Rep. Kelly M. Cassidy

Filed: 3/24/2017





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2    AMENDMENT NO. ______. Amend House Bill 2844 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Common Interest Community Association Act
5is amended by changing Section 1-20 as follows:
6    (765 ILCS 160/1-20)
7    Sec. 1-20. Amendments to the declaration, bylaws, or
8operating agreement.
9    (a) The administration of every property shall be governed
10by the declaration and bylaws or operating agreement, which may
11either be embodied in the declaration or in a separate
12instrument, a true copy of which shall be appended to and
13recorded with the declaration. No modification or amendment of
14the declaration, bylaws, or operating agreement shall be valid
15unless the same is set forth in an amendment thereof and such
16amendment is duly recorded. An amendment of the declaration,



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1bylaws, or operating agreement shall be deemed effective upon
2recordation, unless the amendment sets forth a different
3effective date.
4    (b) Unless otherwise provided by this Act, amendments to
5community instruments authorized to be recorded shall be
6executed and recorded by the president of the board or such
7other officer authorized by the common interest community
8association or the community instruments.
9    (c) If an association that currently permits leasing amends
10its declaration, bylaws, or rules and regulations to prohibit
11leasing, nothing in this Act or the declarations, bylaws, rules
12and regulations of an association shall prohibit a unit owner
13incorporated under 26 USC 501(c)(3) which is leasing a unit at
14the time of the prohibition from continuing to do so until such
15time that the unit owner voluntarily sells the unit; and no
16special fine, fee, dues, or penalty shall be assessed against
17the unit owner for leasing its unit.
18    (d) No action to incorporate a common interest community as
19a municipality shall commence until an instrument agreeing to
20incorporation has been signed by two-thirds of the members.
21    (e) If the community instruments require approval of any
22mortgagee or lienholder of record and the mortgagee or
23lienholder of record receives a request to approve or consent
24to the amendment to the community instruments, the mortgagee or
25lienholder of record is deemed to have approved or consented to
26the request unless the mortgagee or lienholder of record



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1delivers a negative response to the requesting party within 60
2days after the mailing of the request. A request to approve or
3consent to an amendment to the community instruments that is
4required to be sent to a mortgagee or lienholder of record
5shall be sent by certified mail.
6(Source: P.A. 99-41, eff. 7-14-15.)
7    Section 10. The Condominium Property Act is amended by
8changing Section 27 as follows:
9    (765 ILCS 605/27)  (from Ch. 30, par. 327)
10    Sec. 27. Amendments.
11    (a) If there is any unit owner other than the developer,
12and unless otherwise provided in this Act, the condominium
13instruments shall be amended only as follows:
14        (i) upon the affirmative vote of 2/3 of those voting or
15    upon the majority specified by the condominium
16    instruments, provided that in no event shall the
17    condominium instruments require more than a three-quarters
18    vote of all unit owners; and
19        (ii) with the approval of, or notice to, any mortgagees
20    or other lienholders of record, if required under the
21    provisions of the condominium instruments. If the
22    condominium instruments require approval of any mortgagee
23    or lienholder of record and the mortgagee or lienholder of
24    record receives a request to approve or consent to the



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1    amendment to the condominium instruments, the mortgagee or
2    lienholder of record is deemed to have approved or
3    consented to the request unless the mortgagee or lienholder
4    of record delivers a negative response to the requesting
5    party within 60 days after the mailing of the request. A
6    request to approve or consent to an amendment to the
7    condominium instruments that is required to be sent to a
8    mortgagee or lienholder of record shall be sent by
9    certified mail.
10    (b)(1) If there is an omission, error, or inconsistency in
11a condominium instrument, such that a provision of a
12condominium instrument does not conform to this Act or to
13another applicable statute, the association may correct the
14omission, error, or inconsistency to conform the condominium
15instrument to this Act or to another applicable statute by an
16amendment adopted by vote of two-thirds of the Board of
17Managers, without a unit owner vote. A provision in a
18condominium instrument requiring or allowing unit owners,
19mortgagees, or other lienholders of record to vote to approve
20an amendment to a condominium instrument, or for the mortgagees
21or other lienholders of record to be given notice of an
22amendment to a condominium instrument, is not applicable to an
23amendment to the extent that the amendment corrects an
24omission, error, or inconsistency to conform the condominium
25instrument to this Act or to another applicable statute.
26    (2) If through a scrivener's error, a unit has not been



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1designated as owning an appropriate undivided share of the
2common elements or does not bear an appropriate share of the
3common expenses or that all the common expenses or all of the
4common elements in the condominium have not been distributed in
5the declaration, so that the sum total of the shares of common
6elements which have been distributed or the sum total of the
7shares of the common expenses fail to equal 100%, or if it
8appears that more than 100% of the common elements or common
9expenses have been distributed, the error may be corrected by
10operation of law by filing an amendment to the declaration
11approved by vote of two-thirds of the members of the Board of
12Managers or a majority vote of the unit owners at a meeting
13called for this purpose which proportionately adjusts all
14percentage interests so that the total is equal to 100% unless
15the condominium instruments specifically provide for a
16different procedure or different percentage vote by the owners
17of the units and the owners of mortgages thereon affected by
18modification being made in the undivided interest in the common
19elements, the number of votes in the unit owners association or
20the liability for common expenses appertaining to the unit.
21    (3) If an omission or error or a scrivener's error in the
22declaration, bylaws or other condominium instrument is
23corrected by vote of two-thirds of the members of the Board of
24Managers pursuant to the authority established in subsections
25(b)(1) or (b)(2) of this Section 27 of this Act, the Board upon
26written petition by unit owners with 20 percent of the votes of



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1the association filed within 30 days of the Board action shall
2call a meeting of the unit owners within 30 days of the filing
3of the petition to consider the Board action. Unless a majority
4of the votes of the unit owners of the association are cast at
5the meeting to reject the action, it is ratified whether or not
6a quorum is present.
7    (4) The procedures for amendments set forth in this
8subsection (b) cannot be used if such an amendment would
9materially or adversely affect property rights of the unit
10owners unless the affected unit owners consent in writing. This
11Section does not restrict the powers of the association to
12otherwise amend the declaration, bylaws, or other condominium
13instruments, but authorizes a simple process of amendment
14requiring a lesser vote for the purpose of correcting defects,
15errors, or omissions when the property rights of the unit
16owners are not materially or adversely affected.
17    (5) If there is an omission or error in the declaration,
18bylaws, or other condominium instruments, which may not be
19corrected by an amendment procedure set forth in paragraphs (1)
20and (2) of this subsection (b) of Section 27 in the declaration
21then the Circuit Court in the County in which the condominium
22is located shall have jurisdiction to hear a petition of one or
23more of the unit owners thereon or of the association, to
24correct the error or omission, and the action may be a class
25action. The court may require that one or more methods of
26correcting the error or omission be submitted to the unit



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1owners to determine the most acceptable correction. All unit
2owners in the association must be joined as parties to the
3action. Service of process on owners may be by publication, but
4the plaintiff shall furnish all unit owners not personally
5served with process with copies of the petition and final
6judgment of the court by certified mail return receipt
7requested, at their last known address.
8    (6) Nothing contained in this Section shall be construed to
9invalidate any provision of a condominium instrument
10authorizing the developer to amend a condominium instrument
11prior to the latest date on which the initial membership
12meeting of the unit owners must be held, whether or not nor it
13has actually been held, to bring the instrument into compliance
14with the legal requirements of the Federal National Mortgage
15Association, the Federal Home Loan Mortgage Corporation, the
16Federal Housing Administration, the United States Veterans
17Administration or their respective successors and assigns.
18(Source: P.A. 98-282, eff. 1-1-14; 99-472, eff. 6-1-16; revised