After a brief decline, evictions are back in Chicago, IL. The number of evictions has now reached pre-pandemic levels. Roughly 29,000 households faced eviction dating back to last year.
Most people understand that eviction is possible when renting from a traditional landlord. However, many do not realize that you can also face eviction in a homeowners' association (HOA).
Read on for three things to know about HOA evictions in Chicago. Explore how HOA management services can help you handle a difficult situation.
1. HOA Evictions Are Legal
HOAs operate differently than traditional rental properties. Instead of paying monthly rent to a landlord, the person occupying the home owns it. They may pay a monthly mortgage and hold the home's deed.
The homeowner belongs to an HOA that sets common rules for the community. The local board or property manager collects dues to pay for HOA property maintenance, amenities, and other local services. The HOA cannot successfully operate without the revenue generated from these dues.
If members fail to pay dues, the HOA can take legal action against them. Typically, the HOA starts by sending a warning or notice of missed payments.
If a member continues to miss payments, the HOA can start levying fines or penalties against them. They may prohibit the use of amenities like swimming pools or community halls until the balance is paid.
Lastly, the HOA can place a lien on the home and foreclose on it. This is entirely legal so long as the process is defined in the HOA's Covenants, Conditions, and Restrictions (CC&Rs) document signed by both parties.
2. Property Management Can Handle HOA Evictions
HOA boards are made up of volunteers from the community. They run HOA meetings and conduct general planning to improve the community's short and long-term prospects. Board members live amongst the other residents and the eviction process can put them in an uncomfortable position.
The good news is that your Chicago property management company can handle evictions for you. They have years of experience processing evictions and following Illinois state law while doing it.
3. State and Local Laws Govern the Process
Illinois and Chicago politicians have put many laws on the books to protect homeowners from eviction. In some cases, federal laws also apply.
It is essential to hire a property management company that is knowledgeable about these laws. Failure to comply with laws like the Illinois Common Interest Association Act could lead to consequences. Not only will the eviction fail, but the HOA may incur fines or penalties that set back its progress.
Your Guide to Evictions in an HOA
You now have a better understanding of how evictions work in an HOA. It is a last resort after HOA boards issued notices to pay and levy penalties against homeowners.
PMI has more than 20 years of experience handling delinquent clients. At PMI Chicago Metroplex, we will collect HOA dues and hold members accountable so that volunteer board members don't have to. If you need help processing HOA evictions, contact us today to speak with an expert.
