Rep. Suzanne M. Ness

Filed: 4/15/2024

 

 


 

 


 
10300HB4090ham003LRB103 32446 JRC 72317 a

1
AMENDMENT TO HOUSE BILL 4090

2    AMENDMENT NO. ______. Amend House Bill 4090, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Common Interest Community Association Act
6is amended by changing Section 1-45 as follows:
 
7    (765 ILCS 160/1-45)
8    Sec. 1-45. Finances.
9    (a) Each member shall receive through a prescribed
10delivery method, at least 30 days but not more than 60 days
11prior to the adoption thereof by the board, a copy of the
12proposed annual budget together with an indication of which
13portions are intended for reserves, capital expenditures or
14repairs or payment of real estate taxes.
15    (b) The board shall provide all members with a reasonably
16detailed summary of the receipts, common expenses, and

 

 

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1reserves for the preceding budget year. The board shall (i)
2make available for review to all members an itemized
3accounting of the common expenses for the preceding year
4actually incurred or paid, together with an indication of
5which portions were for reserves, capital expenditures or
6repairs or payment of real estate taxes and with a tabulation
7of the amounts collected pursuant to the budget or assessment,
8and showing the net excess or deficit of income over
9expenditures plus reserves or (ii) provide a consolidated
10annual independent audit report of the financial status of all
11fund accounts within the association.
12    (c) If an adopted budget or any separate assessment
13adopted by the board would result in the sum of all regular and
14separate assessments payable in the current fiscal year
15exceeding 115% of the sum of all regular and separate
16assessments payable during the preceding fiscal year, the
17common interest community association, upon written petition
18by members with 20% of the votes of the association delivered
19to the board within 14 days of the board action, shall call a
20meeting of the members within 30 days of the date of delivery
21of the petition to consider the budget or separate assessment;
22unless a majority of the total votes of the members are cast at
23the meeting to reject the budget or separate assessment, it
24shall be deemed ratified.
25    (d) If total common expenses exceed the total amount of
26the approved and adopted budget, the common interest community

 

 

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1association shall disclose this variance to all its members
2and specifically identify the subsequent assessments needed to
3offset this variance in future budgets.
4    (e) Separate assessments for expenditures relating to
5emergencies or mandated by law may be adopted by the board
6without being subject to member approval or the provisions of
7subsection (c) or (f) of this Section. As used herein,
8"emergency" means a danger to or a compromise of the
9structural integrity of the common areas or any of the common
10facilities of the common interest community. "Emergency" also
11includes a danger to the life, health or safety of the
12membership.
13    (f) Assessments for additions and alterations to the
14common areas or to association-owned property not included in
15the adopted annual budget, shall be separately assessed and
16are subject to approval of a simple majority of the total
17members at a meeting called for that purpose.
18    (g) The board may adopt separate assessments payable over
19more than one fiscal year. With respect to multi-year
20assessments not governed by subsections (e) and (f) of this
21Section, the entire amount of the multi-year assessment shall
22be deemed considered and authorized in the first fiscal year
23in which the assessment is approved.
24    (h) The board of a common interest community association
25shall have the authority to establish and maintain a system of
26master metering of public utility services to collect payments

 

 

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1in conjunction therewith, subject to the requirements of
2Section 1.5 of the Residential Property Utility Service the
3Tenant Utility Payment Disclosure Act.
4    (i) An association subject to this Act that consists of
5100 or more units shall use generally accepted accounting
6principles in fulfilling any accounting obligations under this
7Act.
8(Source: P.A. 100-292, eff. 1-1-18.)
 
9    Section 10. The Condominium Property Act is amended by
10changing Sections 18 and 18.5 as follows:
 
11    (765 ILCS 605/18)  (from Ch. 30, par. 318)
12    Sec. 18. Contents of bylaws. The bylaws shall provide for
13at least the following:
14        (a)(1) The election from among the unit owners of a
15    board of managers, the number of persons constituting such
16    board, and that the terms of at least one-third of the
17    members of the board shall expire annually and that all
18    members of the board shall be elected at large; if there
19    are multiple owners of a single unit, only one of the
20    multiple owners shall be eligible to serve as a member of
21    the board at any one time. A declaration first submitting
22    property to the provisions of this Act, in accordance with
23    Section 3 after the effective date of this amendatory Act
24    of the 102nd General Assembly, or an amendment to the

 

 

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1    condominium instruments adopted in accordance with Section
2    27 after the effective date of this amendatory Act of the
3    102nd General Assembly, may provide that a majority of the
4    board of managers, or such lesser number as may be
5    specified in the declaration, must be comprised of unit
6    owners occupying their unit as their primary residence;
7    provided that the condominium instruments may not require
8    that more than a majority of the board shall be comprised
9    of unit owners who occupy their unit as their principal
10    residence;
11        (2) the powers and duties of the board;
12        (3) the compensation, if any, of the members of the
13    board;
14        (4) the method of removal from office of members of
15    the board;
16        (5) that the board may engage the services of a
17    manager or managing agent;
18        (6) that each unit owner shall receive, at least 25
19    days prior to the adoption thereof by the board of
20    managers, a copy of the proposed annual budget together
21    with an indication of which portions are intended for
22    reserves, capital expenditures or repairs or payment of
23    real estate taxes;
24        (7) that the board of managers shall annually supply
25    to all unit owners an itemized accounting of the common
26    expenses for the preceding year actually incurred or paid,

 

 

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1    together with an indication of which portions were for
2    reserves, capital expenditures or repairs or payment of
3    real estate taxes and with a tabulation of the amounts
4    collected pursuant to the budget or assessment, and
5    showing the net excess or deficit of income over
6    expenditures plus reserves;
7        (8)(i) that each unit owner shall receive notice, in
8    the same manner as is provided in this Act for membership
9    meetings, of any meeting of the board of managers
10    concerning the adoption of the proposed annual budget and
11    regular assessments pursuant thereto or to adopt a
12    separate (special) assessment, (ii) that except as
13    provided in subsection (iv) below, if an adopted budget or
14    any separate assessment adopted by the board would result
15    in the sum of all regular and separate assessments payable
16    in the current fiscal year exceeding 115% of the sum of all
17    regular and separate assessments payable during the
18    preceding fiscal year, the board of managers, upon written
19    petition by unit owners with 20 percent of the votes of the
20    association delivered to the board within 21 days of the
21    board action, shall call a meeting of the unit owners
22    within 30 days of the date of delivery of the petition to
23    consider the budget or separate assessment; unless a
24    majority of the total votes of the unit owners are cast at
25    the meeting to reject the budget or separate assessment,
26    it is ratified, (iii) that any common expense not set

 

 

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1    forth in the budget or any increase in assessments over
2    the amount adopted in the budget shall be separately
3    assessed against all unit owners, (iv) that separate
4    assessments for expenditures relating to emergencies or
5    mandated by law may be adopted by the board of managers
6    without being subject to unit owner approval or the
7    provisions of item (ii) above or item (v) below. As used
8    herein, "emergency" means an immediate danger to the
9    structural integrity of the common elements or to the
10    life, health, safety or property of the unit owners, (v)
11    that assessments for additions and alterations to the
12    common elements or to association-owned property not
13    included in the adopted annual budget, shall be separately
14    assessed and are subject to approval of two-thirds of the
15    total votes of all unit owners, (vi) that the board of
16    managers may adopt separate assessments payable over more
17    than one fiscal year. With respect to multi-year
18    assessments not governed by items (iv) and (v), the entire
19    amount of the multi-year assessment shall be deemed
20    considered and authorized in the first fiscal year in
21    which the assessment is approved;
22        (9)(A) that every meeting of the board of managers
23    shall be open to any unit owner, except that the board may
24    close any portion of a noticed meeting or meet separately
25    from a noticed meeting to: (i) discuss litigation when an
26    action against or on behalf of the particular association

 

 

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1    has been filed and is pending in a court or administrative
2    tribunal, or when the board of managers finds that such an
3    action is probable or imminent, (ii) discuss the
4    appointment, employment, engagement, or dismissal of an
5    employee, independent contractor, agent, or other provider
6    of goods and services, (iii) interview a potential
7    employee, independent contractor, agent, or other provider
8    of goods and services, (iv) discuss violations of rules
9    and regulations of the association, (v) discuss a unit
10    owner's unpaid share of common expenses, or (vi) consult
11    with the association's legal counsel; that any vote on
12    these matters shall take place at a meeting of the board of
13    managers or portion thereof open to any unit owner;
14        (B) that board members may participate in and act at
15    any meeting of the board of managers in person, by
16    telephonic means, or by use of any acceptable
17    technological means whereby all persons participating in
18    the meeting can communicate with each other; that
19    participation constitutes attendance and presence in
20    person at the meeting;
21        (C) that any unit owner may record the proceedings at
22    meetings of the board of managers or portions thereof
23    required to be open by this Act by tape, film or other
24    means, and that the board may prescribe reasonable rules
25    and regulations to govern the right to make such
26    recordings;

 

 

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1        (D) that notice of every meeting of the board of
2    managers shall be given to every board member at least 48
3    hours prior thereto, unless the board member waives notice
4    of the meeting pursuant to subsection (a) of Section 18.8;
5    and
6        (E) that notice of every meeting of the board of
7    managers shall be posted in entranceways, elevators, or
8    other conspicuous places in the condominium at least 48
9    hours prior to the meeting of the board of managers except
10    where there is no common entranceway for 7 or more units,
11    the board of managers may designate one or more locations
12    in the proximity of these units where the notices of
13    meetings shall be posted; that notice of every meeting of
14    the board of managers shall also be given at least 48 hours
15    prior to the meeting, or such longer notice as this Act may
16    separately require, to: (i) each unit owner who has
17    provided the association with written authorization to
18    conduct business by acceptable technological means, and
19    (ii) to the extent that the condominium instruments of an
20    association require, to each other unit owner, as required
21    by subsection (f) of Section 18.8, by mail or delivery,
22    and that no other notice of a meeting of the board of
23    managers need be given to any unit owner;
24        (10) that the board shall meet at least 4 times
25    annually;
26        (11) that no member of the board or officer shall be

 

 

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1    elected for a term of more than 2 years, but that officers
2    and board members may succeed themselves;
3        (12) the designation of an officer to mail and receive
4    all notices and execute amendments to condominium
5    instruments as provided for in this Act and in the
6    condominium instruments;
7        (13) the method of filling vacancies on the board
8    which shall include authority for the remaining members of
9    the board to fill the vacancy by two-thirds vote until the
10    next annual meeting of unit owners or for a period
11    terminating no later than 30 days following the filing of
12    a petition signed by unit owners holding 20% of the votes
13    of the association requesting a meeting of the unit owners
14    to fill the vacancy for the balance of the term, and that a
15    meeting of the unit owners shall be called for purposes of
16    filling a vacancy on the board no later than 30 days
17    following the filing of a petition signed by unit owners
18    holding 20% of the votes of the association requesting
19    such a meeting, and the method of filling vacancies among
20    the officers that shall include the authority for the
21    members of the board to fill the vacancy for the unexpired
22    portion of the term;
23        (14) what percentage of the board of managers, if
24    other than a majority, shall constitute a quorum;
25        (15) provisions concerning notice of board meetings to
26    members of the board;

 

 

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1        (16) the board of managers may not enter into a
2    contract with a current board member or with a corporation
3    or partnership in which a board member or a member of the
4    board member's immediate family has 25% or more interest,
5    unless notice of intent to enter the contract is given to
6    unit owners within 20 days after a decision is made to
7    enter into the contract and the unit owners are afforded
8    an opportunity by filing a petition, signed by 20% of the
9    unit owners, for an election to approve or disapprove the
10    contract; such petition shall be filed within 30 days
11    after such notice and such election shall be held within
12    30 days after filing the petition; for purposes of this
13    subsection, a board member's immediate family means the
14    board member's spouse, parents, and children;
15        (17) that the board of managers may disseminate to
16    unit owners biographical and background information about
17    candidates for election to the board if (i) reasonable
18    efforts to identify all candidates are made and all
19    candidates are given an opportunity to include
20    biographical and background information in the information
21    to be disseminated; and (ii) the board does not express a
22    preference in favor of any candidate;
23        (18) any proxy distributed for board elections by the
24    board of managers gives unit owners the opportunity to
25    designate any person as the proxy holder, and gives the
26    unit owner the opportunity to express a preference for any

 

 

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1    of the known candidates for the board or to write in a
2    name;
3        (19) that special meetings of the board of managers
4    can be called by the president or 25% of the members of the
5    board;
6        (20) that the board of managers may establish and
7    maintain a system of master metering of public utility
8    services and collect payments in connection therewith,
9    subject to the requirements of Section 1.5 of the
10    Residential Property Utility Service the Tenant Utility
11    Payment Disclosure Act; and
12        (21) that the board may ratify and confirm actions of
13    the members of the board taken in response to an
14    emergency, as that term is defined in subdivision
15    (a)(8)(iv) of this Section; that the board shall give
16    notice to the unit owners of: (i) the occurrence of the
17    emergency event within 7 business days after the emergency
18    event, and (ii) the general description of the actions
19    taken to address the event within 7 days after the
20    emergency event.
21        The intent of the provisions of Public Act 99-472
22    adding this paragraph (21) is to empower and support
23    boards to act in emergencies.
24        (b)(1) What percentage of the unit owners, if other
25    than 20%, shall constitute a quorum provided that, for
26    condominiums with 20 or more units, the percentage of unit

 

 

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1    owners constituting a quorum shall be 20% unless the unit
2    owners holding a majority of the percentage interest in
3    the association provide for a higher percentage, provided
4    that in voting on amendments to the association's bylaws,
5    a unit owner who is in arrears on the unit owner's regular
6    or separate assessments for 60 days or more, shall not be
7    counted for purposes of determining if a quorum is
8    present, but that unit owner retains the right to vote on
9    amendments to the association's bylaws;
10        (2) that the association shall have one class of
11    membership;
12        (3) that the members shall hold an annual meeting, one
13    of the purposes of which shall be to elect members of the
14    board of managers;
15        (4) the method of calling meetings of the unit owners;
16        (5) that special meetings of the members can be called
17    by the president, board of managers, or by 20% of unit
18    owners;
19        (6) that written notice of any membership meeting
20    shall be mailed or delivered giving members no less than
21    10 and no more than 30 days notice of the time, place and
22    purpose of such meeting except that notice may be sent, to
23    the extent the condominium instruments or rules adopted
24    thereunder expressly so provide, by electronic
25    transmission consented to by the unit owner to whom the
26    notice is given, provided the director and officer or his

 

 

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1    agent certifies in writing to the delivery by electronic
2    transmission;
3        (7) that voting shall be on a percentage basis, and
4    that the percentage vote to which each unit is entitled is
5    the percentage interest of the undivided ownership of the
6    common elements appurtenant thereto, provided that the
7    bylaws may provide for approval by unit owners in
8    connection with matters where the requisite approval on a
9    percentage basis is not specified in this Act, on the
10    basis of one vote per unit;
11        (8) that, where there is more than one owner of a unit,
12    if only one of the multiple owners is present at a meeting
13    of the association, he is entitled to cast all the votes
14    allocated to that unit, if more than one of the multiple
15    owners are present, the votes allocated to that unit may
16    be cast only in accordance with the agreement of a
17    majority in interest of the multiple owners, unless the
18    declaration expressly provides otherwise, that there is
19    majority agreement if any one of the multiple owners cast
20    the votes allocated to that unit without protest being
21    made promptly to the person presiding over the meeting by
22    any of the other owners of the unit;
23        (9)(A) except as provided in subparagraph (B) of this
24    paragraph (9) in connection with board elections, that a
25    unit owner may vote by proxy executed in writing by the
26    unit owner or by his duly authorized attorney in fact;

 

 

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1    that the proxy must bear the date of execution and, unless
2    the condominium instruments or the written proxy itself
3    provide otherwise, is invalid after 11 months from the
4    date of its execution; to the extent the condominium
5    instruments or rules adopted thereunder expressly so
6    provide, a vote or proxy may be submitted by electronic
7    transmission, provided that any such electronic
8    transmission shall either set forth or be submitted with
9    information from which it can be determined that the
10    electronic transmission was authorized by the unit owner
11    or the unit owner's proxy;
12        (B) that if a rule adopted at least 120 days before a
13    board election or the declaration or bylaws provide for
14    balloting as set forth in this subsection, unit owners may
15    not vote by proxy in board elections, but may vote only (i)
16    by submitting an association-issued ballot in person at
17    the election meeting or (ii) by submitting an
18    association-issued ballot to the association or its
19    designated agent by mail or other means of delivery
20    specified in the declaration, bylaws, or rule; that the
21    ballots shall be mailed or otherwise distributed to unit
22    owners not less than 10 and not more than 30 days before
23    the election meeting, and the board shall give unit owners
24    not less than 21 days' prior written notice of the
25    deadline for inclusion of a candidate's name on the
26    ballots; that the deadline shall be no more than 7 days

 

 

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1    before the ballots are mailed or otherwise distributed to
2    unit owners; that every such ballot must include the names
3    of all candidates who have given the board or its
4    authorized agent timely written notice of their candidacy
5    and must give the person casting the ballot the
6    opportunity to cast votes for candidates whose names do
7    not appear on the ballot; that a ballot received by the
8    association or its designated agent after the close of
9    voting shall not be counted; that a unit owner who submits
10    a ballot by mail or other means of delivery specified in
11    the declaration, bylaws, or rule may request and cast a
12    ballot in person at the election meeting, and thereby void
13    any ballot previously submitted by that unit owner;
14        (B-5) that if a rule adopted at least 120 days before a
15    board election or the declaration or bylaws provide for
16    balloting as set forth in this subparagraph, unit owners
17    may not vote by proxy in board elections, but may vote only
18    (i) by submitting an association-issued ballot in person
19    at the election meeting; or (ii) by any acceptable
20    technological means as defined in Section 2 of this Act;
21    instructions regarding the use of electronic means for
22    voting shall be distributed to all unit owners not less
23    than 10 and not more than 30 days before the election
24    meeting, and the board shall give unit owners not less
25    than 21 days' prior written notice of the deadline for
26    inclusion of a candidate's name on the ballots; the

 

 

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

 

 

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1        (10) that the association may, upon adoption of the
2    appropriate rules by the board of managers, conduct
3    elections by secret ballot whereby the voting ballot is
4    marked only with the percentage interest for the unit and
5    the vote itself, provided that the board further adopt
6    rules to verify the status of the unit owner issuing a
7    proxy or casting a ballot; and further, that a candidate
8    for election to the board of managers or such candidate's
9    representative shall have the right to be present at the
10    counting of ballots at such election;
11        (11) that in the event of a resale of a condominium
12    unit the purchaser of a unit from a seller other than the
13    developer pursuant to an installment sales contract for
14    purchase shall during such times as he or she resides in
15    the unit be counted toward a quorum for purposes of
16    election of members of the board of managers at any
17    meeting of the unit owners called for purposes of electing
18    members of the board, shall have the right to vote for the
19    election of members of the board of managers and to be
20    elected to and serve on the board of managers unless the
21    seller expressly retains in writing any or all of such
22    rights. In no event may the seller and purchaser both be
23    counted toward a quorum, be permitted to vote for a
24    particular office or be elected and serve on the board.
25    Satisfactory evidence of the installment sales contract
26    shall be made available to the association or its agents.

 

 

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1    For purposes of this subsection, "installment sales
2    contract" shall have the same meaning as set forth in
3    Section 5 of the Installment Sales Contract Act and
4    Section 1(e) of the Dwelling Unit Installment Contract
5    Act;
6        (12) the method by which matters subject to the
7    approval of unit owners set forth in this Act, or in the
8    condominium instruments, will be submitted to the unit
9    owners at special membership meetings called for such
10    purposes; and
11        (13) that matters subject to the affirmative vote of
12    not less than 2/3 of the votes of unit owners at a meeting
13    duly called for that purpose, shall include, but not be
14    limited to:
15            (i) merger or consolidation of the association;
16            (ii) sale, lease, exchange, or other disposition
17        (excluding the mortgage or pledge) of all, or
18        substantially all of the property and assets of the
19        association; and
20            (iii) the purchase or sale of land or of units on
21        behalf of all unit owners.
22        (c) Election of a president from among the board of
23    managers, who shall preside over the meetings of the board
24    of managers and of the unit owners.
25        (d) Election of a secretary from among the board of
26    managers, who shall keep the minutes of all meetings of

 

 

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

 

 

10300HB4090ham003- 21 -LRB103 32446 JRC 72317 a

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

 

 

10300HB4090ham003- 22 -LRB103 32446 JRC 72317 a

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

 

 

10300HB4090ham003- 23 -LRB103 32446 JRC 72317 a

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

 

 

10300HB4090ham003- 24 -LRB103 32446 JRC 72317 a

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

 

 

10300HB4090ham003- 25 -LRB103 32446 JRC 72317 a

1    units, or both, and multiply by the aggregate percentage
2    of ownership of garage units and storage units to
3    determine the vote, or portion of a vote, that garage
4    units or storage units, or both, have. For purposes of
5    this subsection (p), when making a determination of
6    whether 30% or fewer of the units, by number, possess over
7    50% in the aggregate of the votes in the association, a
8    unit shall not include a garage unit or a storage unit.
9        (q) That a unit owner may not assign, delegate,
10    transfer, surrender, or avoid the duties,
11    responsibilities, and liabilities of a unit owner under
12    this Act, the condominium instruments, or the rules and
13    regulations of the Association; and that such an attempted
14    assignment, delegation, transfer, surrender, or avoidance
15    shall be deemed void.
16    The provisions of this Section are applicable to all
17condominium instruments recorded under this Act. Any portion
18of a condominium instrument which contains provisions contrary
19to these provisions shall be void as against public policy and
20ineffective. Any such instrument which fails to contain the
21provisions required by this Section shall be deemed to
22incorporate such provisions by operation of law.
23(Source: P.A. 102-162, eff. 1-1-22.)
 
24    (765 ILCS 605/18.5)  (from Ch. 30, par. 318.5)
25    Sec. 18.5. Master Associations.

 

 

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

 

 

10300HB4090ham003- 27 -LRB103 32446 JRC 72317 a

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

 

 

10300HB4090ham003- 28 -LRB103 32446 JRC 72317 a

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

 

 

10300HB4090ham003- 29 -LRB103 32446 JRC 72317 a

1    unit owners called for purposes of electing members of the
2    board, and shall have the right to vote for the election of
3    members of the board of directors and to be elected to and
4    serve on the board of directors unless the seller
5    expressly retains in writing any or all of those rights.
6    In no event may the seller and purchaser both be counted
7    toward a quorum, be permitted to vote for a particular
8    office, or be elected and serve on the board. Satisfactory
9    evidence of the installment sales contract shall be made
10    available to the association or its agents. For purposes
11    of this subsection, "installment sales contract" shall
12    have the same meaning as set forth in Section 5 of the
13    Installment Sales Contract Act and subsection (e) of
14    Section 1 of the Dwelling Unit Installment Contract Act.
15        (6) The board of the master association shall have the
16    authority to establish and maintain a system of master
17    metering of public utility services and to collect
18    payments in connection therewith, subject to the
19    requirements of Section 1.5 of the Residential Property
20    Utility Service the Tenant Utility Payment Disclosure Act.
21        (7) The board of the master association or a common
22    interest community association shall have the power, after
23    notice and an opportunity to be heard, to levy and collect
24    reasonable fines from members for violations of the
25    declaration, bylaws, and rules and regulations of the
26    master association or the common interest community

 

 

10300HB4090ham003- 30 -LRB103 32446 JRC 72317 a

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

 

 

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1        master association or its board shall be available.
2        Prior to the organization of the master association,
3        the developer shall maintain and make available the
4        records set forth in this subdivision (d)(1) for
5        examination and copying.
6            (ii) Detailed and accurate records in
7        chronological order of the receipts and expenditures
8        affecting the common areas, specifying and itemizing
9        the maintenance and repair expenses of the common
10        areas and any other expenses incurred, and copies of
11        all contracts, leases, or other agreements entered
12        into by the master association, shall be maintained.
13            (iii) The minutes of all meetings of the master
14        association and the board of the master association
15        shall be maintained for not less than 7 years.
16            (iv) Ballots and proxies related thereto, if any,
17        for any election held for the board of the master
18        association and for any other matters voted on by the
19        unit owners shall be maintained for not less than one
20        year.
21            (v) Such other records of the master association
22        as are available for inspection by members of a
23        not-for-profit corporation pursuant to Section 107.75
24        of the General Not For Profit Corporation Act of 1986
25        shall be maintained.
26            (vi) With respect to units owned by a land trust,

 

 

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1        if a trustee designates in writing a person to cast
2        votes on behalf of the unit owner, the designation
3        shall remain in effect until a subsequent document is
4        filed with the association.
5        (2) Where a request for records under this subsection
6    is made in writing to the board of managers or its agent,
7    failure to provide the requested record or to respond
8    within 30 days shall be deemed a denial by the board of
9    directors.
10        (3) A reasonable fee may be charged by the master
11    association or its board for the cost of copying.
12        (4) If the board of directors fails to provide records
13    properly requested under subdivision (d)(1) within the
14    time period provided in subdivision (d)(2), the unit owner
15    may seek appropriate relief, including an award of
16    attorney's fees and costs.
17    (e) The board of directors shall have standing and
18capacity to act in a representative capacity in relation to
19matters involving the common areas of the master association
20or more than one unit, on behalf of the unit owners as their
21interests may appear.
22    (f) Administration of property prior to election of the
23initial board of directors.
24        (1) Until the election, by the unit owners or the
25    boards of managers of the underlying condominium
26    associations, of the initial board of directors of a

 

 

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1    master association whose declaration is recorded on or
2    after August 10, 1990, the same rights, titles, powers,
3    privileges, trusts, duties and obligations that are vested
4    in or imposed upon the board of directors by this Act or in
5    the declaration or other duly recorded covenant shall be
6    held and performed by the developer.
7        (2) The election of the initial board of directors of
8    a master association whose declaration is recorded on or
9    after August 10, 1990, by the unit owners or the boards of
10    managers of the underlying condominium associations, shall
11    be held not later than 60 days after the conveyance by the
12    developer of 75% of the units, or 3 years after the
13    recording of the declaration, whichever is earlier. The
14    developer shall give at least 21 days notice of the
15    meeting to elect the initial board of directors and shall
16    upon request provide to any unit owner, within 3 working
17    days of the request, the names, addresses, and weighted
18    vote of each unit owner entitled to vote at the meeting.
19    Any unit owner shall upon receipt of the request be
20    provided with the same information, within 10 days of the
21    request, with respect to each subsequent meeting to elect
22    members of the board of directors.
23        (3) If the initial board of directors of a master
24    association whose declaration is recorded on or after
25    August 10, 1990 is not elected by the unit owners or the
26    members of the underlying condominium association board of

 

 

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1    managers at the time established in subdivision (f)(2),
2    the developer shall continue in office for a period of 30
3    days, whereupon written notice of his resignation shall be
4    sent to all of the unit owners or members of the underlying
5    condominium board of managers entitled to vote at an
6    election for members of the board of directors.
7        (4) Within 60 days following the election of a
8    majority of the board of directors, other than the
9    developer, by unit owners, the developer shall deliver to
10    the board of directors:
11            (i) All original documents as recorded or filed
12        pertaining to the property, its administration, and
13        the association, such as the declaration, articles of
14        incorporation, other instruments, annual reports,
15        minutes, rules and regulations, and contracts, leases,
16        or other agreements entered into by the association.
17        If any original documents are unavailable, a copy may
18        be provided if certified by affidavit of the
19        developer, or an officer or agent of the developer, as
20        being a complete copy of the actual document recorded
21        or filed.
22            (ii) A detailed accounting by the developer,
23        setting forth the source and nature of receipts and
24        expenditures in connection with the management,
25        maintenance and operation of the property, copies of
26        all insurance policies, and a list of any loans or

 

 

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1        advances to the association which are outstanding.
2            (iii) Association funds, which shall have been at
3        all times segregated from any other moneys of the
4        developer.
5            (iv) A schedule of all real or personal property,
6        equipment and fixtures belonging to the association,
7        including documents transferring the property,
8        warranties, if any, for all real and personal property
9        and equipment, deeds, title insurance policies, and
10        all tax bills.
11            (v) A list of all litigation, administrative
12        action and arbitrations involving the association, any
13        notices of governmental bodies involving actions taken
14        or which may be taken concerning the association,
15        engineering and architectural drawings and
16        specifications as approved by any governmental
17        authority, all other documents filed with any other
18        governmental authority, all governmental certificates,
19        correspondence involving enforcement of any
20        association requirements, copies of any documents
21        relating to disputes involving unit owners, and
22        originals of all documents relating to everything
23        listed in this subparagraph.
24            (vi) If the developer fails to fully comply with
25        this paragraph (4) within the 60 days provided and
26        fails to fully comply within 10 days of written demand

 

 

10300HB4090ham003- 36 -LRB103 32446 JRC 72317 a

1        mailed by registered or certified mail to his or her
2        last known address, the board may bring an action to
3        compel compliance with this paragraph (4). If the
4        court finds that any of the required deliveries were
5        not made within the required period, the board shall
6        be entitled to recover its reasonable attorneys' fees
7        and costs incurred from and after the date of
8        expiration of the 10 day demand.
9        (5) With respect to any master association whose
10    declaration is recorded on or after August 10, 1990, any
11    contract, lease, or other agreement made prior to the
12    election of a majority of the board of directors other
13    than the developer by or on behalf of unit owners or
14    underlying condominium associations, the association or
15    the board of directors, which extends for a period of more
16    than 2 years from the recording of the declaration, shall
17    be subject to cancellation by more than 1/2 of the votes of
18    the unit owners, other than the developer, cast at a
19    special meeting of members called for that purpose during
20    a period of 90 days prior to the expiration of the 2 year
21    period if the board of managers is elected by the unit
22    owners, otherwise by more than 1/2 of the underlying
23    condominium board of managers. At least 60 days prior to
24    the expiration of the 2 year period, the board of
25    directors, or, if the board is still under developer
26    control, then the board of managers or the developer shall

 

 

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1    send notice to every unit owner or underlying condominium
2    board of managers, notifying them of this provision, of
3    what contracts, leases and other agreements are affected,
4    and of the procedure for calling a meeting of the unit
5    owners or for action by the underlying condominium board
6    of managers for the purpose of acting to terminate such
7    contracts, leases or other agreements. During the 90 day
8    period the other party to the contract, lease, or other
9    agreement shall also have the right of cancellation.
10        (6) The statute of limitations for any actions in law
11    or equity which the master association may bring shall not
12    begin to run until the unit owners or underlying
13    condominium board of managers have elected a majority of
14    the members of the board of directors.
15    (g) In the event of any resale of a unit in a master
16association by a unit owner other than the developer, the
17owner shall obtain from the board of directors and shall make
18available for inspection to the prospective purchaser, upon
19demand, the following:
20        (1) A copy of the declaration, other instruments and
21    any rules and regulations.
22        (2) A statement of any liens, including a statement of
23    the account of the unit setting forth the amounts of
24    unpaid assessments and other charges due and owing.
25        (3) A statement of any capital expenditures
26    anticipated by the association within the current or

 

 

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1    succeeding 2 fiscal years.
2        (4) A statement of the status and amount of any
3    reserve for replacement fund and any portion of such fund
4    earmarked for any specified project by the board of
5    directors.
6        (5) A copy of the statement of financial condition of
7    the association for the last fiscal year for which such a
8    statement is available.
9        (6) A statement of the status of any pending suits or
10    judgments in which the association is a party.
11        (7) A statement setting forth what insurance coverage
12    is provided for all unit owners by the association.
13        (8) A statement that any improvements or alterations
14    made to the unit, or any part of the common areas assigned
15    thereto, by the prior unit owner are in good faith
16    believed to be in compliance with the declaration of the
17    master association.
18    The principal officer of the unit owner's association or
19such other officer as is specifically designated shall furnish
20the above information when requested to do so in writing,
21within 30 days of receiving the request.
22    A reasonable fee covering the direct out-of-pocket cost of
23copying and providing such information may be charged by the
24association or its board of directors to the unit seller for
25providing the information.
26    (g-1) The purchaser of a unit of a common interest

 

 

10300HB4090ham003- 39 -LRB103 32446 JRC 72317 a

1community at a judicial foreclosure sale, other than a
2mortgagee, who takes possession of a unit of a common interest
3community pursuant to a court order or a purchaser who
4acquires title from a mortgagee shall have the duty to pay the
5proportionate share, if any, of the common expenses for the
6unit that would have become due in the absence of any
7assessment acceleration during the 6 months immediately
8preceding institution of an action to enforce the collection
9of assessments and the court costs incurred by the association
10in an action to enforce the collection that remain unpaid by
11the owner during whose possession the assessments accrued. If
12the outstanding assessments and the court costs incurred by
13the association in an action to enforce the collection are
14paid at any time during any action to enforce the collection of
15assessments, the purchaser shall have no obligation to pay any
16assessments that accrued before he or she acquired title. The
17notice of sale of a unit of a common interest community under
18subsection (c) of Section 15-1507 of the Code of Civil
19Procedure shall state that the purchaser of the unit other
20than a mortgagee shall pay the assessments and court costs
21required by this subsection (g-1).
22    (h) Errors and omissions.
23        (1) If there is an omission or error in the
24    declaration or other instrument of the master association,
25    the master association may correct the error or omission
26    by an amendment to the declaration or other instrument, as

 

 

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

 

 

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1    the units and the owners of mortgages thereon affected by
2    modification being made in the undivided interest in the
3    common areas, the number of votes in the unit owners
4    association or the liability for common expenses
5    appertaining to the unit.
6        (3) If an omission or error or a scrivener's error in
7    the declaration or other instrument is corrected by vote
8    of two-thirds of the members of the board of directors
9    pursuant to the authority established in subdivisions
10    (h)(1) or (h)(2) of this Section, the board, upon written
11    petition by unit owners with 20% of the votes of the
12    association or resolutions adopted by the board of
13    managers or board of directors of the condominium and
14    common interest community associations which select 20% of
15    the members of the board of directors of the master
16    association, whichever is applicable, received within 30
17    days of the board action, shall call a meeting of the unit
18    owners or the boards of the condominium and common
19    interest community associations which select members of
20    the board of directors of the master association within 30
21    days of the filing of the petition or receipt of the
22    condominium and common interest community association
23    resolution to consider the board action. Unless a majority
24    of the votes of the unit owners of the association are cast
25    at the meeting to reject the action, or board of managers
26    or board of directors of condominium and common interest

 

 

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1    community associations which select over 50% of the
2    members of the board of the master association adopt
3    resolutions prior to the meeting rejecting the action of
4    the board of directors of the master association, it is
5    ratified whether or not a quorum is present.
6        (4) The procedures for amendments set forth in this
7    subsection (h) cannot be used if such an amendment would
8    materially or adversely affect property rights of the unit
9    owners unless the affected unit owners consent in writing.
10    This Section does not restrict the powers of the
11    association to otherwise amend the declaration, bylaws, or
12    other condominium instruments, but authorizes a simple
13    process of amendment requiring a lesser vote for the
14    purpose of correcting defects, errors, or omissions when
15    the property rights of the unit owners are not materially
16    or adversely affected.
17        (5) If there is an omission or error in the
18    declaration or other instruments that may not be corrected
19    by an amendment procedure set forth in subdivision (h)(1)
20    or (h)(2) of this Section, then the circuit court in the
21    county in which the master association is located shall
22    have jurisdiction to hear a petition of one or more of the
23    unit owners thereon or of the association, to correct the
24    error or omission, and the action may be a class action.
25    The court may require that one or more methods of
26    correcting the error or omission be submitted to the unit

 

 

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1    owners to determine the most acceptable correction. All
2    unit owners in the association must be joined as parties
3    to the action. Service of process on owners may be by
4    publication, but the plaintiff shall furnish all unit
5    owners not personally served with process with copies of
6    the petition and final judgment of the court by certified
7    mail, return receipt requested, at their last known
8    address.
9        (6) Nothing contained in this Section shall be
10    construed to invalidate any provision of a declaration
11    authorizing the developer to amend an instrument prior to
12    the latest date on which the initial membership meeting of
13    the unit owners must be held, whether or not it has
14    actually been held, to bring the instrument into
15    compliance with the legal requirements of the Federal
16    National Mortgage Association, the Federal Home Loan
17    Mortgage Corporation, the Federal Housing Administration,
18    the United States Veterans Administration or their
19    respective successors and assigns.
20    (i) The provisions of subsections (c) through (h) are
21applicable to all declarations, other condominium instruments,
22and other duly recorded covenants establishing the powers and
23duties of the master association recorded under this Act. Any
24portion of a declaration, other condominium instrument, or
25other duly recorded covenant establishing the powers and
26duties of a master association which contains provisions

 

 

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1contrary to the provisions of subsection (c) through (h) shall
2be void as against public policy and ineffective. Any
3declaration, other condominium instrument, or other duly
4recorded covenant establishing the powers and duties of the
5master association which fails to contain the provisions
6required by subsections (c) through (h) shall be deemed to
7incorporate such provisions by operation of law.
8    (j) (Blank).
9(Source: P.A. 100-416, eff. 1-1-18.)
 
10    Section 15. The Rental Property Utility Service Act is
11amended by changing the title of the Act and Section 0.01 and
12by adding Section 1.5 as follows:
 
13    (765 ILCS 735/Act title)
14    An Act concerning residential providing remedies for
15lessees in relation to the failure of lessors to pay for
16utility services.
 
17    (765 ILCS 735/0.01)  (from Ch. 80, par. 61)
18    Sec. 0.01. Short title. This Act may be cited as the
19Residential Rental Property Utility Service Act.
20(Source: P.A. 86-1324.)
 
21    (765 ILCS 735/1.5 new)
22    Sec. 1.5. Payment for master metered public utility

 

 

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1services.
2    (a) No landlord may demand payment for master metered
3public utility services pursuant to a lease provision
4providing for tenant payment of a proportionate share of
5public utility service without the landlord first providing
6the tenant with a copy in writing either as part of the lease
7or another written agreement of the formula used by the
8landlord for allocating the public utility payments among the
9tenants. The total of payments under the formula for the
10building as a whole for a billing period may not exceed the sum
11demanded by the public utility. The formula shall include all
12those that use that public utility service and may reflect
13variations in apartment size or usage. The landlord shall also
14make available to the tenant upon request a copy of the public
15utility bill for any billing period for which payment is
16demanded. Nothing herein shall preclude a landlord from
17leasing property to a tenant, including the cost of utilities,
18for a rental which does not segregate or allocate the cost of
19the utilities.
20    (b) No condominium or common interest community
21association may demand payment for master metered public
22utility services from a unit owner of a proportionate share
23for public utility service without the condominium or common
24interest community association first providing the unit owner
25with a copy in writing of the formula used by the association
26for allocating the public utility payments among the unit

 

 

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1owners. The total of payments under the formula for the
2association as a whole for the annual budgeted billing period
3may not exceed the sum demanded by the public utility,
4however, the board of directors of the association may direct
5that any payments received by the association in excess of
6actual utility bills be applied to other budgeted items having
7a deficit, or be applied to the association's reserve fund, or
8be credited to the account of the unit owners for the following
9year's budget. The formula shall include all those that use
10that public utility service and may reflect, but is not
11limited to, percent interest, unit size, or usage. The
12condominium or common interest community association shall
13also make available to the unit owner upon request a copy of
14the public utility bill for any billing period for which
15payment is demanded. A condominium association shall have the
16right to establish and maintain a system of master metering of
17public utility services pursuant to Sections 18 and 18.5 of
18the Condominium Property Act. A common interest community
19association shall have the right to establish and maintain a
20system of master metering of public utility services pursuant
21to Section 1-45 of the Common Interest Community Association
22Act. Nothing in this Act shall be construed as giving a common
23interest community association the right to establish a system
24of master metering or submetering of public utility services.
25    (c) A municipality may request a copy in writing of the
26formula used by the landlord or condominium or common interest

 

 

10300HB4090ham003- 47 -LRB103 32446 JRC 72317 a

1community association for allocating the public utility
2payments among the unit owners. The landlord or condominium or
3common interest community association shall respond within 30
4calendar days of receiving the municipality's request.
5    (d) Treble damages available to residential tenants under
6Section 1.3 of this Act are not applicable to alleged
7violations of this Section.
 
8    (765 ILCS 740/Act rep.)
9    Section 20. The Tenant Utility Payment Disclosure Act is
10repealed.".