Public Act 095-0318
 		





HB1071 Enrolled
LRB095 07052 AJO 27176 b






    AN ACT concerning property.

 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:

 
    Section 5. The Condominium Property Act is amended  by 
adding Section 18.7 as follows:
 
    (765 ILCS 605/18.7  new)
    Sec. 18.7. Standards for community association managers.
    (a) "Community association" means an association in which 
membership is a condition of ownership or shareholder interest 
of a unit in a condominium, cooperative, townhouse, villa, or 
other residential unit that is part of a residential 
development plan as a master association or common interest 
community and that is authorized to impose an assessment and 
other costs that may become a lien on the unit or lot.
    (b) "Community association manager" means an individual 
who administers for compensation the coordination of 
financial, administrative, maintenance, or other duties called 
for in the management contract, including individuals who are 
direct employees of a community association. A manager does not 
include support staff, such as bookkeepers, administrative 
assistants, secretaries, property inspectors, or customer 
service representatives.
    (c) Requirements. To perform services as a community 
association manager, an individual must meet these 
requirements:
        (1) shall have attained the age of 21 and be a citizen 
    or legal permanent resident of the United States;
        (2) shall not have been convicted of forgery, 
    embezzlement, obtaining money under false pretenses, 
    larceny, extortion, conspiracy to defraud or other similar 
    offense or offenses;
        (3) shall have a working knowledge of the fundamentals 
    of community association management, including the 
    Condominium Property Act, the Illinois Not-for-Profit 
    Corporation Act, and any other laws pertaining to community 
    association management; and
        (4) shall not have engaged in the following activities: 
    failure to cooperate with any law enforcement agency in the 
    investigation of a complaint; or failure to produce any 
    document, book, or record in the possession or control of 
    the community association manager after a request for 
    production of that document, book, or record in the course 
    of an investigation of a complaint.
    (d) Access to community association funds. For community 
associations of 6 or more units, apartments, townhomes, villas 
or other residential units, a community association manager or 
the firm with whom the manager is employed shall not solely and 
exclusively have access to and disburse funds of a community 
association unless:
        (1) There is a fidelity bond in place.
        (2) The fidelity bond is in an amount not less than all 
    monies of that association in the custody or control of the 
    community association manager.
        (3) The fidelity bond covers the community association 
    manager and all partners, officers, and employees of the 
    firm with whom the community association manager is 
    employed during the term of the bond, as well as the 
    community association officers, directors, and employees 
    of the community association who control or disburse funds.
        (4) The insurance company issuing the bond may not 
    cancel or refuse to renew the bond without giving not less 
    than 10 days' prior written notice to the community 
    association.
        (5) The community association shall secure and pay for 
    the bond.
    (e) A community association manager who provides community 
association management services for more than one community 
association shall maintain separate, segregated accounts for 
each community association. The funds shall not, in any event, 
be commingled with funds of the community association manager, 
the firm of the community association manager, or any other 
community association. The maintenance of these accounts shall 
be custodial, and the accounts shall be in the name of the 
respective community association.
    (f) Exempt persons. Except as otherwise provided, this 
Section does not apply to any person acting as a receiver, 
trustee in bankruptcy, administrator, executor, or guardian 
acting under a court order or under the authority of a will or 
of a trust instrument.
    (g)  Right of Action.
        (1) Nothing in this amendatory Act of the 95th General 
    Assembly shall create a cause of action by a unit owner, 
    shareholder, or community association member against a 
    community association manager or the firm of a community 
    association manager.
        (2) This amendatory Act of the 95th General Assembly 
    shall not impair any right of action by a unit owner or 
    shareholder against a community association board of 
    directors under existing law.