HOA Case Law Journal
with Julie McGhee Howard
Granville Tower Condominium Association v. Escobar (Illinois) 2022 IL App (1st) 200362
Actions Speak Louder Than Words
In 2010, the Granville Tower Condominium Association passed an HOA special assessment of $4 million to be collected from the owners immediately or over the next 13 years. Monthly, each owner paid off their part of the assessment, which was proportional to their ownership. Ana Cruz defaulted on her payments to the special assessment and the association successfully sued Ms. Cruz in 2013 for the amount of monthly payments that were past due. The association then foreclosed on her property in 2014 after the payments were not made. Hilda Escobar bought the property at the foreclosure auction.
The Facts:
- Ms. Escobar stopped paying the special assessment levied on her property after June 2015.
- The association gave Ms. Escobar notice in September 2015 that she owed the remainder of the special assessment ($23,529), the amount due from Ms. Cruz’ account of the property ($12,444), and overdue regular assessments ($834.97).
- The special assessment resolution the association passed in 2010 did not require the association to accelerate the amount due to the entire remaining balance of the special assessment when it sought judgment for past due payments.
The Issue of the Suit:
Ms. Escobar contended that she should not owe any amount of the special assessment because it should have been collected from Ms. Cruz or forfeited when the association foreclosed on her property. The association disagreed based on the language in the special assessment resolution.
Court Decision
The Court found in favor of the Grandville Tower Condominium Association. Because the language of the special assessment resolution allowed the association to refrain from seeking the entire balance from Ms. Cruz upon foreclosure, the association was entitled to collect the remaining balance from Ms. Escobar, take possession of her unit, and collect court and attorney’s fees.
The Cautionary Tale
The Board in this case got lucky with the language of the special assessment resolution. Had the Board not allowed financing and long-term payment plans, the entire unpaid balance of the special assessment would have been due upon Ms. Cruz’ default. Boards should weigh options carefully when drafting resolution language.
HOA Law Advice to Help Guide Your Board of Directors
At NowackHoward, we focus on condominium association and HOA law throughout Georgia. To learn more about our community association practice and how we can help guide your community, contact one of our attorneys today at (770) 863-8900 or by email at info@nowackhoward.com.
