HB4090eng 103RD GENERAL ASSEMBLY

 


 
HB4090 EngrossedLRB103 32446 LNS 61933 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 Common Interest Community Association Act
5is amended by changing Section 1-45 as follows:
 
6    (765 ILCS 160/1-45)
7    Sec. 1-45. Finances.
8    (a) Each member shall receive through a prescribed
9delivery method, at least 30 days but not more than 60 days
10prior to the adoption thereof by the board, a copy of the
11proposed annual budget together with an indication of which
12portions are intended for reserves, capital expenditures or
13repairs or payment of real estate taxes.
14    (b) The board shall provide all members with a reasonably
15detailed summary of the receipts, common expenses, and
16reserves for the preceding budget year. The board shall (i)
17make available for review to all members an itemized
18accounting of the common expenses for the preceding year
19actually incurred or paid, together with an indication of
20which portions were for reserves, capital expenditures or
21repairs or payment of real estate taxes and with a tabulation
22of the amounts collected pursuant to the budget or assessment,
23and showing the net excess or deficit of income over

 

 

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1expenditures plus reserves or (ii) provide a consolidated
2annual independent audit report of the financial status of all
3fund accounts within the association.
4    (c) If an adopted budget or any separate assessment
5adopted by the board would result in the sum of all regular and
6separate assessments payable in the current fiscal year
7exceeding 115% of the sum of all regular and separate
8assessments payable during the preceding fiscal year, the
9common interest community association, upon written petition
10by members with 20% of the votes of the association delivered
11to the board within 14 days of the board action, shall call a
12meeting of the members within 30 days of the date of delivery
13of the petition to consider the budget or separate assessment;
14unless a majority of the total votes of the members are cast at
15the meeting to reject the budget or separate assessment, it
16shall be deemed ratified.
17    (d) If total common expenses exceed the total amount of
18the approved and adopted budget, the common interest community
19association shall disclose this variance to all its members
20and specifically identify the subsequent assessments needed to
21offset this variance in future budgets.
22    (e) Separate assessments for expenditures relating to
23emergencies or mandated by law may be adopted by the board
24without being subject to member approval or the provisions of
25subsection (c) or (f) of this Section. As used herein,
26"emergency" means a danger to or a compromise of the

 

 

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1structural integrity of the common areas or any of the common
2facilities of the common interest community. "Emergency" also
3includes a danger to the life, health or safety of the
4membership.
5    (f) Assessments for additions and alterations to the
6common areas or to association-owned property not included in
7the adopted annual budget, shall be separately assessed and
8are subject to approval of a simple majority of the total
9members at a meeting called for that purpose.
10    (g) The board may adopt separate assessments payable over
11more than one fiscal year. With respect to multi-year
12assessments not governed by subsections (e) and (f) of this
13Section, the entire amount of the multi-year assessment shall
14be deemed considered and authorized in the first fiscal year
15in which the assessment is approved.
16    (h) The board of a common interest community association
17shall have the authority to establish and maintain a system of
18master metering of public utility services to collect payments
19in conjunction therewith, subject to the requirements of
20Section 1.5 of the Residential Property Utility Service the
21Tenant Utility Payment Disclosure Act.
22    (i) An association subject to this Act that consists of
23100 or more units shall use generally accepted accounting
24principles in fulfilling any accounting obligations under this
25Act.
26(Source: P.A. 100-292, eff. 1-1-18.)
 

 

 

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1    Section 10. The Condominium Property Act is amended by
2changing Sections 18 and 18.5 as follows:
 
3    (765 ILCS 605/18)  (from Ch. 30, par. 318)
4    Sec. 18. Contents of bylaws. The bylaws shall provide for
5at least the following:
6        (a)(1) The election from among the unit owners of a
7    board of managers, the number of persons constituting such
8    board, and that the terms of at least one-third of the
9    members of the board shall expire annually and that all
10    members of the board shall be elected at large; if there
11    are multiple owners of a single unit, only one of the
12    multiple owners shall be eligible to serve as a member of
13    the board at any one time. A declaration first submitting
14    property to the provisions of this Act, in accordance with
15    Section 3 after the effective date of this amendatory Act
16    of the 102nd General Assembly, or an amendment to the
17    condominium instruments adopted in accordance with Section
18    27 after the effective date of this amendatory Act of the
19    102nd General Assembly, may provide that a majority of the
20    board of managers, or such lesser number as may be
21    specified in the declaration, must be comprised of unit
22    owners occupying their unit as their primary residence;
23    provided that the condominium instruments may not require
24    that more than a majority of the board shall be comprised

 

 

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1    of unit owners who occupy their unit as their principal
2    residence;
3        (2) the powers and duties of the board;
4        (3) the compensation, if any, of the members of the
5    board;
6        (4) the method of removal from office of members of
7    the board;
8        (5) that the board may engage the services of a
9    manager or managing agent;
10        (6) that each unit owner shall receive, at least 25
11    days prior to the adoption thereof by the board of
12    managers, a copy of the proposed annual budget together
13    with an indication of which portions are intended for
14    reserves, capital expenditures or repairs or payment of
15    real estate taxes;
16        (7) that the board of managers shall annually supply
17    to all unit owners an itemized accounting of the common
18    expenses for the preceding year actually incurred or paid,
19    together with an indication of which portions were for
20    reserves, capital expenditures or repairs or payment of
21    real estate taxes and with a tabulation of the amounts
22    collected pursuant to the budget or assessment, and
23    showing the net excess or deficit of income over
24    expenditures plus reserves;
25        (8)(i) that each unit owner shall receive notice, in
26    the same manner as is provided in this Act for membership

 

 

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

 

 

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1    structural integrity of the common elements or to the
2    life, health, safety or property of the unit owners, (v)
3    that assessments for additions and alterations to the
4    common elements or to association-owned property not
5    included in the adopted annual budget, shall be separately
6    assessed and are subject to approval of two-thirds of the
7    total votes of all unit owners, (vi) that the board of
8    managers may adopt separate assessments payable over more
9    than one fiscal year. With respect to multi-year
10    assessments not governed by items (iv) and (v), the entire
11    amount of the multi-year assessment shall be deemed
12    considered and authorized in the first fiscal year in
13    which the assessment is approved;
14        (9)(A) that every meeting of the board of managers
15    shall be open to any unit owner, except that the board may
16    close any portion of a noticed meeting or meet separately
17    from a noticed meeting to: (i) discuss litigation when an
18    action against or on behalf of the particular association
19    has been filed and is pending in a court or administrative
20    tribunal, or when the board of managers finds that such an
21    action is probable or imminent, (ii) discuss the
22    appointment, employment, engagement, or dismissal of an
23    employee, independent contractor, agent, or other provider
24    of goods and services, (iii) interview a potential
25    employee, independent contractor, agent, or other provider
26    of goods and services, (iv) discuss violations of rules

 

 

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1    and regulations of the association, (v) discuss a unit
2    owner's unpaid share of common expenses, or (vi) consult
3    with the association's legal counsel; that any vote on
4    these matters shall take place at a meeting of the board of
5    managers or portion thereof open to any unit owner;
6        (B) that board members may participate in and act at
7    any meeting of the board of managers in person, by
8    telephonic means, or by use of any acceptable
9    technological means whereby all persons participating in
10    the meeting can communicate with each other; that
11    participation constitutes attendance and presence in
12    person at the meeting;
13        (C) that any unit owner may record the proceedings at
14    meetings of the board of managers or portions thereof
15    required to be open by this Act by tape, film or other
16    means, and that the board may prescribe reasonable rules
17    and regulations to govern the right to make such
18    recordings;
19        (D) that notice of every meeting of the board of
20    managers shall be given to every board member at least 48
21    hours prior thereto, unless the board member waives notice
22    of the meeting pursuant to subsection (a) of Section 18.8;
23    and
24        (E) that notice of every meeting of the board of
25    managers shall be posted in entranceways, elevators, or
26    other conspicuous places in the condominium at least 48

 

 

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1    hours prior to the meeting of the board of managers except
2    where there is no common entranceway for 7 or more units,
3    the board of managers may designate one or more locations
4    in the proximity of these units where the notices of
5    meetings shall be posted; that notice of every meeting of
6    the board of managers shall also be given at least 48 hours
7    prior to the meeting, or such longer notice as this Act may
8    separately require, to: (i) each unit owner who has
9    provided the association with written authorization to
10    conduct business by acceptable technological means, and
11    (ii) to the extent that the condominium instruments of an
12    association require, to each other unit owner, as required
13    by subsection (f) of Section 18.8, by mail or delivery,
14    and that no other notice of a meeting of the board of
15    managers need be given to any unit owner;
16        (10) that the board shall meet at least 4 times
17    annually;
18        (11) that no member of the board or officer shall be
19    elected for a term of more than 2 years, but that officers
20    and board members may succeed themselves;
21        (12) the designation of an officer to mail and receive
22    all notices and execute amendments to condominium
23    instruments as provided for in this Act and in the
24    condominium instruments;
25        (13) the method of filling vacancies on the board
26    which shall include authority for the remaining members of

 

 

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1    the board to fill the vacancy by two-thirds vote until the
2    next annual meeting of unit owners or for a period
3    terminating no later than 30 days following the filing of
4    a petition signed by unit owners holding 20% of the votes
5    of the association requesting a meeting of the unit owners
6    to fill the vacancy for the balance of the term, and that a
7    meeting of the unit owners shall be called for purposes of
8    filling a vacancy on the board no later than 30 days
9    following the filing of a petition signed by unit owners
10    holding 20% of the votes of the association requesting
11    such a meeting, and the method of filling vacancies among
12    the officers that shall include the authority for the
13    members of the board to fill the vacancy for the unexpired
14    portion of the term;
15        (14) what percentage of the board of managers, if
16    other than a majority, shall constitute a quorum;
17        (15) provisions concerning notice of board meetings to
18    members of the board;
19        (16) the board of managers may not enter into a
20    contract with a current board member or with a corporation
21    or partnership in which a board member or a member of the
22    board member's immediate family has 25% or more interest,
23    unless notice of intent to enter the contract is given to
24    unit owners within 20 days after a decision is made to
25    enter into the contract and the unit owners are afforded
26    an opportunity by filing a petition, signed by 20% of the

 

 

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1    unit owners, for an election to approve or disapprove the
2    contract; such petition shall be filed within 30 days
3    after such notice and such election shall be held within
4    30 days after filing the petition; for purposes of this
5    subsection, a board member's immediate family means the
6    board member's spouse, parents, and children;
7        (17) that the board of managers may disseminate to
8    unit owners biographical and background information about
9    candidates for election to the board if (i) reasonable
10    efforts to identify all candidates are made and all
11    candidates are given an opportunity to include
12    biographical and background information in the information
13    to be disseminated; and (ii) the board does not express a
14    preference in favor of any candidate;
15        (18) any proxy distributed for board elections by the
16    board of managers gives unit owners the opportunity to
17    designate any person as the proxy holder, and gives the
18    unit owner the opportunity to express a preference for any
19    of the known candidates for the board or to write in a
20    name;
21        (19) that special meetings of the board of managers
22    can be called by the president or 25% of the members of the
23    board;
24        (20) that the board of managers may establish and
25    maintain a system of master metering of public utility
26    services and collect payments in connection therewith,

 

 

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1    subject to the requirements of Section 1.5 of the
2    Residential Property Utility Service the Tenant Utility
3    Payment Disclosure Act; and
4        (21) that the board may ratify and confirm actions of
5    the members of the board taken in response to an
6    emergency, as that term is defined in subdivision
7    (a)(8)(iv) of this Section; that the board shall give
8    notice to the unit owners of: (i) the occurrence of the
9    emergency event within 7 business days after the emergency
10    event, and (ii) the general description of the actions
11    taken to address the event within 7 days after the
12    emergency event.
13        The intent of the provisions of Public Act 99-472
14    adding this paragraph (21) is to empower and support
15    boards to act in emergencies.
16        (b)(1) What percentage of the unit owners, if other
17    than 20%, shall constitute a quorum provided that, for
18    condominiums with 20 or more units, the percentage of unit
19    owners constituting a quorum shall be 20% unless the unit
20    owners holding a majority of the percentage interest in
21    the association provide for a higher percentage, provided
22    that in voting on amendments to the association's bylaws,
23    a unit owner who is in arrears on the unit owner's regular
24    or separate assessments for 60 days or more, shall not be
25    counted for purposes of determining if a quorum is
26    present, but that unit owner retains the right to vote on

 

 

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1    amendments to the association's bylaws;
2        (2) that the association shall have one class of
3    membership;
4        (3) that the members shall hold an annual meeting, one
5    of the purposes of which shall be to elect members of the
6    board of managers;
7        (4) the method of calling meetings of the unit owners;
8        (5) that special meetings of the members can be called
9    by the president, board of managers, or by 20% of unit
10    owners;
11        (6) that written notice of any membership meeting
12    shall be mailed or delivered giving members no less than
13    10 and no more than 30 days notice of the time, place and
14    purpose of such meeting except that notice may be sent, to
15    the extent the condominium instruments or rules adopted
16    thereunder expressly so provide, by electronic
17    transmission consented to by the unit owner to whom the
18    notice is given, provided the director and officer or his
19    agent certifies in writing to the delivery by electronic
20    transmission;
21        (7) that voting shall be on a percentage basis, and
22    that the percentage vote to which each unit is entitled is
23    the percentage interest of the undivided ownership of the
24    common elements appurtenant thereto, provided that the
25    bylaws may provide for approval by unit owners in
26    connection with matters where the requisite approval on a

 

 

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1    percentage basis is not specified in this Act, on the
2    basis of one vote per unit;
3        (8) that, where there is more than one owner of a unit,
4    if only one of the multiple owners is present at a meeting
5    of the association, he is entitled to cast all the votes
6    allocated to that unit, if more than one of the multiple
7    owners are present, the votes allocated to that unit may
8    be cast only in accordance with the agreement of a
9    majority in interest of the multiple owners, unless the
10    declaration expressly provides otherwise, that there is
11    majority agreement if any one of the multiple owners cast
12    the votes allocated to that unit without protest being
13    made promptly to the person presiding over the meeting by
14    any of the other owners of the unit;
15        (9)(A) except as provided in subparagraph (B) of this
16    paragraph (9) in connection with board elections, that a
17    unit owner may vote by proxy executed in writing by the
18    unit owner or by his duly authorized attorney in fact;
19    that the proxy must bear the date of execution and, unless
20    the condominium instruments or the written proxy itself
21    provide otherwise, is invalid after 11 months from the
22    date of its execution; to the extent the condominium
23    instruments or rules adopted thereunder expressly so
24    provide, a vote or proxy may be submitted by electronic
25    transmission, provided that any such electronic
26    transmission shall either set forth or be submitted with

 

 

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

 

 

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

 

 

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1    candidates whose names do not appear on the ballot; a unit
2    owner who submits a vote using electronic or acceptable
3    technological means may request and cast a ballot in
4    person at the election meeting, thereby voiding any vote
5    previously submitted by that unit owner;
6        (C) that if a written petition by unit owners with at
7    least 20% of the votes of the association is delivered to
8    the board within 30 days after the board's approval of a
9    rule adopted pursuant to subparagraph (B) or subparagraph
10    (B-5) of this paragraph (9), the board shall call a
11    meeting of the unit owners within 30 days after the date of
12    delivery of the petition; that unless a majority of the
13    total votes of the unit owners are cast at the meeting to
14    reject the rule, the rule is ratified;
15        (D) that votes cast by ballot under subparagraph (B)
16    or electronic or acceptable technological means under
17    subparagraph (B-5) of this paragraph (9) are valid for the
18    purpose of establishing a quorum;
19        (10) that the association may, upon adoption of the
20    appropriate rules by the board of managers, conduct
21    elections by secret ballot whereby the voting ballot is
22    marked only with the percentage interest for the unit and
23    the vote itself, provided that the board further adopt
24    rules to verify the status of the unit owner issuing a
25    proxy or casting a ballot; and further, that a candidate
26    for election to the board of managers or such candidate's

 

 

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1    representative shall have the right to be present at the
2    counting of ballots at such election;
3        (11) that in the event of a resale of a condominium
4    unit the purchaser of a unit from a seller other than the
5    developer pursuant to an installment sales contract for
6    purchase shall during such times as he or she resides in
7    the unit be counted toward a quorum for purposes of
8    election of members of the board of managers at any
9    meeting of the unit owners called for purposes of electing
10    members of the board, shall have the right to vote for the
11    election of members of the board of managers and to be
12    elected to and serve on the board of managers unless the
13    seller expressly retains in writing any or all of such
14    rights. In no event may the seller and purchaser both be
15    counted toward a quorum, be permitted to vote for a
16    particular office or be elected and serve on the board.
17    Satisfactory evidence of the installment sales contract
18    shall be made available to the association or its agents.
19    For purposes of this subsection, "installment sales
20    contract" shall have the same meaning as set forth in
21    Section 5 of the Installment Sales Contract Act and
22    Section 1(e) of the Dwelling Unit Installment Contract
23    Act;
24        (12) the method by which matters subject to the
25    approval of unit owners set forth in this Act, or in the
26    condominium instruments, will be submitted to the unit

 

 

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1    owners at special membership meetings called for such
2    purposes; and
3        (13) that matters subject to the affirmative vote of
4    not less than 2/3 of the votes of unit owners at a meeting
5    duly called for that purpose, shall include, but not be
6    limited to:
7            (i) merger or consolidation of the association;
8            (ii) sale, lease, exchange, or other disposition
9        (excluding the mortgage or pledge) of all, or
10        substantially all of the property and assets of the
11        association; and
12            (iii) the purchase or sale of land or of units on
13        behalf of all unit owners.
14        (c) Election of a president from among the board of
15    managers, who shall preside over the meetings of the board
16    of managers and of the unit owners.
17        (d) Election of a secretary from among the board of
18    managers, who shall keep the minutes of all meetings of
19    the board of managers and of the unit owners and who shall,
20    in general, perform all the duties incident to the office
21    of secretary.
22        (e) Election of a treasurer from among the board of
23    managers, who shall keep the financial records and books
24    of account.
25        (f) Maintenance, repair and replacement of the common
26    elements and payments therefor, including the method of

 

 

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1    approving payment vouchers.
2        (g) An association with 30 or more units shall obtain
3    and maintain fidelity insurance covering persons who
4    control or disburse funds of the association for the
5    maximum amount of coverage available to protect funds in
6    the custody or control of the association plus the
7    association reserve fund. All management companies which
8    are responsible for the funds held or administered by the
9    association shall maintain and furnish to the association
10    a fidelity bond for the maximum amount of coverage
11    available to protect funds in the custody of the
12    management company at any time. The association shall bear
13    the cost of the fidelity insurance and fidelity bond,
14    unless otherwise provided by contract between the
15    association and a management company. The association
16    shall be the direct obligee of any such fidelity bond. A
17    management company holding reserve funds of an association
18    shall at all times maintain a separate account for each
19    association, provided, however, that for investment
20    purposes, the Board of Managers of an association may
21    authorize a management company to maintain the
22    association's reserve funds in a single interest bearing
23    account with similar funds of other associations. The
24    management company shall at all times maintain records
25    identifying all moneys of each association in such
26    investment account. The management company may hold all

 

 

HB4090 Engrossed- 21 -LRB103 32446 LNS 61933 b

1    operating funds of associations which it manages in a
2    single operating account but shall at all times maintain
3    records identifying all moneys of each association in such
4    operating account. Such operating and reserve funds held
5    by the management company for the association shall not be
6    subject to attachment by any creditor of the management
7    company.
8        For the purpose of this subsection, a management
9    company shall be defined as a person, partnership,
10    corporation, or other legal entity entitled to transact
11    business on behalf of others, acting on behalf of or as an
12    agent for a unit owner, unit owners or association of unit
13    owners for the purpose of carrying out the duties,
14    responsibilities, and other obligations necessary for the
15    day to day operation and management of any property
16    subject to this Act. For purposes of this subsection, the
17    term "fiduciary insurance coverage" shall be defined as
18    both a fidelity bond and directors and officers liability
19    coverage, the fidelity bond in the full amount of
20    association funds and association reserves that will be in
21    the custody of the association, and the directors and
22    officers liability coverage at a level as shall be
23    determined to be reasonable by the board of managers, if
24    not otherwise established by the declaration or by laws.
25        Until one year after September 21, 1985 (the effective
26    date of Public Act 84-722), if a condominium association

 

 

HB4090 Engrossed- 22 -LRB103 32446 LNS 61933 b

1    has reserves plus assessments in excess of $250,000 and
2    cannot reasonably obtain 100% fidelity bond coverage for
3    such amount, then it must obtain a fidelity bond coverage
4    of $250,000.
5        (h) Method of estimating the amount of the annual
6    budget, and the manner of assessing and collecting from
7    the unit owners their respective shares of such estimated
8    expenses, and of any other expenses lawfully agreed upon.
9        (i) That upon 10 days notice to the manager or board of
10    managers and payment of a reasonable fee, any unit owner
11    shall be furnished a statement of his account setting
12    forth the amount of any unpaid assessments or other
13    charges due and owing from such owner.
14        (j) Designation and removal of personnel necessary for
15    the maintenance, repair and replacement of the common
16    elements.
17        (k) Such restrictions on and requirements respecting
18    the use and maintenance of the units and the use of the
19    common elements, not set forth in the declaration, as are
20    designed to prevent unreasonable interference with the use
21    of their respective units and of the common elements by
22    the several unit owners.
23        (l) Method of adopting and of amending administrative
24    rules and regulations governing the operation and use of
25    the common elements.
26        (m) The percentage of votes required to modify or

 

 

HB4090 Engrossed- 23 -LRB103 32446 LNS 61933 b

1    amend the bylaws, but each one of the particulars set
2    forth in this section shall always be embodied in the
3    bylaws.
4        (n)(i) The provisions of this Act, the declaration,
5    bylaws, other condominium instruments, and rules and
6    regulations that relate to the use of the individual unit
7    or the common elements shall be applicable to any person
8    leasing a unit and shall be deemed to be incorporated in
9    any lease executed or renewed on or after August 30, 1984
10    (the effective date of Public Act 83-1271).
11        (ii) With regard to any lease entered into subsequent
12    to July 1, 1990 (the effective date of Public Act 86-991),
13    the unit owner leasing the unit shall deliver a copy of the
14    signed lease to the board or if the lease is oral, a
15    memorandum of the lease, not later than the date of
16    occupancy or 10 days after the lease is signed, whichever
17    occurs first. In addition to any other remedies, by filing
18    an action jointly against the tenant and the unit owner,
19    an association may seek to enjoin a tenant from occupying
20    a unit or seek to evict a tenant under the provisions of
21    Article IX of the Code of Civil Procedure for failure of
22    the lessor-owner to comply with the leasing requirements
23    prescribed by this Section or by the declaration, bylaws,
24    and rules and regulations. The board of managers may
25    proceed directly against a tenant, at law or in equity, or
26    under the provisions of Article IX of the Code of Civil

 

 

HB4090 Engrossed- 24 -LRB103 32446 LNS 61933 b

1    Procedure, for any other breach by tenant of any
2    covenants, rules, regulations or bylaws.
3        (o) The association shall have no authority to forbear
4    the payment of assessments by any unit owner.
5        (p) That when 30% or fewer of the units, by number,
6    possess over 50% in the aggregate of the votes in the
7    association, any percentage vote of members specified
8    herein or in the condominium instruments shall require the
9    specified percentage by number of units rather than by
10    percentage of interest in the common elements allocated to
11    units that would otherwise be applicable and garage units
12    or storage units, or both, shall have, in total, no more
13    votes than their aggregate percentage of ownership in the
14    common elements; this shall mean that if garage units or
15    storage units, or both, are to be given a vote, or portion
16    of a vote, that the association must add the total number
17    of votes cast of garage units, storage units, or both, and
18    divide the total by the number of garage units, storage
19    units, or both, and multiply by the aggregate percentage
20    of ownership of garage units and storage units to
21    determine the vote, or portion of a vote, that garage
22    units or storage units, or both, have. For purposes of
23    this subsection (p), when making a determination of
24    whether 30% or fewer of the units, by number, possess over
25    50% in the aggregate of the votes in the association, a
26    unit shall not include a garage unit or a storage unit.

 

 

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1        (q) That a unit owner may not assign, delegate,
2    transfer, surrender, or avoid the duties,
3    responsibilities, and liabilities of a unit owner under
4    this Act, the condominium instruments, or the rules and
5    regulations of the Association; and that such an attempted
6    assignment, delegation, transfer, surrender, or avoidance
7    shall be deemed void.
8    The provisions of this Section are applicable to all
9condominium instruments recorded under this Act. Any portion
10of a condominium instrument which contains provisions contrary
11to these provisions shall be void as against public policy and
12ineffective. Any such instrument which fails to contain the
13provisions required by this Section shall be deemed to
14incorporate such provisions by operation of law.
15(Source: P.A. 102-162, eff. 1-1-22.)
 
16    (765 ILCS 605/18.5)  (from Ch. 30, par. 318.5)
17    Sec. 18.5. Master Associations.
18    (a) If the declaration, other condominium instrument, or
19other duly recorded covenants provide that any of the powers
20of the unit owners associations are to be exercised by or may
21be delegated to a nonprofit corporation or unincorporated
22association that exercises those or other powers on behalf of
23one or more condominiums, or for the benefit of the unit owners
24of one or more condominiums, such corporation or association
25shall be a master association.

 

 

HB4090 Engrossed- 26 -LRB103 32446 LNS 61933 b

1    (b) There shall be included in the declaration, other
2condominium instruments, or other duly recorded covenants
3establishing the powers and duties of the master association
4the provisions set forth in subsections (c) through (h).
5    In interpreting subsections (c) through (h), the courts
6should interpret these provisions so that they are interpreted
7consistently with the similar parallel provisions found in
8other parts of this Act.
9    (c) Meetings and finances.
10        (1) Each unit owner of a condominium subject to the
11    authority of the board of the master association shall
12    receive, at least 30 days prior to the adoption thereof by
13    the board of the master association, a copy of the
14    proposed annual budget.
15        (2) The board of the master association shall annually
16    supply to all unit owners of condominiums subject to the
17    authority of the board of the master association an
18    itemized accounting of the common expenses for the
19    preceding year actually incurred or paid, together with a
20    tabulation of the amounts collected pursuant to the budget
21    or assessment, and showing the net excess or deficit of
22    income over expenditures plus reserves.
23        (3) Each unit owner of a condominium subject to the
24    authority of the board of the master association shall
25    receive written notice mailed or delivered no less than 10
26    and no more than 30 days prior to any meeting of the board

 

 

HB4090 Engrossed- 27 -LRB103 32446 LNS 61933 b

1    of the master association concerning the adoption of the
2    proposed annual budget or any increase in the budget, or
3    establishment of an assessment.
4        (4) Meetings of the board of the master association
5    shall be open to any unit owner in a condominium subject to
6    the authority of the board of the master association,
7    except for the portion of any meeting held:
8            (A) to discuss litigation when an action against
9        or on behalf of the particular master association has
10        been filed and is pending in a court or administrative
11        tribunal, or when the board of the master association
12        finds that such an action is probable or imminent,
13            (B) to consider information regarding appointment,
14        employment or dismissal of an employee, or
15            (C) to discuss violations of rules and regulations
16        of the master association or unpaid common expenses
17        owed to the master association.
18    Any vote on these matters shall be taken at a meeting or
19    portion thereof open to any unit owner of a condominium
20    subject to the authority of the master association.
21        Any unit owner may record the proceedings at meetings
22    required to be open by this Act by tape, film or other
23    means; the board may prescribe reasonable rules and
24    regulations to govern the right to make such recordings.
25    Notice of meetings shall be mailed or delivered at least
26    48 hours prior thereto, unless a written waiver of such

 

 

HB4090 Engrossed- 28 -LRB103 32446 LNS 61933 b

1    notice is signed by the persons entitled to notice before
2    the meeting is convened. Copies of notices of meetings of
3    the board of the master association shall be posted in
4    entranceways, elevators, or other conspicuous places in
5    the condominium at least 48 hours prior to the meeting of
6    the board of the master association. Where there is no
7    common entranceway for 7 or more units, the board of the
8    master association may designate one or more locations in
9    the proximity of these units where the notices of meetings
10    shall be posted.
11        (5) If the declaration provides for election by unit
12    owners of members of the board of directors in the event of
13    a resale of a unit in the master association, the
14    purchaser of a unit from a seller other than the developer
15    pursuant to an installment sales contract for purchase
16    shall, during such times as he or she resides in the unit,
17    be counted toward a quorum for purposes of election of
18    members of the board of directors at any meeting of the
19    unit owners called for purposes of electing members of the
20    board, and shall have the right to vote for the election of
21    members of the board of directors and to be elected to and
22    serve on the board of directors unless the seller
23    expressly retains in writing any or all of those rights.
24    In no event may the seller and purchaser both be counted
25    toward a quorum, be permitted to vote for a particular
26    office, or be elected and serve on the board. Satisfactory

 

 

HB4090 Engrossed- 29 -LRB103 32446 LNS 61933 b

1    evidence of the installment sales contract shall be made
2    available to the association or its agents. For purposes
3    of this subsection, "installment sales contract" shall
4    have the same meaning as set forth in Section 5 of the
5    Installment Sales Contract Act and subsection (e) of
6    Section 1 of the Dwelling Unit Installment Contract Act.
7        (6) The board of the master association shall have the
8    authority to establish and maintain a system of master
9    metering of public utility services and to collect
10    payments in connection therewith, subject to the
11    requirements of Section 1.5 of the Residential Property
12    Utility Service the Tenant Utility Payment Disclosure Act.
13        (7) The board of the master association or a common
14    interest community association shall have the power, after
15    notice and an opportunity to be heard, to levy and collect
16    reasonable fines from members for violations of the
17    declaration, bylaws, and rules and regulations of the
18    master association or the common interest community
19    association. Nothing contained in this subdivision (7)
20    shall give rise to a statutory lien for unpaid fines.
21        (8) Other than attorney's fees, no fees pertaining to
22    the collection of a unit owner's financial obligation to
23    the Association, including fees charged by a manager or
24    managing agent, shall be added to and deemed a part of an
25    owner's respective share of the common expenses unless:
26    (i) the managing agent fees relate to the costs to collect

 

 

HB4090 Engrossed- 30 -LRB103 32446 LNS 61933 b

1    common expenses for the Association; (ii) the fees are set
2    forth in a contract between the managing agent and the
3    Association; and (iii) the authority to add the management
4    fees to an owner's respective share of the common expenses
5    is specifically stated in the declaration or bylaws of the
6    Association.
7    (d) Records.
8        (1) The board of the master association shall maintain
9    the following records of the association and make them
10    available for examination and copying at convenient hours
11    of weekdays by any unit owners in a condominium subject to
12    the authority of the board or their mortgagees and their
13    duly authorized agents or attorneys:
14            (i) Copies of the recorded declaration, other
15        condominium instruments, other duly recorded covenants
16        and bylaws and any amendments, articles of
17        incorporation of the master association, annual
18        reports and any rules and regulations adopted by the
19        master association or its board shall be available.
20        Prior to the organization of the master association,
21        the developer shall maintain and make available the
22        records set forth in this subdivision (d)(1) for
23        examination and copying.
24            (ii) Detailed and accurate records in
25        chronological order of the receipts and expenditures
26        affecting the common areas, specifying and itemizing

 

 

HB4090 Engrossed- 31 -LRB103 32446 LNS 61933 b

1        the maintenance and repair expenses of the common
2        areas and any other expenses incurred, and copies of
3        all contracts, leases, or other agreements entered
4        into by the master association, shall be maintained.
5            (iii) The minutes of all meetings of the master
6        association and the board of the master association
7        shall be maintained for not less than 7 years.
8            (iv) Ballots and proxies related thereto, if any,
9        for any election held for the board of the master
10        association and for any other matters voted on by the
11        unit owners shall be maintained for not less than one
12        year.
13            (v) Such other records of the master association
14        as are available for inspection by members of a
15        not-for-profit corporation pursuant to Section 107.75
16        of the General Not For Profit Corporation Act of 1986
17        shall be maintained.
18            (vi) With respect to units owned by a land trust,
19        if a trustee designates in writing a person to cast
20        votes on behalf of the unit owner, the designation
21        shall remain in effect until a subsequent document is
22        filed with the association.
23        (2) Where a request for records under this subsection
24    is made in writing to the board of managers or its agent,
25    failure to provide the requested record or to respond
26    within 30 days shall be deemed a denial by the board of

 

 

HB4090 Engrossed- 32 -LRB103 32446 LNS 61933 b

1    directors.
2        (3) A reasonable fee may be charged by the master
3    association or its board for the cost of copying.
4        (4) If the board of directors fails to provide records
5    properly requested under subdivision (d)(1) within the
6    time period provided in subdivision (d)(2), the unit owner
7    may seek appropriate relief, including an award of
8    attorney's fees and costs.
9    (e) The board of directors shall have standing and
10capacity to act in a representative capacity in relation to
11matters involving the common areas of the master association
12or more than one unit, on behalf of the unit owners as their
13interests may appear.
14    (f) Administration of property prior to election of the
15initial board of directors.
16        (1) Until the election, by the unit owners or the
17    boards of managers of the underlying condominium
18    associations, of the initial board of directors of a
19    master association whose declaration is recorded on or
20    after August 10, 1990, the same rights, titles, powers,
21    privileges, trusts, duties and obligations that are vested
22    in or imposed upon the board of directors by this Act or in
23    the declaration or other duly recorded covenant shall be
24    held and performed by the developer.
25        (2) The election of the initial board of directors of
26    a master association whose declaration is recorded on or

 

 

HB4090 Engrossed- 33 -LRB103 32446 LNS 61933 b

1    after August 10, 1990, by the unit owners or the boards of
2    managers of the underlying condominium associations, shall
3    be held not later than 60 days after the conveyance by the
4    developer of 75% of the units, or 3 years after the
5    recording of the declaration, whichever is earlier. The
6    developer shall give at least 21 days notice of the
7    meeting to elect the initial board of directors and shall
8    upon request provide to any unit owner, within 3 working
9    days of the request, the names, addresses, and weighted
10    vote of each unit owner entitled to vote at the meeting.
11    Any unit owner shall upon receipt of the request be
12    provided with the same information, within 10 days of the
13    request, with respect to each subsequent meeting to elect
14    members of the board of directors.
15        (3) If the initial board of directors of a master
16    association whose declaration is recorded on or after
17    August 10, 1990 is not elected by the unit owners or the
18    members of the underlying condominium association board of
19    managers at the time established in subdivision (f)(2),
20    the developer shall continue in office for a period of 30
21    days, whereupon written notice of his resignation shall be
22    sent to all of the unit owners or members of the underlying
23    condominium board of managers entitled to vote at an
24    election for members of the board of directors.
25        (4) Within 60 days following the election of a
26    majority of the board of directors, other than the

 

 

HB4090 Engrossed- 34 -LRB103 32446 LNS 61933 b

1    developer, by unit owners, the developer shall deliver to
2    the board of directors:
3            (i) All original documents as recorded or filed
4        pertaining to the property, its administration, and
5        the association, such as the declaration, articles of
6        incorporation, other instruments, annual reports,
7        minutes, rules and regulations, and contracts, leases,
8        or other agreements entered into by the association.
9        If any original documents are unavailable, a copy may
10        be provided if certified by affidavit of the
11        developer, or an officer or agent of the developer, as
12        being a complete copy of the actual document recorded
13        or filed.
14            (ii) A detailed accounting by the developer,
15        setting forth the source and nature of receipts and
16        expenditures in connection with the management,
17        maintenance and operation of the property, copies of
18        all insurance policies, and a list of any loans or
19        advances to the association which are outstanding.
20            (iii) Association funds, which shall have been at
21        all times segregated from any other moneys of the
22        developer.
23            (iv) A schedule of all real or personal property,
24        equipment and fixtures belonging to the association,
25        including documents transferring the property,
26        warranties, if any, for all real and personal property

 

 

HB4090 Engrossed- 35 -LRB103 32446 LNS 61933 b

1        and equipment, deeds, title insurance policies, and
2        all tax bills.
3            (v) A list of all litigation, administrative
4        action and arbitrations involving the association, any
5        notices of governmental bodies involving actions taken
6        or which may be taken concerning the association,
7        engineering and architectural drawings and
8        specifications as approved by any governmental
9        authority, all other documents filed with any other
10        governmental authority, all governmental certificates,
11        correspondence involving enforcement of any
12        association requirements, copies of any documents
13        relating to disputes involving unit owners, and
14        originals of all documents relating to everything
15        listed in this subparagraph.
16            (vi) If the developer fails to fully comply with
17        this paragraph (4) within the 60 days provided and
18        fails to fully comply within 10 days of written demand
19        mailed by registered or certified mail to his or her
20        last known address, the board may bring an action to
21        compel compliance with this paragraph (4). If the
22        court finds that any of the required deliveries were
23        not made within the required period, the board shall
24        be entitled to recover its reasonable attorneys' fees
25        and costs incurred from and after the date of
26        expiration of the 10 day demand.

 

 

HB4090 Engrossed- 36 -LRB103 32446 LNS 61933 b

1        (5) With respect to any master association whose
2    declaration is recorded on or after August 10, 1990, any
3    contract, lease, or other agreement made prior to the
4    election of a majority of the board of directors other
5    than the developer by or on behalf of unit owners or
6    underlying condominium associations, the association or
7    the board of directors, which extends for a period of more
8    than 2 years from the recording of the declaration, shall
9    be subject to cancellation by more than 1/2 of the votes of
10    the unit owners, other than the developer, cast at a
11    special meeting of members called for that purpose during
12    a period of 90 days prior to the expiration of the 2 year
13    period if the board of managers is elected by the unit
14    owners, otherwise by more than 1/2 of the underlying
15    condominium board of managers. At least 60 days prior to
16    the expiration of the 2 year period, the board of
17    directors, or, if the board is still under developer
18    control, then the board of managers or the developer shall
19    send notice to every unit owner or underlying condominium
20    board of managers, notifying them of this provision, of
21    what contracts, leases and other agreements are affected,
22    and of the procedure for calling a meeting of the unit
23    owners or for action by the underlying condominium board
24    of managers for the purpose of acting to terminate such
25    contracts, leases or other agreements. During the 90 day
26    period the other party to the contract, lease, or other

 

 

HB4090 Engrossed- 37 -LRB103 32446 LNS 61933 b

1    agreement shall also have the right of cancellation.
2        (6) The statute of limitations for any actions in law
3    or equity which the master association may bring shall not
4    begin to run until the unit owners or underlying
5    condominium board of managers have elected a majority of
6    the members of the board of directors.
7    (g) In the event of any resale of a unit in a master
8association by a unit owner other than the developer, the
9owner shall obtain from the board of directors and shall make
10available for inspection to the prospective purchaser, upon
11demand, the following:
12        (1) A copy of the declaration, other instruments and
13    any rules and regulations.
14        (2) A statement of any liens, including a statement of
15    the account of the unit setting forth the amounts of
16    unpaid assessments and other charges due and owing.
17        (3) A statement of any capital expenditures
18    anticipated by the association within the current or
19    succeeding 2 fiscal years.
20        (4) A statement of the status and amount of any
21    reserve for replacement fund and any portion of such fund
22    earmarked for any specified project by the board of
23    directors.
24        (5) A copy of the statement of financial condition of
25    the association for the last fiscal year for which such a
26    statement is available.

 

 

HB4090 Engrossed- 38 -LRB103 32446 LNS 61933 b

1        (6) A statement of the status of any pending suits or
2    judgments in which the association is a party.
3        (7) A statement setting forth what insurance coverage
4    is provided for all unit owners by the association.
5        (8) A statement that any improvements or alterations
6    made to the unit, or any part of the common areas assigned
7    thereto, by the prior unit owner are in good faith
8    believed to be in compliance with the declaration of the
9    master association.
10    The principal officer of the unit owner's association or
11such other officer as is specifically designated shall furnish
12the above information when requested to do so in writing,
13within 30 days of receiving the request.
14    A reasonable fee covering the direct out-of-pocket cost of
15copying and providing such information may be charged by the
16association or its board of directors to the unit seller for
17providing the information.
18    (g-1) The purchaser of a unit of a common interest
19community at a judicial foreclosure sale, other than a
20mortgagee, who takes possession of a unit of a common interest
21community pursuant to a court order or a purchaser who
22acquires title from a mortgagee shall have the duty to pay the
23proportionate share, if any, of the common expenses for the
24unit that would have become due in the absence of any
25assessment acceleration during the 6 months immediately
26preceding institution of an action to enforce the collection

 

 

HB4090 Engrossed- 39 -LRB103 32446 LNS 61933 b

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

 

 

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

 

 

HB4090 Engrossed- 41 -LRB103 32446 LNS 61933 b

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

 

 

HB4090 Engrossed- 42 -LRB103 32446 LNS 61933 b

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

 

 

HB4090 Engrossed- 43 -LRB103 32446 LNS 61933 b

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

 

 

HB4090 Engrossed- 44 -LRB103 32446 LNS 61933 b

1(Source: P.A. 100-416, eff. 1-1-18.)
 
2    Section 15. The Rental Property Utility Service Act is
3amended by changing the title of the Act and Section 0.01 and
4by adding Section 1.5 as follows:
 
5    (765 ILCS 735/Act title)
6    An Act concerning residential providing remedies for
7lessees in relation to the failure of lessors to pay for
8utility services.
 
9    (765 ILCS 735/0.01)  (from Ch. 80, par. 61)
10    Sec. 0.01. Short title. This Act may be cited as the
11Residential Rental Property Utility Service Act.
12(Source: P.A. 86-1324.)
 
13    (765 ILCS 735/1.5 new)
14    Sec. 1.5. Payment for master metered public utility
15services.
16    (a) No landlord may demand payment for master metered
17public utility services pursuant to a lease provision
18providing for tenant payment of a proportionate share of
19public utility service without the landlord first providing
20the tenant with a copy in writing either as part of the lease
21or another written agreement of the formula used by the
22landlord for allocating the public utility payments among the

 

 

HB4090 Engrossed- 45 -LRB103 32446 LNS 61933 b

1tenants. The total of payments under the formula for the
2building as a whole for a billing period may not exceed the sum
3demanded by the public utility. The formula shall include all
4those that use that public utility service and may reflect
5variations in apartment size or usage. The landlord shall also
6make available to the tenant upon request a copy of the public
7utility bill for any billing period for which payment is
8demanded. Nothing herein shall preclude a landlord from
9leasing property to a tenant, including the cost of utilities,
10for a rental which does not segregate or allocate the cost of
11the utilities.
12    (b) No condominium or common interest community
13association may demand payment for master metered public
14utility services from a unit owner of a proportionate share
15for public utility service without the condominium or common
16interest community association first providing the unit owner
17with a copy in writing of the formula used by the association
18for allocating the public utility payments among the unit
19owners. The total of payments under the formula for the
20association as a whole for the annual budgeted billing period
21may not exceed the sum demanded by the public utility,
22however, the board of directors of the association may direct
23that any payments received by the association in excess of
24actual utility bills be applied to other budgeted items having
25a deficit, or be applied to the association's reserve fund, or
26be credited to the account of the unit owners for the following

 

 

HB4090 Engrossed- 46 -LRB103 32446 LNS 61933 b

1year's budget. The formula shall include all those that use
2that public utility service and may reflect, but is not
3limited to, percent interest, unit size, or usage. The
4condominium or common interest community association shall
5also make available to the unit owner upon request a copy of
6the public utility bill for any billing period for which
7payment is demanded. A condominium association shall have the
8right to establish and maintain a system of master metering of
9public utility services pursuant to Sections 18 and 18.5 of
10the Condominium Property Act. A common interest community
11association shall have the right to establish and maintain a
12system of master metering of public utility services pursuant
13to Section 1-45 of the Common Interest Community Association
14Act. Nothing in this Act shall be construed as giving a common
15interest community association the right to establish a system
16of master metering or submetering of public utility services.
17    (c) A municipality may request a copy in writing of the
18formula used by the landlord or condominium or common interest
19community association for allocating the public utility
20payments among the unit owners. The landlord or condominium or
21common interest community association shall respond within 30
22calendar days of receiving the municipality's request.
23    (d) Treble damages available to residential tenants under
24Section 1.3 of this Act are not applicable to alleged
25violations of this Section.
 

 

 

HB4090 Engrossed- 47 -LRB103 32446 LNS 61933 b

1    (765 ILCS 740/Act rep.)
2    Section 20. The Tenant Utility Payment Disclosure Act is
3repealed.