|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
| ||||||||||||||||||||||||
| ||||||||||||||||||||||||
| ||||||||||||||||||||||||
1 | AN ACT concerning civil law.
| |||||||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois,
| |||||||||||||||||||||||
3 | represented in the General Assembly:
| |||||||||||||||||||||||
4 | Section 5. The Condominium Property Act is amended by | |||||||||||||||||||||||
5 | changing Sections 18 and 18.4 as follows:
| |||||||||||||||||||||||
6 | (765 ILCS 605/18) (from Ch. 30, par. 318)
| |||||||||||||||||||||||
7 | Sec. 18. Contents of bylaws. The bylaws shall provide for | |||||||||||||||||||||||
8 | at least
the following:
| |||||||||||||||||||||||
9 | (a) (1) The election from among the unit owners of a board | |||||||||||||||||||||||
10 | of managers,
the number of persons constituting such board, | |||||||||||||||||||||||
11 | and that the terms of at
least one-third of the members of | |||||||||||||||||||||||
12 | the board shall expire annually and that
all members of the | |||||||||||||||||||||||
13 | board shall be elected at large.
If there are multiple | |||||||||||||||||||||||
14 | owners of a single unit, only one of the multiple
owners | |||||||||||||||||||||||
15 | shall be eligible to serve as a member of the board at any | |||||||||||||||||||||||
16 | one time.
| |||||||||||||||||||||||
17 | (2) the powers and duties of the board;
| |||||||||||||||||||||||
18 | (3) the compensation, if any, of the members of the | |||||||||||||||||||||||
19 | board;
| |||||||||||||||||||||||
20 | (4) the method of removal from office of members of the | |||||||||||||||||||||||
21 | board;
| |||||||||||||||||||||||
22 | (5) that the board may engage the services of a manager | |||||||||||||||||||||||
23 | or managing agent;
|
| |||||||
| |||||||
1 | (6) that each unit owner shall receive, at least 30 | ||||||
2 | days prior to the
adoption thereof by the board of | ||||||
3 | managers, a copy of the proposed annual
budget together | ||||||
4 | with an indication of which portions are intended for
| ||||||
5 | reserves, capital expenditures or repairs or payment of | ||||||
6 | real estate taxes;
| ||||||
7 | (7) that the board of managers shall annually supply to
| ||||||
8 | all unit owners an itemized accounting of the common | ||||||
9 | expenses
for the preceding year actually incurred or paid, | ||||||
10 | together
with an indication of which portions were for | ||||||
11 | reserves, capital
expenditures or repairs or payment of | ||||||
12 | real estate taxes and
with a tabulation of the amounts | ||||||
13 | collected pursuant to the
budget or assessment, and showing | ||||||
14 | the net excess or
deficit of income over expenditures plus | ||||||
15 | reserves;
| ||||||
16 | (8) (i) that each unit owner shall receive notice, in | ||||||
17 | the same manner
as is provided in this Act for membership | ||||||
18 | meetings, of any meeting of the
board of managers | ||||||
19 | concerning the adoption of the proposed annual budget and
| ||||||
20 | regular assessments pursuant thereto or to adopt a separate | ||||||
21 | (special)
assessment, (ii) that except as provided in | ||||||
22 | subsection (iv) below, if an
adopted
budget or any separate | ||||||
23 | assessment adopted by the board would result in the
sum of | ||||||
24 | all regular and separate assessments payable in the current | ||||||
25 | fiscal year
exceeding 115% of the sum of all regular and | ||||||
26 | separate
assessments payable during the
preceding fiscal |
| |||||||
| |||||||
1 | year, the
board of managers, upon written petition by unit | ||||||
2 | owners with 20 percent of
the votes of the association | ||||||
3 | delivered to the board within 14
days of the board action,
| ||||||
4 | shall call a meeting of the unit owners within 30 days of | ||||||
5 | the date of
delivery of the petition to consider the budget | ||||||
6 | or separate
assessment; unless a
majority of
the total | ||||||
7 | votes of the unit owners are cast at the meeting to reject | ||||||
8 | the
budget or separate assessment,
it is ratified, (iii) | ||||||
9 | that any common expense not set forth in the budget or
any | ||||||
10 | increase in assessments over the amount adopted in the | ||||||
11 | budget shall be
separately assessed against all unit | ||||||
12 | owners, (iv) that separate assessments for
expenditures | ||||||
13 | relating to emergencies or mandated by law may be adopted | ||||||
14 | by the
board of managers without being subject to unit | ||||||
15 | owner approval or the
provisions of item (ii) above or item | ||||||
16 | (v) below. As used
herein, "emergency" means an immediate | ||||||
17 | danger to the structural integrity of
the
common elements | ||||||
18 | or to the life, health, safety or property of the unit | ||||||
19 | owners,
(v) that assessments
for additions and alterations | ||||||
20 | to the common elements or to association-owned
property not | ||||||
21 | included in the adopted annual budget, shall be separately
| ||||||
22 | assessed and are subject to approval of two-thirds of the | ||||||
23 | total votes of all
unit owners, (vi) that the board of | ||||||
24 | managers may adopt separate assessments
payable over more | ||||||
25 | than one fiscal year. With respect to multi-year | ||||||
26 | assessments
not governed by items (iv) and (v), the entire |
| |||||||
| |||||||
1 | amount of the multi-year
assessment shall be deemed | ||||||
2 | considered and authorized in the first fiscal year
in which | ||||||
3 | the assessment is approved;
| ||||||
4 | (9) that meetings of the board of managers shall be | ||||||
5 | open to any unit
owner, except for the portion of any | ||||||
6 | meeting held (i) to discuss litigation
when an action | ||||||
7 | against or on behalf of the particular association has been
| ||||||
8 | filed and is pending in a court or administrative tribunal,
| ||||||
9 | or when the board of managers finds that such an action is | ||||||
10 | probable
or imminent, (ii) to consider information | ||||||
11 | regarding appointment, employment
or dismissal of an | ||||||
12 | employee, or (iii) to discuss violations of rules and
| ||||||
13 | regulations of the association or a unit owner's unpaid | ||||||
14 | share of common
expenses; that any vote on these matters | ||||||
15 | shall be taken at a meeting or
portion thereof open to any | ||||||
16 | unit owner; that any unit owner may record the
proceedings | ||||||
17 | at meetings or portions thereof required to be open by this
| ||||||
18 | Act by tape, film or other means; that the board may | ||||||
19 | prescribe reasonable
rules and regulations to govern the | ||||||
20 | right to make such recordings, that
notice of such meetings | ||||||
21 | shall be mailed or delivered at least 48 hours
prior | ||||||
22 | thereto, unless a written waiver of such notice is signed | ||||||
23 | by the
person or persons entitled to such notice pursuant | ||||||
24 | to the declaration,
bylaws, other condominium instrument, | ||||||
25 | or provision of law other than this
subsection before the | ||||||
26 | meeting is convened, and that copies of notices of
meetings |
| |||||||
| |||||||
1 | of the board of managers shall be posted in entranceways,
| ||||||
2 | elevators, or other conspicuous places in the condominium | ||||||
3 | at least 48 hours
prior to the meeting of the board of | ||||||
4 | managers except where there is no
common entranceway for 7 | ||||||
5 | or more units, the board of managers may designate
one or | ||||||
6 | more locations in the proximity of these units where the | ||||||
7 | notices of
meetings shall be posted;
| ||||||
8 | (10) that the board shall meet at least 4 times | ||||||
9 | annually;
| ||||||
10 | (11) that no member of the board or officer shall be | ||||||
11 | elected for a term
of more than 2 years, but that officers | ||||||
12 | and board members may succeed
themselves;
| ||||||
13 | (12) the designation of an officer to mail and receive | ||||||
14 | all notices and
execute amendments to condominium | ||||||
15 | instruments as provided for in this Act
and in the | ||||||
16 | condominium instruments;
| ||||||
17 | (13) the method of filling vacancies on the board
which | ||||||
18 | shall include authority for the remaining members of the | ||||||
19 | board to
fill the vacancy by two-thirds vote until the next | ||||||
20 | annual meeting of unit
owners or for a period terminating | ||||||
21 | no later than 30 days following the
filing of a petition | ||||||
22 | signed by unit owners holding 20% of the votes of the
| ||||||
23 | association requesting a meeting of the unit owners to fill | ||||||
24 | the vacancy for
the balance of the term, and that a meeting | ||||||
25 | of the unit owners shall be
called for purposes of filling | ||||||
26 | a vacancy on the board no later than 30 days
following the |
| |||||||
| |||||||
1 | filing of a petition signed by unit owners holding 20% of | ||||||
2 | the
votes of the association requesting such a meeting, and | ||||||
3 | the method of filling
vacancies among the officers that | ||||||
4 | shall include the authority for the members
of the board to | ||||||
5 | fill the vacancy for the unexpired portion of the term;
| ||||||
6 | (14) what percentage of the board of managers, if other | ||||||
7 | than a majority,
shall constitute a quorum;
| ||||||
8 | (15) provisions concerning notice of board meetings to | ||||||
9 | members of the
board;
| ||||||
10 | (16) the board of managers may not enter into a | ||||||
11 | contract with a
current board member
or with a corporation | ||||||
12 | or partnership in which a board
member or a member of the | ||||||
13 | board member's immediate family has 25% or
more interest, | ||||||
14 | unless notice of intent to enter the
contract is given to | ||||||
15 | unit owners within 20 days after a decision is made
to | ||||||
16 | enter into the contract and the unit owners are
afforded an | ||||||
17 | opportunity by filing a petition, signed by 20% of the unit
| ||||||
18 | owners, for an election to approve or disapprove the | ||||||
19 | contract;
such petition shall be filed within 20 days after | ||||||
20 | such notice and such
election shall be held within 30 days | ||||||
21 | after filing the petition; for purposes
of this subsection, | ||||||
22 | a board member's immediate family means the board member's
| ||||||
23 | spouse, parents, and children;
| ||||||
24 | (17) that the board of managers may disseminate
to unit | ||||||
25 | owners biographical and background information about | ||||||
26 | candidates for
election to the board if (i) reasonable |
| |||||||
| |||||||
1 | efforts to identify all candidates are
made and all | ||||||
2 | candidates are given an opportunity to include | ||||||
3 | biographical and
background information in the information | ||||||
4 | to be disseminated; and (ii) the
board does not express a | ||||||
5 | preference in favor of any candidate;
| ||||||
6 | (18) any proxy distributed for board elections
by the | ||||||
7 | board of managers gives unit owners the
opportunity to | ||||||
8 | designate any person as the proxy holder, and gives the | ||||||
9 | unit
owner the opportunity to express a preference for any | ||||||
10 | of the known
candidates for the board or to write in a | ||||||
11 | name;
| ||||||
12 | (19) that special meetings of the board of managers can | ||||||
13 | be called by
the president or 25% of the members of the | ||||||
14 | board; and
| ||||||
15 | (20) that the board of managers may establish
and | ||||||
16 | maintain a system of master metering of public utility | ||||||
17 | services and
collect payments in connection therewith, | ||||||
18 | subject to the requirements of the
Tenant Utility Payment | ||||||
19 | Disclosure Act.
| ||||||
20 | (b) (1) What percentage of the unit owners, if other than | ||||||
21 | 20%, shall
constitute a quorum provided that, for | ||||||
22 | condominiums with 20 or more units,
the percentage of unit | ||||||
23 | owners constituting a quorum shall be 20% unless the
unit | ||||||
24 | owners holding a majority of the percentage interest in the
| ||||||
25 | association provide for a higher percentage, provided that | ||||||
26 | in voting on amendments to the association's bylaws, a unit |
| |||||||
| |||||||
1 | owner who is in arrears on the unit owner's regular or | ||||||
2 | separate assessments for 60 days or more, shall not be | ||||||
3 | counted for purposes of determining if a quorum is present, | ||||||
4 | but that unit owner retains the right to vote on amendments | ||||||
5 | to the association's bylaws;
| ||||||
6 | (2) that the association shall have one class of | ||||||
7 | membership;
| ||||||
8 | (3) that the members shall hold an annual meeting, one | ||||||
9 | of the purposes
of which shall be to elect members of the | ||||||
10 | board of managers;
| ||||||
11 | (4) the method of calling meetings of the unit owners;
| ||||||
12 | (5) that special meetings of the members can be called | ||||||
13 | by the president,
board of managers, or by 20% of unit | ||||||
14 | owners;
| ||||||
15 | (6) that written notice of any membership meeting shall | ||||||
16 | be mailed
or delivered giving members no less than 10 and | ||||||
17 | no more than 30 days
notice of the time, place and purpose | ||||||
18 | of such meeting;
| ||||||
19 | (7) that voting shall be on a percentage basis, and | ||||||
20 | that the percentage
vote to which each unit is entitled is | ||||||
21 | the percentage interest of the
undivided ownership of the | ||||||
22 | common elements appurtenant thereto, provided
that the | ||||||
23 | bylaws may provide for approval by unit owners in | ||||||
24 | connection with
matters where the requisite approval on a | ||||||
25 | percentage basis is not specified
in this Act, on the basis | ||||||
26 | of one vote per unit;
|
| |||||||
| |||||||
1 | (8) that, where there is more than one owner of a unit, | ||||||
2 | if only one
of the multiple owners is present at a meeting | ||||||
3 | of the association, he is
entitled to cast all the votes | ||||||
4 | allocated to that unit, if more than one of
the multiple | ||||||
5 | owners are present, the votes allocated to that unit may be
| ||||||
6 | cast only in accordance with the agreement of a majority in | ||||||
7 | interest of the
multiple owners, unless the declaration | ||||||
8 | expressly provides otherwise, that
there is majority | ||||||
9 | agreement if any one of the multiple owners cast the
votes | ||||||
10 | allocated to that unit without protest being made promptly | ||||||
11 | to the
person presiding over the meeting by any of the | ||||||
12 | other owners of the unit;
| ||||||
13 | (9)(A) that unless the Articles of Incorporation or the | ||||||
14 | bylaws
otherwise
provide, and except as provided in | ||||||
15 | subparagraph (B) of this paragraph (9) in
connection with | ||||||
16 | board elections,
a unit owner may vote by proxy executed in | ||||||
17 | writing by the unit
owner or by his duly authorized | ||||||
18 | attorney in fact; that the proxy must bear the date of
| ||||||
19 | execution
and, unless the condominium instruments or the | ||||||
20 | written proxy itself provide
otherwise, is
invalid after 11 | ||||||
21 | months from the date of its execution;
| ||||||
22 | (B) that if a rule adopted at least 120 days before a | ||||||
23 | board election
or the
declaration or bylaws provide for | ||||||
24 | balloting as set forth in this subsection,
unit
owners may | ||||||
25 | not vote by proxy in board elections, but may vote only (i) | ||||||
26 | by
submitting an association-issued ballot in person at the |
| |||||||
| |||||||
1 | election meeting or
(ii) by
submitting an | ||||||
2 | association-issued ballot to the association or its | ||||||
3 | designated
agent
by mail or other means of delivery | ||||||
4 | specified in the declaration, bylaws, or
rule; that
the | ||||||
5 | ballots shall be mailed or otherwise distributed to unit | ||||||
6 | owners not less
than 10
and not more than 30 days before | ||||||
7 | the election meeting, and the board shall give
unit owners | ||||||
8 | not less than 21 days' prior written notice of the deadline | ||||||
9 | for
inclusion of a candidate's name on the ballots; that | ||||||
10 | the deadline shall be no
more
than 7 days before the | ||||||
11 | ballots are mailed or otherwise distributed to unit
owners; | ||||||
12 | that
every such ballot must include the names of all | ||||||
13 | candidates who have given the
board or its authorized agent | ||||||
14 | timely written notice of their candidacy and must
give the | ||||||
15 | person casting the ballot the opportunity to cast votes for | ||||||
16 | candidates
whose names do not appear on the ballot; that a | ||||||
17 | ballot received by the
association
or
its designated agent | ||||||
18 | after the close of voting shall not be counted; that a
unit
| ||||||
19 | owner
who submits a ballot by mail or other means of | ||||||
20 | delivery specified in the
declaration, bylaws, or rule may | ||||||
21 | request and cast a ballot in person at the
election
| ||||||
22 | meeting, and thereby void any ballot previously submitted | ||||||
23 | by that unit owner;
| ||||||
24 | (C) that if a written petition by unit owners with at | ||||||
25 | least 20% of the
votes of
the association is delivered to | ||||||
26 | the board within 14 days after the board's
approval
of a |
| |||||||
| |||||||
1 | rule adopted pursuant to subparagraph (B) of this paragraph | ||||||
2 | (9), the board
shall call a meeting of the unit owners | ||||||
3 | within 30 days after the date of
delivery of
the petition; | ||||||
4 | that unless a majority of the total votes of the unit | ||||||
5 | owners are
cast
at the
meeting to reject the rule, the rule | ||||||
6 | is ratified;
| ||||||
7 | (10) that the association may, upon adoption of the | ||||||
8 | appropriate rules by
the board of managers, conduct | ||||||
9 | elections by secret ballot whereby the voting
ballot is | ||||||
10 | marked only with the percentage interest for the unit and | ||||||
11 | the vote
itself, provided that the board further adopt | ||||||
12 | rules to verify the status of the
unit owner issuing a | ||||||
13 | proxy or casting a ballot; and further, that a candidate
| ||||||
14 | for election to the board of managers or such
candidate's | ||||||
15 | representative shall have the right to be present at the
| ||||||
16 | counting of ballots at such election;
| ||||||
17 | (11) that in the event of a resale of a condominium | ||||||
18 | unit the purchaser
of a unit from a seller other than the | ||||||
19 | developer pursuant to an installment
contract for purchase | ||||||
20 | shall during such times as he or she resides in the
unit be | ||||||
21 | counted toward a quorum for purposes of election of members | ||||||
22 | of the
board of managers at any meeting of the unit owners | ||||||
23 | called for purposes of
electing members of the board, shall | ||||||
24 | have the right to vote for the
election of members of the | ||||||
25 | board of managers and to be elected to and serve
on the | ||||||
26 | board of managers unless the seller expressly retains in |
| |||||||
| |||||||
1 | writing any
or all of such rights. In no event may the | ||||||
2 | seller and purchaser both be
counted toward a quorum, be | ||||||
3 | permitted to vote for a particular office or be
elected and | ||||||
4 | serve on the board. Satisfactory evidence of the | ||||||
5 | installment
contact shall be made available to the | ||||||
6 | association or its agents. For
purposes of this subsection, | ||||||
7 | "installment contact" shall have the same
meaning as set | ||||||
8 | forth in Section 1 (e) of "An Act relating to installment
| ||||||
9 | contracts to sell dwelling structures", approved August | ||||||
10 | 11, 1967, as amended;
| ||||||
11 | (12) the method by which matters subject to the | ||||||
12 | approval of unit owners
set forth in this Act, or in the | ||||||
13 | condominium instruments, will be
submitted to the unit | ||||||
14 | owners at special membership meetings called for such
| ||||||
15 | purposes; and
| ||||||
16 | (13) that matters subject to the affirmative vote of | ||||||
17 | not less than 2/3
of the votes of unit owners at a meeting | ||||||
18 | duly called for that purpose,
shall include, but not be | ||||||
19 | limited to:
| ||||||
20 | (i) merger or consolidation of the association;
| ||||||
21 | (ii) sale, lease, exchange, or other disposition | ||||||
22 | (excluding the mortgage
or pledge) of all, or | ||||||
23 | substantially all of the property and assets of the
| ||||||
24 | association; and
| ||||||
25 | (iii) the purchase or sale of land or of units on | ||||||
26 | behalf of all unit owners.
|
| |||||||
| |||||||
1 | (c) Election of a president from among the board of | ||||||
2 | managers, who shall
preside over the meetings of the board of | ||||||
3 | managers and of the unit owners.
| ||||||
4 | (d) Election of a secretary from among the board of | ||||||
5 | managers, who shall
keep the minutes of all meetings
of the | ||||||
6 | board of managers and of the unit owners and who shall, in | ||||||
7 | general,
perform all the duties incident to the office of | ||||||
8 | secretary.
| ||||||
9 | (e) Election of a treasurer from among the board of | ||||||
10 | managers, who shall
keep the financial records and
books of | ||||||
11 | account.
| ||||||
12 | (f) Maintenance, repair and replacement of the common | ||||||
13 | elements and
payments therefor, including the method of | ||||||
14 | approving payment vouchers.
| ||||||
15 | (g) An association with 30 or more units shall obtain and | ||||||
16 | maintain
fidelity insurance covering persons who control or | ||||||
17 | disburse funds of the
association for the maximum amount of | ||||||
18 | coverage available to protect funds
in the custody or control | ||||||
19 | of the association plus the association reserve
fund. All | ||||||
20 | management companies which are responsible for the funds held | ||||||
21 | or
administered by the association shall maintain and furnish | ||||||
22 | to the
association a fidelity bond for the maximum amount of | ||||||
23 | coverage available to
protect funds in the custody of the | ||||||
24 | management company at any time. The
association shall bear the | ||||||
25 | cost of the fidelity insurance and fidelity
bond, unless | ||||||
26 | otherwise provided by contract between the association and a
|
| |||||||
| |||||||
1 | management company. The association shall be the direct obligee | ||||||
2 | of any
such fidelity bond. A management company holding reserve | ||||||
3 | funds of an
association shall at all times maintain a separate | ||||||
4 | account for each
association, provided, however, that for | ||||||
5 | investment purposes, the Board of
Managers of an association | ||||||
6 | may authorize a management company to maintain
the | ||||||
7 | association's reserve funds in a single interest bearing | ||||||
8 | account with
similar funds of other associations. The | ||||||
9 | management company shall at all
times maintain records | ||||||
10 | identifying all moneys of each association in such
investment | ||||||
11 | account. The management company may hold all operating funds of
| ||||||
12 | associations which it manages in a single operating account but | ||||||
13 | shall at
all times maintain records identifying all moneys of | ||||||
14 | each association in
such operating account. Such operating and | ||||||
15 | reserve funds held by the
management company for the | ||||||
16 | association shall not be subject to attachment
by any creditor | ||||||
17 | of the management company.
| ||||||
18 | For the purpose of this subsection a management company | ||||||
19 | shall be
defined as a person, partnership, corporation, or | ||||||
20 | other legal entity
entitled to transact business on behalf of | ||||||
21 | others, acting on behalf of or
as an agent for a unit owner, | ||||||
22 | unit owners or association of unit owners for
the purpose of | ||||||
23 | carrying out the duties, responsibilities, and other
| ||||||
24 | obligations necessary for the day to day operation and | ||||||
25 | management of any
property subject to this Act. For purposes of | ||||||
26 | this subsection, the term
"fiduciary insurance coverage" shall |
| |||||||
| |||||||
1 | be defined as both a fidelity bond and
directors and officers | ||||||
2 | liability coverage, the fidelity bond in the full
amount of | ||||||
3 | association funds and association reserves that will be in the
| ||||||
4 | custody of the association, and the directors and officers | ||||||
5 | liability
coverage at a level as shall be determined to be | ||||||
6 | reasonable by the board of
managers, if not otherwise | ||||||
7 | established by the declaration or by laws.
| ||||||
8 | Until one year after the effective date of this amendatory | ||||||
9 | Act of 1985,
if a condominium association has reserves plus | ||||||
10 | assessments in excess of
$250,000 and cannot reasonably obtain | ||||||
11 | 100% fidelity bond coverage for such
amount, then it must | ||||||
12 | obtain a fidelity bond coverage of $250,000.
| ||||||
13 | (h) Method of estimating the amount of the annual budget, | ||||||
14 | and the manner
of assessing and collecting from the unit owners | ||||||
15 | their respective shares of
such estimated expenses, and of any | ||||||
16 | other expenses lawfully agreed upon.
| ||||||
17 | (i) That upon 10 days notice to the manager or board of | ||||||
18 | managers and
payment of a reasonable fee, any unit owner shall | ||||||
19 | be furnished a statement
of his account setting forth the | ||||||
20 | amount of any unpaid assessments or other
charges due and owing | ||||||
21 | from such owner.
| ||||||
22 | (j) Designation and removal of personnel necessary for the | ||||||
23 | maintenance,
repair and replacement of the common elements.
| ||||||
24 | (k) Such restrictions on and requirements respecting the | ||||||
25 | use and
maintenance of the units and the use of the common | ||||||
26 | elements, not set forth
in the declaration, as are designed to |
| |||||||
| |||||||
1 | prevent unreasonable interference
with the use of their | ||||||
2 | respective units and of the common elements by the
several unit | ||||||
3 | owners.
| ||||||
4 | (l) Method of adopting and of amending administrative rules | ||||||
5 | and
regulations governing the operation and use of the common | ||||||
6 | elements.
| ||||||
7 | (m) The percentage of votes required to modify or amend the | ||||||
8 | bylaws, but
each one of the particulars set forth in this | ||||||
9 | section shall always be
embodied in the bylaws.
| ||||||
10 | (n) (i) The provisions of this Act, the declaration, | ||||||
11 | bylaws, other
condominium instruments, and rules and | ||||||
12 | regulations that relate to the use
of the individual unit or | ||||||
13 | the common elements shall be applicable to
any person leasing a | ||||||
14 | unit and shall be deemed to be incorporated in any
lease | ||||||
15 | executed or renewed on or after the effective date of this | ||||||
16 | amendatory
Act of 1984. (ii) With regard to any lease entered | ||||||
17 | into subsequent to the
effective date of this amendatory Act of | ||||||
18 | 1989, the unit owner leasing the
unit shall deliver a copy of | ||||||
19 | the signed lease to the board or if the
lease is oral, a | ||||||
20 | memorandum of the lease, not later than the date of
occupancy | ||||||
21 | or 10 days after the lease is signed, whichever occurs first. | ||||||
22 | In
addition to any other remedies, by filing an action jointly | ||||||
23 | against the
tenant and the unit owner, an association may seek | ||||||
24 | to enjoin a tenant from
occupying a unit or seek to evict a | ||||||
25 | tenant under the provisions of Article
IX of the Code of Civil | ||||||
26 | Procedure for failure of the lessor-owner to
comply with the |
| |||||||
| |||||||
1 | leasing requirements prescribed by
this Section or by the | ||||||
2 | declaration, bylaws, and
rules and regulations. However, if an | ||||||
3 | association that currently permits leasing amends its | ||||||
4 | declaration, bylaws, or rules and regulations to prohibit | ||||||
5 | leasing, nothing in this Act or the declarations, bylaws, rules | ||||||
6 | and regulations of an association shall prohibit a unit owner, | ||||||
7 | incorporated under 26 USC 501(c)(3) which is leasing a unit at | ||||||
8 | the time of the prohibition from continuing to do so, until | ||||||
9 | such time that the unit owner voluntarily sells the unit; and | ||||||
10 | no special fine, fee, dues, or penalty shall be assessed | ||||||
11 | against the unit owner for leasing its unit. The board of | ||||||
12 | managers may proceed directly against a
tenant, at law or in | ||||||
13 | equity, or under the provisions of Article IX of the
Code of | ||||||
14 | Civil Procedure, for any other breach by tenant of any
| ||||||
15 | covenants, rules, regulations or bylaws.
| ||||||
16 | (o) The association shall have no authority to forbear the | ||||||
17 | payment
of assessments by any unit owner.
| ||||||
18 | (p) That when 30% or fewer of the units, by number,
possess | ||||||
19 | over 50% in the aggregate of the votes in the association,
any | ||||||
20 | percentage vote of members specified herein or in the | ||||||
21 | condominium
instruments shall require the specified percentage | ||||||
22 | by number of units
rather than by percentage of interest in the | ||||||
23 | common elements allocated
to units that would otherwise be | ||||||
24 | applicable. For purposes of this subsection (p), when making a | ||||||
25 | determination of whether 30% or fewer of the units, by number, | ||||||
26 | possess over 50% in the aggregate of the votes in the |
| |||||||
| |||||||
1 | association, a unit shall not include a garage unit or a | ||||||
2 | storage unit.
| ||||||
3 | (q) That a unit owner may not assign, delegate, transfer, | ||||||
4 | surrender, or
avoid the duties, responsibilities, and | ||||||
5 | liabilities of a unit owner under this
Act, the condominium | ||||||
6 | instruments, or the rules and regulations of the
Association; | ||||||
7 | and that such an attempted assignment, delegation, transfer,
| ||||||
8 | surrender, or avoidance shall be deemed void.
| ||||||
9 | The provisions of this Section are applicable to all | ||||||
10 | condominium
instruments recorded under this Act. Any portion of | ||||||
11 | a condominium
instrument which contains provisions contrary to | ||||||
12 | these provisions shall be
void as against public policy and | ||||||
13 | ineffective. Any such instrument which
fails to contain the | ||||||
14 | provisions required by this Section shall be deemed to
| ||||||
15 | incorporate such provisions by operation of law.
| ||||||
16 | (Source: P.A. 95-624, eff. 6-1-08; 96-55, eff. 1-1-10.)
| ||||||
17 | (765 ILCS 605/18.4) (from Ch. 30, par. 318.4)
| ||||||
18 | Sec. 18.4. Powers and Duties of Board of Managers. The | ||||||
19 | board of
managers shall exercise for the association all | ||||||
20 | powers, duties and
authority vested in the association by law | ||||||
21 | or the condominium instruments
except for such powers, duties | ||||||
22 | and authority reserved by law to the members
of the | ||||||
23 | association. The powers and duties of the board of managers | ||||||
24 | shall
include, but shall not be limited to, the following:
| ||||||
25 | (a) To provide for the operation, care, upkeep, |
| |||||||
| |||||||
1 | maintenance,
replacement and improvement of the common | ||||||
2 | elements. Nothing
in
this subsection (a) shall be deemed to | ||||||
3 | invalidate any provision in a
condominium instrument | ||||||
4 | placing limits on expenditures for the common elements, | ||||||
5 | provided, that such
limits shall not be applicable to | ||||||
6 | expenditures for repair, replacement, or
restoration of | ||||||
7 | existing portions of the common elements. The
term "repair, | ||||||
8 | replacement or restoration" means expenditures to | ||||||
9 | deteriorated or
damaged portions of the property related to | ||||||
10 | the existing decorating,
facilities, or structural or | ||||||
11 | mechanical components, interior or exterior
surfaces, or | ||||||
12 | energy systems and equipment with the functional | ||||||
13 | equivalent of the
original portions of such areas. | ||||||
14 | Replacement of the common elements may
result in an | ||||||
15 | improvement over the original quality of such elements or
| ||||||
16 | facilities; provided that, unless the improvement is | ||||||
17 | mandated by law or is an
emergency as defined in item (iv) | ||||||
18 | of subparagraph (8) of paragraph (a) of
Section 18, if the | ||||||
19 | improvement results in a proposed expenditure
exceeding 5% | ||||||
20 | of the annual budget, the board of managers, upon written | ||||||
21 | petition
by unit owners with 20% of the votes of the | ||||||
22 | association delivered to the board
within 14 days of the | ||||||
23 | board action to approve the expenditure, shall call a
| ||||||
24 | meeting of the unit owners within 30 days of the date of | ||||||
25 | delivery of the
petition to consider the expenditure. | ||||||
26 | Unless a majority of the total votes of
the unit owners are |
| |||||||
| |||||||
1 | cast at the meeting to reject the expenditure, it is
| ||||||
2 | ratified.
| ||||||
3 | (b) To prepare, adopt and distribute the annual budget | ||||||
4 | for the property.
| ||||||
5 | (c) To levy and expend assessments.
| ||||||
6 | (d) To collect assessments from unit
owners.
| ||||||
7 | (e) To provide for the employment and dismissal of the | ||||||
8 | personnel
necessary or advisable for the maintenance and | ||||||
9 | operation of the common
elements.
| ||||||
10 | (f) To obtain adequate and appropriate kinds of
| ||||||
11 | insurance.
| ||||||
12 | (g) To own, convey, encumber, lease, and otherwise deal | ||||||
13 | with units
conveyed to or purchased by it.
| ||||||
14 | (h) To adopt and amend rules and regulations covering | ||||||
15 | the details of
the operation and use of the property, after | ||||||
16 | a meeting of the unit owners
called for the specific | ||||||
17 | purpose of discussing the proposed rules and
regulations. | ||||||
18 | Notice of the meeting shall contain the full text of the
| ||||||
19 | proposed rules and regulations, and the meeting shall | ||||||
20 | conform to the
requirements of Section 18(b) of this Act, | ||||||
21 | except that no quorum is
required at the meeting of the | ||||||
22 | unit owners unless the declaration, bylaws
or other | ||||||
23 | condominium instrument expressly provides to the contrary.
| ||||||
24 | However, no rule or regulation may impair any rights | ||||||
25 | guaranteed by the
First Amendment to the Constitution of | ||||||
26 | the United States or Section 4 of
Article I of the Illinois |
| |||||||
| |||||||
1 | Constitution including, but not limited to, the free | ||||||
2 | exercise of religion, nor may any rules or regulations
| ||||||
3 | conflict with the provisions of this Act or the condominium | ||||||
4 | instruments. No rule or regulation shall prohibit any | ||||||
5 | reasonable accommodation for religious practices, | ||||||
6 | including the attachment of religiously mandated objects | ||||||
7 | to the front-door area of a condominium unit.
However, if | ||||||
8 | an association that currently permits leasing amends its | ||||||
9 | declaration, bylaws, or rules and regulations to prohibit | ||||||
10 | leasing, nothing in this Act or the declarations, bylaws, | ||||||
11 | rules and regulations of an association shall prohibit a | ||||||
12 | unit owner, incorporated under 26 USC 501(c)(3), which is | ||||||
13 | leasing a unit at the time of the prohibition from | ||||||
14 | continuing to do so, until such time that the unit owner | ||||||
15 | voluntarily sells the unit; and no special fine, fee, dues, | ||||||
16 | or penalty shall be assessed against the unit owner for | ||||||
17 | leasing its unit.
| ||||||
18 | (i) To keep detailed, accurate records of the receipts | ||||||
19 | and
expenditures affecting the use and operation of the | ||||||
20 | property.
| ||||||
21 | (j) To have access to each unit from time to time as | ||||||
22 | may be necessary
for the maintenance, repair or replacement | ||||||
23 | of any common elements or for
making emergency repairs | ||||||
24 | necessary to prevent damage to the common elements
or to | ||||||
25 | other units.
| ||||||
26 | (k) To pay real property taxes, special assessments, |
| |||||||
| |||||||
1 | and any other
special taxes or charges of the State of | ||||||
2 | Illinois or of any political
subdivision thereof, or other | ||||||
3 | lawful taxing or assessing body, which are
authorized by | ||||||
4 | law to be assessed and levied upon the real property of the
| ||||||
5 | condominium.
| ||||||
6 | (l) To impose charges for late payment of a unit | ||||||
7 | owner's proportionate
share of the common expenses, or any | ||||||
8 | other expenses lawfully agreed upon,
and after notice and | ||||||
9 | an opportunity to be heard, to levy reasonable fines
for | ||||||
10 | violation of the declaration, by-laws, and rules and | ||||||
11 | regulations of
the association.
| ||||||
12 | (m) Unless the condominium instruments expressly | ||||||
13 | provide to the
contrary, by a majority vote of the entire | ||||||
14 | board of managers, to assign the
right of the association | ||||||
15 | to future income from common expenses or other
sources, and | ||||||
16 | to mortgage or pledge substantially all of the remaining
| ||||||
17 | assets of the association.
| ||||||
18 | (n) To record the dedication of a portion of the common | ||||||
19 | elements
to a public body for use as, or in connection | ||||||
20 | with, a street or utility
where authorized by the unit | ||||||
21 | owners under the provisions of Section 14.2.
| ||||||
22 | (o) To record the granting of an easement for the | ||||||
23 | laying of cable
television cable where authorized by the | ||||||
24 | unit owners under the provisions
of Section 14.3; to | ||||||
25 | obtain, if available and determined by the board to be in
| ||||||
26 | the best interests of the association, cable television
|
| |||||||
| |||||||
1 | service for all of the units of the condominium on a bulk
| ||||||
2 | identical service and equal cost per unit basis; and to | ||||||
3 | assess and recover the
expense as a common expense and, if | ||||||
4 | so determined by the board, to assess each
and every unit | ||||||
5 | on the same equal cost per unit basis.
| ||||||
6 | (p) To seek relief on behalf of all unit owners when | ||||||
7 | authorized
pursuant to subsection (c) of Section 10 from or | ||||||
8 | in connection with the
assessment or levying of real | ||||||
9 | property taxes, special assessments, and any
other special | ||||||
10 | taxes or charges changes of the State of Illinois or of any | ||||||
11 | political
subdivision thereof or of any lawful taxing or | ||||||
12 | assessing body.
| ||||||
13 | (q) To reasonably accommodate the needs of a | ||||||
14 | handicapped unit owner
as required by the federal Civil | ||||||
15 | Rights Act of 1968, the Human Rights Act
and any applicable | ||||||
16 | local ordinances in the exercise of its powers with
respect | ||||||
17 | to the use of common elements or approval of modifications | ||||||
18 | in an
individual unit.
| ||||||
19 | (r) To accept service of a notice of claim for purposes | ||||||
20 | of the Mechanics Lien Act on behalf of each respective | ||||||
21 | member of the Unit Owners' Association with respect to | ||||||
22 | improvements performed pursuant to any contract entered | ||||||
23 | into by the Board of Managers or any contract entered into | ||||||
24 | prior to the recording of the condominium declaration | ||||||
25 | pursuant to this Act, for a property containing more than 8 | ||||||
26 | units, and to distribute the notice to the unit owners |
| |||||||
| |||||||
1 | within 7 days of the acceptance of the service by the Board | ||||||
2 | of Managers. The service shall be effective as if each | ||||||
3 | individual unit owner had been served individually with | ||||||
4 | notice.
| ||||||
5 | In the performance of their duties, the officers and | ||||||
6 | members of the board,
whether appointed by the developer or | ||||||
7 | elected by the unit owners, shall
exercise the care required of | ||||||
8 | a fiduciary of the unit owners.
| ||||||
9 | The collection of assessments from unit owners by an | ||||||
10 | association, board
of managers or their duly authorized agents | ||||||
11 | shall not be considered acts
constituting a collection agency | ||||||
12 | for purposes of the Collection Agency Act.
| ||||||
13 | The provisions of this Section are
applicable to all | ||||||
14 | condominium instruments recorded under this Act. Any
portion of | ||||||
15 | a condominium instrument which contains provisions contrary to
| ||||||
16 | these provisions shall be void as against public policy and | ||||||
17 | ineffective.
Any such instrument that fails to contain the | ||||||
18 | provisions required by this
Section shall be deemed to | ||||||
19 | incorporate such provisions by operation of law.
| ||||||
20 | (Source: P.A. 94-384, eff. 1-1-06; 94-729, eff. 1-1-07; revised | ||||||
21 | 11-4-09.)
| ||||||
22 | Section 10. The General Not For Profit Corporation Act of | ||||||
23 | 1986 is amended by adding Section 103.35 as follows: | ||||||
24 | (805 ILCS 105/103.35 new) |
| |||||||
| |||||||
1 | Sec. 103.35. Leasing units. | ||||||
2 | (a) If a common interest community or homeowners' | ||||||
3 | association that currently permits leasing amends its | ||||||
4 | declaration, covenants, bylaws, rules, regulations, or any | ||||||
5 | other instruments to prohibit leasing, nothing in this Act, or | ||||||
6 | a common interest community or homeowners' association | ||||||
7 | declaration, covenants, bylaws, rules, regulations, or any | ||||||
8 | other instruments, shall prohibit a unit owner, incorporated | ||||||
9 | under 26 USC 501(c)(3), which is leasing a unit at the time of | ||||||
10 | the prohibition from continuing to do so, until such time that | ||||||
11 | the unit owner voluntarily sells the unit; and no special fine, | ||||||
12 | fee, dues, or penalty shall be assessed against the unit owner | ||||||
13 | for leasing the unit. | ||||||
14 | (b) As used in this Section: | ||||||
15 | "Homeowners' association" includes a property owners' | ||||||
16 | association, townhome association, and any similar entity, and | ||||||
17 | "homeowner" includes a townhome owner. | ||||||
18 | "Common interest community" has the same meaning as that | ||||||
19 | term is given in subsection (c) of Section 9-102 of the Code of | ||||||
20 | Civil Procedure.
|