Court Says HOA’s “Emergency” Assessment of $1.01 Million was Proper

This case involved a dispute between a condominium owner (“Owner”) and her homeowners association (“Association”) over Association’s right to impose a $1.01 million dollar special assessment on Association’s members to remediate the 90 balconies attached to homeowners’ units.  In an action filed by Owner, she sought an injunction that prohibited Association from levying the special assessment on homeowners and entering into a contract for the contemplated work.

Why The Owner Contended Special Assessment Imposed

Owner contended that, because the intended special assessment exceeded a specified amount, the imposition of the intended special assessment was subject to nullification by an owner referendum (vote of the homeowners) under Association’s governing documents and the applicable provisions of the Illinois Condominium Property Act. Because the intended special assessment exceeded a specified limit (115% of the sum of the prior year’s assessments), Owner and 21 other unit owners petitioned Association’s board of directors to call an owner referendum vote on the intended special assessment. After Association refused to schedule the requested vote by the homeowners, Owner filed suit against Association.

Association Contends Special Assessment Necessary

In defense of the action, Association contended that, irrespective of the size of the intended special assessment, because the purpose of the special assessment was to address an emergency situation, and to comply with something that is mandated by law, the owners were not entitled to attempt to nullify the special assessment through a referendum vote under Illinois law.

What Did The Trial Court Think?