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04/09/87 American National Bank & v. Connie Dominick

April 9, 1987

MANAGEMENT, AGENT, PLAINTIFF-APPELLEE

v.

CONNIE DOMINICK, DEFENDANT-APPELLANT



APPELLATE COURT OF ILLINOIS, FIRST DISTRICT, FOURTH DIVISION

AMERICAN NATIONAL BANK & TRUST COMPANY, Trustee, by Village

507 N.E.2d 512, 154 Ill. App. 3d 275, 107 Ill. Dec. 599 1987.IL.463

Appeal from the Circuit Court of Cook County; the Hon. Edward R. Burr, Judge, presiding.

APPELLATE Judges:

JUSTICE LINN delivered the opinion of the court. McMORROW, P.J., and JOHNSON, J., concur.

DECISION OF THE COURT DELIVERED BY THE HONORABLE JUDGE LINN

Defendant, Connie Dominick, appeals from an order evicting her from the apartment she had been renting for 17 months and granting possession to plaintiff, American National Bank & Trust Company, as trustee under trust No. 55494, by its agent, Village Management Company (Village Management). The trial court denied Dominick's post-trial motion but granted a stay of the order of possession pending this appeal, conditioned upon her posting of a use-and-occupancy bond.

On appeal, Dominick raises the following arguments: (1) the trial court erred as a matter of law in finding that her late payments of rent constituted material noncompliance with the federally subsidized lease; (2) the trial court erred in finding that Village Management's acceptance of Dominick's late rental payments for 17 months did not operate as a waiver of strict compliance with the lease; and (3) the trial court erred in finding that Village Management's acceptance of the subsidized portion of the rent following service of the termination notice to Dominick did not constitute waiver of such notice.

We reverse.

BACKGROUND

In July 1983, Connie Dominick leased an apartment at 4536 South Drexel, Chicago, Illinois. This apartment is part of a multifamily housing development which is subsidized by the Federal government pursuant to section 8 of the United States Housing Act of 1937, 42 U.S.C. sec. 1437f (1985). Under section 8, the Department of Housing and Urban Development enables tenants on public aid to acquire rental housing for a percentage of their public assistance income, while the Federal government guarantees to landlords payment of the balance of the fair rental value of the apartments.

Dominick and her four dependents receive monthly checks from Aid to Families with Dependent Children . These checks, which constitute their sole source of income, arrive monthly between the ninth and eleventh days. Rent is due under the lease on the first day of the month. Throughout her tenancy, between May 1984 and October 1985, Dominick paid her rent between the ninth and eleventh of each month, immediately upon receipt of her AFDC check. In addition, she paid a late fee each month of $1 per day. Dominick paid $36 out of her $461 public assistance check as her base rent and the Federal government paid the balance out of a total monthly rent on the unit of $917.

Each month, Village Management sent Dominick a form letter stating that her rent was overdue and setting out the late fee schedule. Each month, Village Management nevertheless accepted Dominick's rental payments, plus the late fees.

On October 29, 1985, Village Management served Dominick with a notice of termination *fn1 of tenancy based on "material noncompliance" with the lease for repeated late payments of rent. As of that date, she was current in her rent and had ...


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