[1-16-1984, § 1]
It is concluded that equity ownership of apartments is a positive
development for the Village of Elmwood Park and, within certain limits,
such ownership should be encouraged.
Because of the relatively new and unique nature of condominium
ownership, it is further concluded that the rights of the condominium
purchaser and the displaced tenant should be protected to a greater
extent than the protections provided under existing laws.
As a home rule municipality, the Village of Elmwood Park has
both the authority and obligation to introduce regulation into the
condominium process.
Therefore, the purpose and intent of this chapter is to introduce
regulatory elements into the condominium process that are aimed at
extending the protection of the rights of the condominium purchasers
and displaced tenants in an effort to encourage orderly development
of the condominium concept in the Village of Elmwood Park.
[1-16-1984, § 1; Ord. 91-18, 10-7-1991, § 1]
For the purposes of this chapter, the following words and phrases
shall have the meanings ascribed to them by this section:
AGENT
Any person, firm, corporation, association, joint venture
or any other entity or combination of entities who represent or act
for or on behalf of an owner and/or developer on the sale or offer
of sale of any condominium unit, excepting an escrow officer acting
for a title company.
BLANKET ENCUMBRANCE
A trust deed, mortgage, judgment or other lien or encumbrance,
including an option or contract to sell or trust agreement affecting
a condominium, including any lien or other encumbrance arising as
a result of the imposition of any tax assessment by a public authority.
BOARD OF MANAGERS
The body designated to act on behalf of the unit owners'
association provided and referred to in the Illinois Condominium Property
Act.
CERTIFICATE OF CODE COMPLIANCE
A written instrument, issued by the Village of Elmwood Park,
as evidence of a condominium project's compliance with the applicable
codes of the Village.
CHILDREN
Includes a natural child, a stepchild, adopted child or a
foster child, living on the tenant's premises, who is less than
18 years of age and dependent upon the tenant for support and maintenance.
CLOSING OF THE SALE
The act of transferring ownership of a condominium unit to
the purchaser from the owner and/or developer.
CODE INSPECTION REPORT
A written report, issued by the Village of Elmwood Park as
evidence that all units and common elements in a condominium project
have been inspected for compliance with all applicable code standards
of the Village.
COMMON ELEMENTS
All portions of the condominium property except the condominium
units, including limited common elements.
COMMON EXPENSES
The proposed or actual expenses affecting the property, including
reserves, if any lawfully assessed by the board of managers of the
unit owners' association.
CONDOMINIUM
A form of property established pursuant to the Illinois Condominium
Property Act.
CONDOMINIUM PROJECT
The sale of or plan by an owner and/or developer to sell
or offer for sale residential condominium units, commercial condominium
units, or business condominium units, or any combination thereof,
in an existing building or buildings or a building or buildings to
be constructed or under construction.
CONDOMINIUM UNIT or UNIT
A separate three-dimension area within the condominium, identified
as such in the declaration and on the condominium plat, and shall
include all improvements contained within such area except those excluded
in the declaration.
CONVERSION, CONVERT OR LIKE WORDS
The offering for sale by an owner and/or developer or their
agent of a condominium unit occupied or rented for any purpose by
any person before commencement of a condominium project which includes
such unit.
DECLARATION
An instrument by which a property is submitted to the provisions
of the Illinois Condominium Property Act.
DEVELOPER
Any person or his successors who undertakes to develop a
condominium project either by conversion or new construction. A developer
does not include a corporation owning or operating a cooperative apartment
building unless more than six units are to be sold to persons other
than current stockholders of the corporation.
LIMITED COMMON ELEMENTS
A portion of the common elements so designated in the declaration
as being reserved for the use of a certain unit or units to the exclusion
of other units, including, but not limited to, balconies, terraces,
patios and parking spaces or facilities.
NOTICE OF INTENT
The notice of intent to submit the real estate to the Illinois
Condominium Property Act.
OFFERING
Any inducement, solicitation, advertisement or announcement
by a developer to any person or the general public to encourage a
person to purchase a condominium unit in a condominium or prospective
condominium.
OWNER
The title holder of property being converted or constructed
as a condominium.
PERSON
A natural individual, corporation, partnership, Trustee or
other legal entity capable of holding title to real property.
PHYSICALLY DISABLED PERSON
A person unable to engage in any substantial gainful activity
by reason of any medically determinable physical or mental impairment
which can be expected to result in death or which has lasted or can
be expected to last for a continuous period of not less than 12 months.
PHYSICALLY HANDICAPPED PERSON
A person having an impairment which is expected to be of
a long-continued or indefinite duration or which substantially impedes
his ability to live independently. Said impairment shall include blindness
and deafness.
PLAT
A three-dimensional horizontal and vertical delineation of
all units and common elements in a property submitted to the applicable
provisions of the Illinois Condominium Property Act.
PROSPECTIVE PURCHASER
A person who visits the condominium project site for the
purpose of inspection for possible purchase or who requests the property
report.
TENANT
A person who pays rent for the privilege of occupying real
estate.
[1-16-1984, § 1; Ord. 91-18, 10-7-1991, § 1]
(a) Specific Purpose and Intent. Due to the unique concepts involved
in condominium ownership, disclosure of material elements to prospective
purchasers is deemed appropriate and a property report designed to
assist the consumer in making an informed business decision is therefore
required.
(b) Property Report. A property report shall be required in condominium
projects of more than five units as follows:
(1)
Required Filing Date and Affidavit Requirements. At least 30
days prior to execution of a sales contract on any condominium unit
in a condominium project, the developer shall file a property report
with the Village of Elmwood Park and shall certify by sworn affidavit
that all disclosures therein are true and correct to the best of his
knowledge and belief and that no material statement of fact has been
intentionally omitted.
(2)
Delivery of Property Report to Existing Tenants and Prospective
Purchasers Required. Not less than five days prior to execution of
a sales contract on any condominium unit in a condominium project,
a copy of the property report and all amendments thereto shall be
given to all tenants of the project.
The property report and amendments thereto shall be made available
by the developer at reasonable hours within the Village for inspection
by the public and prospective purchasers.
The developer shall keep a receipt signed by each purchaser,
acknowledging that the person entering a contract to purchase has
received the property report. Such receipts shall be kept on file
by the developer for a period of three years from the date thereof
and receipts shall be subject to inspection by the Village upon request.
(3)
Property Report Disclaimer Requirement. Each property report
shall include on the first page, in bold lettering the following:
"THIS PROPERTY REPORT IS REQUIRED UNDER THE ELMWOOD PARK CONDOMINIUM
ORDINANCE. HOWEVER, COMPLIANCE WITH THIS ORDINANCE DOES NOT CONSTITUTE
APPROVAL, RECOMMENDATION OR ENDORSEMENT BY THE VILLAGE OF ELMWOOD
PARK OR A FINDING BY THE VILLAGE OF ELMWOOD PARK THAT THE INFORMATION
PROVIDED HEREIN IS TRUE, COMPLETE AND NOT MISLEADING.
THIS PROPERTY REPORT CONTAINS ONLY A SUMMARY OF CERTAIN MATERIAL
FACTS AND PROVISIONS REGARDING THE PROPERTY. ALL CONTRACTS OR AGREEMENTS
SHOULD BE READ CAREFULLY IN THEIR ENTIRETY FOR AN UNDERSTANDING OF
ALL RIGHTS AND OBLIGATIONS OF BOTH THE SELLER AND PURCHASER."
(4)
Disclosure of Names and Addresses of Parties of Interest to
the Condominium Project Required. Each property report must include
the names and addresses of the following parties and entities:
(B)
The developer and legal and beneficial owner of the land and
improvements, including all general partners of a partnership or principal
officers and directors of a corporation.
(C)
The sales and management agents, attorneys, accountants, architects,
engineers and consultants for the condominium project.
(E)
Any financial institution offering long-term financing for the
condominium units and the terms and conditions of such mortgages.
(5)
Property Description and Use Restriction. Each property report
shall contain the following:
(A)
Description of the condominium project. A map, plat or architect's
drawing showing the size and dimensions of the condominium project
and the land it occupies, together with all improvements and description
of the location, nature and ownership of easements, streets, alleys
and driveways on or contiguous to the condominium project.
(B)
Description of common elements and schedule of ownership. A
description of the common elements and limited common elements, if
any, and a schedule of ownership interest therein.
(C)
Description of existing and proposed facilities and disclosure
of cost participation. A description of all existing and proposed
facilities including, but not limited to, recreational facilities
within the condominium project.
A statement of whether, and under what circumstances, the unit
owners are required to be a member of, support or participate financially
in recreation facilities. If such facility is not part of the common
elements, the following warning shall be conspicuously captioned in
bold lettering:
"THE (HERE NAME FACILITIES) ARE NOT INCLUDED IN THE COMMON ELEMENTS.
THESE FACILITIES ARE AVAILABLE TO UNIT OWNERS FOR (HERE DESCRIBE INITIATION
FEE AND MONTHLY CHARGE). UNIT OWNERS ARE/ARE NOT (AS APPLICABLE) REQUIRED
TO PARTICIPATE FINANCIALLY."
(D)
Description of off-street parking facilities and disclosure
of ownership. A description of the location, ownership and availability
to unit owners and the general public of off-street parking facilities
associated with the condominium. If all such parking facilities are
not part of the common elements or are divided as individual parking
spaces and designated as part of the units, the following statement
in bold lettering in a conspicuous caption is required:
"PARKING FACILITIES ASSOCIATED WITH THIS BUILDING ARE NOT OWNED
BY THE UNIT OWNERS AND UNIT OWNERS MAY BE DEPRIVED USE OF SAME."
(E)
Description of excluded property and facilities. A description
of the nature and ownership of all property and facilities on the
site which are not part of the condominium project.
(F)
Description of construction and renovation completion dates
and penalties. A description of the nature and proposed commencement
and completion dates for the proposed construction, renovation or
conversion.
Such description shall disclose the existence of penalties,
if any and to whom, if the construction, renovation or conversion
completion date is not met and the additional costs, if any to be
imposed on unit owners if construction is not timely completed.
(G)
Description of the condominium units. A description of the condominium
units; the nature and extent of the individual ownership in such units
and a description of any appliances and other personal property included
with the unit.
(H)
Disclosure of limitations of uses of individual units. A description
of limitations upon permitted uses, if any, in individual units as
contained in the declaration and bylaws of the condominium association
and applicable zoning provisions.
Said description shall include:
A statement outlining any restrictions on the free sale, transfer
or conveyance of a unit.
A statement outlining whether and under what conditions the
condominium unit may be rented by the unit owner. A statement as to
whether, and under what conditions, a purchaser may purchase more
than one unit.
(I)
Disclosure of inspection report and certificates required. Each
property shall contain the following statement in capital letters,
in conspicuous caption:
"THE ELMWOOD PARK CONDOMINIUM ORDINANCE REQUIRES THAT THE CONDOMINIUM
PROPERTY AND YOUR UNIT BE INSPECTED FOR CONFORMITY WITH VILLAGE CODES.
IT ALSO REQUIRES THAT THE PERSON CONTRACTING TO PURCHASE HAVE THE
OPPORTUNITY TO REVIEW THE CODE INSPECTION REPORT AND THE APPLICABLE
CODE CERTIFICATE ISSUED BY THE VILLAGE OF ELMWOOD PARK."
(6)
Disclosure of Legal Documents Required. Each property report
shall include:
(A)
The declaration and plat of survey. Provided that prior to the
recordation of the declaration, a preliminary declaration and plat
may be supplied, if accompanied by a written statement, in bold lettering,
that the description of units and percentage of ownership units in
common elements is preliminary, and is subject to material change.
(B)
Articles of incorporation or charter of the condominium association,
if any.
(C)
Bylaws and regulations of the condominium association.
(D)
Description of any pending litigation. A statement of any pending
or threatened litigation which would affect the developer's ability
to convey clear title, purchaser's free use and enjoyment of
the premises or violate any provision of the declaration.
(E)
Description of any liens, title defects, and encumbrances of
record and expected special assessments. A statement and description
of any liens, title defects, and encumbrances of record affecting
title to the condominium, and expected special assessment shall be
described.
Such statement shall include the nature and extent to which
a purchaser is protected if the developer defaults under any mortgage,
loan agreement or other.
(F)
Description of property insurance. The coverage, terms and policy
limits of property and liability insurance policies maintained on
the condominium building.
(G)
Description of binding contracts. All management contracts regardless
of duration and any other contract affecting the use, maintenance
or access to all or any part of the condominium, having a term of
one or more years. These disclosures shall include:
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The name and address of the management agent, if any, and the
services to be performed; and
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The length and terms of any management contract; the charges
made thereunder and the circumstances, if any, under which charges
may be altered;
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The conditions, if any, under which the contract may be cancelled
in advance of its termination date; and
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A statement, disclosing the relationship, if any, between the
developer and the management firm and their respective corporate officers
and controlling interests.
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(7)
Disclosure of Sales Documents and Literature Required. Each
property report shall include copies of:
(B)
A sample deed of trust, mortgage and promissory note, if any.
(C)
Sales brochures and floor plans.
(8)
Disclosure of Financial Matters Required. Each property report
shall contain the following financial disclosures:
(A)
Unit sales prices. A statement of sales prices, terms and conditions
of sale for each unit, including estimated closing and settlement
costs.
(B)
Statement of anticipated monthly payments.
(i)
Estimated monthly mortgage payment based on defined assumptions
as to the mortgage term, amount and interest rate.
(ii) Estimated monthly payments for taxes, utilities,
operating costs, assessments, parking, recreational facilities and
other payments for the first year following the projected date of
assumption of control by the board of managers.
(C)
Disclosure of estimated operating budget required. Estimated
operating budget for a one-year period following the projected date
of assumption of control by the board of managers.
In case of a condominium conversion, information on the actual
expenditures made for all repairs, maintenance and operation of the
subject property, for the prior two years shall be included in the
proposed budget. If the property has not been in existence for a period
of two years, this information shall be provided for the maximum period
the property has been occupied.
The operating budget shall include at least the following:
Operating costs.
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Utilities
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Heating fuels
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Janitorial services
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Trash and garbage disposal
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Ground and building maintenance
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Security
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Maintenance and operation of recreational and other facilities
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Building insurance
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Sidewalk and street maintenance
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Other operating costs
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Management costs.
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Accounting and bookkeeping services
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Legal fees
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Management fees
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Reserve costs (including calculation method).
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Reserve for increased utility costs
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Reserve for improvements
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Reserve for unexpected repair work
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Reserve for replacement and upkeep of the common area and facilities
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Reserve for taxes and special assessments
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If no reserves are provided for any one or more the
costs listed herein, the following statement must be inserted in the
property report, in capital letters, in conspicuous caption:
"THE DEVELOPER HAS NOT BEEN PROVIDED A RESERVE FOR CERTAIN POSSIBLE
FUTURE COSTS OF THE CONDOMINIUM IN HIS BUDGET. ACCORDINGLY, IT MAY
BE NECESSARY TO PROVIDE FOR AN ASSESSMENT TO ALL CONDOMINIUM UNIT
OWNERS TO PAY FOR SUCH COSTS SHOULD THEY OCCUR"
The property report shall also state what provisions, if any,
the developer has made to cover the proposed operating and maintenance
budget in the event an insufficient number of units are sold.
(D)
Disclosure of the condition and useful life of the structural
elements required. If a conversion of more than six units, each property
report shall contain a report from a qualified licensed engineer or
a registered architect, describing the condition and reasonably anticipated
useful life of the following:
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Foundation Roof
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External and supporting walls
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Mechanical, electrical, plumbing, heating and structural elements
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Elevators, where applicable
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All other common facilities
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The property report shall include an estimate of repair
and replacement costs at current market prices, as well as approximate
dates of major repairs to such facilities for all items found in need
of repair or replacement.
The property report shall list all uncured building and housing
code violations for the five years preceding the date of the property
report or its latest amendment.
(9)
Delivery Requirements.
(A)
Specific Purpose and Intent. This section is designed to ease
the transition in control of the building passing from the developer
to the board of managers.
Among other things, warranty requirements on the essential elements
of the condominium are introduced for a period of two years from the
date control of the property passes to the board of managers.
In an effort to preserve senior citizen rental units within
the Village, inducements for the developer to set aside units for
rental for tenants age 65 or older are provided. Also provided are
incentives for the developer to minimize the number of nonowner occupied
units.
(B)
Transfer of Control from the Developer to the Board of Managers.
Each property report shall contain:
(i)
A statement describing the method and timing of the transfer
of control of the condominium to the board of managers and the nature
and extent of any interest retained by the developer.
(ii) A commitment that within two weeks of the transfer
of control of the condominium, the developer will deliver to the board
of managers all drawings, architectural plans and other suitable documents
that set forth information about the location, maintenance and repair
of condominium equipment that he has in his possession.
(iii) A commitment that within three business days
of the transfer of control of the condominium, the developer will
deliver to the board of managers copies of all financial books and
records relating to the operation, maintenance and control of the
condominium.
(C)
Warranty Requirements.
(i)
Protected Elements. A developer of a conversion condominium
of more than six units, submitted to the provisions of the Illinois
Condominium Property Act, shall be required to provide a warranty
against any defects in the following property components, and shall
so stipulate in the property report:
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Roof
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Foundation
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External and supporting walls
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Central heating plant
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Central air conditioning plant, if applicable
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Elevators, if applicable.
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(ii) Length of Warranty; Exceptions. The warranty shall
warrant against defects for a period of two years from the date control
of the condominium passes to the board of managers.
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Exception. The second year warranty requirements will be waived
if, on the date of transfer of control to the board of managers, it
is certified by sworn affidavit of the developer to the Village building
commissioner that:
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At least 10% (all fractions are rounded up to the higher percent)
of the total units in the condominium project are occupied by tenants,
age 65 or older; or
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No more than 10% (all fractions are rounded up to the higher
percent) of the total units in the condominium project are sold to
owners who do not live on the premises; provided, however, a nonowner
occupied unit that is occupied by a tenant age 65 or older, shall
be deemed an owner occupied unit.
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In the event that the second year warranty requirement
is waived by the building commissioner, the developer shall notify
the board of managers thereof, in writing, within two weeks of such
waiver.
(iii) Timely Performance By the Developer Required.
Repair or replacement of the defects pursuant to warranty shall be
performed in a timely manner by the developer following written notification
from the board of managers.
(iv) Items Not Covered By Warranty. Warranty coverage
shall not include the cost of normal routine maintenance of the property
components listed in this section or defects caused by fire (unrelated
to any breach of warranty), acts of God, vandalism, or negligence
of a unit owner.
(v)
Developer Escrow Account. To assure compliance with this section,
the developer shall, at the time of closing of the sale of each unit,
place in escrow with a bank or trust company authorized to do business
in the state of Illinois, as escrowee, an amount equal to two percent
of the total of each unit sale price.
Said sum shall remain in escrow for a period of not less than two years (one year, if Section
12A-5(b)(9)(C) exception is granted) from the date control of the condominium project passes to the board of managers and all interest earnings on the sum held in escrow shall accrue solely to the developer.
If no notice of claim by any unit owner is received within the two-year period (one year if Section
12A-5(b)(9)(C) exception is granted), the funds in escrow shall be returned to the developer.
If notice of claim is received by the escrowee, funds shall
be retained in escrow in the amount of the claim until the claim is
adjusted between the claimant and the developer or until validity
of the claim is determined by court action.
(10)
Amendment of the Property Report for Material Changes Required.
The developer shall amend the property report from time to time when
any material change occurs in any matter contained in such report.
Amendments shall be made not less than 10 days after such changes
occur or the developer has reason to know of such change.
Amendments shall be attached to property reports subsequently
distributed to prospective purchases and shall be immediately distributed
to all current tenants and all persons who have purchased or agreed
to purchase condominium units.
(11)
Responsibility for Enforcement. The building commissioner of
the Village of Elmwood Park shall be responsible for the enforcement
of this section and shall file a monthly enforcement report with the
Village Board of Trustees.
[1-16-1984, § 1]
Any person violating any of the provisions of this chapter shall,
upon conviction thereof, be fined not less than $100 nor more than
$300 for the first offense, and not less than $300 nor more than $500
for each subsequent offense in any 180-day period.
All actions commenced hereunder shall be quasi-criminal as provided
in the Illinois Civil Practice Act.
Four or more offenses within any 180-day period shall be deemed a misdemeanor and shall be punishable by incarceration in the county jail for a term not to exceed six months pursuant to the terms of Chapter
24, Paragraph 1-2-1.1, Illinois Revised Statutes.
Each violation of the provisions of this chapter and each day
such violation shall continue shall be deemed a separate and distinct
offense.
The remedies herein shall be cumulative and are in addition
to all other remedies at law or in equity and the Village, any purchaser
or owner of a unit may compel compliance with the provisions of this
chapter. Any sales made in violation of the provisions of this chapter
shall be subject to the recision and recovery of damages.
[Ord. 1-16-1984, § 1]
Except as herein modified or supplemented, all provisions of
the Illinois condominium property act, as amended, shall apply.
[Ord. 1-16-1984, § 1]
This chapter shall be in full force and effect on January 16,
1984, except this chapter shall not affect any pending sale of a condominium
if the sale is closed by April 1, 1984.
The following sections shall not be applicable to condominiums
where a declaration has been recorded prior to the effective date
hereof:
Section Reference
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Subject
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Displacement of tenants
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Disclosure of code inspection report and certificates required
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Warranty requirements
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Defects of property
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In those cases where a condominium conversion has been commenced
prior to the effective date of this chapter, and where notice of intent
has been furnished pursuant to state law, but no declaration has been
recorded, the zoning board of appeals may upon a showing of particular
hardship recommend to the Village Board of Trustees, who may then
follow or reject the recommendation that contains requirements of
this chapter be varied to alleviate the particular hardship. This
variance procedure shall only pertain to conversions actually pending
as of the effective date hereof.
In making this recommendation, the zoning board of appeals shall
measure the hardship created by the imposition of this chapter against
the specific purpose and intent stated in each section of this chapter.