association fees

Our condo Association here in Illinois (still ran by the developer) has the following sentence in the declaration " Each unit owner , (except the developer on unsold units) shall pay a share of the expenses, etc.
The State of Illinois says this:
The SSec. 9. Sharing of expenses ‑ Lien for nonpayment.
(a) All common expenses incurred or accrued prior to the first conveyance of a unit shall be paid by the developer, and during this period no common expense assessment shall be payable to the association. It shall be the duty of each unit owner including the developer to pay his proportionate share of the common expenses commencing with the first conveyance. The proportionate share shall be in the same ratio as his percentage of ownership in the common elements set forth in the declaration.
Without going to a lawyer for claification, i thought i would get your opinions first.
Which statement rules?

Hi Michael:

Here is the section for everyone to reference:
http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2200&ChapterID=62

(765 ILCS 605/9) (from Ch. 30, par. 309)
Sec. 9. Sharing of expenses Lien for nonpayment.
(a) All common expenses incurred or accrued prior to the first conveyance of a unit shall be paid by the developer, and during this period no common expense assessment shall be payable to the association. It shall be the duty of each unit owner including the developer to pay his proportionate share of the common expenses commencing with the first conveyance. The proportionate share shall be in the same ratio as his percentage of ownership in the common elements set forth in the declaration.
(b) The condominium instruments may provide that common expenses for insurance premiums be assessed on a basis reflecting increased charges for coverage on certain units.

It appears from what is stated here the developer is also to pay his portion of the common expenses. It does not make any statement (i.e., unless otherwise stated in the Covenants, etc.).

Have you asked the developer? Generally, state law supersedes covenants. If developer tries to tell you otherwise, then you should definitely double check with an attorney.

Unethical developer actions in the past are why some states are enacting these type laws because when developer paid all expenses until majority of units sold, they were leaving the HOA’s with no money to operate and no reserve accounts.

Hi Michael:

Excellent Idea!!! First and foremost it is important to try and work it out yourselves through effective communication.

You are most welcome.