100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB2932

 

Introduced , by Rep. Robyn Gabel

 

SYNOPSIS AS INTRODUCED:
 
765 ILCS 605/9  from Ch. 30, par. 309
765 ILCS 605/9.1  from Ch. 30, par. 309.1
765 ILCS 605/14.1  from Ch. 30, par. 314.1
765 ILCS 605/18  from Ch. 30, par. 318
765 ILCS 605/18.5  from Ch. 30, par. 318.5
765 ILCS 605/18.6
765 ILCS 605/18.7
765 ILCS 605/22.1  from Ch. 30, par. 322.1

    Amends the Condominium Property Act. Makes numerous changes in provisions concerning: common expenses; liens for nonpayment of common expenses; other liens; standing and capacity of the board of managers; disposition or removal of any portion of the property; the contents of bylaws; powers and duties of board of managers; master associations; display of the American flag or a military flag; standards for community association managers; and resale of a condominium unit.


LRB100 10224 HEP 20407 b

 

 

A BILL FOR

 

HB2932LRB100 10224 HEP 20407 b

1    AN ACT concerning civil law.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Condominium Property Act is amended by
5changing Sections 9, 9.1, 14.1, 18, 18.5, 18.6, 18.7, and 22.1
6as follows:
 
7    (765 ILCS 605/9)  (from Ch. 30, par. 309)
8    Sec. 9. Sharing of expenses - Lien for nonpayment.
9    (a) All common expenses incurred or accrued prior to the
10first conveyance of a unit shall be paid by the developer, and
11during this period no common expense assessment shall be
12payable to the association. It shall be the duty of each unit
13owner including the developer to pay his proportionate share of
14the common expenses commencing with the first conveyance. The
15proportionate share shall be in the same ratio as his
16percentage of ownership in the common elements set forth in the
17declaration.
18    (b) The condominium instruments may provide that common
19expenses for insurance premiums be assessed on a basis
20reflecting increased charges for coverage on certain units.
21    (c) Budget and reserves.
22        (1) The board of managers shall prepare and distribute
23    to all unit owners a detailed proposed annual budget,

 

 

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1    setting forth with particularity all anticipated common
2    expenses by category as well as all anticipated assessments
3    and other income. The initial budget and common expense
4    assessment based thereon shall be adopted prior to the
5    conveyance of any unit. The budget shall also set forth
6    each unit owner's proposed common expense assessment.
7        (2) All budgets adopted by a board of managers on or
8    after July 1, 1990 shall provide for reasonable reserves
9    for capital expenditures and deferred maintenance for
10    repair or replacement of the common elements. To determine
11    the amount of reserves appropriate for an association, the
12    board of managers shall take into consideration the
13    following: (i) the repair and replacement cost, and the
14    estimated useful life, of the property which the
15    association is obligated to maintain, including but not
16    limited to structural and mechanical components, surfaces
17    of the buildings and common elements, and energy systems
18    and equipment; (ii) the current and anticipated return on
19    investment of association funds; (iii) any independent
20    professional reserve study which the association may
21    obtain; (iv) the financial impact on unit owners, and the
22    market value of the condominium units, of any assessment
23    increase needed to fund reserves; and (v) the ability of
24    the association to obtain financing or refinancing.
25        (3) Notwithstanding the provisions of this subsection
26    (c), an association without a reserve requirement in its

 

 

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1    condominium instruments may elect to waive in whole or in
2    part the reserve requirements of this Section by a vote of
3    2/3 of the total votes of the association. Any association
4    having elected under this paragraph (3) to waive the
5    provisions of subsection (c) may by a vote of 2/3 of the
6    total votes of the association elect to again be governed
7    by the requirements of subsection (c).
8        (4) In the event that an association elects to waive
9    all or part of the reserve requirements of this Section,
10    that fact must be disclosed after the meeting at which the
11    waiver occurs by the association in the financial
12    statements of the association and, highlighted in bold
13    print, in the response to any request of a prospective
14    purchaser for the information prescribed under Section
15    22.1; and no member of the board of managers or the
16    managing agent of the association shall be liable, and no
17    cause of action may be brought for damages against these
18    parties, for the lack or inadequacy of reserve funds in the
19    association budget.
20        (5) A management company holding reserve funds of an
21    association shall at all times maintain a separate account
22    for each association; however, for investment purposes,
23    the board of managers of an association may authorize a
24    management company to maintain the association's reserve
25    funds in a single interest bearing account with similar
26    funds of other associations. The management company shall

 

 

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1    at all times maintain records identifying all moneys of
2    each association in the investment account. The management
3    company may hold all operating funds of associations it
4    manages in a single operating account but shall at all
5    times maintain records identifying all moneys of each
6    association in the operating account. The operating and
7    reserve funds held by the management company for the
8    association shall not be subject to attachment by any
9    creditor of the management company.
10        As used in this subsection, "management company" means
11    a person, partnership, corporation, or other legal entity
12    entitled to transact business on behalf of others, acting
13    on behalf of or as an agent for a unit owner, unit owners,
14    or association of unit owners for the purpose of carrying
15    out the duties, responsibilities, and other obligations
16    necessary for the day to day operation and management of
17    any property subject to this Act.
18    (d) (Blank).
19    (e) The condominium instruments may provide for the
20assessment, in connection with expenditures for the limited
21common elements, of only those units to which the limited
22common elements are assigned.
23    (f) Payment of any assessment shall be in amounts and at
24times determined by the board of managers.
25    (g) Lien.
26        (1) If any unit owner shall fail or refuse to make any

 

 

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1    payment of the common expenses or the amount of any unpaid
2    fine when due, the amount thereof together with any
3    interest, late charges, reasonable attorney fees incurred
4    enforcing the covenants of the condominium instruments,
5    rules and regulations of the board of managers, or any
6    applicable statute or ordinance, and costs of collections
7    shall constitute a lien on the interest of the unit owner
8    in the property prior to all other liens and encumbrances,
9    recorded or unrecorded, except only (a) taxes, special
10    assessments and special taxes theretofore or thereafter
11    levied by any political subdivision or municipal
12    corporation of this State and other State or federal taxes
13    which by law are a lien on the interest of the unit owner
14    prior to preexisting recorded encumbrances thereon and (b)
15    encumbrances on the interest of the unit owner recorded
16    prior to the date of such failure or refusal which by law
17    would be a lien thereon prior to subsequently recorded
18    encumbrances. Any action brought to extinguish the lien of
19    the association shall include the association as a party.
20        (2) With respect to encumbrances executed prior to
21    August 30, 1984 or encumbrances executed subsequent to
22    August 30, 1984 which are neither bonafide first mortgages
23    nor trust deeds and which encumbrances contain a statement
24    of a mailing address in the State of Illinois where notice
25    may be mailed to the encumbrancer thereunder, if and
26    whenever and as often as the manager or board of managers

 

 

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1    shall send, by United States certified or registered mail,
2    return receipt requested, to any such encumbrancer at the
3    mailing address set forth in the recorded encumbrance a
4    statement of the amounts and due dates of the unpaid common
5    expenses with respect to the encumbered unit, then, unless
6    otherwise provided in the declaration or bylaws, the prior
7    recorded encumbrance shall be subject to the lien of all
8    unpaid common expenses with respect to the unit which
9    become due and payable within a period of 90 days after the
10    date of mailing of each such notice.
11        (3) The purchaser of a condominium unit at a judicial
12    foreclosure sale, or a mortgagee who receives title to a
13    unit by deed in lieu of foreclosure or judgment by common
14    law strict foreclosure or otherwise takes possession
15    pursuant to court order under the Illinois Mortgage
16    Foreclosure Law, shall have the duty to pay the unit's
17    proportionate share of the common expenses for the unit
18    assessed from and after the first day of the month after
19    the date of the judicial foreclosure sale, delivery of the
20    deed in lieu of foreclosure, entry of a judgment in common
21    law strict foreclosure, or taking of possession pursuant to
22    such court order. Such payment confirms the extinguishment
23    of any lien created pursuant to paragraph (1) or (2) of
24    this subsection (g) by virtue of the failure or refusal of
25    a prior unit owner to make payment of common expenses,
26    where the judicial foreclosure sale has been confirmed by

 

 

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1    order of the court, a deed in lieu thereof has been
2    accepted by the lender, or a consent judgment has been
3    entered by the court.
4        (4) The purchaser of a condominium unit at a judicial
5    foreclosure sale, other than a mortgagee, who takes
6    possession of a condominium unit pursuant to a court order
7    or a purchaser who acquires title from a mortgagee shall
8    have the duty to pay the proportionate share, if any, of
9    the common expenses for the unit which would have become
10    due in the absence of any assessment acceleration during
11    the 6 months immediately preceding institution of an action
12    to enforce the collection of assessments, and which remain
13    unpaid by the owner during whose possession the assessments
14    accrued. If the outstanding assessments are paid at any
15    time during any action to enforce the collection of
16    assessments, the purchaser shall have no obligation to pay
17    any assessments which accrued before he or she acquired
18    title.
19        (5) The notice of sale of a condominium unit under
20    subsection (c) of Section 15-1507 of the Code of Civil
21    Procedure shall state that the purchaser of the unit other
22    than a mortgagee shall pay the assessments and the legal
23    fees required by subdivisions (g)(1) and (g)(4) of Section
24    9 of this Act. The statement of assessment account issued
25    by the association to a unit owner under subsection (i) of
26    Section 18 of this Act, and the disclosure statement issued

 

 

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1    to a prospective purchaser under Section 22.1 of this Act,
2    shall state the amount of the assessments and the legal
3    fees, if any, required by subdivisions (g)(1) and (g)(4) of
4    Section 9 of this Act.
5    (h) A lien for common expenses shall be in favor of the
6members of the board of managers and their successors in office
7and shall be for the benefit of all other unit owners. Notice
8of the lien may be recorded by the board of managers, or if the
9developer is the manager or has a majority of seats on the
10board of managers and the manager or board of managers fails to
11do so, any unit owner may record notice of the lien. Upon the
12recording of such notice the lien may be foreclosed by an
13action brought in the name of the board of managers in the same
14manner as a mortgage of real property.
15    (i) Unless otherwise provided in the declaration, the
16members of the board of managers and their successors in
17office, acting on behalf of the other unit owners, shall have
18the power to bid on the interest so foreclosed at the
19foreclosure sale, and to acquire and hold, lease, mortgage and
20convey it.
21    (j) Any encumbrancer may from time to time request in
22writing a written statement from the manager or board of
23managers setting forth the unpaid common expenses with respect
24to the unit covered by his encumbrance. Unless the request is
25complied with within 20 days, all unpaid common expenses which
26become due prior to the date of the making of such request

 

 

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1shall be subordinate to the lien of the encumbrance. Any
2encumbrancer holding a lien on a unit may pay any unpaid common
3expenses payable with respect to the unit, and upon payment the
4encumbrancer shall have a lien on the unit for the amounts paid
5at the same rank as the lien of his encumbrance.
6    (k) Nothing in Public Act 83-1271 is intended to change the
7lien priorities of any encumbrance created prior to August 30,
81984.
9(Source: P.A. 94-1049, eff. 1-1-07.)
 
10    (765 ILCS 605/9.1)  (from Ch. 30, par. 309.1)
11    Sec. 9.1. (a) Other liens; attachment and satisfaction.
12    (a) Subsequent to the recording of the declaration, no
13liens of any nature shall be created or arise against any
14portion of the property except against an individual unit or
15units. No labor performed or materials furnished with the
16consent or at the request of a particular unit owner shall be
17the basis for the filing of a mechanics' lien claim against any
18other unit. If the performance of the labor or furnishing of
19the materials is expressly authorized by the board of managers,
20each unit owner shall be deemed to have expressly authorized it
21and consented thereto, and shall be liable for the payment of
22his unit's proportionate share of any due and payable
23indebtedness as set forth in this Section.
24    Each mortgage and other lien, including mechanics liens,
25securing a debt incurred in the development of the land

 

 

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1submitted to the provisions of this Act for the sale of units
2shall be subject to the provisions of this Act, subsequent to
3the conveyance of a unit to the purchaser.
4    In the event any lien exists against 2 or more units and
5the indebtedness secured by such lien is due and payable, the
6unit owner of any such unit so affected may remove such unit
7and the undivided interest in the common elements appertaining
8thereto from such lien by payment of the proportional amount of
9such indebtedness attributable to such unit. In the event such
10lien exists against the units or against the property, the
11amount of such proportional payment shall be computed on the
12basis of the percentages set forth in the declaration. Upon
13payment as herein provided, it is the duty of the encumbrancer
14to execute and deliver to the unit owner a release of such unit
15and the undivided interest in the common elements appertaining
16thereto from such lien, except that such proportional payment
17and release shall not prevent the encumbrancer from proceeding
18to enforce his rights against any unit or interest with respect
19to which such lien has not been so paid or released.
20    The owner of a unit shall not be liable for any claims,
21damages, or judgments, including but not limited to State or
22local government fees or fines, entered as a result of any
23action or inaction of the board of managers of the association
24other than for mechanics' liens as set forth in this Section.
25Unit owners other than the developer, members of the board of
26managers other than the developer or developer

 

 

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1representatives, and the association of unit owners shall not
2be liable for any claims, damages, or judgments, including but
3not limited to State or local government fees or fines, entered
4as result of any action or inaction of the developer other than
5for mechanics' liens as set forth in this Section. Each unit
6owner's liability for any judgment entered against the board of
7managers or the association, if any, shall be limited to his
8proportionate share of the indebtedness as set forth in this
9Section, whether collection is sought through assessment or
10otherwise. A unit owner shall be liable for any claim, damage
11or judgment entered as a result of the use or operation of his
12unit, or caused by his own conduct. Before conveying a unit, a
13developer shall record and furnish purchaser releases of all
14liens affecting that unit and its common element interest which
15the purchaser does not expressly agree to take subject to or
16assume, and the developer shall provide a surety bond or
17substitute collateral for or insurance against liens for which
18a release is not provided. After conveyance of such unit, no
19mechanics lien shall be created against such unit or its common
20element interest by reason of any subsequent contract by the
21developer to improve or make additions to the property.
22    Each mortgagee or other lienholder of the unit of a common
23interest community or of a unit subject to the Condominium
24Property Act shall provide an address to the unit owners'
25association at the time the lien or mortgage is recorded at
26which address such unit owners' association shall send notice

 

 

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1to such mortgagee or lienholder of any eminent domain
2proceeding to which the association thereafter becomes a party.
3If the mortgagee or lienholder has not provided an address for
4notice purposes to the association, then such notice shall be
5sent to all mortgagees or lienholders which are named insureds
6on the master policy of insurance which exists or may exist on
7the common interest community or unit subject to the
8Condominium Property Act.
9    (b) Board of Managers' standing and capacity. The board of
10managers shall have standing and capacity to act in a
11representative capacity in relation to matters involving the
12common elements or more than one unit, on behalf of the unit
13owners, as their interests may appear.
14(Source: P.A. 91-616, eff. 8-19-99.)
 
15    (765 ILCS 605/14.1)  (from Ch. 30, par. 314.1)
16    Sec. 14.1. Disposition or removal of any portion of the
17property.
18    (a) The condominium instruments may provide for the
19withdrawal of any portion of the property in connection with
20eminent domain proceedings in compliance with the provisions of
21this Act. Upon the withdrawal of any unit or portion thereof,
22the percentage of interest in the common elements appurtenant
23to such unit or portion thereof shall be reallocated among the
24remaining units on the basis of the percentage of interest of
25each remaining unit. If only a portion of a unit is withdrawn,

 

 

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1the percentage of interest appurtenant to that unit shall be
2reduced accordingly, upon the basis of diminution in market
3value of the unit, as determined by the board of managers. The
4allocation of any condemnation award or other proceeds to any
5withdrawing or remaining unit owner shall be on an equitable
6basis, which need not be a unit's percentage interest. Any
7condemnation award or other proceeds available in connection
8with the withdrawal of any portion of the common elements, not
9necessarily including the limited common elements, shall be
10allocated on the basis of each unit owner's percentage interest
11therein. The declaration may provide that proceeds available
12from the withdrawal of any limited common element will be
13distributed in accordance with the interests of those entitled
14to their use. The condominium instruments shall provide for the
15cessation of responsibility for the payment of assessments for
16any unit or portion thereof withdrawn from the condominium. In
17the event that the unit owners' association is named as
18defendant in an eminent domain proceeding on behalf of all unit
19owners, then the payment of the proceeds of the eminent domain
20proceeding attributable to the taking or damaging of the common
21element shall be according to this Section unless the
22condominium instrument or declaration of a common interest
23community expressly provides for different procedures. This
24Section shall also apply to eminent domain proceedings in which
25the unit owners' association of a common interest community is
26named as a defendant on behalf of all unit owners.

 

 

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1    (b) Notwithstanding anything to the contrary contained in
2this Section, in a leasehold condominium, any allocation of any
3condemnation award or other proceeds available in connection
4with the withdrawal of any portion of the property shall
5include an equitable allocation to the lessor. The allocation
6shall take into account any provisions of the lease described
7in item (x) of Section 2 of this Act concerning such
8allocations.
9(Source: P.A. 89-89, eff. 6-30-95.)
 
10    (765 ILCS 605/18)  (from Ch. 30, par. 318)
11    Sec. 18. Contents of bylaws. The bylaws shall provide for
12at least the following:
13        (a)(1) The election from among the unit owners of a
14    board of managers, the number of persons constituting such
15    board, and that the terms of at least one-third of the
16    members of the board shall expire annually and that all
17    members of the board shall be elected at large; if there
18    are multiple owners of a single unit, only one of the
19    multiple owners shall be eligible to serve as a member of
20    the board at any one time;
21        (2) the powers and duties of the board;
22        (3) the compensation, if any, of the members of the
23    board;
24        (4) the method of removal from office of members of the
25    board;

 

 

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1        (5) that the board may engage the services of a manager
2    or managing agent;
3        (6) that each unit owner shall receive, at least 25
4    days prior to the adoption thereof by the board of
5    managers, a copy of the proposed annual budget together
6    with an indication of which portions are intended for
7    reserves, capital expenditures or repairs or payment of
8    real estate taxes;
9        (7) that the board of managers shall annually supply to
10    all unit owners an itemized accounting of the common
11    expenses for the preceding year actually incurred or paid,
12    together with an indication of which portions were for
13    reserves, capital expenditures or repairs or payment of
14    real estate taxes and with a tabulation of the amounts
15    collected pursuant to the budget or assessment, and showing
16    the net excess or deficit of income over expenditures plus
17    reserves;
18        (8)(i) that each unit owner shall receive notice, in
19    the same manner as is provided in this Act for membership
20    meetings, of any meeting of the board of managers
21    concerning the adoption of the proposed annual budget and
22    regular assessments pursuant thereto or to adopt a separate
23    (special) assessment, (ii) that except as provided in
24    subsection (iv) below, if an adopted budget or any separate
25    assessment adopted by the board would result in the sum of
26    all regular and separate assessments payable in the current

 

 

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1    fiscal year exceeding 115% of the sum of all regular and
2    separate assessments payable during the preceding fiscal
3    year, the board of managers, upon written petition by unit
4    owners with 20 percent of the votes of the association
5    delivered to the board within 14 days of the board action,
6    shall call a meeting of the unit owners within 30 days of
7    the date of delivery of the petition to consider the budget
8    or separate assessment; unless a majority of the total
9    votes of the unit owners are cast at the meeting to reject
10    the budget or separate assessment, it is ratified, (iii)
11    that any common expense not set forth in the budget or any
12    increase in assessments over the amount adopted in the
13    budget shall be separately assessed against all unit
14    owners, (iv) that separate assessments for expenditures
15    relating to emergencies or mandated by law may be adopted
16    by the board of managers without being subject to unit
17    owner approval or the provisions of item (ii) above or item
18    (v) below. As used herein, "emergency" means an immediate
19    danger to the structural integrity of the common elements
20    or to the life, health, safety or property of the unit
21    owners, (v) that assessments for additions and alterations
22    to the common elements or to association-owned property not
23    included in the adopted annual budget, shall be separately
24    assessed and are subject to approval of two-thirds of the
25    total votes of all unit owners, (vi) that the board of
26    managers may adopt separate assessments payable over more

 

 

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1    than one fiscal year. With respect to multi-year
2    assessments not governed by items (iv) and (v), the entire
3    amount of the multi-year assessment shall be deemed
4    considered and authorized in the first fiscal year in which
5    the assessment is approved;
6        (9)(A) that every meeting of the board of managers
7    shall be open to any unit owner, except that the board may
8    close any portion of a noticed meeting or meet separately
9    from a noticed meeting to: (i) discuss litigation when an
10    action against or on behalf of the particular association
11    has been filed and is pending in a court or administrative
12    tribunal, or when the board of managers finds that such an
13    action is probable or imminent, (ii) discuss the
14    appointment, employment, engagement, or dismissal of an
15    employee, independent contractor, agent, or other provider
16    of goods and services, (iii) interview a potential
17    employee, independent contractor, agent, or other provider
18    of goods and services, (iv) discuss violations of rules and
19    regulations of the association, (v) discuss a unit owner's
20    unpaid share of common expenses, or (vi) consult with the
21    association's legal counsel; that any vote on these matters
22    shall take place at a meeting of the board of managers or
23    portion thereof open to any unit owner;
24        (B) that board members may participate in and act at
25    any meeting of the board of managers in person, by
26    telephonic means, or by use of any acceptable technological

 

 

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1    means whereby all persons participating in the meeting can
2    communicate with each other; that participation
3    constitutes attendance and presence in person at the
4    meeting;
5        (C) that any unit owner may record the proceedings at
6    meetings of the board of managers or portions thereof
7    required to be open by this Act by tape, film or other
8    means, and that the board may prescribe reasonable rules
9    and regulations to govern the right to make such
10    recordings;
11        (D) that notice of every meeting of the board of
12    managers shall be given to every board member at least 48
13    hours prior thereto, unless the board member waives notice
14    of the meeting pursuant to subsection (a) of Section 18.8;
15    and
16        (E) that notice of every meeting of the board of
17    managers shall be posted in entranceways, elevators, or
18    other conspicuous places in the condominium at least 48
19    hours prior to the meeting of the board of managers except
20    where there is no common entranceway for 7 or more units,
21    the board of managers may designate one or more locations
22    in the proximity of these units where the notices of
23    meetings shall be posted; that notice of every meeting of
24    the board of managers shall also be given at least 48 hours
25    prior to the meeting, or such longer notice as this Act may
26    separately require, to: (i) each unit owner who has

 

 

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1    provided the association with written authorization to
2    conduct business by acceptable technological means, and
3    (ii) to the extent that the condominium instruments of an
4    association require, to each other unit owner, as required
5    by subsection (f) of Section 18.8, by mail or delivery, and
6    that no other notice of a meeting of the board of managers
7    need be given to any unit owner;
8        (10) that the board shall meet at least 4 times
9    annually;
10        (11) that no member of the board or officer shall be
11    elected for a term of more than 2 years, but that officers
12    and board members may succeed themselves;
13        (12) the designation of an officer to mail and receive
14    all notices and execute amendments to condominium
15    instruments as provided for in this Act and in the
16    condominium instruments;
17        (13) the method of filling vacancies on the board which
18    shall include authority for the remaining members of the
19    board to fill the vacancy by two-thirds vote until the next
20    annual meeting of unit owners or for a period terminating
21    no later than 30 days following the filing of a petition
22    signed by unit owners holding 20% of the votes of the
23    association requesting a meeting of the unit owners to fill
24    the vacancy for the balance of the term, and that a meeting
25    of the unit owners shall be called for purposes of filling
26    a vacancy on the board no later than 30 days following the

 

 

HB2932- 20 -LRB100 10224 HEP 20407 b

1    filing of a petition signed by unit owners holding 20% of
2    the votes of the association requesting such a meeting, and
3    the method of filling vacancies among the officers that
4    shall include the authority for the members of the board to
5    fill the vacancy for the unexpired portion of the term;
6        (14) what percentage of the board of managers, if other
7    than a majority, shall constitute a quorum;
8        (15) provisions concerning notice of board meetings to
9    members of the board;
10        (16) the board of managers may not enter into a
11    contract with a current board member or with a corporation
12    or partnership in which a board member or a member of the
13    board member's immediate family has 25% or more interest,
14    unless notice of intent to enter the contract is given to
15    unit owners within 20 days after a decision is made to
16    enter into the contract and the unit owners are afforded an
17    opportunity by filing a petition, signed by 20% of the unit
18    owners, for an election to approve or disapprove the
19    contract; such petition shall be filed within 20 days after
20    such notice and such election shall be held within 30 days
21    after filing the petition; for purposes of this subsection,
22    a board member's immediate family means the board member's
23    spouse, parents, and children;
24        (17) that the board of managers may disseminate to unit
25    owners biographical and background information about
26    candidates for election to the board if (i) reasonable

 

 

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1    efforts to identify all candidates are made and all
2    candidates are given an opportunity to include
3    biographical and background information in the information
4    to be disseminated; and (ii) the board does not express a
5    preference in favor of any candidate;
6        (18) any proxy distributed for board elections by the
7    board of managers gives unit owners the opportunity to
8    designate any person as the proxy holder, and gives the
9    unit owner the opportunity to express a preference for any
10    of the known candidates for the board or to write in a
11    name;
12        (19) that special meetings of the board of managers can
13    be called by the president or 25% of the members of the
14    board;
15        (20) that the board of managers may establish and
16    maintain a system of master metering of public utility
17    services and collect payments in connection therewith,
18    subject to the requirements of the Tenant Utility Payment
19    Disclosure Act; and
20        (21) that the board may ratify and confirm actions of
21    the members of the board taken in response to an emergency,
22    as that term is defined in subdivision (a)(8)(iv) of this
23    Section; that the board shall give notice to the unit
24    owners of: (i) the occurrence of the emergency event within
25    7 business days after the emergency event, and (ii) the
26    general description of the actions taken to address the

 

 

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1    event within 7 days after the emergency event.
2        The intent of the provisions of Public Act 99-472
3    adding this paragraph (21) is to empower and support boards
4    to act in emergencies.
5        (b)(1) What percentage of the unit owners, if other
6    than 20%, shall constitute a quorum provided that, for
7    condominiums with 20 or more units, the percentage of unit
8    owners constituting a quorum shall be 20% unless the unit
9    owners holding a majority of the percentage interest in the
10    association provide for a higher percentage, provided that
11    in voting on amendments to the association's bylaws, a unit
12    owner who is in arrears on the unit owner's regular or
13    separate assessments for 60 days or more, shall not be
14    counted for purposes of determining if a quorum is present,
15    but that unit owner retains the right to vote on amendments
16    to the association's bylaws;
17        (2) that the association shall have one class of
18    membership;
19        (3) that the members shall hold an annual meeting, one
20    of the purposes of which shall be to elect members of the
21    board of managers;
22        (4) the method of calling meetings of the unit owners;
23        (5) that special meetings of the members can be called
24    by the president, board of managers, or by 20% of unit
25    owners;
26        (6) that written notice of any membership meeting shall

 

 

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1    be mailed or delivered giving members no less than 10 and
2    no more than 30 days notice of the time, place and purpose
3    of such meeting except that notice may be sent, to the
4    extent the condominium instruments or rules adopted
5    thereunder expressly so provide, by electronic
6    transmission consented to by the unit owner to whom the
7    notice is given, provided the director and officer or his
8    agent certifies in writing to the delivery by electronic
9    transmission;
10        (7) that voting shall be on a percentage basis, and
11    that the percentage vote to which each unit is entitled is
12    the percentage interest of the undivided ownership of the
13    common elements appurtenant thereto, provided that the
14    bylaws may provide for approval by unit owners in
15    connection with matters where the requisite approval on a
16    percentage basis is not specified in this Act, on the basis
17    of one vote per unit;
18        (8) that, where there is more than one owner of a unit,
19    if only one of the multiple owners is present at a meeting
20    of the association, he is entitled to cast all the votes
21    allocated to that unit, if more than one of the multiple
22    owners are present, the votes allocated to that unit may be
23    cast only in accordance with the agreement of a majority in
24    interest of the multiple owners, unless the declaration
25    expressly provides otherwise, that there is majority
26    agreement if any one of the multiple owners cast the votes

 

 

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1    allocated to that unit without protest being made promptly
2    to the person presiding over the meeting by any of the
3    other owners of the unit;
4        (9)(A) except as provided in subparagraph (B) of this
5    paragraph (9) in connection with board elections, that a
6    unit owner may vote by proxy executed in writing by the
7    unit owner or by his duly authorized attorney in fact; that
8    the proxy must bear the date of execution and, unless the
9    condominium instruments or the written proxy itself
10    provide otherwise, is invalid after 11 months from the date
11    of its execution; to the extent the condominium instruments
12    or rules adopted thereunder expressly so provide, a vote or
13    proxy may be submitted by electronic transmission,
14    provided that any such electronic transmission shall
15    either set forth or be submitted with information from
16    which it can be determined that the electronic transmission
17    was authorized by the unit owner or the unit owner's proxy;
18        (B) that if a rule adopted at least 120 days before a
19    board election or the declaration or bylaws provide for
20    balloting as set forth in this subsection, unit owners may
21    not vote by proxy in board elections, but may vote only (i)
22    by submitting an association-issued ballot in person at the
23    election meeting or (ii) by submitting an
24    association-issued ballot to the association or its
25    designated agent by mail or other means of delivery
26    specified in the declaration, bylaws, or rule; that the

 

 

HB2932- 25 -LRB100 10224 HEP 20407 b

1    ballots shall be mailed or otherwise distributed to unit
2    owners not less than 10 and not more than 30 days before
3    the election meeting, and the board shall give unit owners
4    not less than 21 days' prior written notice of the deadline
5    for inclusion of a candidate's name on the ballots; that
6    the deadline shall be no more than 7 days before the
7    ballots are mailed or otherwise distributed to unit owners;
8    that every such ballot must include the names of all
9    candidates who have given the board or its authorized agent
10    timely written notice of their candidacy and must give the
11    person casting the ballot the opportunity to cast votes for
12    candidates whose names do not appear on the ballot; that a
13    ballot received by the association or its designated agent
14    after the close of voting shall not be counted; that a unit
15    owner who submits a ballot by mail or other means of
16    delivery specified in the declaration, bylaws, or rule may
17    request and cast a ballot in person at the election
18    meeting, and thereby void any ballot previously submitted
19    by that unit owner;
20        (B-5) that if a rule adopted at least 120 days before a
21    board election or the declaration or bylaws provide for
22    balloting as set forth in this subparagraph, unit owners
23    may not vote by proxy in board elections, but may vote only
24    (i) by submitting an association-issued ballot in person at
25    the election meeting; or (ii) by any acceptable
26    technological means as defined in Section 2 of this Act;

 

 

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1    instructions regarding the use of electronic means for
2    voting shall be distributed to all unit owners not less
3    than 10 and not more than 30 days before the election
4    meeting, and the board shall give unit owners not less than
5    21 days' prior written notice of the deadline for inclusion
6    of a candidate's name on the ballots; the deadline shall be
7    no more than 7 days before the instructions for voting
8    using electronic or acceptable technological means is
9    distributed to unit owners; every instruction notice must
10    include the names of all candidates who have given the
11    board or its authorized agent timely written notice of
12    their candidacy and must give the person voting through
13    electronic or acceptable technological means the
14    opportunity to cast votes for candidates whose names do not
15    appear on the ballot; a unit owner who submits a vote using
16    electronic or acceptable technological means may request
17    and cast a ballot in person at the election meeting,
18    thereby voiding any vote previously submitted by that unit
19    owner;
20        (C) that if a written petition by unit owners with at
21    least 20% of the votes of the association is delivered to
22    the board within 14 days after the board's approval of a
23    rule adopted pursuant to subparagraph (B) or subparagraph
24    (B-5) of this paragraph (9), the board shall call a meeting
25    of the unit owners within 30 days after the date of
26    delivery of the petition; that unless a majority of the

 

 

HB2932- 27 -LRB100 10224 HEP 20407 b

1    total votes of the unit owners are cast at the meeting to
2    reject the rule, the rule is ratified;
3        (D) that votes cast by ballot under subparagraph (B) or
4    electronic or acceptable technological means under
5    subparagraph (B-5) of this paragraph (9) are valid for the
6    purpose of establishing a quorum;
7        (10) that the association may, upon adoption of the
8    appropriate rules by the board of managers, conduct
9    elections by secret ballot whereby the voting ballot is
10    marked only with the percentage interest for the unit and
11    the vote itself, provided that the board further adopt
12    rules to verify the status of the unit owner issuing a
13    proxy or casting a ballot; and further, that a candidate
14    for election to the board of managers or such candidate's
15    representative shall have the right to be present at the
16    counting of ballots at such election;
17        (11) that in the event of a resale of a condominium
18    unit the purchaser of a unit from a seller other than the
19    developer pursuant to an installment contract for purchase
20    shall during such times as he or she resides in the unit be
21    counted toward a quorum for purposes of election of members
22    of the board of managers at any meeting of the unit owners
23    called for purposes of electing members of the board, shall
24    have the right to vote for the election of members of the
25    board of managers and to be elected to and serve on the
26    board of managers unless the seller expressly retains in

 

 

HB2932- 28 -LRB100 10224 HEP 20407 b

1    writing any or all of such rights. In no event may the
2    seller and purchaser both be counted toward a quorum, be
3    permitted to vote for a particular office or be elected and
4    serve on the board. Satisfactory evidence of the
5    installment contract shall be made available to the
6    association or its agents. For purposes of this subsection,
7    "installment contract" shall have the same meaning as set
8    forth in Section 1(e) of the Dwelling Unit Installment
9    Contract Act;
10        (12) the method by which matters subject to the
11    approval of unit owners set forth in this Act, or in the
12    condominium instruments, will be submitted to the unit
13    owners at special membership meetings called for such
14    purposes; and
15        (13) that matters subject to the affirmative vote of
16    not less than 2/3 of the votes of unit owners at a meeting
17    duly called for that purpose, shall include, but not be
18    limited to:
19        (i) merger or consolidation of the association;
20        (ii) sale, lease, exchange, or other disposition
21        (excluding the mortgage or pledge) of all, or
22        substantially all of the property and assets of the
23        association; and
24        (iii) the purchase or sale of land or of units on
25        behalf of all unit owners.
26        (c) Election of a president from among the board of

 

 

HB2932- 29 -LRB100 10224 HEP 20407 b

1    managers, who shall preside over the meetings of the board
2    of managers and of the unit owners.
3        (d) Election of a secretary from among the board of
4    managers, who shall keep the minutes of all meetings of the
5    board of managers and of the unit owners and who shall, in
6    general, perform all the duties incident to the office of
7    secretary.
8        (e) Election of a treasurer from among the board of
9    managers, who shall keep the financial records and books of
10    account.
11        (f) Maintenance, repair and replacement of the common
12    elements and payments therefor, including the method of
13    approving payment vouchers.
14        (g) (Blank). An association with 30 or more units shall
15    obtain and maintain fidelity insurance covering persons
16    who control or disburse funds of the association for the
17    maximum amount of coverage available to protect funds in
18    the custody or control of the association plus the
19    association reserve fund. All management companies which
20    are responsible for the funds held or administered by the
21    association shall maintain and furnish to the association a
22    fidelity bond for the maximum amount of coverage available
23    to protect funds in the custody of the management company
24    at any time. The association shall bear the cost of the
25    fidelity insurance and fidelity bond, unless otherwise
26    provided by contract between the association and a

 

 

HB2932- 30 -LRB100 10224 HEP 20407 b

1    management company. The association shall be the direct
2    obligee of any such fidelity bond. A management company
3    holding reserve funds of an association shall at all times
4    maintain a separate account for each association,
5    provided, however, that for investment purposes, the Board
6    of Managers of an association may authorize a management
7    company to maintain the association's reserve funds in a
8    single interest bearing account with similar funds of other
9    associations. The management company shall at all times
10    maintain records identifying all moneys of each
11    association in such investment account. The management
12    company may hold all operating funds of associations which
13    it manages in a single operating account but shall at all
14    times maintain records identifying all moneys of each
15    association in such operating account. Such operating and
16    reserve funds held by the management company for the
17    association shall not be subject to attachment by any
18    creditor of the management company.
19        For the purpose of this subsection, a management
20    company shall be defined as a person, partnership,
21    corporation, or other legal entity entitled to transact
22    business on behalf of others, acting on behalf of or as an
23    agent for a unit owner, unit owners or association of unit
24    owners for the purpose of carrying out the duties,
25    responsibilities, and other obligations necessary for the
26    day to day operation and management of any property subject

 

 

HB2932- 31 -LRB100 10224 HEP 20407 b

1    to this Act. For purposes of this subsection, the term
2    "fiduciary insurance coverage" shall be defined as both a
3    fidelity bond and directors and officers liability
4    coverage, the fidelity bond in the full amount of
5    association funds and association reserves that will be in
6    the custody of the association, and the directors and
7    officers liability coverage at a level as shall be
8    determined to be reasonable by the board of managers, if
9    not otherwise established by the declaration or by laws.
10        Until one year after September 21, 1985 (the effective
11    date of Public Act 84-722), if a condominium association
12    has reserves plus assessments in excess of $250,000 and
13    cannot reasonably obtain 100% fidelity bond coverage for
14    such amount, then it must obtain a fidelity bond coverage
15    of $250,000.
16        (h) Method of estimating the amount of the annual
17    budget, and the manner of assessing and collecting from the
18    unit owners their respective shares of such estimated
19    expenses, and of any other expenses lawfully agreed upon.
20        (i) That upon 10 days notice to the manager or board of
21    managers and payment of a reasonable fee, any unit owner
22    shall be furnished a statement of his account setting forth
23    the amount of any unpaid assessments or other charges due
24    and owing from such owner.
25        (j) Designation and removal of personnel necessary for
26    the maintenance, repair and replacement of the common

 

 

HB2932- 32 -LRB100 10224 HEP 20407 b

1    elements.
2        (k) Such restrictions on and requirements respecting
3    the use and maintenance of the units and the use of the
4    common elements, not set forth in the declaration, as are
5    designed to prevent unreasonable interference with the use
6    of their respective units and of the common elements by the
7    several unit owners.
8        (l) Method of adopting and of amending administrative
9    rules and regulations governing the operation and use of
10    the common elements.
11        (m) The percentage of votes required to modify or amend
12    the bylaws, but each one of the particulars set forth in
13    this section shall always be embodied in the bylaws.
14        (n)(i) The provisions of this Act, the declaration,
15    bylaws, other condominium instruments, and rules and
16    regulations that relate to the use of the individual unit
17    or the common elements shall be applicable to any person
18    leasing a unit and shall be deemed to be incorporated in
19    any lease executed or renewed on or after August 30, 1984
20    (the effective date of Public Act 83-1271).
21        (ii) With regard to any lease entered into subsequent
22    to July 1, 1990 (the effective date of Public Act 86-991),
23    the unit owner leasing the unit shall deliver a copy of the
24    signed lease to the board or if the lease is oral, a
25    memorandum of the lease, not later than the date of
26    occupancy or 10 days after the lease is signed, whichever

 

 

HB2932- 33 -LRB100 10224 HEP 20407 b

1    occurs first. In addition to any other remedies, by filing
2    an action jointly against the tenant and the unit owner, an
3    association may seek to enjoin a tenant from occupying a
4    unit or seek to evict a tenant under the provisions of
5    Article IX of the Code of Civil Procedure for failure of
6    the lessor-owner to comply with the leasing requirements
7    prescribed by this Section or by the declaration, bylaws,
8    and rules and regulations. The board of managers may
9    proceed directly against a tenant, at law or in equity, or
10    under the provisions of Article IX of the Code of Civil
11    Procedure, for any other breach by tenant of any covenants,
12    rules, regulations or bylaws.
13        (o) The association shall have no authority to forbear
14    the payment of assessments by any unit owner.
15        (p) That when 30% or fewer of the units, by number,
16    possess over 50% in the aggregate of the votes in the
17    association, any percentage vote of members specified
18    herein or in the condominium instruments shall require the
19    specified percentage by number of units rather than by
20    percentage of interest in the common elements allocated to
21    units that would otherwise be applicable and garage units
22    or storage units, or both, shall have, in total, no more
23    votes than their aggregate percentage of ownership in the
24    common elements; this shall mean that if garage units or
25    storage units, or both, are to be given a vote, or portion
26    of a vote, that the association must add the total number

 

 

HB2932- 34 -LRB100 10224 HEP 20407 b

1    of votes cast of garage units, storage units, or both, and
2    divide the total by the number of garage units, storage
3    units, or both, and multiply by the aggregate percentage of
4    ownership of garage units and storage units to determine
5    the vote, or portion of a vote, that garage units or
6    storage units, or both, have. For purposes of this
7    subsection (p), when making a determination of whether 30%
8    or fewer of the units, by number, possess over 50% in the
9    aggregate of the votes in the association, a unit shall not
10    include a garage unit or a storage unit.
11        (q) That a unit owner may not assign, delegate,
12    transfer, surrender, or avoid the duties,
13    responsibilities, and liabilities of a unit owner under
14    this Act, the condominium instruments, or the rules and
15    regulations of the Association; and that such an attempted
16    assignment, delegation, transfer, surrender, or avoidance
17    shall be deemed void.
18    The provisions of this Section are applicable to all
19condominium instruments recorded under this Act. Any portion of
20a condominium instrument which contains provisions contrary to
21these provisions shall be void as against public policy and
22ineffective. Any such instrument which fails to contain the
23provisions required by this Section shall be deemed to
24incorporate such provisions by operation of law.
25(Source: P.A. 98-1042, eff. 1-1-15; 99-472, eff. 6-1-16;
2699-567, eff. 1-1-17; 99-642, eff. 7-28-16.)
 

 

 

HB2932- 35 -LRB100 10224 HEP 20407 b

1    (765 ILCS 605/18.5)  (from Ch. 30, par. 318.5)
2    Sec. 18.5. Master Associations.
3    (a) If the declaration, other condominium instrument, or
4other duly recorded covenants provide that any of the powers of
5the unit owners associations are to be exercised by or may be
6delegated to a nonprofit corporation or unincorporated
7association that exercises those or other powers on behalf of
8one or more condominiums, or for the benefit of the unit owners
9of one or more condominiums, such corporation or association
10shall be a master association.
11    (b) There shall be included in the declaration, other
12condominium instruments, or other duly recorded covenants
13establishing the powers and duties of the master association
14the provisions set forth in subsections (c) through (h).
15    In interpreting subsections (c) through (h), the courts
16should interpret these provisions so that they are interpreted
17consistently with the similar parallel provisions found in
18other parts of this Act.
19    (c) Meetings and finances.
20        (1) Each unit owner of a condominium subject to the
21    authority of the board of the master association shall
22    receive, at least 30 days prior to the adoption thereof by
23    the board of the master association, a copy of the proposed
24    annual budget.
25        (2) The board of the master association shall annually

 

 

HB2932- 36 -LRB100 10224 HEP 20407 b

1    supply to all unit owners of condominiums subject to the
2    authority of the board of the master association an
3    itemized accounting of the common expenses for the
4    preceding year actually incurred or paid, together with a
5    tabulation of the amounts collected pursuant to the budget
6    or assessment, and showing the net excess or deficit of
7    income over expenditures plus reserves.
8        (3) Each unit owner of a condominium subject to the
9    authority of the board of the master association shall
10    receive written notice mailed or delivered no less than 10
11    and no more than 30 days prior to any meeting of the board
12    of the master association concerning the adoption of the
13    proposed annual budget or any increase in the budget, or
14    establishment of an assessment.
15        (4) Meetings of the board of the master association
16    shall be open to any unit owner in a condominium subject to
17    the authority of the board of the master association,
18    except for the portion of any meeting held:
19            (A) to discuss litigation when an action against or
20        on behalf of the particular master association has been
21        filed and is pending in a court or administrative
22        tribunal, or when the board of the master association
23        finds that such an action is probable or imminent,
24            (B) to consider information regarding appointment,
25        employment or dismissal of an employee, or
26            (C) to discuss violations of rules and regulations

 

 

HB2932- 37 -LRB100 10224 HEP 20407 b

1        of the master association or unpaid common expenses
2        owed to the master association.
3    Any vote on these matters shall be taken at a meeting or
4    portion thereof open to any unit owner of a condominium
5    subject to the authority of the master association.
6        Any unit owner may record the proceedings at meetings
7    required to be open by this Act by tape, film or other
8    means; the board may prescribe reasonable rules and
9    regulations to govern the right to make such recordings.
10    Notice of meetings shall be mailed or delivered at least 48
11    hours prior thereto, unless a written waiver of such notice
12    is signed by the persons entitled to notice before the
13    meeting is convened. Copies of notices of meetings of the
14    board of the master association shall be posted in
15    entranceways, elevators, or other conspicuous places in
16    the condominium at least 48 hours prior to the meeting of
17    the board of the master association. Where there is no
18    common entranceway for 7 or more units, the board of the
19    master association may designate one or more locations in
20    the proximity of these units where the notices of meetings
21    shall be posted.
22        (5) If the declaration provides for election by unit
23    owners of members of the board of directors in the event of
24    a resale of a unit in the master association, the purchaser
25    of a unit from a seller other than the developer pursuant
26    to an installment contract for purchase shall, during such

 

 

HB2932- 38 -LRB100 10224 HEP 20407 b

1    times as he or she resides in the unit, be counted toward a
2    quorum for purposes of election of members of the board of
3    directors at any meeting of the unit owners called for
4    purposes of electing members of the board, and shall have
5    the right to vote for the election of members of the board
6    of directors and to be elected to and serve on the board of
7    directors unless the seller expressly retains in writing
8    any or all of those rights. In no event may the seller and
9    purchaser both be counted toward a quorum, be permitted to
10    vote for a particular office, or be elected and serve on
11    the board. Satisfactory evidence of the installment
12    contract shall be made available to the association or its
13    agents. For purposes of this subsection, "installment
14    contract" shall have the same meaning as set forth in
15    subsection (e) of Section 1 of the Dwelling Unit
16    Installment Contract Act.
17        (6) The board of the master association shall have the
18    authority to establish and maintain a system of master
19    metering of public utility services and to collect payments
20    in connection therewith, subject to the requirements of the
21    Tenant Utility Payment Disclosure Act.
22        (7) The board of the master association or a common
23    interest community association shall have the power, after
24    notice and an opportunity to be heard, to levy and collect
25    reasonable fines from members for violations of the
26    declaration, bylaws, and rules and regulations of the

 

 

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1    master association or the common interest community
2    association. Nothing contained in this subdivision (7)
3    shall give rise to a statutory lien for unpaid fines.
4        (8) Other than attorney's fees, no fees pertaining to
5    the collection of a unit owner's financial obligation to
6    the Association, including fees charged by a manager or
7    managing agent, shall be added to and deemed a part of an
8    owner's respective share of the common expenses unless: (i)
9    the managing agent fees relate to the costs to collect
10    common expenses for the Association; (ii) the fees are set
11    forth in a contract between the managing agent and the
12    Association; and (iii) the authority to add the management
13    fees to an owner's respective share of the common expenses
14    is specifically stated in the declaration or bylaws of the
15    Association.
16    (d) Records.
17        (1) The board of the master association shall keep and
18    maintain the following records, or true and complete copies
19    of the records, at the association's principal office of
20    the association and make them available for examination and
21    copying at convenient hours of weekdays by any unit owners
22    in a condominium subject to the authority of the board or
23    their mortgagees and their duly authorized agents or
24    attorneys:
25            (i) the association's declaration, bylaws, and
26        plats of survey, and all amendments of the

 

 

HB2932- 40 -LRB100 10224 HEP 20407 b

1        association's declaration, bylaws, and plats of
2        survey;
3            (ii) the rules and regulations of the association,
4        if any;
5            (iii) if the association is incorporated as a
6        corporation, the articles of incorporation of the
7        association and all amendments to the articles of
8        incorporation;
9            (iv) minutes of all meetings of the association and
10        its board of managers for the immediately preceding 7
11        years;
12            (v) all current policies of insurance of the
13        association;
14            (vi) all contracts, leases, and other agreements
15        then in effect to which the association is a party or
16        under which the association or the unit owners have
17        obligations or liabilities;
18            (vii) a current listing of the names, addresses,
19        and weighted vote of all members entitled to vote;
20            (viii) ballots and proxies related to ballots for
21        all matters voted on by the members of the association
22        during the immediately preceding 12 months, including,
23        but not limited to, the election of members of the
24        board of managers; and
25            (ix) the books and records of account for the
26        association's current and 10 immediately preceding

 

 

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1        fiscal years, including, but not limited to, itemized
2        and detailed records of all receipts and expenditures.
3        With respect to units owned by a land trust, if a
4    trustee designates in writing a person to cast votes on
5    behalf of the unit owner, the designation shall remain in
6    effect until a subsequent document is filed with the
7    association.
8        (2) Any member of an association has the right to
9    inspect, examine, and make copies of the records described
10    in subdivisions (i), (ii), (iii), (iv), and (v) of
11    paragraph (1) of this subsection, in person or by agent, at
12    any reasonable time or times, at the association's
13    principal office. In order to exercise this right, a member
14    must submit a written request to the association's board of
15    directors or its authorized agent, stating with
16    particularity the records sought. Failure of an
17    association's board of directors to make available all
18    requested records within 30 days of receipt of the member's
19    written request shall be deemed a denial.
20        Any member who prevails in an enforcement action to
21    compel examination of records described in subdivisions
22    (i), (ii), (iii), (iv), and (v) of paragraph (1) of this
23    subsection is entitled to recover reasonable attorney's
24    fees and costs from the association.
25        (3) Except as otherwise provided in this subsection,
26    any member of an association has the right to inspect,

 

 

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1    examine, and make copies of the records described in
2    subdivisions (vi), (vii), (viii), and (ix) of paragraph (1)
3    of this subsection, in person or by agent, at any
4    reasonable time or times, but only for a proper purpose, at
5    the association's principal office. In order to exercise
6    this right, a member must submit a written request to the
7    association's board of directors or its authorized agent,
8    stating with particularity the records sought and a proper
9    purpose for the request. Subject to the provisions of
10    paragraph (5) of this subsection, failure of an
11    association's board of directors to make available all
12    requested records within 30 business days of receipt of the
13    member's written request shall be deemed a denial; however,
14    the board of directors of an association that has adopted a
15    secret ballot election process shall not be deemed to have
16    denied a member's request for records described in
17    subdivision (viii) of paragraph (1) of this subsection if
18    voting ballots, without identifying unit numbers, are made
19    available to the requesting member within 30 days of
20    receipt of the member's written request.
21        In an action to compel examination of records described
22    in subdivisions (vi), (vii), (viii), and (ix) of paragraph
23    (1) of this subsection, the burden of proof is upon the
24    member to establish that the member's request is based on a
25    proper purpose. Any member who prevails in an enforcement
26    action to compel examination of records described in

 

 

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1    subdivisions (vi), (vii), (viii), and (ix) of paragraph (1)
2    of this subsection is entitled to recover reasonable
3    attorney's fees and costs from the association only if the
4    court finds that the board of directors acted in bad faith
5    in denying the member's request.
6        (4) The actual cost to the association of retrieving
7    and making requested records available for inspection and
8    examination under this Section shall be charged by the
9    association to the requesting member. If a member requests
10    copies of records under this Section, the actual costs to
11    the association of reproducing the records shall also be
12    charged by the association to the requesting member.
13        (5) Notwithstanding the other provisions of this
14    subsection, unless otherwise directed by court order, an
15    association need not make the following records available
16    for inspection, examination, or copying by its members:
17            (i) documents relating to appointment, employment,
18        discipline, or dismissal of association employees;
19            (ii) documents relating to actions pending against
20        or on behalf of the association or its board of
21        managers in a court or administrative tribunal;
22            (iii) documents relating to actions threatened
23        against, or likely to be asserted on behalf of, the
24        association or its board of directors in a court or
25        administrative tribunal;
26            (iv) documents relating to common expenses or

 

 

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1        other charges owed by a member other than the
2        requesting member; and
3            (v) documents provided to an association in
4        connection with the lease, sale, or other transfer of a
5        unit by a member other than the requesting member.
6            (i) Copies of the recorded declaration, other
7        condominium instruments, other duly recorded covenants
8        and bylaws and any amendments, articles of
9        incorporation of the master association, annual
10        reports and any rules and regulations adopted by the
11        master association or its board shall be available.
12        Prior to the organization of the master association,
13        the developer shall maintain and make available the
14        records set forth in this subdivision (d)(1) for
15        examination and copying.
16            (ii) Detailed and accurate records in
17        chronological order of the receipts and expenditures
18        affecting the common areas, specifying and itemizing
19        the maintenance and repair expenses of the common areas
20        and any other expenses incurred, and copies of all
21        contracts, leases, or other agreements entered into by
22        the master association, shall be maintained.
23            (iii) The minutes of all meetings of the master
24        association and the board of the master association
25        shall be maintained for not less than 7 years.
26            (iv) Ballots and proxies related thereto, if any,

 

 

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1        for any election held for the board of the master
2        association and for any other matters voted on by the
3        unit owners shall be maintained for not less than one
4        year.
5            (v) Such other records of the master association as
6        are available for inspection by members of a
7        not-for-profit corporation pursuant to Section 107.75
8        of the General Not For Profit Corporation Act of 1986
9        shall be maintained.
10            (vi) With respect to units owned by a land trust,
11        if a trustee designates in writing a person to cast
12        votes on behalf of the unit owner, the designation
13        shall remain in effect until a subsequent document is
14        filed with the association.
15        (2) Where a request for records under this subsection
16    is made in writing to the board of managers or its agent,
17    failure to provide the requested record or to respond
18    within 30 days shall be deemed a denial by the board of
19    directors.
20        (3) A reasonable fee may be charged by the master
21    association or its board for the cost of copying.
22        (4) If the board of directors fails to provide records
23    properly requested under subdivision (d)(1) within the
24    time period provided in subdivision (d)(2), the unit owner
25    may seek appropriate relief, including an award of
26    attorney's fees and costs.

 

 

HB2932- 46 -LRB100 10224 HEP 20407 b

1    (e) The board of directors shall have standing and capacity
2to act in a representative capacity in relation to matters
3involving the common areas of the master association or more
4than one unit, on behalf of the unit owners as their interests
5may appear.
6    (f) Administration of property prior to election of the
7initial board of directors.
8        (1) Until the election, by the unit owners or the
9    boards of managers of the underlying condominium
10    associations, of the initial board of directors of a master
11    association whose declaration is recorded on or after
12    August 10, 1990, the same rights, titles, powers,
13    privileges, trusts, duties and obligations that are vested
14    in or imposed upon the board of directors by this Act or in
15    the declaration or other duly recorded covenant shall be
16    held and performed by the developer.
17        (2) The election of the initial board of directors of a
18    master association whose declaration is recorded on or
19    after August 10, 1990, by the unit owners or the boards of
20    managers of the underlying condominium associations, shall
21    be held not later than 60 days after the conveyance by the
22    developer of 75% of the units, or 3 years after the
23    recording of the declaration, whichever is earlier. The
24    developer shall give at least 21 days notice of the meeting
25    to elect the initial board of directors and shall upon
26    request provide to any unit owner, within 3 working days of

 

 

HB2932- 47 -LRB100 10224 HEP 20407 b

1    the request, the names, addresses, and weighted vote of
2    each unit owner entitled to vote at the meeting. Any unit
3    owner shall upon receipt of the request be provided with
4    the same information, within 10 days of the request, with
5    respect to each subsequent meeting to elect members of the
6    board of directors.
7        (3) If the initial board of directors of a master
8    association whose declaration is recorded on or after
9    August 10, 1990 is not elected by the unit owners or the
10    members of the underlying condominium association board of
11    managers at the time established in subdivision (f)(2), the
12    developer shall continue in office for a period of 30 days,
13    whereupon written notice of his resignation shall be sent
14    to all of the unit owners or members of the underlying
15    condominium board of managers entitled to vote at an
16    election for members of the board of directors.
17        (4) Within 60 days following the election of a majority
18    of the board of directors, other than the developer, by
19    unit owners, the developer shall deliver to the board of
20    directors:
21            (i) All original documents as recorded or filed
22        pertaining to the property, its administration, and
23        the association, such as the declaration, articles of
24        incorporation, other instruments, annual reports,
25        minutes, rules and regulations, and contracts, leases,
26        or other agreements entered into by the association. If

 

 

HB2932- 48 -LRB100 10224 HEP 20407 b

1        any original documents are unavailable, a copy may be
2        provided if certified by affidavit of the developer, or
3        an officer or agent of the developer, as being a
4        complete copy of the actual document recorded or filed.
5            (ii) A detailed accounting by the developer,
6        setting forth the source and nature of receipts and
7        expenditures in connection with the management,
8        maintenance and operation of the property, copies of
9        all insurance policies, and a list of any loans or
10        advances to the association which are outstanding.
11            (iii) Association funds, which shall have been at
12        all times segregated from any other moneys of the
13        developer.
14            (iv) A schedule of all real or personal property,
15        equipment and fixtures belonging to the association,
16        including documents transferring the property,
17        warranties, if any, for all real and personal property
18        and equipment, deeds, title insurance policies, and
19        all tax bills.
20            (v) A list of all litigation, administrative
21        action and arbitrations involving the association, any
22        notices of governmental bodies involving actions taken
23        or which may be taken concerning the association,
24        engineering and architectural drawings and
25        specifications as approved by any governmental
26        authority, all other documents filed with any other

 

 

HB2932- 49 -LRB100 10224 HEP 20407 b

1        governmental authority, all governmental certificates,
2        correspondence involving enforcement of any
3        association requirements, copies of any documents
4        relating to disputes involving unit owners, and
5        originals of all documents relating to everything
6        listed in this subparagraph.
7            (vi) If the developer fails to fully comply with
8        this paragraph (4) within the 60 days provided and
9        fails to fully comply within 10 days of written demand
10        mailed by registered or certified mail to his or her
11        last known address, the board may bring an action to
12        compel compliance with this paragraph (4). If the court
13        finds that any of the required deliveries were not made
14        within the required period, the board shall be entitled
15        to recover its reasonable attorneys' fees and costs
16        incurred from and after the date of expiration of the
17        10 day demand.
18        (5) With respect to any master association whose
19    declaration is recorded on or after August 10, 1990, any
20    contract, lease, or other agreement made prior to the
21    election of a majority of the board of directors other than
22    the developer by or on behalf of unit owners or underlying
23    condominium associations, the association or the board of
24    directors, which extends for a period of more than 2 years
25    from the recording of the declaration, shall be subject to
26    cancellation by more than 1/2 of the votes of the unit

 

 

HB2932- 50 -LRB100 10224 HEP 20407 b

1    owners, other than the developer, cast at a special meeting
2    of members called for that purpose during a period of 90
3    days prior to the expiration of the 2 year period if the
4    board of managers is elected by the unit owners, otherwise
5    by more than 1/2 of the underlying condominium board of
6    managers. At least 60 days prior to the expiration of the 2
7    year period, the board of directors, or, if the board is
8    still under developer control, then the board of managers
9    or the developer shall send notice to every unit owner or
10    underlying condominium board of managers, notifying them
11    of this provision, of what contracts, leases and other
12    agreements are affected, and of the procedure for calling a
13    meeting of the unit owners or for action by the underlying
14    condominium board of managers for the purpose of acting to
15    terminate such contracts, leases or other agreements.
16    During the 90 day period the other party to the contract,
17    lease, or other agreement shall also have the right of
18    cancellation.
19        (6) The statute of limitations for any actions in law
20    or equity which the master association may bring shall not
21    begin to run until the unit owners or underlying
22    condominium board of managers have elected a majority of
23    the members of the board of directors.
24    (g) In the event of any resale of a unit in a master
25association by a unit owner other than the developer, the owner
26shall obtain from the board of directors and shall make

 

 

HB2932- 51 -LRB100 10224 HEP 20407 b

1available for inspection to the prospective purchaser, upon
2demand, the following:
3        (1) A copy of the declaration, other instruments and
4    any rules and regulations.
5        (2) A statement of any liens, including a statement of
6    the account of the unit setting forth the amounts of unpaid
7    assessments and other charges due and owing.
8        (3) A statement of any capital expenditures
9    anticipated by the association within the current or
10    succeeding 2 fiscal years.
11        (4) A statement of the status and amount of any reserve
12    for replacement fund and any portion of such fund earmarked
13    for any specified project by the board of directors.
14        (5) A copy of the statement of financial condition of
15    the association for the last fiscal year for which such a
16    statement is available.
17        (6) A statement of the status of any pending suits or
18    judgments in which the association is a party that may have
19    a material adverse impact on the association's financial
20    condition.
21        (7) A statement setting forth what insurance coverage
22    is provided for all unit owners by the association.
23        (8) A statement that any known improvements or
24    alterations made to the unit, or any part of the common
25    areas assigned thereto, by the prior unit owner are in good
26    faith believed to be in compliance with the declaration of

 

 

HB2932- 52 -LRB100 10224 HEP 20407 b

1    the master association.
2    The principal officer of the unit owner's association or
3such other officer, manager, or agent as is specifically
4designated shall furnish the above information when requested
5to do so in writing, within 30 days of receiving the request.
6    A reasonable fee covering the direct out-of-pocket cost of
7copying and providing such information may be charged by the
8association or its board of directors to the unit seller for
9providing the information.
10    Within 15 days of the recording of a mortgage or trust deed
11against a unit ownership given by the owner of that unit to
12secure a debt, the owner shall inform the board of the master
13association of the identity of the lender, together with a
14mailing address at which the lender can receive notices from
15the association. If a unit owner fails or refuses to inform the
16board as required under this subsection, then that unit owner
17is liable to the association for all costs, expenses, and
18reasonable attorney's fees and other damages, if any, incurred
19by the association as a result of the failure or refusal.
20    (g-1) The purchaser of a unit of a common interest
21community at a judicial foreclosure sale, other than a
22mortgagee, who takes possession of a unit of a common interest
23community pursuant to a court order or a purchaser who acquires
24title from a mortgagee shall have the duty to pay the
25proportionate share, if any, of the common expenses for the
26unit that would have become due in the absence of any

 

 

HB2932- 53 -LRB100 10224 HEP 20407 b

1assessment acceleration during the 6 months immediately
2preceding institution of an action to enforce the collection of
3assessments and the court costs incurred by the association in
4an action to enforce the collection that remain unpaid by the
5owner during whose possession the assessments accrued. If the
6outstanding assessments and the court costs incurred by the
7association in an action to enforce the collection are paid at
8any time during any action to enforce the collection of
9assessments, the purchaser shall have no obligation to pay any
10assessments that accrued before he or she acquired title. The
11notice of sale of a unit of a common interest community under
12subsection (c) of Section 15-1507 of the Code of Civil
13Procedure shall state that the purchaser of the unit other than
14a mortgagee shall pay the assessments and court costs required
15by this subsection (g-1).
16    (h) Errors and omissions.
17        (1) If there is an omission or error in the declaration
18    or other instrument of the master association, the master
19    association may correct the error or omission by an
20    amendment to the declaration or other instrument, as may be
21    required to conform it to this Act, to any other applicable
22    statute, or to the declaration. The amendment shall be
23    adopted by vote of two-thirds of the members of the board
24    of directors or by a majority vote of the unit owners at a
25    meeting called for that purpose, unless the Act or the
26    declaration of the master association specifically

 

 

HB2932- 54 -LRB100 10224 HEP 20407 b

1    provides for greater percentages or different procedures.
2        (2) If, through a scrivener's error, a unit has not
3    been designated as owning an appropriate undivided share of
4    the common areas or does not bear an appropriate share of
5    the common expenses, or if all of the common expenses or
6    all of the common elements in the condominium have not been
7    distributed in the declaration, so that the sum total of
8    the shares of common areas which have been distributed or
9    the sum total of the shares of the common expenses fail to
10    equal 100%, or if it appears that more than 100% of the
11    common elements or common expenses have been distributed,
12    the error may be corrected by operation of law by filing an
13    amendment to the declaration, approved by vote of
14    two-thirds of the members of the board of directors or a
15    majority vote of the unit owners at a meeting called for
16    that purpose, which proportionately adjusts all percentage
17    interests so that the total is equal to 100%, unless the
18    declaration specifically provides for a different
19    procedure or different percentage vote by the owners of the
20    units and the owners of mortgages thereon affected by
21    modification being made in the undivided interest in the
22    common areas, the number of votes in the unit owners
23    association or the liability for common expenses
24    appertaining to the unit.
25        (3) If an omission or error or a scrivener's error in
26    the declaration or other instrument is corrected by vote of

 

 

HB2932- 55 -LRB100 10224 HEP 20407 b

1    two-thirds of the members of the board of directors
2    pursuant to the authority established in subdivisions
3    (h)(1) or (h)(2) of this Section, the board, upon written
4    petition by unit owners with 20% of the votes of the
5    association or resolutions adopted by the board of managers
6    or board of directors of the condominium and common
7    interest community associations which select 20% of the
8    members of the board of directors of the master
9    association, whichever is applicable, received within 30
10    days of the board action, shall call a meeting of the unit
11    owners or the boards of the condominium and common interest
12    community associations which select members of the board of
13    directors of the master association within 30 days of the
14    filing of the petition or receipt of the condominium and
15    common interest community association resolution to
16    consider the board action. Unless a majority of the votes
17    of the unit owners of the association are cast at the
18    meeting to reject the action, or board of managers or board
19    of directors of condominium and common interest community
20    associations which select over 50% of the members of the
21    board of the master association adopt resolutions prior to
22    the meeting rejecting the action of the board of directors
23    of the master association, it is ratified whether or not a
24    quorum is present.
25        (4) The procedures for amendments set forth in this
26    subsection (h) cannot be used if such an amendment would

 

 

HB2932- 56 -LRB100 10224 HEP 20407 b

1    materially or adversely affect property rights of the unit
2    owners unless the affected unit owners consent in writing.
3    This Section does not restrict the powers of the
4    association to otherwise amend the declaration, bylaws, or
5    other condominium instruments, but authorizes a simple
6    process of amendment requiring a lesser vote for the
7    purpose of correcting defects, errors, or omissions when
8    the property rights of the unit owners are not materially
9    or adversely affected.
10        (5) If there is an omission or error in the declaration
11    or other instruments that may not be corrected by an
12    amendment procedure set forth in subdivision (h)(1) or
13    (h)(2) of this Section, then the circuit court in the
14    county in which the master association is located shall
15    have jurisdiction to hear a petition of one or more of the
16    unit owners thereon or of the association, to correct the
17    error or omission, and the action may be a class action.
18    The court may require that one or more methods of
19    correcting the error or omission be submitted to the unit
20    owners to determine the most acceptable correction. All
21    unit owners in the association must be joined as parties to
22    the action. Service of process on owners may be by
23    publication, but the plaintiff shall furnish all unit
24    owners not personally served with process with copies of
25    the petition and final judgment of the court by certified
26    mail, return receipt requested, at their last known

 

 

HB2932- 57 -LRB100 10224 HEP 20407 b

1    address.
2        (6) Nothing contained in this Section shall be
3    construed to invalidate any provision of a declaration
4    authorizing the developer to amend an instrument prior to
5    the latest date on which the initial membership meeting of
6    the unit owners must be held, whether or not it has
7    actually been held, to bring the instrument into compliance
8    with the legal requirements of the Federal National
9    Mortgage Association, the Federal Home Loan Mortgage
10    Corporation, the Federal Housing Administration, the
11    United States Veterans Administration or their respective
12    successors and assigns.
13    (i) The provisions of subsections (c) through (h) are
14applicable to all declarations, other condominium instruments,
15and other duly recorded covenants establishing the powers and
16duties of the master association recorded under this Act. Any
17portion of a declaration, other condominium instrument, or
18other duly recorded covenant establishing the powers and duties
19of a master association which contains provisions contrary to
20the provisions of subsection (c) through (h) shall be void as
21against public policy and ineffective. Any declaration, other
22condominium instrument, or other duly recorded covenant
23establishing the powers and duties of the master association
24which fails to contain the provisions required by subsections
25(c) through (h) shall be deemed to incorporate such provisions
26by operation of law.

 

 

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1    (j) (Blank).
2(Source: P.A. 96-1045, eff. 7-14-10; 97-535, eff. 1-1-12;
397-605, eff. 8-26-11; 97-813, eff. 7-13-12.)
 
4    (765 ILCS 605/18.6)
5    Sec. 18.6. Display of American flag or military flag.
6    (a) Notwithstanding any provision in the declaration,
7bylaws, rules, regulations, or agreements or other instruments
8of a condominium association or a master association or a
9common interest community association or a board's
10construction of any of those instruments, a board may not
11prohibit the display of the American flag or a military flag,
12or both, on or within the limited common areas and facilities
13of a unit owner or on the immediately adjacent exterior of the
14building in which the unit of a unit owner is located. A board
15may adopt reasonable rules and regulations, consistent with
16Sections 4 through 10 of Chapter 1 of Title 4 of the United
17States Code, regarding the placement and manner of display of
18the American flag and a board may adopt reasonable rules and
19regulations regarding the placement and manner of display of a
20military flag. A board may not prohibit the installation of a
21flagpole for the display of the American flag or a military
22flag, or both, on or within the limited common areas and
23facilities of a unit owner or on the immediately adjacent
24exterior of the building in which the unit of a unit owner is
25located, but a board may adopt reasonable rules and regulations

 

 

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1regarding the location and size of flagpoles.
2    (b) As used in this Section:
3    "American flag" means the flag of the United States (as
4defined in Section 1 of Chapter 1 of Title 4 of the United
5States Code and the Executive Orders entered in connection with
6that Section) made of fabric, cloth, or paper displayed from a
7staff or flagpole or in a window, but "American flag" does not
8include a depiction or emblem of the American flag made of
9lights, paint, roofing, siding, paving materials, flora, or
10balloons, or any other similar building, landscaping, or
11decorative component.
12    "Board" includes a board of managers of a condominium
13association or a board of a master association or a common
14interest community association.
15    "Military flag" means a flag of any branch of the United
16States armed forces or the Illinois National Guard made of
17fabric, cloth, or paper displayed from a staff or flagpole or
18in a window, but "military flag" does not include a depiction
19or emblem of a military flag made of lights, paint, roofing,
20siding, paving materials, flora, or balloons, or any other
21similar building, landscaping, or decorative component.
22(Source: P.A. 93-481, eff. 1-1-04.)
 
23    (765 ILCS 605/18.7)
24    Sec. 18.7. Standards for community association managers.
25    (a) "Community association" has the meaning provided in

 

 

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1Section 10 of the Community Association Manager Licensing and
2Disciplinary Act means an association in which membership is a
3condition of ownership or shareholder interest of a unit in a
4condominium, cooperative, townhouse, villa, or other
5residential unit that is part of a residential development plan
6as a master association or common interest community and that
7is authorized to impose an assessment and other costs that may
8become a lien on the unit or lot.
9    (b) "Community association manager" has the meaning
10provided in Section 10 of the Community Association Manager
11Licensing and Disciplinary Act means an individual who
12administers for compensation the coordination of financial,
13administrative, maintenance, or other duties called for in the
14management contract, including individuals who are direct
15employees of a community association. A manager does not
16include support staff, such as bookkeepers, administrative
17assistants, secretaries, property inspectors, or customer
18service representatives.
19    (c) (Blank). Requirements. To perform services as a
20community association manager, an individual must meet these
21requirements:
22        (1) shall have attained the age of 21 and be a citizen
23    or legal permanent resident of the United States;
24        (2) shall not have been convicted of forgery,
25    embezzlement, obtaining money under false pretenses,
26    larceny, extortion, conspiracy to defraud or other similar

 

 

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1    offense or offenses;
2        (3) shall have a working knowledge of the fundamentals
3    of community association management, including the
4    Condominium Property Act, the Illinois Not-for-Profit
5    Corporation Act, and any other laws pertaining to community
6    association management; and
7        (4) shall not have engaged in the following activities:
8    failure to cooperate with any law enforcement agency in the
9    investigation of a complaint; or failure to produce any
10    document, book, or record in the possession or control of
11    the community association manager after a request for
12    production of that document, book, or record in the course
13    of an investigation of a complaint.
14    (d) (Blank). Access to community association funds. For
15community associations of 6 or more units, apartments,
16townhomes, villas or other residential units, a community
17association manager or the firm with whom the manager is
18employed shall not solely and exclusively have access to and
19disburse funds of a community association unless:
20        (1) There is a fidelity bond in place.
21        (2) The fidelity bond is in an amount not less than all
22    monies of that association in the custody or control of the
23    community association manager.
24        (3) The fidelity bond covers the community association
25    manager and all partners, officers, and employees of the
26    firm with whom the community association manager is

 

 

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1    employed during the term of the bond, as well as the
2    community association officers, directors, and employees
3    of the community association who control or disburse funds.
4        (4) The insurance company issuing the bond may not
5    cancel or refuse to renew the bond without giving not less
6    than 10 days' prior written notice to the community
7    association.
8        (5) The community association shall secure and pay for
9    the bond.
10    (e) A community association manager who provides community
11association management services for more than one community
12association shall maintain separate, segregated accounts for
13each community association. The funds shall not, in any event,
14be commingled with funds of the community association manager,
15the firm of the community association manager, or any other
16community association, except to the extent permitted under
17paragraph (5) of subsection (c) of Section 9 of this Act. The
18maintenance of these accounts shall be custodial, and the
19accounts shall be in the name of the respective community
20association.
21    (f) Exempt persons. Except as otherwise provided, this
22Section does not apply to any person acting as a receiver,
23trustee in bankruptcy, administrator, executor, or guardian
24acting under a court order or under the authority of a will or
25of a trust instrument.
26    (g) Right of Action.

 

 

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1        (1) Nothing in this Section amendatory Act of the 95th
2    General Assembly shall create a cause of action by a unit
3    owner, shareholder, or community association member
4    against a community association manager or the firm of a
5    community association management firm as defined in
6    Section 10 of the Community Association Manager Licensing
7    and Disciplinary Act manager.
8        (2) This Section amendatory Act of the 95th General
9    Assembly shall not impair any right of action by a unit
10    owner or shareholder against a community association or
11    master association board of directors under existing law.
12(Source: P.A. 95-318, eff. 1-1-08.)
 
13    (765 ILCS 605/22.1)  (from Ch. 30, par. 322.1)
14    Sec. 22.1. (a) In the event of any resale of a condominium
15unit by a unit owner other than the developer such owner shall
16obtain from the Board of Managers and shall make available for
17inspection to the prospective purchaser, upon demand, the
18following:
19        (1) A copy of the Declaration, by-laws, other
20    condominium instruments and any rules and regulations.
21        (2) A statement of any liens, including a statement of
22    the account of the unit setting forth the amounts of unpaid
23    assessments and other charges due and owing as authorized
24    and limited by the provisions of Section 9 of this Act or
25    the condominium instruments.

 

 

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1        (3) A statement of any capital expenditures
2    anticipated by the unit owner's association within the
3    current or succeeding two fiscal years.
4        (4) A statement of the status and amount of any reserve
5    for replacement fund and any portion of such fund earmarked
6    for any specified project by the Board of Managers.
7        (5) A copy of the statement of financial condition of
8    the unit owner's association for the last fiscal year for
9    which such statement is available.
10        (6) A statement of the status of any pending suits or
11    judgments in which the unit owner's association is a party
12    that may have a material adverse impact on the financial
13    condition of the association.
14        (7) A statement setting forth what insurance coverage
15    is provided for all unit owners by the unit owner's
16    association.
17        (8) A statement that any known improvements or
18    alterations made to the unit, or the limited common
19    elements assigned thereto, by the prior unit owner are in
20    good faith believed to be in compliance with the
21    condominium instruments.
22        (9) The identity and mailing address of the principal
23    officer of the unit owner's association or of the other
24    officer or agent as is specifically designated to receive
25    notices.
26    (b) The principal officer of the unit owner's association

 

 

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1or such other officer, manager, or agent as is specifically
2designated shall furnish the above information when requested
3to do so in writing and within 30 days of the request.
4    (c) Within 15 days of the recording of a mortgage or trust
5deed against a unit ownership given by the owner of that unit
6to secure a debt, the owner shall inform the Board of Managers
7of the unit owner's association of the identity of the lender
8together with a mailing address at which the lender can receive
9notices from the association. If a unit owner fails or refuses
10to inform the Board as required under subsection (c) then that
11unit owner shall be liable to the association for all costs,
12expenses and reasonable attorneys fees and such other damages,
13if any, incurred by the association as a result of such failure
14or refusal.
15    A reasonable fee covering the direct out-of-pocket cost of
16providing such information and copying may be charged by the
17association or its Board of Managers to the unit seller for
18providing such information.
19(Source: P.A. 87-692.)