Illinois Court Strikes Down HOA’s Amendment to CC&Rs that Sought to Prohibit Owner Leasing of Units

Illinois Appellate Court decision (August 7, 2014). (Note- this decision may be cited as precedent only in the limited circumstances allowed under Illinois Supreme Court Rule 23(e)(1)).

The plaintiff in this action filed suit against her HOA to challenge an amendment to the Association’s restrictive covenants that, in part, prohibited homeowners from leasing their residences. The plaintiff had owned and leased out her property for 26 years prior to adoption of the amendment with no history of problems relating to her tenants and sought a “hardship” exception that was denied following passage of the amendment. The lower court applied the principles of contract law to the case and concluded that the amendment was arbitrary and the HOA appealed.