97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB3407
 
Introduced 2/7/2012, by Sen. Ira I. Silverstein
 
SYNOPSIS AS INTRODUCED:
 

 
765 ILCS 605/19.1 new

     Amends the Condominium Property Act.  Provides that notwithstanding any provision in any condominium instrument or bylaw, a condominium  association must not: impair or restrict a condominium unit owner from securing a reverse mortgage, so long as the reverse mortgage does not adversely affect the rights of an association to collect an assessment; prevent, impair, or restrict a unit owner from borrowing money on the unit by refusing to cooperate with a lender or any federal program; or levy a fee to process or to close on a reverse mortgage  or other similar financing transaction.
  


LRB097 19912 AJO 65202 b

 
 
A BILL FOR
 

  
SB3407LRB097 19912 AJO 65202 b


  
1    AN ACT concerning civil law.
  
 
2    Be it enacted by the People of the State of Illinois,
 
3represented in the General Assembly:
  
 
 
4    Section 5. The Condominium Property Act is amended  by 
5adding Section 19.1 as follows:
 
6    (765 ILCS 605/19.1 new)
7    Sec. 19.1. Reverse mortgage availability.
8    (a) Notwithstanding any provision in the declaration, 
9bylaws, rules, regulations,  agreements, or other instruments 
10of a condominium association, or any construction of any of 
11those instruments by an association or by an association's 
12board, an association must not:
13        (1)  impair or restrict the rights of an owner  to secure 
14    a reverse mortgage or other similar financing, so long as 
15    on its face the reverse mortgage or similar financing  does 
16    not adversely affect the rights of an association to 
17    collect an assessment;
18        (2) prevent, impair, or restrict a unit owner from 
19    borrowing money on the unit owner's condominium unit by 
20    refusing to: (i)  cooperate with a lender; (ii) comply with 
21    a  lender's  regulations, procedures, or requirements; (iii)  
22    cooperate with any federal program; or (iv) comply with any 
23    federal program's procedures or regulations that concern 
 
 
SB3407- 2 -LRB097 19912 AJO 65202 b

1    loans, the guarantee of loans, or refinancing; or
2        (3) refuse to allow the examination  or copying of 
3    documents concerning an association's budget, financial 
4    statement, or tax identification number.
5    (b)  Fees must not be levied by an association concerning 
6paperwork necessary to process or to close on a reverse 
7mortgage or other similar financing transaction.
8    (c) As used in this Section,
"reverse mortgage" has the 
9meaning ascribed to that term in Section 6.1 of the Illinois 
10Banking Act.