Rep. André Thapedi
Filed: 4/6/2017
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1 | AMENDMENT TO HOUSE BILL 189
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2 | AMENDMENT NO. ______. Amend House Bill 189 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Common Interest Community Association Act | ||||||
5 | is amended by changing Sections 1-20 and 1-45 as follows: | ||||||
6 | (765 ILCS 160/1-20)
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7 | Sec. 1-20. Amendments to the declaration, bylaws, or | ||||||
8 | operating agreement. | ||||||
9 | (a) The administration of every property shall be governed | ||||||
10 | by the declaration and bylaws or operating agreement, which may | ||||||
11 | either be embodied in the declaration or in a separate | ||||||
12 | instrument, a true copy of which shall be appended to and | ||||||
13 | recorded with the declaration. No modification or amendment of | ||||||
14 | the declaration, bylaws, or operating agreement shall be valid | ||||||
15 | unless the same is set forth in an amendment thereof and such | ||||||
16 | amendment is duly recorded. An amendment of the declaration, |
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1 | bylaws, or operating agreement shall be deemed effective upon | ||||||
2 | recordation, unless the amendment sets forth a different | ||||||
3 | effective date. | ||||||
4 | (b) Unless otherwise provided by this Act, amendments to | ||||||
5 | community instruments authorized to be recorded shall be | ||||||
6 | executed and recorded by the president of the board or such | ||||||
7 | other officer authorized by the common interest community | ||||||
8 | association or the community instruments. | ||||||
9 | (c) If an association that currently permits leasing amends | ||||||
10 | its declaration, bylaws, or rules and regulations to prohibit | ||||||
11 | leasing, nothing in this Act or the declarations, bylaws, rules | ||||||
12 | and regulations of an association shall prohibit a unit owner | ||||||
13 | incorporated under 26 USC 501(c)(3) which is leasing a unit at | ||||||
14 | the time of the prohibition from continuing to do so until such | ||||||
15 | time that the unit owner voluntarily sells the unit; and no | ||||||
16 | special fine, fee, dues, or penalty shall be assessed against | ||||||
17 | the unit owner for leasing its unit.
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18 | (d) No action to incorporate a common interest community as | ||||||
19 | a municipality shall commence until an instrument agreeing to | ||||||
20 | incorporation has been signed by two-thirds of the members. | ||||||
21 | (e) If the community instruments require approval of any | ||||||
22 | mortgagee or
lienholder of record and the mortgagee or | ||||||
23 | lienholder of record receives a request to approve or consent | ||||||
24 | to
the amendment to the community instruments, the mortgagee or | ||||||
25 | lienholder of record is deemed to have
approved or consented to | ||||||
26 | the request unless the mortgagee or lienholder of record |
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1 | delivers a negative
response to the requesting party within 60 | ||||||
2 | days after the mailing of the request. A request to approve or | ||||||
3 | consent to an amendment to the community instruments that is | ||||||
4 | required to be sent to a mortgagee or lienholder of record | ||||||
5 | shall be sent by certified mail. | ||||||
6 | (Source: P.A. 99-41, eff. 7-14-15.) | ||||||
7 | (765 ILCS 160/1-45)
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8 | Sec. 1-45. Finances. | ||||||
9 | (a) Each member shall receive through a prescribed delivery | ||||||
10 | method, at least 30 days but not more than 60 days prior to the | ||||||
11 | adoption thereof by the board, a copy of the proposed annual | ||||||
12 | budget together with an indication of which portions are | ||||||
13 | intended for reserves, capital expenditures or repairs or | ||||||
14 | payment of real estate taxes. | ||||||
15 | (b) The board shall provide all members with a reasonably | ||||||
16 | detailed summary of the receipts, common expenses, and reserves | ||||||
17 | for the preceding budget year. The board shall (i) make | ||||||
18 | available for review to all members an itemized accounting of | ||||||
19 | the common expenses for the preceding year actually incurred or | ||||||
20 | paid, together with an indication of which portions were for | ||||||
21 | reserves, capital expenditures or repairs or payment of real | ||||||
22 | estate taxes and with a tabulation of the amounts collected | ||||||
23 | pursuant to the budget or assessment, and showing the net | ||||||
24 | excess or deficit of income over expenditures plus reserves or | ||||||
25 | (ii) provide a consolidated annual independent audit report of |
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1 | the financial status of all fund accounts within the | ||||||
2 | association. | ||||||
3 | (c) If an adopted budget or any separate assessment adopted | ||||||
4 | by the board would result in the sum of all regular and | ||||||
5 | separate assessments payable in the current fiscal year | ||||||
6 | exceeding 115% of the sum of all regular and separate | ||||||
7 | assessments payable during the preceding fiscal year, the | ||||||
8 | common interest community association, upon written petition | ||||||
9 | by members with 20% of the votes of the association delivered | ||||||
10 | to the board within 14 days of the board action, shall call a | ||||||
11 | meeting of the members within 30 days of the date of delivery | ||||||
12 | of the petition to consider the budget or separate assessment; | ||||||
13 | unless a majority of the total votes of the members are cast at | ||||||
14 | the meeting to reject the budget or separate assessment, it | ||||||
15 | shall be deemed ratified. | ||||||
16 | (d) If total common expenses exceed the total amount of the | ||||||
17 | approved and adopted budget, the common interest community | ||||||
18 | association shall disclose this variance to all its members and | ||||||
19 | specifically identify the subsequent assessments needed to | ||||||
20 | offset this variance in future budgets. | ||||||
21 | (e) Separate assessments for expenditures relating to | ||||||
22 | emergencies or mandated by law may be adopted by the board | ||||||
23 | without being subject to member approval or the provisions of | ||||||
24 | subsection (c) or (f) of this Section. As used herein, | ||||||
25 | "emergency" means a danger to or a compromise of the structural | ||||||
26 | integrity of the common areas or any of the common facilities |
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1 | of the common interest community. "Emergency" also includes a | ||||||
2 | danger to the life, health or safety of the membership. | ||||||
3 | (f) Assessments for additions and alterations to the common | ||||||
4 | areas or to association-owned property not included in the | ||||||
5 | adopted annual budget, shall be separately assessed and are | ||||||
6 | subject to approval of a simple majority of the total members | ||||||
7 | at a meeting called for that purpose. | ||||||
8 | (g) The board may adopt separate assessments payable over | ||||||
9 | more than one fiscal year. With respect to multi-year | ||||||
10 | assessments not governed by subsections (e) and (f) of this | ||||||
11 | Section, the entire amount of the multi-year assessment shall | ||||||
12 | be deemed considered and authorized in the first fiscal year in | ||||||
13 | which the assessment is approved. | ||||||
14 | (h) The board of a common interest community association | ||||||
15 | shall have the authority to establish and maintain a system of | ||||||
16 | master metering of public utility services to collect payments | ||||||
17 | in conjunction therewith, subject to the requirements of the | ||||||
18 | Tenant Utility Payment Disclosure Act. | ||||||
19 | (i) An association subject to this Act that consists of 100 | ||||||
20 | or more units shall use generally accepted accounting | ||||||
21 | principles in fulfilling any accounting obligations under this | ||||||
22 | Act.
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23 | (Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11; | ||||||
24 | 97-1090, eff. 8-24-12.) | ||||||
25 | Section 10. The Condominium Property Act is amended by |
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1 | changing Sections 9, 18, 18.4, 19, 27, and 31 and by adding | ||||||
2 | Section 18.10 as follows:
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3 | (765 ILCS 605/9) (from Ch. 30, par. 309)
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4 | Sec. 9. Sharing of expenses - Lien for nonpayment.
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5 | (a) All common expenses incurred or accrued prior to the | ||||||
6 | first conveyance
of a unit shall be paid by the developer, and | ||||||
7 | during this period no common
expense assessment shall be | ||||||
8 | payable to the association. It shall be the duty
of each unit | ||||||
9 | owner including the developer to pay his proportionate share of
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10 | the common expenses commencing with the first conveyance. The | ||||||
11 | proportionate
share shall be in the same ratio as his | ||||||
12 | percentage of ownership in the common
elements set forth in the | ||||||
13 | declaration.
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14 | (b) The condominium instruments may provide that common | ||||||
15 | expenses for
insurance premiums be assessed on a basis | ||||||
16 | reflecting increased charges for
coverage on certain units.
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17 | (c) Budget and reserves.
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18 | (1) The board of managers shall prepare and distribute | ||||||
19 | to
all unit owners a detailed proposed annual budget, | ||||||
20 | setting forth with
particularity all anticipated common | ||||||
21 | expenses by category as well as all
anticipated assessments | ||||||
22 | and other income. The initial budget and common
expense | ||||||
23 | assessment based thereon shall be adopted prior to the
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24 | conveyance of any unit. The budget shall also set forth | ||||||
25 | each unit owner's
proposed common expense assessment.
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1 | (2) All budgets adopted by a board of managers on or | ||||||
2 | after July 1, 1990
shall provide for reasonable reserves | ||||||
3 | for capital expenditures and deferred
maintenance for | ||||||
4 | repair or replacement of the common elements. To determine
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5 | the amount of reserves appropriate for an association, the | ||||||
6 | board of
managers shall take into consideration the | ||||||
7 | following: (i) the repair and
replacement cost, and the | ||||||
8 | estimated useful life, of the property which the
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9 | association is obligated to maintain, including but not | ||||||
10 | limited to
structural and mechanical components, surfaces | ||||||
11 | of the buildings and common
elements, and energy systems | ||||||
12 | and equipment; (ii) the current and
anticipated return on | ||||||
13 | investment of association funds; (iii) any
independent | ||||||
14 | professional reserve study which the association may | ||||||
15 | obtain;
(iv) the financial impact on unit owners, and the | ||||||
16 | market value of the
condominium units, of any assessment | ||||||
17 | increase needed to fund reserves; and
(v) the ability of | ||||||
18 | the association to obtain financing or refinancing.
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19 | (3) Notwithstanding the provisions of this subsection | ||||||
20 | (c), an
association without a reserve requirement in its | ||||||
21 | condominium
instruments may elect to waive in whole or in | ||||||
22 | part the reserve requirements
of this Section by a vote of | ||||||
23 | 2/3 of the total votes of the association.
Any association | ||||||
24 | having elected under this paragraph (3) to waive the
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25 | provisions of subsection (c) may by a vote of 2/3 of the | ||||||
26 | total votes of the
association elect to again be governed |
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1 | by the requirements of subsection (c).
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2 | (4) In the event that an association elects to waive | ||||||
3 | all or part of
the reserve requirements of this Section, | ||||||
4 | that fact must be
disclosed after the meeting at which the | ||||||
5 | waiver occurs by the
association in the financial | ||||||
6 | statements of the association and, highlighted
in bold | ||||||
7 | print, in the response to any request of a prospective | ||||||
8 | purchaser
for the information prescribed under Section | ||||||
9 | 22.1; and no member of the
board of managers or the | ||||||
10 | managing agent of the association shall be liable,
and no | ||||||
11 | cause of action may be brought for damages against these | ||||||
12 | parties,
for the lack or inadequacy of reserve funds in the | ||||||
13 | association budget. | ||||||
14 | (5) At the end of an association's fiscal year and | ||||||
15 | after the association has approved any end-of-year fiscal | ||||||
16 | audit, if applicable, if the fiscal year ended with a | ||||||
17 | surplus of funds over actual expenses, including budgeted | ||||||
18 | reserve fund contributions, then, to the extent that there | ||||||
19 | are not any contrary provisions in the association's | ||||||
20 | declaration and bylaws, the board of managers has the | ||||||
21 | authority, in its discretion, to dispose of the surplus in | ||||||
22 | one or more of the following ways: (i) contribute the | ||||||
23 | surplus to the association's reserve fund; (ii) return the | ||||||
24 | surplus to the unit owners as a credit against the | ||||||
25 | remaining monthly assessments for the current fiscal year; | ||||||
26 | (iii) return the surplus to the unit owners in the form of |
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1 | a direct payment to the unit owners; or (iv) maintain the | ||||||
2 | funds in the operating account, in which case the funds | ||||||
3 | shall be applied as a credit when calculating the following | ||||||
4 | year's annual budget. If the fiscal year ends in a deficit, | ||||||
5 | then, to the extent that there are not any contrary | ||||||
6 | provisions in the association's declaration and bylaws, | ||||||
7 | the board of managers has the authority, in its discretion, | ||||||
8 | to address the deficit by incorporating it into the | ||||||
9 | following year's annual budget. If 20% of the unit owners | ||||||
10 | of the association deliver a petition objecting to the | ||||||
11 | action under this paragraph (5) within 30 days after notice | ||||||
12 | to the unit owners of the action, the board of managers | ||||||
13 | shall call a meeting of the unit owners within 30 days of | ||||||
14 | the date of delivery of the petition. At the meeting, the | ||||||
15 | unit owners may vote to select a different option than the | ||||||
16 | option selected by the board of managers. Unless a majority | ||||||
17 | of the total votes of the unit owners are cast at the | ||||||
18 | meeting to reject the board's selection and select a | ||||||
19 | different option, the board's decision is ratified.
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20 | (d) (Blank).
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21 | (e) The condominium instruments may provide for the | ||||||
22 | assessment,
in connection with expenditures for the limited | ||||||
23 | common elements, of only those
units to which the limited | ||||||
24 | common elements are assigned.
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25 | (f) Payment of any assessment shall be in amounts and at | ||||||
26 | times
determined by the board of managers.
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1 | (g) Lien.
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2 | (1) If any unit owner shall fail or refuse to make any | ||||||
3 | payment of
the common expenses or the amount of any unpaid | ||||||
4 | fine when due, the
amount thereof together with any | ||||||
5 | interest, late charges, reasonable
attorney fees incurred | ||||||
6 | enforcing the covenants of the condominium
instruments, | ||||||
7 | rules and regulations of the board of managers, or any | ||||||
8 | applicable
statute or ordinance, and costs of collections | ||||||
9 | shall constitute a lien on the
interest of the unit owner | ||||||
10 | in the property prior to all other
liens and encumbrances, | ||||||
11 | recorded or unrecorded, except only (a) taxes,
special | ||||||
12 | assessments and special taxes theretofore or thereafter | ||||||
13 | levied by
any political subdivision or municipal | ||||||
14 | corporation of this State and other
State or federal taxes | ||||||
15 | which by law are a lien on the interest of the
unit owner | ||||||
16 | prior to preexisting recorded encumbrances thereon and
(b) | ||||||
17 | encumbrances on the interest of the unit owner recorded
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18 | prior to the date of such failure or refusal which by law | ||||||
19 | would be a lien
thereon prior to subsequently recorded | ||||||
20 | encumbrances. Any action
brought to extinguish the lien of | ||||||
21 | the association shall include the
association as a party.
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22 | (2) With respect to encumbrances executed prior to | ||||||
23 | August 30, 1984 or
encumbrances executed subsequent to | ||||||
24 | August 30, 1984 which are neither
bonafide first mortgages | ||||||
25 | nor trust deeds and which encumbrances contain a
statement | ||||||
26 | of a mailing address in the State of Illinois where notice |
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1 | may be
mailed to the encumbrancer thereunder, if and | ||||||
2 | whenever and as often as the
manager or board of managers | ||||||
3 | shall send, by United States certified or
registered mail, | ||||||
4 | return receipt requested, to any such encumbrancer at the
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5 | mailing address set forth in the recorded encumbrance a | ||||||
6 | statement of the
amounts and due dates of the unpaid common | ||||||
7 | expenses with respect to the
encumbered unit, then, unless | ||||||
8 | otherwise provided in the declaration or bylaws,
the prior | ||||||
9 | recorded encumbrance shall be subject to the lien of all | ||||||
10 | unpaid
common expenses with respect to the unit which | ||||||
11 | become due and payable within a
period of 90 days after the | ||||||
12 | date of mailing of each such notice.
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13 | (3) The purchaser of a condominium unit at a judicial
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14 | foreclosure sale, or a mortgagee who receives title to a | ||||||
15 | unit by deed in
lieu of foreclosure or judgment by common | ||||||
16 | law strict foreclosure or
otherwise takes possession | ||||||
17 | pursuant to court order under the Illinois
Mortgage | ||||||
18 | Foreclosure Law, shall have the duty to pay the unit's
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19 | proportionate share of the common expenses for the unit | ||||||
20 | assessed from and
after the first day of the month after | ||||||
21 | the date of the judicial foreclosure
sale, delivery of the | ||||||
22 | deed in lieu of foreclosure, entry of a judgment in
common | ||||||
23 | law strict foreclosure, or taking of possession pursuant to | ||||||
24 | such
court order. Such payment confirms the extinguishment | ||||||
25 | of any lien created
pursuant to paragraph (1) or (2) of | ||||||
26 | this subsection (g) by virtue of the
failure or refusal of |
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1 | a prior unit owner to make payment of common
expenses, | ||||||
2 | where the judicial foreclosure sale has been confirmed by | ||||||
3 | order
of the court, a deed in lieu thereof has been | ||||||
4 | accepted by the lender, or a
consent judgment has been | ||||||
5 | entered by the court.
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6 | (4) The purchaser of a condominium unit at a judicial | ||||||
7 | foreclosure sale, other than a mortgagee, who takes | ||||||
8 | possession of a condominium unit pursuant to a court order | ||||||
9 | or a purchaser who acquires title from a mortgagee shall | ||||||
10 | have the duty to pay the proportionate share, if any, of | ||||||
11 | the common expenses for the unit which would have become | ||||||
12 | due in the absence of any assessment acceleration during | ||||||
13 | the 6 months immediately preceding institution of an action | ||||||
14 | to enforce the collection of assessments, and which remain | ||||||
15 | unpaid by the owner during whose possession the assessments | ||||||
16 | accrued. If the outstanding assessments are paid at any | ||||||
17 | time during any action to enforce the collection of | ||||||
18 | assessments, the purchaser shall have no obligation to pay | ||||||
19 | any assessments which accrued before he or she acquired | ||||||
20 | title.
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21 | (5) The notice of sale of a condominium unit under | ||||||
22 | subsection (c) of Section 15-1507 of the Code of Civil | ||||||
23 | Procedure shall state that the purchaser of the unit other | ||||||
24 | than a mortgagee shall pay the assessments and the legal | ||||||
25 | fees required by subdivisions (g)(1) and (g)(4) of Section | ||||||
26 | 9 of this Act. The statement of assessment account issued |
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1 | by the association to a unit owner under subsection (i) of | ||||||
2 | Section 18 of this Act, and the disclosure statement issued | ||||||
3 | to a prospective purchaser under Section 22.1 of this Act, | ||||||
4 | shall state the amount of the assessments and the legal | ||||||
5 | fees, if any, required by subdivisions (g)(1) and (g)(4) of | ||||||
6 | Section 9 of this Act.
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7 | (h) A lien for common expenses shall be in favor of the | ||||||
8 | members of the
board of managers and their successors in office | ||||||
9 | and shall be for the
benefit of all other unit owners. Notice | ||||||
10 | of the lien may be recorded by
the board of managers, or if the | ||||||
11 | developer is the manager or has a majority
of seats on the | ||||||
12 | board of managers and the manager or board of managers
fails to | ||||||
13 | do so, any unit owner may record notice of the lien. Upon the
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14 | recording of such notice the lien may be foreclosed by an | ||||||
15 | action brought in
the name of the board of managers in the same | ||||||
16 | manner as a mortgage of real
property.
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17 | (i) Unless otherwise provided in the declaration, the | ||||||
18 | members
of the board of managers and their successors in | ||||||
19 | office, acting on behalf
of the other unit owners, shall have | ||||||
20 | the power to bid on the
interest so foreclosed at the | ||||||
21 | foreclosure sale, and to acquire and
hold, lease, mortgage and | ||||||
22 | convey it.
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23 | (j) Any encumbrancer may from time to time request in | ||||||
24 | writing a written
statement from the manager or board of | ||||||
25 | managers setting forth the unpaid
common expenses with respect | ||||||
26 | to the unit covered by his encumbrance.
Unless the request is |
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1 | complied with within 20 days, all unpaid common
expenses which | ||||||
2 | become due prior to the date of the making of such request
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3 | shall be subordinate to the lien of the encumbrance. Any | ||||||
4 | encumbrancer
holding a lien on a unit may pay any unpaid common | ||||||
5 | expenses payable with
respect to the unit, and upon payment the | ||||||
6 | encumbrancer shall have a lien on
the unit for the amounts paid | ||||||
7 | at the same rank as the lien of his encumbrance.
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8 | (k) Nothing in Public Act 83-1271 is intended to change the | ||||||
9 | lien
priorities of any encumbrance created prior to August 30, | ||||||
10 | 1984.
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11 | (Source: P.A. 94-1049, eff. 1-1-07.)
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12 | (765 ILCS 605/18) (from Ch. 30, par. 318)
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13 | Sec. 18. Contents of bylaws. The bylaws shall provide for | ||||||
14 | at least
the following:
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15 | (a)(1) The election from among the unit owners of a | ||||||
16 | board of managers,
the number of persons constituting such | ||||||
17 | board, and that the terms of at
least one-third of the | ||||||
18 | members of the board shall expire annually and that
all | ||||||
19 | members of the board shall be elected at large; if there | ||||||
20 | are multiple owners of a single unit, only one of the | ||||||
21 | multiple
owners shall be eligible to serve as a member of | ||||||
22 | the board at any one time;
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23 | (2) the powers and duties of the board;
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24 | (3) the compensation, if any, of the members of the | ||||||
25 | board;
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1 | (4) the method of removal from office of members of the | ||||||
2 | board;
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3 | (5) that the board may engage the services of a manager | ||||||
4 | or managing agent;
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5 | (6) that each unit owner shall receive, at least 25 | ||||||
6 | days prior to the
adoption thereof by the board of | ||||||
7 | managers, a copy of the proposed annual
budget together | ||||||
8 | with an indication of which portions are intended for
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9 | reserves, capital expenditures or repairs or payment of | ||||||
10 | real estate taxes;
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11 | (7) that the board of managers shall annually supply to
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12 | all unit owners an itemized accounting of the common | ||||||
13 | expenses
for the preceding year actually incurred or paid, | ||||||
14 | together
with an indication of which portions were for | ||||||
15 | reserves, capital
expenditures or repairs or payment of | ||||||
16 | real estate taxes and
with a tabulation of the amounts | ||||||
17 | collected pursuant to the
budget or assessment, and showing | ||||||
18 | the net excess or
deficit of income over expenditures plus | ||||||
19 | reserves;
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20 | (8)(i) that each unit owner shall receive notice, in | ||||||
21 | the same manner
as is provided in this Act for membership | ||||||
22 | meetings, of any meeting of the
board of managers | ||||||
23 | concerning the adoption of the proposed annual budget and
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24 | regular assessments pursuant thereto or to adopt a separate | ||||||
25 | (special)
assessment, (ii) that except as provided in | ||||||
26 | subsection (iv) below, if an
adopted
budget or any separate |
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1 | assessment adopted by the board would result in the
sum of | ||||||
2 | all regular and separate assessments payable in the current | ||||||
3 | fiscal year
exceeding 115% of the sum of all regular and | ||||||
4 | separate
assessments payable during the
preceding fiscal | ||||||
5 | year, the
board of managers, upon written petition by unit | ||||||
6 | owners with 20 percent of
the votes of the association | ||||||
7 | delivered to the board within 21 14
days of the board | ||||||
8 | action,
shall call a meeting of the unit owners within 30 | ||||||
9 | days of the date of
delivery of the petition to consider | ||||||
10 | the budget or separate
assessment; unless a
majority of
the | ||||||
11 | total votes of the unit owners are cast at the meeting to | ||||||
12 | reject the
budget or separate assessment,
it is ratified, | ||||||
13 | (iii) that any common expense not set forth in the budget | ||||||
14 | or
any increase in assessments over the amount adopted in | ||||||
15 | the budget shall be
separately assessed against all unit | ||||||
16 | owners, (iv) that separate assessments for
expenditures | ||||||
17 | relating to emergencies or mandated by law may be adopted | ||||||
18 | by the
board of managers without being subject to unit | ||||||
19 | owner approval or the
provisions of item (ii) above or item | ||||||
20 | (v) below. As used
herein, "emergency" means an immediate | ||||||
21 | danger to the structural integrity of
the
common elements | ||||||
22 | or to the life, health, safety or property of the unit | ||||||
23 | owners,
(v) that assessments
for additions and alterations | ||||||
24 | to the common elements or to association-owned
property not | ||||||
25 | included in the adopted annual budget, shall be separately
| ||||||
26 | assessed and are subject to approval of two-thirds of the |
| |||||||
| |||||||
1 | total votes of all
unit owners, (vi) that the board of | ||||||
2 | managers may adopt separate assessments
payable over more | ||||||
3 | than one fiscal year. With respect to multi-year | ||||||
4 | assessments
not governed by items (iv) and (v), the entire | ||||||
5 | amount of the multi-year
assessment shall be deemed | ||||||
6 | considered and authorized in the first fiscal year
in which | ||||||
7 | the assessment is approved;
| ||||||
8 | (9)(A) that every meeting of the board of managers | ||||||
9 | shall be open to any unit
owner, except that the board may | ||||||
10 | close any portion of a noticed meeting or meet separately | ||||||
11 | from a noticed meeting to: (i) discuss litigation
when an | ||||||
12 | action against or on behalf of the particular association | ||||||
13 | has been
filed and is pending in a court or administrative | ||||||
14 | tribunal,
or when the board of managers finds that such an | ||||||
15 | action is probable
or imminent, (ii) discuss the | ||||||
16 | appointment, employment, engagement,
or dismissal of an | ||||||
17 | employee, independent contractor, agent, or other provider | ||||||
18 | of goods and services, (iii) interview a potential | ||||||
19 | employee, independent contractor, agent, or other provider | ||||||
20 | of goods and services, (iv) discuss violations of rules and
| ||||||
21 | regulations of the association, (v) discuss a unit owner's | ||||||
22 | unpaid share of common
expenses, or (vi) consult with the | ||||||
23 | association's legal counsel; that any vote on these matters | ||||||
24 | shall take place at a meeting of the board of managers or
| ||||||
25 | portion thereof open to any unit owner; | ||||||
26 | (B) that board members may participate in and act at |
| |||||||
| |||||||
1 | any meeting of the board of managers in person, by | ||||||
2 | telephonic means, or by use of any acceptable technological | ||||||
3 | means whereby all persons participating in the meeting can | ||||||
4 | communicate with each other; that participation | ||||||
5 | constitutes attendance and presence in person at the | ||||||
6 | meeting; | ||||||
7 | (C) that any unit owner may record the
proceedings at | ||||||
8 | meetings of the board of managers or portions thereof | ||||||
9 | required to be open by this
Act by tape, film or other | ||||||
10 | means, and that the board may prescribe reasonable
rules | ||||||
11 | and regulations to govern the right to make such | ||||||
12 | recordings; | ||||||
13 | (D) that
notice of every meeting of the board of | ||||||
14 | managers shall be given to every board member at least 48 | ||||||
15 | hours
prior thereto, unless the board member waives notice | ||||||
16 | of the meeting pursuant to subsection (a) of Section 18.8; | ||||||
17 | and | ||||||
18 | (E) that notice of every meeting
of the board of | ||||||
19 | managers shall be posted in entranceways,
elevators, or | ||||||
20 | other conspicuous places in the condominium at least 48 | ||||||
21 | hours
prior to the meeting of the board of managers except | ||||||
22 | where there is no
common entranceway for 7 or more units, | ||||||
23 | the board of managers may designate
one or more locations | ||||||
24 | in the proximity of these units where the notices of
| ||||||
25 | meetings shall be posted; that notice of every meeting of | ||||||
26 | the board of managers shall also be given at least 48 hours |
| |||||||
| |||||||
1 | prior to the meeting, or such longer notice as this Act may | ||||||
2 | separately require, to: (i) each unit owner who has | ||||||
3 | provided the association with written authorization to | ||||||
4 | conduct business by acceptable technological means, and | ||||||
5 | (ii) to the extent that the condominium instruments of an | ||||||
6 | association require, to each other unit owner, as required | ||||||
7 | by subsection (f) of Section 18.8, by mail or delivery, and | ||||||
8 | that no other notice of a meeting of the board of managers | ||||||
9 | need be given to any unit owner;
| ||||||
10 | (10) that the board shall meet at least 4 times | ||||||
11 | annually;
| ||||||
12 | (11) that no member of the board or officer shall be | ||||||
13 | elected for a term
of more than 2 years, but that officers | ||||||
14 | and board members may succeed
themselves;
| ||||||
15 | (12) the designation of an officer to mail and receive | ||||||
16 | all notices and
execute amendments to condominium | ||||||
17 | instruments as provided for in this Act
and in the | ||||||
18 | condominium instruments;
| ||||||
19 | (13) the method of filling vacancies on the board
which | ||||||
20 | shall include authority for the remaining members of the | ||||||
21 | board to
fill the vacancy by two-thirds vote until the next | ||||||
22 | annual meeting of unit
owners or for a period terminating | ||||||
23 | no later than 30 days following the
filing of a petition | ||||||
24 | signed by unit owners holding 20% of the votes of the
| ||||||
25 | association requesting a meeting of the unit owners to fill | ||||||
26 | the vacancy for
the balance of the term, and that a meeting |
| |||||||
| |||||||
1 | of the unit owners shall be
called for purposes of filling | ||||||
2 | a vacancy on the board no later than 30 days
following the | ||||||
3 | filing of a petition signed by unit owners holding 20% of | ||||||
4 | the
votes of the association requesting such a meeting, and | ||||||
5 | the method of filling
vacancies among the officers that | ||||||
6 | shall include the authority for the members
of the board to | ||||||
7 | fill the vacancy for the unexpired portion of the term;
| ||||||
8 | (14) what percentage of the board of managers, if other | ||||||
9 | than a majority,
shall constitute a quorum;
| ||||||
10 | (15) provisions concerning notice of board meetings to | ||||||
11 | members of the
board;
| ||||||
12 | (16) the board of managers may not enter into a | ||||||
13 | contract with a
current board member
or with a corporation | ||||||
14 | or partnership in which a board
member or a member of the | ||||||
15 | board member's immediate family has 25% or
more interest, | ||||||
16 | unless notice of intent to enter the
contract is given to | ||||||
17 | unit owners within 20 days after a decision is made
to | ||||||
18 | enter into the contract and the unit owners are
afforded an | ||||||
19 | opportunity by filing a petition, signed by 20% of the unit
| ||||||
20 | owners, for an election to approve or disapprove the | ||||||
21 | contract;
such petition shall be filed within 21 20 days | ||||||
22 | after such notice and such
election shall be held within 30 | ||||||
23 | days after filing the petition; for purposes
of this | ||||||
24 | subsection, a board member's immediate family means the | ||||||
25 | board member's
spouse, parents, and children;
| ||||||
26 | (17) that the board of managers may disseminate
to unit |
| |||||||
| |||||||
1 | owners biographical and background information about | ||||||
2 | candidates for
election to the board if (i) reasonable | ||||||
3 | efforts to identify all candidates are
made and all | ||||||
4 | candidates are given an opportunity to include | ||||||
5 | biographical and
background information in the information | ||||||
6 | to be disseminated; and (ii) the
board does not express a | ||||||
7 | preference in favor of any candidate;
| ||||||
8 | (18) any proxy distributed for board elections
by the | ||||||
9 | board of managers gives unit owners the
opportunity to | ||||||
10 | designate any person as the proxy holder, and gives the | ||||||
11 | unit
owner the opportunity to express a preference for any | ||||||
12 | of the known
candidates for the board or to write in a | ||||||
13 | name;
| ||||||
14 | (19) that special meetings of the board of managers can | ||||||
15 | be called by
the president or 25% of the members of the | ||||||
16 | board;
| ||||||
17 | (20) that the board of managers may establish
and | ||||||
18 | maintain a system of master metering of public utility | ||||||
19 | services and
collect payments in connection therewith, | ||||||
20 | subject to the requirements of the
Tenant Utility Payment | ||||||
21 | Disclosure Act; and
| ||||||
22 | (21) that the board may ratify and confirm actions of | ||||||
23 | the
members of the board taken in response to an emergency, | ||||||
24 | as that
term is defined in subdivision (a)(8)(iv) of this | ||||||
25 | Section; that
the board shall give notice to the unit | ||||||
26 | owners of: (i) the
occurrence of the emergency event within |
| |||||||
| |||||||
1 | 7 business days after
the emergency event, and (ii) the | ||||||
2 | general description of the
actions taken to address the | ||||||
3 | event within 7 days after the
emergency event. | ||||||
4 | The intent of the provisions of Public Act 99-472 | ||||||
5 | adding this paragraph (21) is to empower and support boards | ||||||
6 | to act in
emergencies. | ||||||
7 | (b)(1) What percentage of the unit owners, if other | ||||||
8 | than 20%, shall
constitute a quorum provided that, for | ||||||
9 | condominiums with 20 or more units,
the percentage of unit | ||||||
10 | owners constituting a quorum shall be 20% unless the
unit | ||||||
11 | owners holding a majority of the percentage interest in the
| ||||||
12 | association provide for a higher percentage, provided that | ||||||
13 | in voting on amendments to the association's bylaws, a unit | ||||||
14 | owner who is in arrears on the unit owner's regular or | ||||||
15 | separate assessments for 60 days or more, shall not be | ||||||
16 | counted for purposes of determining if a quorum is present, | ||||||
17 | but that unit owner retains the right to vote on amendments | ||||||
18 | to the association's bylaws;
| ||||||
19 | (2) that the association shall have one class of | ||||||
20 | membership;
| ||||||
21 | (3) that the members shall hold an annual meeting, one | ||||||
22 | of the purposes
of which shall be to elect members of the | ||||||
23 | board of managers;
| ||||||
24 | (4) the method of calling meetings of the unit owners;
| ||||||
25 | (5) that special meetings of the members can be called | ||||||
26 | by the president,
board of managers, or by 20% of unit |
| |||||||
| |||||||
1 | owners;
| ||||||
2 | (6) that written notice of any membership meeting shall | ||||||
3 | be mailed
or delivered giving members no less than 10 and | ||||||
4 | no more than 30 days
notice of the time, place and purpose | ||||||
5 | of such meeting except that notice may be sent, to the | ||||||
6 | extent the condominium instruments or rules adopted | ||||||
7 | thereunder expressly so provide, by electronic | ||||||
8 | transmission consented to by the unit owner to whom the | ||||||
9 | notice is given, provided the director and officer or his | ||||||
10 | agent certifies in writing to the delivery by electronic | ||||||
11 | transmission;
| ||||||
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 |
| |||||||
| |||||||
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) except as provided in subparagraph (B) of this | ||||||
7 | paragraph (9) in
connection with board elections, that
a | ||||||
8 | unit owner may vote by proxy executed in writing by the | ||||||
9 | unit
owner or by his duly authorized attorney in fact; that | ||||||
10 | the proxy must bear the date of
execution
and, unless the | ||||||
11 | condominium instruments or the written proxy itself | ||||||
12 | provide
otherwise, is
invalid after 11 months from the date | ||||||
13 | of its execution; to the extent the condominium instruments | ||||||
14 | or rules adopted thereunder expressly so provide, a vote or | ||||||
15 | proxy may be submitted by electronic transmission, | ||||||
16 | provided that any such electronic transmission shall | ||||||
17 | either set forth or be submitted with information from | ||||||
18 | which it can be determined that the electronic transmission | ||||||
19 | was authorized by the unit owner or the unit owner's proxy;
| ||||||
20 | (B) that if a rule adopted at least 120 days before a | ||||||
21 | board election
or the
declaration or bylaws provide for | ||||||
22 | balloting as set forth in this subsection,
unit
owners may | ||||||
23 | not vote by proxy in board elections, but may vote only (i) | ||||||
24 | by
submitting an association-issued ballot in person at the | ||||||
25 | election meeting or
(ii) by
submitting an | ||||||
26 | association-issued ballot to the association or its |
| |||||||
| |||||||
1 | designated
agent
by mail or other means of delivery | ||||||
2 | specified in the declaration, bylaws, or
rule; that
the | ||||||
3 | ballots shall be mailed or otherwise distributed to unit | ||||||
4 | owners not less
than 10
and not more than 30 days before | ||||||
5 | the election meeting, and the board shall give
unit owners | ||||||
6 | not less than 21 days' prior written notice of the deadline | ||||||
7 | for
inclusion of a candidate's name on the ballots; that | ||||||
8 | the deadline shall be no
more
than 7 days before the | ||||||
9 | ballots are mailed or otherwise distributed to unit
owners; | ||||||
10 | that
every such ballot must include the names of all | ||||||
11 | candidates who have given the
board or its authorized agent | ||||||
12 | timely written notice of their candidacy and must
give the | ||||||
13 | person casting the ballot the opportunity to cast votes for | ||||||
14 | candidates
whose names do not appear on the ballot; that a | ||||||
15 | ballot received by the
association
or
its designated agent | ||||||
16 | after the close of voting shall not be counted; that a
unit
| ||||||
17 | owner
who submits a ballot by mail or other means of | ||||||
18 | delivery specified in the
declaration, bylaws, or rule may | ||||||
19 | request and cast a ballot in person at the
election
| ||||||
20 | meeting, and thereby void any ballot previously submitted | ||||||
21 | by that unit owner; | ||||||
22 | (B-5) 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 subparagraph, unit owners | ||||||
25 | may not vote by proxy in board elections, but may vote only | ||||||
26 | (i) by submitting an association-issued ballot in person at |
| |||||||
| |||||||
1 | the election meeting; or (ii) by any acceptable | ||||||
2 | technological means as defined in Section 2 of this Act; | ||||||
3 | instructions regarding the use of electronic means for | ||||||
4 | voting shall be distributed to all unit owners not less | ||||||
5 | than 10 and not more than 30 days before the election | ||||||
6 | meeting, and the board shall give unit owners not less than | ||||||
7 | 21 days' prior written notice of the deadline for inclusion | ||||||
8 | of a candidate's name on the ballots; the deadline shall be | ||||||
9 | no more than 7 days before the instructions for voting | ||||||
10 | using electronic or acceptable technological means is | ||||||
11 | distributed to unit owners; every instruction notice must | ||||||
12 | include the names of all candidates who have given the | ||||||
13 | board or its authorized agent timely written notice of | ||||||
14 | their candidacy and must give the person voting through | ||||||
15 | electronic or acceptable technological means the | ||||||
16 | opportunity to cast votes for candidates whose names do not | ||||||
17 | appear on the ballot; a unit owner who submits a vote using | ||||||
18 | electronic or acceptable technological means may request | ||||||
19 | and cast a ballot in person at the election meeting, | ||||||
20 | thereby voiding any vote previously submitted by that unit | ||||||
21 | owner;
| ||||||
22 | (C) that if a written petition by unit owners with at | ||||||
23 | least 20% of the
votes of
the association is delivered to | ||||||
24 | the board within 21 14 days after the board's
approval
of a | ||||||
25 | rule adopted pursuant to subparagraph (B) or subparagraph | ||||||
26 | (B-5) of this paragraph (9), the board
shall call a meeting |
| |||||||
| |||||||
1 | of the unit owners within 30 days after the date of
| ||||||
2 | delivery of
the petition; that unless a majority of the | ||||||
3 | total votes of the unit owners are
cast
at the
meeting to | ||||||
4 | reject the rule, the rule is ratified;
| ||||||
5 | (D) that votes cast by ballot under subparagraph (B) or | ||||||
6 | electronic or acceptable technological means under | ||||||
7 | subparagraph (B-5) of this paragraph (9) are valid for the | ||||||
8 | purpose of establishing a quorum; | ||||||
9 | (10) that the association may, upon adoption of the | ||||||
10 | appropriate rules by
the board of managers, conduct | ||||||
11 | elections by secret ballot whereby the voting
ballot is | ||||||
12 | marked only with the percentage interest for the unit and | ||||||
13 | the vote
itself, provided that the board further adopt | ||||||
14 | rules to verify the status of the
unit owner issuing a | ||||||
15 | proxy or casting a ballot; and further, that a candidate
| ||||||
16 | for election to the board of managers or such
candidate's | ||||||
17 | representative shall have the right to be present at the
| ||||||
18 | counting of ballots at such election;
| ||||||
19 | (11) that in the event of a resale of a condominium | ||||||
20 | unit the purchaser
of a unit from a seller other than the | ||||||
21 | developer pursuant to an installment
contract for purchase | ||||||
22 | shall during such times as he or she resides in the
unit be | ||||||
23 | counted toward a quorum for purposes of election of members | ||||||
24 | of the
board of managers at any meeting of the unit owners | ||||||
25 | called for purposes of
electing members of the board, shall | ||||||
26 | have the right to vote for the
election of members of the |
| |||||||
| |||||||
1 | board of managers and to be elected to and serve
on the | ||||||
2 | board of managers unless the seller expressly retains in | ||||||
3 | writing any
or all of such rights. In no event may the | ||||||
4 | seller and purchaser both be
counted toward a quorum, be | ||||||
5 | permitted to vote for a particular office or be
elected and | ||||||
6 | serve on the board. Satisfactory evidence of the | ||||||
7 | installment contract
shall be made available to the | ||||||
8 | association or its agents. For
purposes of this subsection, | ||||||
9 | "installment contract" shall have the same
meaning as set | ||||||
10 | forth in Section 1(e) of the Dwelling Unit Installment | ||||||
11 | Contract Act;
| ||||||
12 | (12) the method by which matters subject to the | ||||||
13 | approval of unit owners
set forth in this Act, or in the | ||||||
14 | condominium instruments, will be
submitted to the unit | ||||||
15 | owners at special membership meetings called for such
| ||||||
16 | purposes; and
| ||||||
17 | (13) that matters subject to the affirmative vote of | ||||||
18 | not less than 2/3
of the votes of unit owners at a meeting | ||||||
19 | duly called for that purpose,
shall include, but not be | ||||||
20 | limited to:
| ||||||
21 | (i) merger or consolidation of the association;
| ||||||
22 | (ii) sale, lease, exchange, or other disposition | ||||||
23 | (excluding the mortgage
or pledge) of all, or | ||||||
24 | substantially all of the property and assets of the
| ||||||
25 | association; and
| ||||||
26 | (iii) the purchase or sale of land or of units on |
| |||||||
| |||||||
1 | behalf of all unit owners.
| ||||||
2 | (c) Election of a president from among the board of | ||||||
3 | managers, who shall
preside over the meetings of the board | ||||||
4 | of managers and of the unit owners.
| ||||||
5 | (d) Election of a secretary from among the board of | ||||||
6 | managers, who shall
keep the minutes of all meetings
of the | ||||||
7 | board of managers and of the unit owners and who shall, in | ||||||
8 | general,
perform all the duties incident to the office of | ||||||
9 | secretary.
| ||||||
10 | (e) Election of a treasurer from among the board of | ||||||
11 | managers, who shall
keep the financial records and
books of | ||||||
12 | account.
| ||||||
13 | (f) Maintenance, repair and replacement of the common | ||||||
14 | elements and
payments therefor, including the method of | ||||||
15 | approving payment vouchers.
| ||||||
16 | (g) An association with 30 or more units shall obtain | ||||||
17 | and maintain
fidelity insurance covering persons who | ||||||
18 | control or disburse funds of the
association for the | ||||||
19 | maximum amount of coverage available to protect funds
in | ||||||
20 | the custody or control of the association plus the | ||||||
21 | association reserve
fund. All management companies which | ||||||
22 | are responsible for the funds held or
administered by the | ||||||
23 | association shall maintain and furnish to the
association a | ||||||
24 | fidelity bond for the maximum amount of coverage available | ||||||
25 | to
protect funds in the custody of the management company | ||||||
26 | at any time. The
association shall bear the cost of the |
| |||||||
| |||||||
1 | fidelity insurance and fidelity
bond, unless otherwise | ||||||
2 | provided by contract between the association and a
| ||||||
3 | management company. The association shall be the direct | ||||||
4 | obligee of any
such fidelity bond. A management company | ||||||
5 | holding reserve funds of an
association shall at all times | ||||||
6 | maintain a separate account for each
association, | ||||||
7 | provided, however, that for investment purposes, the Board | ||||||
8 | of
Managers of an association may authorize a management | ||||||
9 | company to maintain
the association's reserve funds in a | ||||||
10 | single interest bearing account with
similar funds of other | ||||||
11 | associations. The management company shall at all
times | ||||||
12 | maintain records identifying all moneys of each | ||||||
13 | association in such
investment account. The management | ||||||
14 | company may hold all operating funds of
associations which | ||||||
15 | it manages in a single operating account but shall at
all | ||||||
16 | times maintain records identifying all moneys of each | ||||||
17 | 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 | ||||||
20 | creditor of the management company.
| ||||||
21 | For the purpose of this subsection, a management | ||||||
22 | company shall be
defined as a person, partnership, | ||||||
23 | corporation, or other legal entity
entitled to transact | ||||||
24 | business on behalf of others, acting on behalf of or
as an | ||||||
25 | agent for a unit owner, unit owners or association of unit | ||||||
26 | owners for
the purpose of carrying out the duties, |
| |||||||
| |||||||
1 | responsibilities, and other
obligations necessary for the | ||||||
2 | day to day operation and management of any
property subject | ||||||
3 | to this Act. For purposes of this subsection, the term
| ||||||
4 | "fiduciary insurance coverage" shall be defined as both a | ||||||
5 | fidelity bond and
directors and officers liability | ||||||
6 | coverage, the fidelity bond in the full
amount of | ||||||
7 | association funds and association reserves that will be in | ||||||
8 | the
custody of the association, and the directors and | ||||||
9 | officers liability
coverage at a level as shall be | ||||||
10 | determined to be reasonable by the board of
managers, if | ||||||
11 | not otherwise established by the declaration or by laws.
| ||||||
12 | Until one year after September 21, 1985 (the effective | ||||||
13 | date of Public Act 84-722),
if a condominium association | ||||||
14 | has reserves plus assessments in excess of
$250,000 and | ||||||
15 | cannot reasonably obtain 100% fidelity bond coverage for | ||||||
16 | such
amount, then it must obtain a fidelity bond coverage | ||||||
17 | of $250,000.
| ||||||
18 | (h) Method of estimating the amount of the annual | ||||||
19 | budget, and the manner
of assessing and collecting from the | ||||||
20 | unit owners their respective shares of
such estimated | ||||||
21 | expenses, and of any other expenses lawfully agreed upon.
| ||||||
22 | (i) That upon 10 days notice to the manager or board of | ||||||
23 | managers and
payment of a reasonable fee, any unit owner | ||||||
24 | shall be furnished a statement
of his account setting forth | ||||||
25 | the amount of any unpaid assessments or other
charges due | ||||||
26 | and owing from such owner.
|
| |||||||
| |||||||
1 | (j) Designation and removal of personnel necessary for | ||||||
2 | the maintenance,
repair and replacement of the common | ||||||
3 | elements.
| ||||||
4 | (k) Such restrictions on and requirements respecting | ||||||
5 | the use and
maintenance of the units and the use of the | ||||||
6 | common elements, not set forth
in the declaration, as are | ||||||
7 | designed to prevent unreasonable interference
with the use | ||||||
8 | of their respective units and of the common elements by the
| ||||||
9 | several unit owners.
| ||||||
10 | (l) Method of adopting and of amending administrative | ||||||
11 | rules and
regulations governing the operation and use of | ||||||
12 | the common elements.
| ||||||
13 | (m) The percentage of votes required to modify or amend | ||||||
14 | the bylaws, but
each one of the particulars set forth in | ||||||
15 | this section shall always be
embodied in the bylaws.
| ||||||
16 | (n)(i) The provisions of this Act, the declaration, | ||||||
17 | bylaws, other
condominium instruments, and rules and | ||||||
18 | regulations that relate to the use
of the individual unit | ||||||
19 | or the common elements shall be applicable to
any person | ||||||
20 | leasing a unit and shall be deemed to be incorporated in | ||||||
21 | any
lease executed or renewed on or after August 30, 1984 | ||||||
22 | (the effective date of Public Act 83-1271). | ||||||
23 | (ii) With regard to any lease entered into subsequent | ||||||
24 | to July 1, 1990 (the
effective date of Public Act 86-991), | ||||||
25 | the unit owner leasing the
unit shall deliver a copy of the | ||||||
26 | signed lease to the board or if the
lease is oral, a |
| |||||||
| |||||||
1 | memorandum of the lease, not later than the date of
| ||||||
2 | occupancy or 10 days after the lease is signed, whichever | ||||||
3 | occurs first. In
addition to any other remedies, by filing | ||||||
4 | an action jointly against the
tenant and the unit owner, an | ||||||
5 | association may seek to enjoin a tenant from
occupying a | ||||||
6 | unit or seek to evict a tenant under the provisions of | ||||||
7 | Article
IX of the Code of Civil Procedure for failure of | ||||||
8 | the lessor-owner to
comply with the leasing requirements | ||||||
9 | prescribed by
this Section or by the declaration, bylaws, | ||||||
10 | and
rules and regulations. The board of managers may | ||||||
11 | proceed directly against a
tenant, at law or in equity, or | ||||||
12 | under the provisions of Article IX of the
Code of Civil | ||||||
13 | Procedure, for any other breach by tenant of any
covenants, | ||||||
14 | rules, regulations or bylaws.
| ||||||
15 | (o) The association shall have no authority to forbear | ||||||
16 | the payment
of assessments by any unit owner.
| ||||||
17 | (p) That when 30% or fewer of the units, by number,
| ||||||
18 | possess over 50% in the aggregate of the votes in the | ||||||
19 | association,
any percentage vote of members specified | ||||||
20 | herein or in the condominium
instruments shall require the | ||||||
21 | specified percentage by number of units
rather than by | ||||||
22 | percentage of interest in the common elements allocated
to | ||||||
23 | units that would otherwise be applicable and garage units | ||||||
24 | or storage units, or both, shall have, in total, no more | ||||||
25 | votes than their aggregate percentage of ownership in the | ||||||
26 | common elements; this shall mean that if garage units or |
| |||||||
| |||||||
1 | storage units, or both, are to be given a vote, or portion | ||||||
2 | of a vote, that the association must add the total number | ||||||
3 | of votes cast of garage units, storage units, or both, and | ||||||
4 | divide the total by the number of garage units, storage | ||||||
5 | units, or both, and multiply by the aggregate percentage of | ||||||
6 | ownership of garage units and storage units to determine | ||||||
7 | the vote, or portion of a vote, that garage units or | ||||||
8 | storage units, or both, have. For purposes of this | ||||||
9 | subsection (p), when making a determination of whether 30% | ||||||
10 | or fewer of the units, by number, possess over 50% in the | ||||||
11 | aggregate of the votes in the association, a unit shall not | ||||||
12 | include a garage unit or a storage unit.
| ||||||
13 | (q) That a unit owner may not assign, delegate, | ||||||
14 | transfer, surrender, or
avoid the duties, | ||||||
15 | responsibilities, and liabilities of a unit owner under | ||||||
16 | this
Act, the condominium instruments, or the rules and | ||||||
17 | regulations of the
Association; and that such an attempted | ||||||
18 | assignment, delegation, transfer,
surrender, or avoidance | ||||||
19 | shall be deemed void.
| ||||||
20 | The provisions of this Section are applicable to all | ||||||
21 | condominium
instruments recorded under this Act. Any portion of | ||||||
22 | a condominium
instrument which contains provisions contrary to | ||||||
23 | these provisions shall be
void as against public policy and | ||||||
24 | ineffective. Any such instrument which
fails to contain the | ||||||
25 | provisions required by this Section shall be deemed to
| ||||||
26 | incorporate such provisions by operation of law.
|
| |||||||
| |||||||
1 | (Source: P.A. 98-1042, eff. 1-1-15; 99-472, eff. 6-1-16; | ||||||
2 | 99-567, eff. 1-1-17; 99-642, eff. 7-28-16 .)
| ||||||
3 | (765 ILCS 605/18.4) (from Ch. 30, par. 318.4)
| ||||||
4 | Sec. 18.4. Powers and duties of board of managers. The | ||||||
5 | board of
managers shall exercise for the association all | ||||||
6 | powers, duties and
authority vested in the association by law | ||||||
7 | or the condominium instruments
except for such powers, duties | ||||||
8 | and authority reserved by law to the members
of the | ||||||
9 | association. The powers and duties of the board of managers | ||||||
10 | shall
include, but shall not be limited to, the following:
| ||||||
11 | (a) To provide for the operation, care, upkeep, | ||||||
12 | maintenance,
replacement and improvement of the common | ||||||
13 | elements. Nothing
in
this subsection (a) shall be deemed to | ||||||
14 | invalidate any provision in a
condominium instrument | ||||||
15 | placing limits on expenditures for the common elements, | ||||||
16 | provided, that such
limits shall not be applicable to | ||||||
17 | expenditures for repair, replacement, or
restoration of | ||||||
18 | existing portions of the common elements. The
term "repair, | ||||||
19 | replacement or restoration" means expenditures to | ||||||
20 | deteriorated or
damaged portions of the property related to | ||||||
21 | the existing decorating,
facilities, or structural or | ||||||
22 | mechanical components, interior or exterior
surfaces, or | ||||||
23 | energy systems and equipment with the functional | ||||||
24 | equivalent of the
original portions of such areas. | ||||||
25 | Replacement of the common elements may
result in an |
| |||||||
| |||||||
1 | improvement over the original quality of such elements or
| ||||||
2 | facilities; provided that, unless the improvement is | ||||||
3 | mandated by law or is an
emergency as defined in item (iv) | ||||||
4 | of subparagraph (8) of paragraph (a) of
Section 18, if the | ||||||
5 | improvement results in a proposed expenditure
exceeding 5% | ||||||
6 | of the annual budget, the board of managers, upon written | ||||||
7 | petition
by unit owners with 20% of the votes of the | ||||||
8 | association delivered to the board
within 21 14 days of the | ||||||
9 | board action to approve the expenditure, shall call a
| ||||||
10 | meeting of the unit owners within 30 days of the date of | ||||||
11 | delivery of the
petition to consider the expenditure. | ||||||
12 | Unless a majority of the total votes of
the unit owners are | ||||||
13 | cast at the meeting to reject the expenditure, it is
| ||||||
14 | ratified.
| ||||||
15 | (b) To prepare, adopt and distribute the annual budget | ||||||
16 | for the property.
| ||||||
17 | (c) To levy and expend assessments.
| ||||||
18 | (d) To collect assessments from unit
owners.
| ||||||
19 | (e) To provide for the employment and dismissal of the | ||||||
20 | personnel
necessary or advisable for the maintenance and | ||||||
21 | operation of the common
elements.
| ||||||
22 | (f) To obtain adequate and appropriate kinds of
| ||||||
23 | insurance.
| ||||||
24 | (g) To own, convey, encumber, lease, and otherwise deal | ||||||
25 | with units
conveyed to or purchased by it.
| ||||||
26 | (h) To adopt and amend rules and regulations covering |
| |||||||
| |||||||
1 | the details of
the operation and use of the property, after | ||||||
2 | a meeting of the unit owners
called for the specific | ||||||
3 | purpose of discussing the proposed rules and
regulations. | ||||||
4 | Notice of the meeting shall contain the full text of the
| ||||||
5 | proposed rules and regulations, and the meeting shall | ||||||
6 | conform to the
requirements of Section 18(b) of this Act, | ||||||
7 | except that no quorum is
required at the meeting of the | ||||||
8 | unit owners unless the declaration, bylaws
or other | ||||||
9 | condominium instrument expressly provides to the contrary.
| ||||||
10 | However, no rule or regulation may impair any rights | ||||||
11 | guaranteed by the
First Amendment to the Constitution of | ||||||
12 | the United States or Section 4 of
Article I of the Illinois | ||||||
13 | Constitution including, but not limited to, the free | ||||||
14 | exercise of religion, nor may any rules or regulations
| ||||||
15 | conflict with the provisions of this Act or the condominium | ||||||
16 | instruments. No rule or regulation shall prohibit any | ||||||
17 | reasonable accommodation for religious practices, | ||||||
18 | including the attachment of religiously mandated objects | ||||||
19 | to the front-door area of a condominium unit.
| ||||||
20 | (i) To keep detailed, accurate records of the receipts | ||||||
21 | and
expenditures affecting the use and operation of the | ||||||
22 | property.
| ||||||
23 | (j) To have access to each unit from time to time as | ||||||
24 | may be necessary
for the maintenance, repair or replacement | ||||||
25 | of any common elements or for
making emergency repairs | ||||||
26 | necessary to prevent damage to the common elements
or to |
| |||||||
| |||||||
1 | other units.
| ||||||
2 | (k) To pay real property taxes, special assessments, | ||||||
3 | and any other
special taxes or charges of the State of | ||||||
4 | Illinois or of any political
subdivision thereof, or other | ||||||
5 | lawful taxing or assessing body, which are
authorized by | ||||||
6 | law to be assessed and levied upon the real property of the
| ||||||
7 | condominium.
| ||||||
8 | (l) To impose charges for late payment of a unit | ||||||
9 | owner's proportionate
share of the common expenses, or any | ||||||
10 | other expenses lawfully agreed upon,
and after notice and | ||||||
11 | an opportunity to be heard, to levy reasonable fines
for | ||||||
12 | violation of the declaration, by-laws, and rules and | ||||||
13 | regulations of
the association.
| ||||||
14 | (m) By a majority vote of the entire board of managers, | ||||||
15 | to assign the
right of the association to future income | ||||||
16 | from common expenses or other
sources, and to mortgage or | ||||||
17 | pledge substantially all of the remaining
assets of the | ||||||
18 | association.
| ||||||
19 | (n) To record the dedication of a portion of the common | ||||||
20 | elements
to a public body for use as, or in connection | ||||||
21 | with, a street or utility
where authorized by the unit | ||||||
22 | owners under the provisions of Section 14.2.
| ||||||
23 | (o) To record the granting of an easement for the | ||||||
24 | laying of cable
television or high speed Internet cable | ||||||
25 | where authorized by the unit owners under the provisions
of | ||||||
26 | Section 14.3; to obtain, if available and determined by the |
| |||||||
| |||||||
1 | board to be in
the best interests of the association, cable | ||||||
2 | television
or bulk high speed Internet service for all of | ||||||
3 | the units of the condominium on a bulk
identical service | ||||||
4 | and equal cost per unit basis; and to assess and recover | ||||||
5 | the
expense as a common expense and, if so determined by | ||||||
6 | the board, to assess each
and every unit on the same equal | ||||||
7 | cost per unit basis.
| ||||||
8 | (p) To seek relief on behalf of all unit owners when | ||||||
9 | authorized
pursuant to subsection (c) of Section 10 from or | ||||||
10 | in connection with the
assessment or levying of real | ||||||
11 | property taxes, special assessments, and any
other special | ||||||
12 | taxes or charges of the State of Illinois or of any | ||||||
13 | political
subdivision thereof or of any lawful taxing or | ||||||
14 | assessing body.
| ||||||
15 | (q) To reasonably accommodate the needs of a unit owner | ||||||
16 | who is a person with a disability
as required by the | ||||||
17 | federal Civil Rights Act of 1968, the Human Rights Act
and | ||||||
18 | any applicable local ordinances in the exercise of its | ||||||
19 | powers with
respect to the use of common elements or | ||||||
20 | approval of modifications in an
individual unit.
| ||||||
21 | (r) To accept service of a notice of claim for purposes | ||||||
22 | of the Mechanics Lien Act on behalf of each respective | ||||||
23 | member of the Unit Owners' Association with respect to | ||||||
24 | improvements performed pursuant to any contract entered | ||||||
25 | into by the Board of Managers or any contract entered into | ||||||
26 | prior to the recording of the condominium declaration |
| |||||||
| |||||||
1 | pursuant to this Act, for a property containing more than 8 | ||||||
2 | units, and to distribute the notice to the unit owners | ||||||
3 | within 7 days of the acceptance of the service by the Board | ||||||
4 | of Managers. The service shall be effective as if each | ||||||
5 | individual unit owner had been served individually with | ||||||
6 | notice.
| ||||||
7 | (s) To adopt and amend rules and regulations (l) | ||||||
8 | authorizing electronic delivery of notices and other | ||||||
9 | communications required or contemplated by this Act to each | ||||||
10 | unit owner who provides the association with written | ||||||
11 | authorization for electronic delivery and an electronic | ||||||
12 | address to which such communications are to be | ||||||
13 | electronically transmitted; and (2) authorizing each unit | ||||||
14 | owner to designate an electronic address or a U.S. Postal | ||||||
15 | Service address, or both, as the unit owner's address on | ||||||
16 | any list of members or unit owners which an association is | ||||||
17 | required to provide upon request pursuant to any provision | ||||||
18 | of this Act or any condominium instrument. | ||||||
19 | In the performance of their duties, the officers and | ||||||
20 | members of the board,
whether appointed by the developer or | ||||||
21 | elected by the unit owners, shall
exercise the care required of | ||||||
22 | a fiduciary of the unit owners.
| ||||||
23 | The collection of assessments from unit owners by an | ||||||
24 | association, board
of managers or their duly authorized agents | ||||||
25 | shall not be considered acts
constituting a collection agency | ||||||
26 | for purposes of the Collection Agency Act.
|
| |||||||
| |||||||
1 | The provisions of this Section are
applicable to all | ||||||
2 | condominium instruments recorded under this Act. Any
portion of | ||||||
3 | a condominium instrument which contains provisions contrary to
| ||||||
4 | these provisions shall be void as against public policy and | ||||||
5 | ineffective.
Any such instrument that fails to contain the | ||||||
6 | provisions required by this
Section shall be deemed to | ||||||
7 | incorporate such provisions by operation of law.
| ||||||
8 | (Source: P.A. 98-735, eff. 1-1-15; 99-143, eff. 7-27-15; | ||||||
9 | 99-849, eff. 1-1-17 .)
| ||||||
10 | (765 ILCS 605/18.10 new) | ||||||
11 | Sec. 18.10. Generally accepted accounting principles. An | ||||||
12 | association subject to this Act that consists of 100 or more | ||||||
13 | units shall use generally accepted accounting principles in | ||||||
14 | fulfilling any accounting obligations under this Act.
| ||||||
15 | (765 ILCS 605/19) (from Ch. 30, par. 319)
| ||||||
16 | Sec. 19. Records of the association; availability for | ||||||
17 | examination.
| ||||||
18 | (a) The board of managers of every association shall keep | ||||||
19 | and maintain the
following records, or true and complete copies | ||||||
20 | of these records, at the
association's principal office:
| ||||||
21 | (1) the association's declaration, bylaws, and plats | ||||||
22 | of survey, and all
amendments of these;
| ||||||
23 | (2) the rules and regulations of the association, if | ||||||
24 | any;
|
| |||||||
| |||||||
1 | (3) if the association is incorporated as a | ||||||
2 | corporation, the articles
of incorporation of the | ||||||
3 | association and all amendments to the articles of
| ||||||
4 | incorporation;
| ||||||
5 | (4) minutes of all meetings of the association and its | ||||||
6 | board of managers
for the immediately preceding 7 years;
| ||||||
7 | (5) all current policies of insurance of the | ||||||
8 | association;
| ||||||
9 | (6) all contracts, leases, and other agreements then in | ||||||
10 | effect to which
the association is a party or under which | ||||||
11 | the association or the unit owners
have obligations or | ||||||
12 | liabilities;
| ||||||
13 | (7) a current listing of the names, addresses, email | ||||||
14 | addresses, telephone numbers, and weighted vote of all
| ||||||
15 | members entitled to vote;
| ||||||
16 | (8) ballots and proxies related to ballots for all | ||||||
17 | matters voted on by
the members of the association during | ||||||
18 | the immediately preceding 12 months,
including but not | ||||||
19 | limited to the election of members of the board of | ||||||
20 | managers;
and
| ||||||
21 | (9) the books and records of account for the | ||||||
22 | association's current and 10
immediately preceding fiscal | ||||||
23 | years, including but not limited to itemized and
detailed | ||||||
24 | records of all receipts , and expenditures , and accounts .
| ||||||
25 | (b) Any member of an association shall have the right to | ||||||
26 | inspect, examine,
and make copies of the records described in |
| |||||||
| |||||||
1 | subdivisions (1), (2), (3), (4),
and (5) , (6), and (9) of | ||||||
2 | subsection (a) of this Section, in person or by agent, at any
| ||||||
3 | reasonable time or times, at the association's principal | ||||||
4 | office. In order
to exercise this right, a member must submit a | ||||||
5 | written request to the
association's board of managers or its | ||||||
6 | authorized agent, stating with
particularity the records | ||||||
7 | sought to be examined. Failure of an association's
board of | ||||||
8 | managers to make available all records so requested within 10 | ||||||
9 | business 30 days of
receipt of the member's written request | ||||||
10 | shall be deemed a denial.
| ||||||
11 | Any member who prevails in an enforcement action to compel | ||||||
12 | examination of
records described in subdivisions (1), (2), (3), | ||||||
13 | (4), and (5) , (6), and (9) of subsection (a)
of this Section | ||||||
14 | shall be entitled to recover reasonable attorney's fees and
| ||||||
15 | costs from the association.
| ||||||
16 | (c) (Blank).
| ||||||
17 | (d) (Blank).
| ||||||
18 | (d-5) As used in this Section, "commercial purpose" means | ||||||
19 | the use of any part of a record or records described in | ||||||
20 | subdivisions (7) and (8) of subsection (a) of this Section, or | ||||||
21 | information derived from such records, in any form for sale, | ||||||
22 | resale, or solicitation or advertisement for sales or services. | ||||||
23 | (e) Except as otherwise provided in subsection (g) of this
| ||||||
24 | Section, any member of an association shall have the right to | ||||||
25 | inspect, examine,
and make copies of the records described in | ||||||
26 | subdivisions (7) and (8) (6), (7), (8), and
(9) of subsection |
| |||||||
| |||||||
1 | (a) of this Section, in person or by agent, at any reasonable
| ||||||
2 | time or times but only for a proper purpose that relates to the | ||||||
3 | association , at the association's principal
office. In order to | ||||||
4 | exercise this right, a member must submit a written
request, to | ||||||
5 | the association's board of managers or its authorized agent,
| ||||||
6 | stating with particularity the records sought to be examined . | ||||||
7 | As a condition for exercising this right, the board of managers | ||||||
8 | or authorized agent of the association may require the member | ||||||
9 | to certify in writing that the information contained in the | ||||||
10 | records obtained by the member will not be used by the member | ||||||
11 | for any commercial purpose or for any purpose that does not | ||||||
12 | relate to the association. The board of managers of the | ||||||
13 | association may impose a fine in accordance with item (l) of | ||||||
14 | Section 18.4 upon any person who makes a false certification. | ||||||
15 | and a proper
purpose for the request. Subject to the provisions | ||||||
16 | of subsection (g) of this Section, failure of an association's | ||||||
17 | board of managers to make
available all records so requested | ||||||
18 | within 10 business 30 business days of receipt of the
member's | ||||||
19 | written request shall be deemed a denial; provided, however, | ||||||
20 | that the
board of managers of an association that has adopted a | ||||||
21 | secret ballot election
process as provided in Section 18 of | ||||||
22 | this Act shall not be deemed to have
denied a member's request | ||||||
23 | for records described in subdivision (8) of
subsection (a) of | ||||||
24 | this Section if voting ballots, without identifying unit
| ||||||
25 | numbers, are made available to the requesting member within 10 | ||||||
26 | business 30 days of receipt
of the member's written request.
|
| |||||||
| |||||||
1 | In an action to compel examination of records described in | ||||||
2 | subdivisions (6),
(7), (8), and (9) of subsection (a) of this | ||||||
3 | Section, the burden of proof is
upon the member to establish | ||||||
4 | that the member's request is based on a proper
purpose. Any | ||||||
5 | member who prevails in an enforcement action to compel
| ||||||
6 | examination of records described in subdivisions (7) or (8) | ||||||
7 | (6), (7), (8), and (9) of
subsection (a) of this Section shall | ||||||
8 | be entitled to recover reasonable
attorney's fees and costs | ||||||
9 | from the association only if the court finds that
the board of | ||||||
10 | directors acted in bad faith in denying the member's request.
| ||||||
11 | (f) The actual cost to the association of retrieving and | ||||||
12 | making requested
records available for inspection and | ||||||
13 | examination under this Section may shall be
charged by the | ||||||
14 | association to the requesting member. If a member requests
| ||||||
15 | copies of records requested under this Section, the actual | ||||||
16 | costs to the
association of reproducing the records may shall | ||||||
17 | also be charged by the association
to the requesting member.
| ||||||
18 | (g) Notwithstanding the provisions of subsection (e) of | ||||||
19 | this Section, unless
otherwise directed by court order, an | ||||||
20 | association need not make the following
records available for | ||||||
21 | inspection, examination, or copying by its members:
| ||||||
22 | (1) documents relating to appointment, employment, | ||||||
23 | discipline, or
dismissal of association employees;
| ||||||
24 | (2) documents relating to actions pending against or on | ||||||
25 | behalf of the
association or its board of managers in a | ||||||
26 | court or administrative tribunal;
|
| |||||||
| |||||||
1 | (3) documents relating to actions threatened against, | ||||||
2 | or likely to be
asserted on behalf of, the association or | ||||||
3 | its board of managers in a court or
administrative | ||||||
4 | tribunal;
| ||||||
5 | (4) documents relating to common expenses or other | ||||||
6 | charges owed by a
member other than the requesting member; | ||||||
7 | and
| ||||||
8 | (5) documents provided to an association in connection | ||||||
9 | with the lease,
sale, or other transfer of a unit by a | ||||||
10 | member other than the requesting member.
| ||||||
11 | (h) The provisions of this Section are applicable to all | ||||||
12 | condominium
instruments recorded under this Act. Any portion of | ||||||
13 | a condominium instrument
that contains provisions contrary to | ||||||
14 | these provisions shall be void as against
public policy and | ||||||
15 | ineffective. Any condominium instrument that fails to
contain | ||||||
16 | the provisions required by this Section shall be deemed to | ||||||
17 | incorporate
the provisions by operation of law.
| ||||||
18 | (Source: P.A. 90-496, eff. 8-18-97; 90-655, eff. 7-30-98.)
| ||||||
19 | (765 ILCS 605/27) (from Ch. 30, par. 327)
| ||||||
20 | Sec. 27. Amendments. | ||||||
21 | (a) If there is any unit owner other than the developer, | ||||||
22 | and unless otherwise provided in this Act,
the condominium | ||||||
23 | instruments shall be amended only as follows: | ||||||
24 | (i) upon the
affirmative vote of 2/3 of those voting or | ||||||
25 | upon the majority
specified by the condominium |
| |||||||
| |||||||
1 | instruments, provided that in no event shall the | ||||||
2 | condominium instruments require more than a three-quarters | ||||||
3 | vote of all unit owners; and
| ||||||
4 | (ii) with the
approval of, or notice to, any mortgagees | ||||||
5 | or other lienholders of record, if required under the | ||||||
6 | provisions of
the condominium instruments.
If the | ||||||
7 | condominium instruments require approval of any mortgagee | ||||||
8 | or
lienholder of record and the mortgagee or lienholder of | ||||||
9 | record receives a request to approve or consent to
the | ||||||
10 | amendment to the condominium instruments, the mortgagee or | ||||||
11 | lienholder of record is deemed to have
approved or | ||||||
12 | consented to the request unless the mortgagee or lienholder | ||||||
13 | of record delivers a negative
response to the requesting | ||||||
14 | party within 60 days after the mailing of the request. A | ||||||
15 | request to approve or consent to an amendment to the | ||||||
16 | condominium instruments that is required to be sent to a | ||||||
17 | mortgagee or lienholder of record shall be sent by | ||||||
18 | certified mail.
| ||||||
19 | (b)(1) If there is an omission, error, or inconsistency in | ||||||
20 | a condominium instrument, such that a provision of a | ||||||
21 | condominium instrument does not conform to this Act or to | ||||||
22 | another applicable statute, the association may correct the | ||||||
23 | omission, error, or inconsistency to conform the condominium | ||||||
24 | instrument to this Act or to another applicable statute by an | ||||||
25 | amendment adopted by vote of two-thirds of the Board of | ||||||
26 | Managers, without a unit owner vote. A provision in a |
| |||||||
| |||||||
1 | condominium instrument requiring or allowing unit owners, | ||||||
2 | mortgagees, or other lienholders of record to vote to approve | ||||||
3 | an amendment to a condominium instrument, or for the mortgagees | ||||||
4 | or other lienholders of record to be given notice of an | ||||||
5 | amendment to a condominium instrument, is not applicable to an | ||||||
6 | amendment to the extent that the amendment corrects an | ||||||
7 | omission, error, or inconsistency to conform the condominium | ||||||
8 | instrument to this Act or to another applicable statute.
| ||||||
9 | (2) If through a scrivener's error, a unit has not been
| ||||||
10 | designated as owning an appropriate undivided share of the | ||||||
11 | common elements
or does not bear an appropriate share of the | ||||||
12 | common expenses or that all
the common expenses or all of the | ||||||
13 | common elements in the condominium have
not been distributed in | ||||||
14 | the declaration, so that the sum total of the shares
of common | ||||||
15 | elements which have been distributed or the sum total of the | ||||||
16 | shares
of the common expenses fail to equal 100%, or if it | ||||||
17 | appears that more than
100% of the common elements or common | ||||||
18 | expenses have been distributed, the
error may be corrected by | ||||||
19 | operation of law by filing an amendment to the
declaration | ||||||
20 | approved by vote of two-thirds of the members of the Board
of | ||||||
21 | Managers or a majority vote of the unit owners at a meeting | ||||||
22 | called for
this purpose which proportionately adjusts all | ||||||
23 | percentage interests so that
the total is equal to 100% unless | ||||||
24 | the condominium instruments specifically
provide for a | ||||||
25 | different procedure or different percentage vote by the owners
| ||||||
26 | of the units and the owners of mortgages thereon affected by |
| |||||||
| |||||||
1 | modification
being made in the undivided interest in the common | ||||||
2 | elements, the number
of votes in the unit owners association or | ||||||
3 | the liability for common expenses
appertaining to the unit.
| ||||||
4 | (3) If an omission or error or a scrivener's error in the | ||||||
5 | declaration,
bylaws or other condominium instrument is | ||||||
6 | corrected by vote of
two-thirds of the members of the
Board of | ||||||
7 | Managers pursuant to the authority established in paragraphs | ||||||
8 | (1) or (2) of this subsection (b) subsections (b)(1)
or (b)(2) | ||||||
9 | of Section 27 of this Act , the Board upon written petition by
| ||||||
10 | unit owners with 20 percent of the votes of the association | ||||||
11 | filed within
30 days of the Board action shall call a meeting | ||||||
12 | of the unit owners within
30 days of the filing of the petition | ||||||
13 | to consider the Board action. Unless
a majority of the votes of | ||||||
14 | the unit owners of the association are cast at the
meeting to | ||||||
15 | reject the action, it is ratified whether or not a quorum is | ||||||
16 | present.
| ||||||
17 | (4) The procedures for amendments set forth in this | ||||||
18 | subsection (b) cannot be
used if such an amendment would | ||||||
19 | materially or adversely affect property
rights of the unit | ||||||
20 | owners unless the affected unit owners consent in writing.
This | ||||||
21 | Section does not restrict the powers of the association to | ||||||
22 | otherwise
amend the declaration, bylaws, or other condominium | ||||||
23 | instruments, but authorizes
a simple process of amendment | ||||||
24 | requiring a lesser vote for the purpose of
correcting defects, | ||||||
25 | errors, or omissions when the property rights of the
unit | ||||||
26 | owners are not materially or adversely affected.
|
| |||||||
| |||||||
1 | (5) If there is an omission or error in the declaration, | ||||||
2 | bylaws, or other
condominium instruments, which may not be | ||||||
3 | corrected by an amendment procedure
set forth in paragraphs (1) | ||||||
4 | and (2) of this subsection (b) of Section 27 in the
declaration | ||||||
5 | then the Circuit Court in the County in which the condominium
| ||||||
6 | is located shall have jurisdiction to hear a petition of one or | ||||||
7 | more of the
unit owners thereon or of the association, to | ||||||
8 | correct the error or omission,
and the action may be a class | ||||||
9 | action. The court may require that one or
more methods of | ||||||
10 | correcting the error or omission be submitted to the unit
| ||||||
11 | owners to determine the most acceptable correction. All unit | ||||||
12 | owners in the
association must be joined as parties to the | ||||||
13 | action. Service of process on
owners may be by publication, but | ||||||
14 | the plaintiff shall furnish all unit
owners not personally | ||||||
15 | served with process with copies of the petition and
final | ||||||
16 | judgment of the court by certified mail return receipt | ||||||
17 | requested, at
their last known address.
| ||||||
18 | (6) Nothing contained in this Section shall be construed to | ||||||
19 | invalidate
any provision of a condominium instrument | ||||||
20 | authorizing the developer to amend
a condominium instrument | ||||||
21 | prior to the latest date on which the initial
membership | ||||||
22 | meeting of the unit owners must be held, whether or not nor it | ||||||
23 | has
actually been held, to bring the instrument into compliance | ||||||
24 | with the legal
requirements of the Federal National Mortgage | ||||||
25 | Association, the Federal Home
Loan Mortgage Corporation, the | ||||||
26 | Federal Housing Administration, the United
States Veterans |
| |||||||
| |||||||
1 | Administration or their respective successors and assigns.
| ||||||
2 | (Source: P.A. 98-282, eff. 1-1-14; 99-472, eff. 6-1-16; revised | ||||||
3 | 9-1-16.)
| ||||||
4 | (765 ILCS 605/31) (from Ch. 30, par. 331)
| ||||||
5 | Sec. 31. Subdivision or combination of units. | ||||||
6 | (a) As used in this Section, "combination of any units" | ||||||
7 | means any 2 or more residential units to be used as a single | ||||||
8 | unit as shown on the plat or amended plat, which may involve, | ||||||
9 | without limitation, additional exclusive use of a portion of | ||||||
10 | the common elements within the building adjacent to the | ||||||
11 | combined unit (for example, without limitation, the use of a | ||||||
12 | portion of an adjacent common hallway). | ||||||
13 | (b) Unless the condominium
instruments expressly prohibit | ||||||
14 | the subdivision or combination of any units,
and subject to | ||||||
15 | additional limitations provided by the condominium | ||||||
16 | instruments,
the owner or owners may, at their own expense, | ||||||
17 | subdivide or combine and locate
or relocate common elements | ||||||
18 | affected or required thereby, in accordance
with the provisions | ||||||
19 | of the condominium instruments and the requirements
of this | ||||||
20 | Act. The owner or owners shall make written application to the
| ||||||
21 | board of managers, requesting an amendment to the condominium | ||||||
22 | instruments,
setting forth in the application a proposed | ||||||
23 | reallocation to the new units
of the percentage interest in the | ||||||
24 | common elements, and setting forth whether
the limited common | ||||||
25 | elements, if any, previously assigned to the unit to
be |
| |||||||
| |||||||
1 | subdivided should be assigned to each new unit or to fewer than | ||||||
2 | all of
the new units created and requesting, if desired in the | ||||||
3 | event of a
combination of any units, that the new unit be | ||||||
4 | granted the exclusive right to
use as a limited common element, | ||||||
5 | a portion of the common elements within the
building adjacent | ||||||
6 | to the new unit. If the transaction is approved by a
majority | ||||||
7 | of the board of managers, it shall be effective upon (1) | ||||||
8 | recording of
an amendment to condominium instruments in | ||||||
9 | accordance with the provisions of
Sections 5 and 6 of this Act, | ||||||
10 | and (2) execution by the owners of the units
involved. | ||||||
11 | (c) In the event of a combination of any units, the | ||||||
12 | amendment under subsection (b) may grant
the owner of the | ||||||
13 | combined unit the exclusive right to use, as a limited common
| ||||||
14 | element, a portion of the common elements within the building | ||||||
15 | adjacent to the
new unit.
The request for the amendment shall | ||||||
16 | be granted and the amendment shall grant
this exclusive right | ||||||
17 | to use as a limited common element if the following
conditions | ||||||
18 | are met:
| ||||||
19 | (1) the common element for which the exclusive right to | ||||||
20 | use as a limited
common element is sought is not necessary | ||||||
21 | or practical for use by the owners of
any units other than | ||||||
22 | the owner or owners of the combined unit; and
| ||||||
23 | (2) the owner or owners of the combined unit are | ||||||
24 | responsible for any and
all
costs associated with the | ||||||
25 | renovation, modification, or other adaptation
performed
as | ||||||
26 | a result of the granting of the exclusive right to use as a |
| |||||||
| |||||||
1 | limited common
element.
| ||||||
2 | (d) If the combined unit is divided, part of the original | ||||||
3 | combined unit is
sold,
and the grant of the exclusive right to | ||||||
4 | use as a limited common element is no
longer necessary, | ||||||
5 | practical, or appropriate for the use and enjoyment of the
| ||||||
6 | owner or owners of the original combined unit, the board may | ||||||
7 | terminate the
grant of the exclusive right to use as a limited | ||||||
8 | common element and require
that the owner or owners of the | ||||||
9 | original combined unit restore the common area
to its condition | ||||||
10 | prior to the grant of the exclusive right to use as a limited
| ||||||
11 | common element. If the combined unit is sold without being | ||||||
12 | divided, the grant
of the exclusive right to use as a limited | ||||||
13 | common element shall apply to the
new owner or owners of the | ||||||
14 | combined unit, who shall assume the rights and
responsibilities | ||||||
15 | of the original owner or owners. | ||||||
16 | (e) Under this Section, the exclusive right to use as a | ||||||
17 | limited common element any portion of the common elements that | ||||||
18 | is not necessary or practical for use by the owners of any | ||||||
19 | other units is not a diminution of the ownership interests of | ||||||
20 | all other unit owners requiring unanimous consent of all unit | ||||||
21 | owners under subsection (e) of Section 4 of this Act or any | ||||||
22 | percentage set forth in the condominium instruments. | ||||||
23 | (f) Notwithstanding Section 27 of this Act and any other | ||||||
24 | amendment provisions set forth in the condominium instruments, | ||||||
25 | an amendment pursuant to this Section is effective if it meets | ||||||
26 | the requirements set forth in this Section.
|
| |||||||
| |||||||
1 | (Source: P.A. 90-199, eff. 7-24-97.)".
|