Legal Question in Real Estate Law in Illinois

For purposes of answering this I'll assume this situation is after the developer has given up board control to the unit owners.

Yes if the proper procedures are observed - typically notice of a proposed amendment to unit owners, an open forum to discuss it, followed by a formal vote with a required % to pass (per the condo declaration), and recording of a formal change to the condo declaration (and possible filing of an amendment to the association charter if the original filing included contrary information). There are timing requirements, etc.

Both proposals may be the board's way of attempting to protect current owners from declining values, although I can't imagine an association actually buying a unit. As to the FHA there are certainly several ways of making such loans impossible; this may be the board's way of attempting to protect existing owners from prospective purchasers who really have very little money to put down on the unit and could easily default later, which would domino into unpaid monthly assessments that the rest of the unit owners would have to cover.

Of course that doesn't help an existing owner who may lose his source of income and run into problems, and it also can make units more difficult to sell if you have to sell, and these are the kinds of things you as a unit owner have the right to bring up if it is still in the proposal/pre-vote stage.

Good luck!

Assuming that the right of first refusal has been properly included in the associations's condominium declaration, the condominium association certainly has the right of first refusal. However, the Illinois Condominium Property Act has been recently amended to state that no association may exercise its right of first refusal just because the buyer is obtaining FHA financing.

Yes, and yes, although no association may stop FHA loans because the Illinois Property Act has been recently amended. You should get an experienced real estate attorney.

This answer is provided as a general public service, and is not intended to create, nor does it create an attorney-client relationship or priledge.