2 ?'S = LATE FEES & "PECKING" ORDER

Text in it's entirety. Yep...it's long!

III. EFFECTIVE JANUARY 1, 2006
New subsections were added to the CPAct, restricting charge-backs to unit owners of certain
collection costs, by Public Act 94-0384, as follows:
9.2 (c) Other than attorney’s fees, no fees pertaining to the
collection of a unit owner’s financial obligation to the
Association, including fees charged by a manager or managing
agent, shall be added to and deemed a part of an owner’s
respective share of the common expenses unless: (i) the
managing agent fees relate to the costs to collect common
expenses for the Association; (ii) the fees are set forth in a
contract between the managing agent and the Association; and
(iii) the authority to add the management fees to an owner’s
respective share of the common expenses is specifically stated
in the declaration or bylaws of the Association.
It holds true for non-condominium common interest communities, as well, under another new
subsection added to the CPAct by Public Act 94-0384:
18.5(c)(8) Other than attorney’s fees, no fees pertaining to to
the collection of a unit owner’s financial obligation to the
Association, including fees charged by a manager or managing
agent, shall be added to and deemed a part of an owner’s
respective share of the common expenses unless: (i) the
managing agent fees relate to the costs to collect common
expenses for the Association; (ii) the fees are set forth in a
contract between the managing agent and the Association; and
(iii) the authority to add the management fees to an owner’s
respective share of the common expenses is specifically stated
in the declaration or bylaws of the Association.

IV. NO CAP ON LATE FEES:
The Governor vetoed Senate Bill 1915, which would have capped late fees for
associations by the addition of a provision at the end of Section 18 of the CPAct. On August 19,
2005, the Governor wrote:
August 19, 2005
To the Honorable Members of the
Illinois Senate
94th General Assembly
Pursuant to Article IV, Section 9(b) of the Illinois
Constitution of 1970, I hereby veto
Senate Bill 1915, entitled “AN ACT concerning
condominiums.” Senate Bill 1915 limits the amount a
condominium association can charge for late payments on
monthly assessments. Condominium Associations are run by
the owners themselves and ought to be given the freedom to
determine the amount of late fees to be assessed. The
Association is uniquely qualified to determine the economic
impact of late payments and the incentive value of these
penalties; in this case, one size does not fit all.

August 24, 2005
Barnett Law Firm, Ltd.
For this reason, I hereby veto and return Senate Bill
1915.
Sincerely,
ROD R. BLAGOJEVICH
Governor
The new laws specifically or possibly address various aspects of operations of
associations and developers. For specific legal advice as to the impact of these laws on your
association or your development company, contact your legal advisor. Nothing in this Alert is or
is intended to be legal advice, but merely timely information about new laws. THIS ALERT
MAY BE COPIED FOR DISTRIBUTION, BUT IT MUST BE DONE IN ITS ENTIRETY,
ONLY, AND WITH ALL ATTRIBUTION INTACT.
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© 2005 Barnett Law Firm, Ltd.