Rep. Sandra M. Pihos
Filed: 4/10/2008
 
 

 




 

 		












09500HB5189ham002

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AMENDMENT TO HOUSE BILL 5189




2
    AMENDMENT NO. ______. Amend House Bill 5189, AS AMENDED, by 
3
replacing everything after the enacting clause with the 
4
following:

 
5
    "Section 5. The Condominium Property Act is amended  by 
6
changing Sections 18 and 18.4 as follows:
 


7
    (765 ILCS 605/18)  (from Ch. 30, par. 318)



8
    (Text of Section before amendment by P.A. 95-624)

9
    Sec. 18. Contents of bylaws. The bylaws shall provide for 
10
at least
the following:


11
    (a) (1) The election from among the unit owners of a board 
12
    of managers,
the number of persons constituting such board, 
13
    and that the terms of at
least one-third of the members of 
14
    the board shall expire annually and that
all members of the 
15
    board shall be elected at large.
If there are multiple 
16
    owners of a single unit, only one of the multiple
owners 
 


 






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    shall be eligible to serve as a member of the board at any 
2
    one time.


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 the 
7
    board;


8
        (5) that the board may engage the services of a manager 
9
    or managing agent;


10
        (6) that each unit owner shall receive, at least 30 
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 to

17
    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 showing 
23
    the net excess or
deficit of income over expenditures plus 
24
    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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    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 separate 
4
    (special)
assessment, (ii) that except as provided in 
5
    subsection (iv) below, if an
adopted
budget or any separate 
6
    assessment adopted by the board would result in the
sum of 
7
    all regular and separate assessments payable in the current 
8
    fiscal year
exceeding 115% of the sum of all regular and 
9
    separate
assessments payable during the
preceding fiscal 
10
    year, the
board of managers, upon written petition by unit 
11
    owners with 20 percent of
the votes of the association 
12
    delivered to the board within 14
days of the board action,

13
    shall call a meeting of the unit owners within 30 days of 
14
    the date of
delivery of the petition to consider the budget 
15
    or separate
assessment; unless a
majority of
the total 
16
    votes of the unit owners are cast at the meeting to reject 
17
    the
budget or separate assessment,
it is ratified, (iii) 
18
    that any common expense not set forth in the budget or
any 
19
    increase in assessments over the amount adopted in the 
20
    budget shall be
separately assessed against all unit 
21
    owners, (iv) that separate assessments for
expenditures 
22
    relating to emergencies or mandated by law may be adopted 
23
    by the
board of managers without being subject to unit 
24
    owner approval or the
provisions of item (ii) above or item 
25
    (v) below.  As used
herein, "emergency" means an immediate 
26
    danger to the structural integrity of
the
common elements 
 


 






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    or to the life, health, safety or property of the unit 
2
    owners,
(v) that assessments
for additions and alterations 
3
    to the common elements or to association-owned
property not 
4
    included in the adopted annual budget, shall be separately

5
    assessed and are subject to approval of two-thirds of the 
6
    total votes of all
unit owners, (vi) that the board of 
7
    managers may adopt separate assessments
payable over more 
8
    than one fiscal year.  With respect to multi-year 
9
    assessments
not governed by items (iv) and (v), the entire 
10
    amount of the multi-year
assessment shall be deemed 
11
    considered and authorized in the first fiscal year
in which 
12
    the assessment is approved;


13
        (9) that meetings of the board of managers shall be 
14
    open to any unit
owner, except for the portion of any 
15
    meeting held (i) to discuss litigation
when an action 
16
    against or on behalf of the particular association has been

17
    filed and is pending in a court or administrative tribunal,

18
    or when the board of managers finds that such an action is 
19
    probable
or imminent, (ii) to consider information 
20
    regarding appointment, employment
or dismissal of an 
21
    employee, or (iii) to discuss violations of rules and

22
    regulations of the association or a unit owner's unpaid 
23
    share of common
expenses; that any vote on these matters 
24
    shall be taken at a meeting or
portion thereof open to any 
25
    unit owner; that any unit owner may record the
proceedings 
26
    at meetings or portions thereof required to be open by this

 


 






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    Act by tape, film or other means; that the board may 
2
    prescribe reasonable
rules and regulations to govern the 
3
    right to make such recordings, that
notice of such meetings 
4
    shall be mailed or delivered at least 48 hours
prior 
5
    thereto, unless a written waiver of  such notice is signed 
6
    by the
person or persons entitled to such notice pursuant 
7
    to the declaration,
bylaws, other condominium instrument, 
8
    or provision of law other than this
subsection before the 
9
    meeting is convened, and that copies of notices of
meetings 
10
    of the board of managers shall be posted in entranceways,

11
    elevators, or other conspicuous places in the condominium 
12
    at least 48 hours
prior to the meeting of the board of 
13
    managers except where there is no
common entranceway for 7 
14
    or more units, the board of managers may designate
one or 
15
    more locations in the proximity of these units where the 
16
    notices of
meetings shall be posted;


17
        (10) that the board shall meet at least 4 times 
18
    annually;


19
        (11) that no member of the board or officer shall be 
20
    elected for a term
of more than 2 years, but that officers 
21
    and board members may succeed
themselves;


22
        (12) the designation of an officer to mail and receive 
23
    all notices and
execute amendments to condominium 
24
    instruments as provided for in this Act
and in the 
25
    condominium instruments;


26
        (13) the method of filling vacancies on the board
which 
 


 






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    shall include authority for the remaining members of the 
2
    board to
fill the vacancy by two-thirds vote until the next 
3
    annual meeting of unit
owners or for a period terminating 
4
    no later than 30 days following the
filing of a petition 
5
    signed by unit owners holding 20% of the votes of the

6
    association requesting a meeting of the unit owners to fill 
7
    the vacancy for
the balance of the term, and that a meeting 
8
    of the unit owners shall be
called for purposes of filling 
9
    a vacancy on the board no later than 30 days
following the 
10
    filing of a petition signed by unit owners holding 20% of 
11
    the
votes of the association requesting such a meeting, and 
12
    the method of filling
vacancies among the officers that 
13
    shall include the authority for the members
of the board to 
14
    fill the vacancy for the unexpired portion of the term;


15
        (14) what percentage of the board of managers, if other 
16
    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 an 
26
    opportunity by filing a petition, signed by 20% of the unit

 


 






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    owners, for an election to approve or disapprove the 
2
    contract;
such petition shall be filed within 20 days after 
3
    such notice and such
election shall be held within 30 days 
4
    after filing the petition; for purposes
of this subsection, 
5
    a board member's immediate family means the board member's

6
    spouse, parents, and children;


7
        (17) that the board of managers may disseminate
to unit 
8
    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 can 
22
    be called by
the president or 25% of the members of the 
23
    board; and


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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    subject to the requirements of the
Tenant Utility Payment 
2
    Disclosure Act.


3
    (b) (1) What percentage of the unit owners, if other than 
4
    20%, shall
constitute a quorum provided that, for 
5
    condominiums with 20 or more units,
the percentage of unit 
6
    owners constituting a quorum shall be 20% unless the
unit 
7
    owners holding a majority of the percentage interest in the

8
    association provide for a higher percentage;


9
        (2) that the association shall have one class of 
10
    membership;


11
        (3) that the members shall hold an annual meeting, one 
12
    of the purposes
of which shall be to elect members of the 
13
    board of managers;


14
        (4) the method of calling meetings of the unit owners;


15
        (5) that special meetings of the members can be called 
16
    by the president,
board of managers, or by 20% of unit 
17
    owners;


18
        (6) that written notice of any membership meeting shall 
19
    be mailed
or delivered giving members no less than 10 and 
20
    no more than 30 days
notice of the time, place and purpose 
21
    of such meeting;


22
        (7) that voting shall be on a percentage basis, and 
23
    that the percentage
vote to which each unit is entitled is 
24
    the percentage interest of the
undivided ownership of the 
25
    common elements appurtenant thereto, provided
that the 
26
    bylaws may provide for approval by unit owners in 
 


 






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    connection with
matters where the requisite approval on a 
2
    percentage basis is not specified
in this Act, on the basis 
3
    of one vote per unit;


4
        (8) that, where there is more than one owner of a unit, 
5
    if only one
of the multiple owners is present at a meeting 
6
    of the association, he is
entitled to cast all the votes 
7
    allocated to that unit, if more than one of
the multiple 
8
    owners are present, the votes allocated to that unit may be

9
    cast only in accordance with the agreement of a majority in 
10
    interest of the
multiple owners, unless the declaration 
11
    expressly provides otherwise, that
there is majority 
12
    agreement if any one of the multiple owners cast the
votes 
13
    allocated to that unit without protest being made promptly 
14
    to the
person presiding over the meeting by any of the 
15
    other owners of the unit;


16
        (9)(A) that  unless the Articles of Incorporation or the 
17
    bylaws
otherwise
provide, and except as provided in 
18
    subparagraph (B) of this paragraph (9) in
connection with 
19
    board elections,
a unit owner may vote by proxy executed in 
20
    writing by the unit
owner or by his duly authorized 
21
    attorney in fact; that the proxy must bear the date of

22
    execution
and, unless the condominium instruments or the 
23
    written proxy itself provide
otherwise, is
invalid after 11 
24
    months from the date of its execution;


25
        (B) that if a rule adopted at least 120 days before a 
26
    board election
or the
declaration or bylaws provide for 
 


 






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

22
    owner
who submits a ballot by mail or other means of 
23
    delivery specified in the
declaration, bylaws, or rule may 
24
    request and cast a ballot in person at the
election

25
    meeting, and thereby void any ballot previously submitted 
26
    by that unit owner;


 


 






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        (C) that if a written petition by unit owners with at 
2
    least 20% of the
votes of
the association is delivered to 
3
    the board within 14 days after the board's
approval
of a 
4
    rule adopted pursuant to subparagraph (B) of this paragraph 
5
    (9), the board
shall call a meeting of the unit owners 
6
    within 30 days after the date of
delivery of
the petition; 
7
    that unless a majority of the total votes of the unit 
8
    owners are
cast
at the
meeting to reject the rule, the rule 
9
    is ratified;


10
        (10) that the association may, upon adoption of the 
11
    appropriate rules by
the board of managers, conduct 
12
    elections by secret ballot whereby the voting
ballot is 
13
    marked only with the percentage interest for the unit and 
14
    the vote
itself, provided that the board further adopt 
15
    rules to verify the status of the
unit owner issuing a 
16
    proxy or casting a ballot; and further, that a candidate

17
    for election to the board of managers or such
candidate's 
18
    representative shall have the right to be present at the

19
    counting of ballots at such election;


20
        (11) that in the event of a resale of a condominium 
21
    unit the purchaser
of a unit from a seller other than the 
22
    developer pursuant to an installment
contract for purchase 
23
    shall during such times as he or she resides in the
unit be 
24
    counted toward a quorum for purposes of election of members 
25
    of the
board of managers at any meeting of the unit owners 
26
    called for purposes of
electing members of the board, shall 
 


 






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    have the right to vote for the
election of members of the 
2
    board of managers and to be elected to and serve
on the 
3
    board of managers unless the seller expressly retains in 
4
    writing any
or all of such rights.  In no event may the 
5
    seller and purchaser both be
counted toward a quorum, be 
6
    permitted to vote for a particular office or be
elected and 
7
    serve on the board.  Satisfactory evidence of the 
8
    installment
contact shall be made available to the 
9
    association or its agents.  For
purposes of this subsection, 
10
    "installment contact" shall have the same
meaning as set 
11
    forth in Section 1 (e) of "An Act relating to installment

12
    contracts to sell dwelling structures", approved August 
13
    11, 1967, as amended;


14
        (12) the method by which matters subject to the 
15
    approval of unit owners
set forth in this Act, or in the 
16
    condominium instruments, will be
submitted to the unit 
17
    owners at special membership meetings called for such

18
    purposes; and


19
        (13) that matters subject to the affirmative vote of 
20
    not less than 2/3
of the votes of unit owners at a meeting 
21
    duly called for that purpose,
shall include, but not be 
22
    limited to:


23
            (i) merger or consolidation of the association;


24
            (ii) sale, lease, exchange, or other disposition 
25
        (excluding the mortgage
or pledge) of all, or 
26
        substantially all of the property and assets of the

 


 






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1
        association; and


2
            (iii) the purchase or sale of land or of units on 
3
        behalf of all unit owners.

4
    (c) Election of a president from among the board of 
5
managers, who shall
preside over the meetings of the board of 
6
managers and of the unit owners.

7
    (d) Election of a secretary from among the board of 
8
managers, who shall
keep the minutes of all meetings
of the 
9
board of managers and of the unit owners and who shall, in 
10
general,
perform all the duties incident to the office of 
11
secretary.

12
    (e) Election of a treasurer from among the board of 
13
managers, who shall
keep the financial records and
books of 
14
account.

15
    (f) Maintenance, repair and replacement of the common 
16
elements and
payments therefor, including the method of 
17
approving payment vouchers.

18
    (g) An association with 30 or more units shall obtain and 
19
maintain
fidelity insurance covering persons who control or 
20
disburse funds of the
association for the maximum amount of 
21
coverage available to protect funds
in the custody or control 
22
of the association plus the association reserve
fund.  All 
23
management companies which are responsible for the funds held 
24
or
administered by the association shall maintain and furnish 
25
to the
association a fidelity bond for the maximum amount of 
26
coverage available to
protect funds in the custody of the 
 


 






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management company at any time.  The
association shall bear the 
2
cost of the fidelity insurance and fidelity
bond, unless 
3
otherwise provided by contract between the association and a

4
management company.  The association shall be the direct obligee 
5
of any
such fidelity bond.  A management company holding reserve 
6
funds of an
association shall at all times maintain a separate 
7
account for each
association, provided, however, that for 
8
investment purposes, the Board of
Managers of an association 
9
may authorize a management company to maintain
the 
10
association's reserve funds in a single interest bearing 
11
account with
similar funds of other associations.  The 
12
management company shall at all
times maintain records 
13
identifying all moneys of each association in such
investment 
14
account. The management company may hold all operating funds of

15
associations which it manages in a single operating account but 
16
shall at
all times maintain records identifying all moneys of 
17
each association in
such operating account. Such operating and 
18
reserve funds held by the
management company for the 
19
association shall not be subject to attachment
by any creditor 
20
of the management company.

21
    For the purpose of this subsection a management company 
22
shall be
defined as a person, partnership, corporation, or 
23
other legal entity
entitled to transact business on behalf of 
24
others, acting on behalf of or
as an agent for a unit owner, 
25
unit owners or association of unit owners for
the purpose of 
26
carrying out the duties, responsibilities, and other

 


 






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obligations necessary for the day to day operation and 
2
management of any
property subject to this Act.  For purposes of 
3
this subsection, the term
"fiduciary insurance coverage" shall 
4
be defined as both a fidelity bond and
directors and officers 
5
liability coverage, the fidelity bond in the full
amount of 
6
association funds and association reserves that will be in the

7
custody of the association, and the directors and officers 
8
liability
coverage at a level as shall be determined to be 
9
reasonable by the board of
managers, if not otherwise 
10
established by the declaration or by laws.

11
    Until one year after the effective date of this amendatory 
12
Act of 1985,
if a condominium association has reserves plus 
13
assessments in excess of
$250,000 and cannot reasonably obtain 
14
100% fidelity bond coverage for such
amount, then it must 
15
obtain a fidelity bond coverage of $250,000.

16
    (h) Method of estimating the amount of the annual budget, 
17
and the manner
of assessing and collecting from the unit owners 
18
their respective shares of
such estimated expenses, and of any 
19
other expenses lawfully agreed upon.

20
    (i) That upon 10 days notice to the manager or board of 
21
managers and
payment of a reasonable fee, any unit owner shall 
22
be furnished a statement
of his account setting forth the 
23
amount of any unpaid assessments or other
charges due and owing 
24
from such owner.

25
    (j) Designation and removal of personnel necessary for the 
26
maintenance,
repair and replacement of the common elements.

 


 






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    (k) Such restrictions on and requirements respecting the 
2
use and
maintenance of the units and the use of the common 
3
elements, not set forth
in the declaration, as are designed to 
4
prevent unreasonable interference
with the use of their 
5
respective units and of the common elements by the
several unit 
6
owners.

7
    (l) Method of adopting and of amending administrative rules 
8
and
regulations governing the operation and use of the common 
9
elements.

10
    (m) The percentage of votes required to modify or amend the 
11
bylaws, but
each one of the particulars set forth in this 
12
section shall always be
embodied in the bylaws.

13
    (n) (i) The provisions of this Act, the declaration, 
14
bylaws, other
condominium instruments, and rules and 
15
regulations that relate to the use
of the individual unit or 
16
the common elements shall be applicable to
any person leasing a 
17
unit and shall be deemed to be incorporated in any
lease 
18
executed or renewed on or after the effective date of this 
19
amendatory
Act of 1984. (ii) With regard to any lease entered 
20
into subsequent to the
effective date of this amendatory Act of 
21
1989, the unit owner leasing the
unit shall deliver a copy of 
22
the signed lease to the board or if the
lease is oral, a 
23
memorandum of the lease, not later than the date of
occupancy 
24
or 10 days after the lease is signed, whichever occurs first. 
25
In
addition to any other remedies, by filing an action jointly 
26
against the
tenant and the unit owner, an association may seek 
 


 






09500HB5189ham002
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LRB095 18627 LCT 49178 a




1
to enjoin a tenant from
occupying a unit or seek to evict a 
2
tenant under the provisions of Article
IX of the Code of Civil 
3
Procedure for failure of the lessor-owner to
comply with the 
4
leasing requirements prescribed by
this Section or by the 
5
declaration, bylaws, and
rules and regulations. The board of 
6
managers may proceed directly against a
tenant, at law or in 
7
equity, or under the provisions of Article IX of the
Code of 
8
Civil Procedure, for any other breach by tenant of any

9
covenants, rules, regulations or bylaws.

10
    (o) The association shall have no authority to forbear the 
11
payment
of assessments by any unit owner.

12
    (p) That when 30% or fewer of the units, by number,
possess 
13
over 50% in the aggregate of the votes in the association,
any 
14
percentage vote of members specified herein or in the 
15
condominium
instruments shall require the specified percentage 
16
by number of units
rather than by percentage of interest in the 
17
common elements allocated
to units that would otherwise be 
18
applicable.

19
    (q) That a unit owner may not assign, delegate, transfer, 
20
surrender, or
avoid the duties, responsibilities, and 
21
liabilities of a unit owner under this
Act, the condominium 
22
instruments, or the rules and regulations of the
Association; 
23
and that such an attempted assignment, delegation, transfer,

24
surrender, or avoidance shall be deemed void.

25
    The provisions of this Section are applicable to all 
26
condominium
instruments recorded under this Act.  Any portion of 
 


 






09500HB5189ham002
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LRB095 18627 LCT 49178 a




1
a condominium
instrument which contains provisions contrary to 
2
these provisions shall be
void as against public policy and 
3
ineffective.  Any such instrument which
fails to contain the 
4
provisions required by this Section shall be deemed to

5
incorporate such provisions by operation of law.

6
(Source: P.A. 93-243, eff. 1-1-04.)

 
7
    (Text of Section after amendment by P.A. 95-624)

8
    Sec. 18. Contents of bylaws. The bylaws shall provide for 
9
at least
the following:


10
    (a) (1) The election from among the unit owners of a board 
11
    of managers,
the number of persons constituting such board, 
12
    and that the terms of at
least one-third of the members of 
13
    the board shall expire annually and that
all members of the 
14
    board shall be elected at large.
If there are multiple 
15
    owners of a single unit, only one of the multiple
owners 
16
    shall be eligible to serve as a member of the board at any 
17
    one time.


18
        (2) the powers and duties of the board;


19
        (3) the compensation, if any, of the members of the 
20
    board;


21
        (4) the method of removal from office of members of the 
22
    board;


23
        (5) that the board may engage the services of a manager 
24
    or managing agent;


25
        (6) that each unit owner shall receive, at least 30 
 


 






09500HB5189ham002
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LRB095 18627 LCT 49178 a




1
    days prior to the
adoption thereof by the board of 
2
    managers, a copy of the proposed annual
budget together 
3
    with an indication of which portions are intended for

4
    reserves, capital expenditures or repairs or payment of 
5
    real estate taxes;


6
        (7) that the board of managers shall annually supply to

7
    all unit owners an itemized accounting of the common 
8
    expenses
for the preceding year actually incurred or paid, 
9
    together
with an indication of which portions were for 
10
    reserves, capital
expenditures or repairs or payment of 
11
    real estate taxes and
with a tabulation of the amounts 
12
    collected pursuant to the
budget or assessment, and showing 
13
    the net excess or
deficit of income over expenditures plus 
14
    reserves;


15
        (8) (i) that each unit owner shall receive notice, in 
16
    the same manner
as is provided in this Act for membership 
17
    meetings, of any meeting of the
board of managers 
18
    concerning the adoption of the proposed annual budget and

19
    regular assessments pursuant thereto or to adopt a separate 
20
    (special)
assessment, (ii) that except as provided in 
21
    subsection (iv) below, if an
adopted
budget or any separate 
22
    assessment adopted by the board would result in the
sum of 
23
    all regular and separate assessments payable in the current 
24
    fiscal year
exceeding 115% of the sum of all regular and 
25
    separate
assessments payable during the
preceding fiscal 
26
    year, the
board of managers, upon written petition by unit 
 


 






09500HB5189ham002
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1
    owners with 20 percent of
the votes of the association 
2
    delivered to the board within 14
days of the board action,

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

21
    assessed and are subject to approval of two-thirds of the 
22
    total votes of all
unit owners, (vi) that the board of 
23
    managers may adopt separate assessments
payable over more 
24
    than one fiscal year.  With respect to multi-year 
25
    assessments
not governed by items (iv) and (v), the entire 
26
    amount of the multi-year
assessment shall be deemed 
 


 






09500HB5189ham002
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LRB095 18627 LCT 49178 a




1
    considered and authorized in the first fiscal year
in which 
2
    the assessment is approved;


3
        (9) that meetings of the board of managers shall be 
4
    open to any unit
owner, except for the portion of any 
5
    meeting held (i) to discuss litigation
when an action 
6
    against or on behalf of the particular association has been

7
    filed and is pending in a court or administrative tribunal,

8
    or when the board of managers finds that such an action is 
9
    probable
or imminent, (ii) to consider information 
10
    regarding appointment, employment
or dismissal of an 
11
    employee, or (iii) to discuss violations of rules and

12
    regulations of the association or a unit owner's unpaid 
13
    share of common
expenses; that any vote on these matters 
14
    shall be taken at a meeting or
portion thereof open to any 
15
    unit owner; that any unit owner may record the
proceedings 
16
    at meetings or portions thereof required to be open by this

17
    Act by tape, film or other means; that the board may 
18
    prescribe reasonable
rules and regulations to govern the 
19
    right to make such recordings, that
notice of such meetings 
20
    shall be mailed or delivered at least 48 hours
prior 
21
    thereto, unless a written waiver of  such notice is signed 
22
    by the
person or persons entitled to such notice pursuant 
23
    to the declaration,
bylaws, other condominium instrument, 
24
    or provision of law other than this
subsection before the 
25
    meeting is convened, and that copies of notices of
meetings 
26
    of the board of managers shall be posted in entranceways,

 


 






09500HB5189ham002
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1
    elevators, or other conspicuous places in the condominium 
2
    at least 48 hours
prior to the meeting of the board of 
3
    managers except where there is no
common entranceway for 7 
4
    or more units, the board of managers may designate
one or 
5
    more locations in the proximity of these units where the 
6
    notices of
meetings shall be posted;


7
        (10) that the board shall meet at least 4 times 
8
    annually;


9
        (11) that no member of the board or officer shall be 
10
    elected for a term
of more than 2 years, but that officers 
11
    and board members may succeed
themselves;


12
        (12) the designation of an officer to mail and receive 
13
    all notices and
execute amendments to condominium 
14
    instruments as provided for in this Act
and in the 
15
    condominium instruments;


16
        (13) the method of filling vacancies on the board
which 
17
    shall include authority for the remaining members of the 
18
    board to
fill the vacancy by two-thirds vote until the next 
19
    annual meeting of unit
owners or for a period terminating 
20
    no later than 30 days following the
filing of a petition 
21
    signed by unit owners holding 20% of the votes of the

22
    association requesting a meeting of the unit owners to fill 
23
    the vacancy for
the balance of the term, and that a meeting 
24
    of the unit owners shall be
called for purposes of filling 
25
    a vacancy on the board no later than 30 days
following the 
26
    filing of a petition signed by unit owners holding 20% of 
 


 






09500HB5189ham002
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LRB095 18627 LCT 49178 a




1
    the
votes of the association requesting such a meeting, and 
2
    the method of filling
vacancies among the officers that 
3
    shall include the authority for the members
of the board to 
4
    fill the vacancy for the unexpired portion of the term;


5
        (14) what percentage of the board of managers, if other 
6
    than a majority,
shall constitute a quorum;


7
        (15) provisions concerning notice of board meetings to 
8
    members of the
board;


9
        (16) the board of managers may not enter into a 
10
    contract with a
current board member
or with a corporation 
11
    or partnership in which a board
member or a member of the 
12
    board member's immediate family has 25% or
more interest, 
13
    unless notice of intent to enter the
contract is given to 
14
    unit owners within 20 days after a decision is made
to 
15
    enter into the contract and the unit owners are
afforded an 
16
    opportunity by filing a petition, signed by 20% of the unit

17
    owners, for an election to approve or disapprove the 
18
    contract;
such petition shall be filed within 20 days after 
19
    such notice and such
election shall be held within 30 days 
20
    after filing the petition; for purposes
of this subsection, 
21
    a board member's immediate family means the board member's

22
    spouse, parents, and children;


23
        (17) that the board of managers may disseminate
to unit 
24
    owners biographical and background information about 
25
    candidates for
election to the board if (i) reasonable 
26
    efforts to identify all candidates are
made and all 
 


 






09500HB5189ham002
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LRB095 18627 LCT 49178 a




1
    candidates are given an opportunity to include 
2
    biographical and
background information in the information 
3
    to be disseminated; and (ii) the
board does not express a 
4
    preference in favor of any candidate;


5
        (18) any proxy distributed for board elections
by the 
6
    board of managers gives unit owners the
opportunity to 
7
    designate any person as the proxy holder, and gives the 
8
    unit
owner the opportunity to express a preference for any 
9
    of the known
candidates for the board or to write in a 
10
    name;


11
        (19) that special meetings of the board of managers can 
12
    be called by
the president or 25% of the members of the 
13
    board; and


14
        (20) that the board of managers may establish
and 
15
    maintain a system of master metering of public utility 
16
    services and
collect payments in connection therewith, 
17
    subject to the requirements of the
Tenant Utility Payment 
18
    Disclosure Act.


19
    (b) (1) What percentage of the unit owners, if other than 
20
    20%, shall
constitute a quorum provided that, for 
21
    condominiums with 20 or more units,
the percentage of unit 
22
    owners constituting a quorum shall be 20% unless the
unit 
23
    owners holding a majority of the percentage interest in the

24
    association provide for a higher percentage;


25
        (2) that the association shall have one class of 
26
    membership;


 


 






09500HB5189ham002
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LRB095 18627 LCT 49178 a




1
        (3) that the members shall hold an annual meeting, one 
2
    of the purposes
of which shall be to elect members of the 
3
    board of managers;


4
        (4) the method of calling meetings of the unit owners;


5
        (5) that special meetings of the members can be called 
6
    by the president,
board of managers, or by 20% of unit 
7
    owners;


8
        (6) that written notice of any membership meeting shall 
9
    be mailed
or delivered giving members no less than 10 and 
10
    no more than 30 days
notice of the time, place and purpose 
11
    of such meeting;


12
        (7) that voting shall be on a percentage basis, and 
13
    that the percentage
vote to which each unit is entitled is 
14
    the percentage interest of the
undivided ownership of the 
15
    common elements appurtenant thereto, provided
that the 
16
    bylaws may provide for approval by unit owners in 
17
    connection with
matters where the requisite approval on a 
18
    percentage basis is not specified
in this Act, on the basis 
19
    of one vote per unit;


20
        (8) that, where there is more than one owner of a unit, 
21
    if only one
of the multiple owners is present at a meeting 
22
    of the association, he is
entitled to cast all the votes 
23
    allocated to that unit, if more than one of
the multiple 
24
    owners are present, the votes allocated to that unit may be

25
    cast only in accordance with the agreement of a majority in 
26
    interest of the
multiple owners, unless the declaration 
 


 






09500HB5189ham002
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LRB095 18627 LCT 49178 a




1
    expressly provides otherwise, that
there is majority 
2
    agreement if any one of the multiple owners cast the
votes 
3
    allocated to that unit without protest being made promptly 
4
    to the
person presiding over the meeting by any of the 
5
    other owners of the unit;


6
        (9)(A) that  unless the Articles of Incorporation or the 
7
    bylaws
otherwise
provide, and except as provided in 
8
    subparagraph (B) of this paragraph (9) in
connection with 
9
    board elections,
a unit owner may vote by proxy executed in 
10
    writing by the unit
owner or by his duly authorized 
11
    attorney in fact; that the proxy must bear the date of

12
    execution
and, unless the condominium instruments or the 
13
    written proxy itself provide
otherwise, is
invalid after 11 
14
    months from the date of its execution;


15
        (B) that if a rule adopted at least 120 days before a 
16
    board election
or the
declaration or bylaws provide for 
17
    balloting as set forth in this subsection,
unit
owners may 
18
    not vote by proxy in board elections, but may vote only (i) 
19
    by
submitting an association-issued ballot in person at the 
20
    election meeting or
(ii) by
submitting an 
21
    association-issued ballot to the association or its 
22
    designated
agent
by mail or other means of delivery 
23
    specified in the declaration, bylaws, or
rule; that
the 
24
    ballots shall be mailed or otherwise distributed to unit 
25
    owners not less
than 10
and not more than 30 days before 
26
    the election meeting, and the board shall give
unit owners 
 


 






09500HB5189ham002
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LRB095 18627 LCT 49178 a




1
    not less than 21 days' prior written notice of the deadline 
2
    for
inclusion of a candidate's name on the ballots; that 
3
    the deadline shall be no
more
than 7 days before the 
4
    ballots are mailed or otherwise distributed to unit
owners; 
5
    that
every such ballot must include the names of all 
6
    candidates who have given the
board or its authorized agent 
7
    timely written notice of their candidacy and must
give the 
8
    person casting the ballot the opportunity to cast votes for 
9
    candidates
whose names do not appear on the ballot; that a 
10
    ballot received by the
association
or
its designated agent 
11
    after the close of voting shall not be counted; that a
unit

12
    owner
who submits a ballot by mail or other means of 
13
    delivery specified in the
declaration, bylaws, or rule may 
14
    request and cast a ballot in person at the
election

15
    meeting, and thereby void any ballot previously submitted 
16
    by that unit owner;


17
        (C) that if a written petition by unit owners with at 
18
    least 20% of the
votes of
the association is delivered to 
19
    the board within 14 days after the board's
approval
of a 
20
    rule adopted pursuant to subparagraph (B) of this paragraph 
21
    (9), the board
shall call a meeting of the unit owners 
22
    within 30 days after the date of
delivery of
the petition; 
23
    that unless a majority of the total votes of the unit 
24
    owners are
cast
at the
meeting to reject the rule, the rule 
25
    is ratified;


26
        (10) that the association may, upon adoption of the 
 


 






09500HB5189ham002
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LRB095 18627 LCT 49178 a




1
    appropriate rules by
the board of managers, conduct 
2
    elections by secret ballot whereby the voting
ballot is 
3
    marked only with the percentage interest for the unit and 
4
    the vote
itself, provided that the board further adopt 
5
    rules to verify the status of the
unit owner issuing a 
6
    proxy or casting a ballot; and further, that a candidate

7
    for election to the board of managers or such
candidate's 
8
    representative shall have the right to be present at the

9
    counting of ballots at such election;


10
        (11) that in the event of a resale of a condominium 
11
    unit the purchaser
of a unit from a seller other than the 
12
    developer pursuant to an installment
contract for purchase 
13
    shall during such times as he or she resides in the
unit be 
14
    counted toward a quorum for purposes of election of members 
15
    of the
board of managers at any meeting of the unit owners 
16
    called for purposes of
electing members of the board, shall 
17
    have the right to vote for the
election of members of the 
18
    board of managers and to be elected to and serve
on the 
19
    board of managers unless the seller expressly retains in 
20
    writing any
or all of such rights.  In no event may the 
21
    seller and purchaser both be
counted toward a quorum, be 
22
    permitted to vote for a particular office or be
elected and 
23
    serve on the board.  Satisfactory evidence of the 
24
    installment
contact shall be made available to the 
25
    association or its agents.  For
purposes of this subsection, 
26
    "installment contact" shall have the same
meaning as set 
 


 






09500HB5189ham002
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LRB095 18627 LCT 49178 a




1
    forth in Section 1 (e) of "An Act relating to installment

2
    contracts to sell dwelling structures", approved August 
3
    11, 1967, as amended;


4
        (12) the method by which matters subject to the 
5
    approval of unit owners
set forth in this Act, or in the 
6
    condominium instruments, will be
submitted to the unit 
7
    owners at special membership meetings called for such

8
    purposes; and


9
        (13) that matters subject to the affirmative vote of 
10
    not less than 2/3
of the votes of unit owners at a meeting 
11
    duly called for that purpose,
shall include, but not be 
12
    limited to:


13
            (i) merger or consolidation of the association;


14
            (ii) sale, lease, exchange, or other disposition 
15
        (excluding the mortgage
or pledge) of all, or 
16
        substantially all of the property and assets of the

17
        association; and


18
            (iii) the purchase or sale of land or of units on 
19
        behalf of all unit owners.

20
    (c) Election of a president from among the board of 
21
managers, who shall
preside over the meetings of the board of 
22
managers and of the unit owners.

23
    (d) Election of a secretary from among the board of 
24
managers, who shall
keep the minutes of all meetings
of the 
25
board of managers and of the unit owners and who shall, in 
26
general,
perform all the duties incident to the office of 
 


 






09500HB5189ham002
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LRB095 18627 LCT 49178 a




1
secretary.

2
    (e) Election of a treasurer from among the board of 
3
managers, who shall
keep the financial records and
books of 
4
account.

5
    (f) Maintenance, repair and replacement of the common 
6
elements and
payments therefor, including the method of 
7
approving payment vouchers.

8
    (g) An association with 30 or more units shall obtain and 
9
maintain
fidelity insurance covering persons who control or 
10
disburse funds of the
association for the maximum amount of 
11
coverage available to protect funds
in the custody or control 
12
of the association plus the association reserve
fund.  All 
13
management companies which are responsible for the funds held 
14
or
administered by the association shall maintain and furnish 
15
to the
association a fidelity bond for the maximum amount of 
16
coverage available to
protect funds in the custody of the 
17
management company at any time.  The
association shall bear the 
18
cost of the fidelity insurance and fidelity
bond, unless 
19
otherwise provided by contract between the association and a

20
management company.  The association shall be the direct obligee 
21
of any
such fidelity bond.  A management company holding reserve 
22
funds of an
association shall at all times maintain a separate 
23
account for each
association, provided, however, that for 
24
investment purposes, the Board of
Managers of an association 
25
may authorize a management company to maintain
the 
26
association's reserve funds in a single interest bearing 
 


 






09500HB5189ham002
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LRB095 18627 LCT 49178 a




1
account with
similar funds of other associations.  The 
2
management company shall at all
times maintain records 
3
identifying all moneys of each association in such
investment 
4
account. The management company may hold all operating funds of

5
associations which it manages in a single operating account but 
6
shall at
all times maintain records identifying all moneys of 
7
each association in
such operating account. Such operating and 
8
reserve funds held by the
management company for the 
9
association shall not be subject to attachment
by any creditor 
10
of the management company.

11
    For the purpose of this subsection a management company 
12
shall be
defined as a person, partnership, corporation, or 
13
other legal entity
entitled to transact business on behalf of 
14
others, acting on behalf of or
as an agent for a unit owner, 
15
unit owners or association of unit owners for
the purpose of 
16
carrying out the duties, responsibilities, and other

17
obligations necessary for the day to day operation and 
18
management of any
property subject to this Act.  For purposes of 
19
this subsection, the term
"fiduciary insurance coverage" shall 
20
be defined as both a fidelity bond and
directors and officers 
21
liability coverage, the fidelity bond in the full
amount of 
22
association funds and association reserves that will be in the

23
custody of the association, and the directors and officers 
24
liability
coverage at a level as shall be determined to be 
25
reasonable by the board of
managers, if not otherwise 
26
established by the declaration or by laws.

 


 






09500HB5189ham002
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LRB095 18627 LCT 49178 a




1
    Until one year after the effective date of this amendatory 
2
Act of 1985,
if a condominium association has reserves plus 
3
assessments in excess of
$250,000 and cannot reasonably obtain 
4
100% fidelity bond coverage for such
amount, then it must 
5
obtain a fidelity bond coverage of $250,000.

6
    (h) Method of estimating the amount of the annual budget, 
7
and the manner
of assessing and collecting from the unit owners 
8
their respective shares of
such estimated expenses, and of any 
9
other expenses lawfully agreed upon.

10
    (i) That upon 10 days notice to the manager or board of 
11
managers and
payment of a reasonable fee, any unit owner shall 
12
be furnished a statement
of his account setting forth the 
13
amount of any unpaid assessments or other
charges due and owing 
14
from such owner.

15
    (j) Designation and removal of personnel necessary for the 
16
maintenance,
repair and replacement of the common elements.

17
    (k) Such restrictions on and requirements respecting the 
18
use and
maintenance of the units and the use of the common 
19
elements, not set forth
in the declaration, as are designed to 
20
prevent unreasonable interference
with the use of their 
21
respective units and of the common elements by the
several unit 
22
owners.

23
    (l) Method of adopting and of amending administrative rules 
24
and
regulations governing the operation and use of the common 
25
elements.

26
    (m) The percentage of votes required to modify or amend the 
 


 






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1
bylaws, but
each one of the particulars set forth in this 
2
section shall always be
embodied in the bylaws.

3
    (n) (i) The provisions of this Act, the declaration, 
4
bylaws, other
condominium instruments, and rules and 
5
regulations that relate to the use
of the individual unit or 
6
the common elements shall be applicable to
any person leasing a 
7
unit and shall be deemed to be incorporated in any
lease 
8
executed or renewed on or after the effective date of this 
9
amendatory
Act of 1984. (ii) With regard to any lease entered 
10
into subsequent to the
effective date of this amendatory Act of 
11
1989, the unit owner leasing the
unit shall deliver a copy of 
12
the signed lease to the board or if the
lease is oral, a 
13
memorandum of the lease, not later than the date of
occupancy 
14
or 10 days after the lease is signed, whichever occurs first. 
15
In
addition to any other remedies, by filing an action jointly 
16
against the
tenant and the unit owner, an association may seek 
17
to enjoin a tenant from
occupying a unit or seek to evict a 
18
tenant under the provisions of Article
IX of the Code of Civil 
19
Procedure for failure of the lessor-owner to
comply with the 
20
leasing requirements prescribed by
this Section or by the 
21
declaration, bylaws, and
rules and regulations. However, if an 
22
association that currently permits leasing amends its 
23
declaration, bylaws, or rules and regulations, to prohibit 
24
leasing, nothing in this Act or the declarations, bylaws, rules 
25
and regulations of an association, shall prohibit a unit owner 
26
who is leasing his or her unit or units at the time of the 
 


 






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1
prohibition from continuing to do so, until such time that the 
2
unit owner voluntarily sells the unit or units; and no special 
3
fines, fees, dues, or penalties shall be assessed against the 
4
unit owner for leasing his or her unit or units. The board of 
5
managers may proceed directly against a
tenant, at law or in 
6
equity, or under the provisions of Article IX of the
Code of 
7
Civil Procedure, for any other breach by tenant of any

8
covenants, rules, regulations or bylaws.

9
    (o) The association shall have no authority to forbear the 
10
payment
of assessments by any unit owner.

11
    (p) That when 30% or fewer of the units, by number,
possess 
12
over 50% in the aggregate of the votes in the association,
any 
13
percentage vote of members specified herein or in the 
14
condominium
instruments shall require the specified percentage 
15
by number of units
rather than by percentage of interest in the 
16
common elements allocated
to units that would otherwise be 
17
applicable. For purposes of this subsection (p), when making a 
18
determination of whether 30% or fewer of the units, by number, 
19
possess over 50% in the aggregate of the votes in the 
20
association,  a unit shall not include a garage unit or a 
21
storage unit.


22
    (q) That a unit owner may not assign, delegate, transfer, 
23
surrender, or
avoid the duties, responsibilities, and 
24
liabilities of a unit owner under this
Act, the condominium 
25
instruments, or the rules and regulations of the
Association; 
26
and that such an attempted assignment, delegation, transfer,

 


 






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1
surrender, or avoidance shall be deemed void.

2
    The provisions of this Section are applicable to all 
3
condominium
instruments recorded under this Act.  Any portion of 
4
a condominium
instrument which contains provisions contrary to 
5
these provisions shall be
void as against public policy and 
6
ineffective.  Any such instrument which
fails to contain the 
7
provisions required by this Section shall be deemed to

8
incorporate such provisions by operation of law.

9
(Source: P.A. 95-624, eff. 6-1-08.)

 



10
    (765 ILCS 605/18.4)  (from Ch. 30, par. 318.4)



11
    Sec. 18.4. Powers and Duties of Board of Managers. The 
12
board of
managers shall exercise for the association all 
13
powers, duties and
authority vested in the association by law 
14
or the condominium instruments
except for such powers, duties 
15
and authority reserved by law to the members
of the 
16
association.  The powers and duties of the board of managers 
17
shall
include, but shall not be limited to, the following:


18
        (a) To provide for the operation, care, upkeep, 
19
    maintenance,
replacement and improvement of the common 
20
    elements.  Nothing
in
this subsection (a) shall be deemed to 
21
    invalidate any provision in a
condominium instrument 
22
    placing limits on expenditures for the common elements, 
23
    provided, that such
limits shall not be applicable to 
24
    expenditures for repair, replacement, or
restoration of 
25
    existing portions of the common elements.  The
term "repair, 
 


 






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1
    replacement or restoration" means expenditures to 
2
    deteriorated or
damaged portions of the property related to 
3
    the existing decorating,
facilities, or structural or 
4
    mechanical components, interior or exterior
surfaces, or 
5
    energy systems and equipment with the functional 
6
    equivalent of the
original portions of such areas.  
7
    Replacement of the common elements may
result in an 
8
    improvement over the original quality of such elements or

9
    facilities; provided that, unless the improvement is 
10
    mandated by law or is an
emergency as defined in item (iv) 
11
    of subparagraph (8) of paragraph (a) of
Section 18, if the 
12
    improvement results in a proposed expenditure
exceeding 5% 
13
    of the annual budget, the board of managers, upon written 
14
    petition
by unit owners with 20% of the votes of the 
15
    association delivered to the board
within 14 days of the 
16
    board action to approve the expenditure, shall call a

17
    meeting of the unit owners within 30 days of the date of 
18
    delivery of the
petition to consider the expenditure.  
19
    Unless a majority of the total votes of
the unit owners are 
20
    cast at the meeting to reject the expenditure, it is

21
    ratified.


22
        (b) To prepare, adopt and distribute the annual budget 
23
    for the property.


24
        (c) To levy and expend assessments.


25
        (d) To collect assessments from unit
owners.


26
        (e) To provide for the employment and dismissal of the 
 


 






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1
    personnel
necessary or advisable for the maintenance and 
2
    operation of the common
elements.


3
        (f) To obtain adequate and appropriate kinds of

4
    insurance.


5
        (g) To own, convey, encumber, lease, and otherwise deal 
6
    with units
conveyed to or purchased by it.


7
        (h) To adopt and amend rules and regulations covering 
8
    the details of
the operation and use of the property, after 
9
    a meeting of the unit owners
called for the specific 
10
    purpose of discussing the proposed rules and
regulations.  
11
    Notice of the meeting shall contain the full text of the

12
    proposed rules and regulations, and the meeting shall 
13
    conform to the
requirements of Section 18(b) of this Act, 
14
    except that no quorum is
required at the meeting of the 
15
    unit owners unless the declaration, bylaws
or other 
16
    condominium instrument expressly provides to the contrary.

17
    However, no rule or regulation may impair any rights 
18
    guaranteed by the
First Amendment to the Constitution of 
19
    the United States or Section 4 of
Article I of the Illinois 
20
    Constitution including, but not limited to, the free 
21
    exercise of religion, nor may any rules or regulations

22
    conflict with the provisions of this Act or the condominium 
23
    instruments. No rule or regulation shall prohibit any 
24
    reasonable accommodation for religious practices, 
25
    including the attachment of religiously mandated objects 
26
    to the front-door area of a condominium unit.
However, if 
 


 






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1
    an association that currently permits leasing amends its 
2
    declaration, bylaws, or rules and regulations, to prohibit 
3
    leasing, nothing in this Act or the declarations, bylaws, 
4
    rules and regulations of an association, shall prohibit a 
5
    unit owner who is leasing his or her unit or units at the 
6
    time of the prohibition from continuing to do so, until 
7
    such time that the unit owner voluntarily sells the unit or 
8
    units; and no special fines, fees, dues, or penalties shall 
9
    be assessed against the unit owner for leasing his or her 
10
    unit or units. 


11
        (i) To keep detailed, accurate records of the receipts 
12
    and
expenditures affecting the use and operation of the 
13
    property.


14
        (j) To have access to each unit from time to time as 
15
    may be necessary
for the maintenance, repair or replacement 
16
    of any common elements or for
making emergency repairs 
17
    necessary to prevent damage to the common elements
or to 
18
    other units.


19
        (k) To pay real property taxes, special assessments, 
20
    and any other
special taxes or charges of the State of 
21
    Illinois or of any political
subdivision thereof, or other 
22
    lawful taxing or assessing body, which are
authorized by 
23
    law to be assessed and levied upon the real property of the

24
    condominium.


25
        (l) To impose charges for late payment of a unit 
26
    owner's proportionate
share of the common expenses, or any 
 


 






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1
    other expenses lawfully agreed upon,
and after notice and 
2
    an opportunity to be heard, to levy reasonable fines
for 
3
    violation of the declaration, by-laws, and rules and 
4
    regulations of
the association.


5
        (m) Unless the condominium instruments expressly 
6
    provide to the
contrary, by a majority vote of the entire 
7
    board of managers, to assign the
right of the association 
8
    to future income from common expenses or other
sources, and 
9
    to mortgage or pledge substantially all of the remaining

10
    assets of the association.


11
        (n) To record the dedication of a portion of the common 
12
    elements
to a public body for use as, or in connection 
13
    with, a street or utility
where authorized by the unit 
14
    owners under the provisions of Section 14.2.


15
        (o) To record the granting of an easement for the 
16
    laying of cable
television cable where authorized by the 
17
    unit owners under the provisions
of Section 14.3; to 
18
    obtain, if available and determined by the board to be in

19
    the best interests of the association, cable television

20
    service for all of the units of the condominium on a bulk

21
    identical service and equal cost per unit basis; and to 
22
    assess and recover the
expense as a common expense and, if 
23
    so determined by the board, to assess each
and every unit 
24
    on the same equal cost per unit basis.


25
        (p) To seek relief on behalf of all unit owners when 
26
    authorized
pursuant to subsection (c) of Section 10 from or 
 


 






09500HB5189ham002
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1
    in connection with the
assessment or levying of real 
2
    property taxes, special assessments, and any
other special 
3
    taxes or changes of the State of Illinois or of any 
4
    political
subdivision thereof or of any lawful taxing or 
5
    assessing body.


6
        (q) To reasonably accommodate the needs of a 
7
    handicapped unit owner
as required by the federal Civil 
8
    Rights Act of 1968, the Human Rights Act
and any applicable 
9
    local ordinances in the exercise of its powers with
respect 
10
    to the use of common elements or approval of modifications 
11
    in an
individual unit.

12
        (r) To accept service of a notice of claim for purposes 
13
    of the Mechanics Lien Act on behalf of each respective 
14
    member of the Unit Owners' Association with respect to 
15
    improvements performed pursuant to any contract entered 
16
    into by the Board of Managers or any contract entered into 
17
    prior to the recording of the condominium declaration 
18
    pursuant to this Act, for a property containing more than 8 
19
    units, and to distribute the notice to the unit owners 
20
    within 7 days of the acceptance of the service by the Board 
21
    of Managers. The service shall be effective as if each 
22
    individual unit owner had been served individually with 
23
    notice.

24
    In the performance of their duties, the officers and 
25
members of the board,
whether appointed by the developer or 
26
elected by the unit owners, shall
exercise the care required of 
 


 






09500HB5189ham002
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1
a fiduciary of the unit owners.

2
    The collection of assessments from unit owners by an 
3
association, board
of managers or their duly authorized agents 
4
shall not be considered acts
constituting a collection agency 
5
for purposes of the Collection Agency Act.

6
    The provisions of this Section are
applicable to all 
7
condominium instruments recorded under this Act.  Any
portion of 
8
a condominium instrument which contains provisions contrary to

9
these provisions shall be void as against public policy and 
10
ineffective.
Any such instrument that fails to contain the 
11
provisions required by this
Section shall be deemed to 
12
incorporate such provisions by operation of law.

13
(Source: P.A. 94-384, eff. 1-1-06; 94-729, eff. 1-1-07.)


 
14
    Section 10. The General Not For Profit Corporation Act of 
15
1986 is amended by adding Section 103.35 as follows:
 
16
    (805 ILCS 105/103.35 new)

17
    Sec. 103.35. Leasing units.
18
    (a) If a common interest community or homeowners' 
19
association's that currently permits leasing amends its 
20
declaration, covenants, bylaws, rules, regulations, or any 
21
other instruments, to prohibit leasing, nothing in this Act, or 
22
a common interest community or homeowners' association's 
23
declaration, covenants, bylaws, rules, regulations, or any 
24
other instruments, shall prohibit a unit owner who is leasing 
 


 






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1
his or her unit or units at the time of the prohibition from 
2
continuing to do so, until such time that the unit owner 
3
voluntarily sells the unit or units; and no special fines, 
4
fees, dues, or penalties shall be assessed against the unit 
5
owner for leasing his or her unit or units.
6
    (b) As used in this Section:
7
        "Homeowners' association" includes a property owners' 
8
    association, townhome association, and any similar entity, 
9
    and "homeowner" includes a townhome owner.
10
        "Common interest community" means the definition 
11
    provided in subsection (c) of Section 9-102 of the Code of 
12
    Civil Procedure. 
 
13
    Section 95. No acceleration or delay. Where this Act makes 
14
changes in a statute that is represented in this Act by text 
15
that is not yet or no longer in effect (for example, a Section 
16
represented by multiple versions), the use of that text does 
17
not accelerate or delay the taking effect of (i) the changes 
18
made by this Act or (ii) provisions derived from any other 
19
Public Act.
 

20
    Section 99. Effective date. This Act takes effect upon 
21
becoming law.".