stamped envelope or bring it to the next Directors meeting.
Very truly yours,
The Board of Directors
Cambridge Place Condominium Association
Enclosure-Amendment
TEXT OF AMENDMENT
1. Article IX “Lease of Unit Ownership,” Section A “Lease by Unit Owner” of the Declaration shall be deleted in its entirety and replaced with the following provisions only:
a. Lease of Dwelling Unit. Except as provided in Section a(1) below, no Unit may be occupied by anyone other than those persons owning in the aggregate 100% Unit Ownership or their Family Members, as these terms are defined in the Declaration and a(2) below.
1. Unit Owners comprising 100% unit ownership may petition the Board of Directors to lease their Unit for a period not to exceed one year upon showing in their petition, proof of extreme and unusual circumstances that preclude the Unit Owners from occupying their Unit as set forth herein. The Board of Directors, in its sole discretion may allow or deny the petition. Any such approved lease shall be in writing, a copy of which must be delivered to the Board of Directors no later than date of occupancy or within ten (10) days of execution, whichever comes first. The Board may, in its sole discretion, require that the Unit Owner/lessor deposit under any such lease an amount equal to no more than three months rent with the Association to stand as a security deposit. The security deposit may be used to repair any damage to the Common Elements caused by the tenant and at the end of the lease term if no such damage has been caused, it shall be returned to the Unit Owner/lessor or as directed by him or her.
2. All terms as defined in the Declaration are incorporated by reference into this Amendment. “Family Member” is defined as a parent, grandparent, spouse or child of the Unit Owner, or any other person upon whose principal source of support is the Unit Owner.
3. The Association shall be exempt from any lease restrictions provided in this Section (a), pursuant to the Illinois Forcible Entry and Detainer Act (735 ILCS
5/9-101 et. seq.) for the purposes of collecting delinquent assessments, costs, fees and other properly assessed expenses to the Unit.
4. Additionally, all Unit Owners leasing their Unit under such "hardship" exception or pursuant to paragraph (1) shall deliver a copy of the signed lease to the Board, or if the lease is oral, a memorandum of lease. In the event that the Unit Owner fails to comply with such leasing requirements, the Association may seek to evict a tenant from the home under Article IX of the Code of Civil Procedure. Furthermore, all provisions of the Declaration, By-Laws and Rules and Regulations shall be applicable to any person leasing a Unit and shall be deemed to be incorporated in any lease executed or renewed. The Board may proceed directly against a tenant, at law or in equity under the provisions of Article IX of the Code of Civil Procedure, for any other breach by tenant of any covenants, rules, regulations or by-laws.
APPOINTMENT OF PROXY
CAMBRIDGE PLACE CONDOMINIUM ASSOCIATION
I hereby appoint and constitute ______, a Voting Member, as my proxy with power of substitution, or the Board of Directors, if no name is specified, for and in my stead, to vote for me, and to execute any Verification of Owners on my behalf, as if I was personally presented the Special Meeting of the Owners to be held for the purpose of voting on the proposed Amendment to the Declaration for Cambridge Place Condominium Association, AND for any adjournment of such meeting. I understand that 67% of the total votes of the owners must vote in favor the Amendment for it to pass.
My agent and/or representative shall be authorized to vote as follows:
(PLEASE CHECK THE MANNER IN WHICH YOU AUTHORIZE YOUR AGENT/PROZY TO CAST A VOTE ON THE ABOVE REFERENCED MATTERS):
Amendment to Declaration:
______A) I hereby approve and vote in the affirmative on the Amendment to the
Declaration for Cambridge Place Condominium Association which contains certain restriction against leasing.
______B) I do not approve and vote in the negative on the Amendment to the Declaration for Cambridge Place Condominium Association which contains certain restriction against leasing.
______C) I authorize my agent to vote as he/she shall see fit, in my stead.
I THEREBY REVOKE ANY PROXIES GIVEN BY ME TO ANY INDIVIDUAL PRIOR TO THE DATE SET FORTH BELOW.
______
Signature of Voting Member Date
______
Printed Name
______
Address
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14032 South Kostner Avenue, Suite M Crestwood, IL 60445(708) 396-1800 Fax (708) 396-9831