101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB0220

 

Introduced 1/31/2019, by Sen. Laura M. Murphy

 

SYNOPSIS AS INTRODUCED:
 
765 ILCS 605/9  from Ch. 30, par. 309
765 ILCS 605/9.2  from Ch. 30, par. 309.2
765 ILCS 605/18  from Ch. 30, par. 318
765 ILCS 605/18.4  from Ch. 30, par. 318.4

    Amends the Condominium Property Act. Provides that before the board may levy a fine, it shall first provide the unit owner a minimum of 20 days' written notice and an opportunity to be heard. Provides that the written notice shall be made in accordance with the requirements of the Act. Provides that the notice and opportunity to be heard requirements apply only to the ability to levy fines, and nothing contained in the new provisions limits or restricts the ability of the board to pursue or enforce the rights of the association. Provides that the association has no authority to report adverse information to a credit reporting agency or initiate collection proceedings against a unit owner for unpaid fines unless the board of managers has first complied with the notice and hearing requirements. Makes corresponding changes.


LRB101 07990 LNS 53047 b

 

 

A BILL FOR

 

SB0220LRB101 07990 LNS 53047 b

1    AN ACT concerning civil law.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Condominium Property Act is amended by
5changing Sections 9, 9.2, 18, and 18.4 as follows:
 
6    (765 ILCS 605/9)  (from Ch. 30, par. 309)
7    Sec. 9. Sharing of expenses - Lien for nonpayment.
8    (a) All common expenses incurred or accrued prior to the
9first conveyance of a unit shall be paid by the developer, and
10during this period no common expense assessment shall be
11payable to the association. It shall be the duty of each unit
12owner including the developer to pay his or her proportionate
13share of the common expenses commencing with the first
14conveyance. The proportionate share shall be in the same ratio
15as his or her percentage of ownership in the common elements
16set forth in the declaration.
17    (b) The condominium instruments may provide that common
18expenses for insurance premiums be assessed on a basis
19reflecting increased charges for coverage on certain units.
20    (c) Budget and reserves.
21        (1) The board of managers shall prepare and distribute
22    to all unit owners a detailed proposed annual budget,
23    setting forth with particularity all anticipated common

 

 

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1    expenses by category as well as all anticipated assessments
2    and other income. The initial budget and common expense
3    assessment based thereon shall be adopted prior to the
4    conveyance of any unit. The budget shall also set forth
5    each unit owner's proposed common expense assessment.
6        (2) All budgets adopted by a board of managers on or
7    after July 1, 1990 shall provide for reasonable reserves
8    for capital expenditures and deferred maintenance for
9    repair or replacement of the common elements. To determine
10    the amount of reserves appropriate for an association, the
11    board of managers shall take into consideration the
12    following: (i) the repair and replacement cost, and the
13    estimated useful life, of the property which the
14    association is obligated to maintain, including but not
15    limited to structural and mechanical components, surfaces
16    of the buildings and common elements, and energy systems
17    and equipment; (ii) the current and anticipated return on
18    investment of association funds; (iii) any independent
19    professional reserve study which the association may
20    obtain; (iv) the financial impact on unit owners, and the
21    market value of the condominium units, of any assessment
22    increase needed to fund reserves; and (v) the ability of
23    the association to obtain financing or refinancing.
24        (3) Notwithstanding the provisions of this subsection
25    (c), an association without a reserve requirement in its
26    condominium instruments may elect to waive in whole or in

 

 

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1    part the reserve requirements of this Section by a vote of
2    2/3 of the total votes of the association. Any association
3    having elected under this paragraph (3) to waive the
4    provisions of subsection (c) may by a vote of 2/3 of the
5    total votes of the association elect to again be governed
6    by the requirements of subsection (c).
7        (4) In the event that an association elects to waive
8    all or part of the reserve requirements of this Section,
9    that fact must be disclosed after the meeting at which the
10    waiver occurs by the association in the financial
11    statements of the association and, highlighted in bold
12    print, in the response to any request of a prospective
13    purchaser for the information prescribed under Section
14    22.1; and no member of the board of managers or the
15    managing agent of the association shall be liable, and no
16    cause of action may be brought for damages against these
17    parties, for the lack or inadequacy of reserve funds in the
18    association budget.
19        (5) At the end of an association's fiscal year and
20    after the association has approved any end-of-year fiscal
21    audit, if applicable, if the fiscal year ended with a
22    surplus of funds over actual expenses, including budgeted
23    reserve fund contributions, then, to the extent that there
24    are not any contrary provisions in the association's
25    declaration and bylaws, the board of managers has the
26    authority, in its discretion, to dispose of the surplus in

 

 

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1    one or more of the following ways: (i) contribute the
2    surplus to the association's reserve fund; (ii) return the
3    surplus to the unit owners as a credit against the
4    remaining monthly assessments for the current fiscal year;
5    (iii) return the surplus to the unit owners in the form of
6    a direct payment to the unit owners; or (iv) maintain the
7    funds in the operating account, in which case the funds
8    shall be applied as a credit when calculating the following
9    year's annual budget. If the fiscal year ends in a deficit,
10    then, to the extent that there are not any contrary
11    provisions in the association's declaration and bylaws,
12    the board of managers has the authority, in its discretion,
13    to address the deficit by incorporating it into the
14    following year's annual budget. If 20% of the unit owners
15    of the association deliver a petition objecting to the
16    action under this paragraph (5) within 30 days after notice
17    to the unit owners of the action, the board of managers
18    shall call a meeting of the unit owners within 30 days of
19    the date of delivery of the petition. At the meeting, the
20    unit owners may vote to select a different option than the
21    option selected by the board of managers. Unless a majority
22    of the total votes of the unit owners are cast at the
23    meeting to reject the board's selection and select a
24    different option, the board's decision is ratified.
25    (d) (Blank).
26    (e) The condominium instruments may provide for the

 

 

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1assessment, in connection with expenditures for the limited
2common elements, of only those units to which the limited
3common elements are assigned.
4    (f) Payment of any assessment shall be in amounts and at
5times determined by the board of managers.
6    (g) Lien.
7        (1) If any unit owner shall fail or refuse to make when
8    due any payment of (i) the common expenses; or (ii) or the
9    amount of any unpaid fine imposed in accordance with
10    subsection (l) of Section 18.4, then when due, the amount
11    thereof together with any interest, late charges,
12    reasonable attorney fees incurred enforcing the covenants
13    of the condominium instruments, rules and regulations of
14    the board of managers, or any applicable statute or
15    ordinance, and costs of collections shall constitute a lien
16    on the interest of the unit owner in the property prior to
17    all other liens and encumbrances, recorded or unrecorded,
18    except only (a) taxes, special assessments and special
19    taxes theretofore or thereafter levied by any political
20    subdivision or municipal corporation of this State and
21    other State or federal taxes which by law are a lien on the
22    interest of the unit owner prior to preexisting recorded
23    encumbrances thereon and (b) encumbrances on the interest
24    of the unit owner recorded prior to the date of such
25    failure or refusal which by law would be a lien thereon
26    prior to subsequently recorded encumbrances. Any action

 

 

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1    brought to extinguish the lien of the association shall
2    include the association as a party.
3        (2) With respect to encumbrances executed prior to
4    August 30, 1984 or encumbrances executed subsequent to
5    August 30, 1984 which are neither bonafide first mortgages
6    nor trust deeds and which encumbrances contain a statement
7    of a mailing address in the State of Illinois where notice
8    may be mailed to the encumbrancer thereunder, if and
9    whenever and as often as the manager or board of managers
10    shall send, by United States certified or registered mail,
11    return receipt requested, to any such encumbrancer at the
12    mailing address set forth in the recorded encumbrance a
13    statement of the amounts and due dates of the unpaid common
14    expenses with respect to the encumbered unit, then, unless
15    otherwise provided in the declaration or bylaws, the prior
16    recorded encumbrance shall be subject to the lien of all
17    unpaid common expenses with respect to the unit which
18    become due and payable within a period of 90 days after the
19    date of mailing of each such notice.
20        (3) The purchaser of a condominium unit at a judicial
21    foreclosure sale, or a mortgagee who receives title to a
22    unit by deed in lieu of foreclosure or judgment by common
23    law strict foreclosure or otherwise takes possession
24    pursuant to court order under the Illinois Mortgage
25    Foreclosure Law, shall have the duty to pay the unit's
26    proportionate share of the common expenses for the unit

 

 

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1    assessed from and after the first day of the month after
2    the date of the judicial foreclosure sale, delivery of the
3    deed in lieu of foreclosure, entry of a judgment in common
4    law strict foreclosure, or taking of possession pursuant to
5    such court order. Such payment confirms the extinguishment
6    of any lien created pursuant to paragraph (1) or (2) of
7    this subsection (g) by virtue of the failure or refusal of
8    a prior unit owner to make payment of common expenses,
9    where the judicial foreclosure sale has been confirmed by
10    order of the court, a deed in lieu thereof has been
11    accepted by the lender, or a consent judgment has been
12    entered by the court.
13        (4) The purchaser of a condominium unit at a judicial
14    foreclosure sale, other than a mortgagee, who takes
15    possession of a condominium unit pursuant to a court order
16    or a purchaser who acquires title from a mortgagee shall
17    have the duty to pay the proportionate share, if any, of
18    the common expenses for the unit which would have become
19    due in the absence of any assessment acceleration during
20    the 6 months immediately preceding institution of an action
21    to enforce the collection of assessments, and which remain
22    unpaid by the owner during whose possession the assessments
23    accrued. If the outstanding assessments are paid at any
24    time during any action to enforce the collection of
25    assessments, the purchaser shall have no obligation to pay
26    any assessments which accrued before he or she acquired

 

 

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1    title.
2        (5) The notice of sale of a condominium unit under
3    subsection (c) of Section 15-1507 of the Code of Civil
4    Procedure shall state that the purchaser of the unit other
5    than a mortgagee shall pay the assessments and the legal
6    fees required by subdivisions (g)(1) and (g)(4) of Section
7    9 of this Act. The statement of assessment account issued
8    by the association to a unit owner under subsection (i) of
9    Section 18 of this Act, and the disclosure statement issued
10    to a prospective purchaser under Section 22.1 of this Act,
11    shall state the amount of the assessments and the legal
12    fees, if any, required by subdivisions (g)(1) and (g)(4) of
13    Section 9 of this Act.
14    (h) A lien for common expenses shall be in favor of the
15members of the board of managers and their successors in office
16and shall be for the benefit of all other unit owners. Notice
17of the lien may be recorded by the board of managers, or if the
18developer is the manager or has a majority of seats on the
19board of managers and the manager or board of managers fails to
20do so, any unit owner may record notice of the lien. Upon the
21recording of such notice the lien may be foreclosed by an
22action brought in the name of the board of managers in the same
23manner as a mortgage of real property.
24    (i) Unless otherwise provided in the declaration, the
25members of the board of managers and their successors in
26office, acting on behalf of the other unit owners, shall have

 

 

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1the power to bid on the interest so foreclosed at the
2foreclosure sale, and to acquire and hold, lease, mortgage and
3convey it.
4    (j) Any encumbrancer may from time to time request in
5writing a written statement from the manager or board of
6managers setting forth the unpaid common expenses with respect
7to the unit covered by his or her encumbrance. Unless the
8request is complied with within 20 days, all unpaid common
9expenses which become due prior to the date of the making of
10such request shall be subordinate to the lien of the
11encumbrance. Any encumbrancer holding a lien on a unit may pay
12any unpaid common expenses payable with respect to the unit,
13and upon payment the encumbrancer shall have a lien on the unit
14for the amounts paid at the same rank as the lien of his or her
15encumbrance.
16    (k) Nothing in Public Act 83-1271 is intended to change the
17lien priorities of any encumbrance created prior to August 30,
181984.
19(Source: P.A. 100-292, eff. 1-1-18.)
 
20    (765 ILCS 605/9.2)  (from Ch. 30, par. 309.2)
21    Sec. 9.2. Other remedies.
22    (a) In the event of any default by any unit owner, his or
23her tenant, invitee or guest in the performance of his or her
24obligations under this Act or under the declaration, bylaws, or
25the rules and regulations of the board of managers, the board

 

 

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1of managers or its agents shall have such rights and remedies
2as provided in the Act or condominium instruments including the
3right to maintain an eviction action against such defaulting
4unit owner or his or her tenant for the benefit of all the
5other unit owners in the manner prescribed by Article IX of the
6Code of Civil Procedure. However, the board may not collect an
7unpaid fine unless the board levied the fine in accordance with
8subsection (l) of Section 18.4.
9    (b) Any attorneys' fees incurred by the Association arising
10out of a default by any unit owner, his or her tenant, invitee
11or guest in the performance of any of the provisions of the
12condominium instruments, rules and regulations or any
13applicable statute or ordinance shall be added to, and deemed a
14part of, his or her respective share of the common expense.
15    (c) Other than attorney's fees, no fees pertaining to the
16collection of a unit owner's financial obligation to the
17Association, including fees charged by a manager or managing
18agent, shall be added to and deemed a part of an owner's
19respective share of the common expenses unless: (i) the
20managing agent fees relate to the costs to collect common
21expenses for the Association; (ii) the fees are set forth in a
22contract between the managing agent and the Association; and
23(iii) the authority to add the management fees to an owner's
24respective share of the common expenses is specifically stated
25in the declaration or bylaws of the Association.
26(Source: P.A. 100-173, eff. 1-1-18.)
 

 

 

SB0220- 11 -LRB101 07990 LNS 53047 b

1    (765 ILCS 605/18)  (from Ch. 30, par. 318)
2    Sec. 18. Contents of bylaws. The bylaws shall provide for
3at least the following:
4        (a)(1) The election from among the unit owners of a
5    board of managers, the number of persons constituting such
6    board, and that the terms of at least one-third of the
7    members of the board shall expire annually and that all
8    members of the board shall be elected at large; if there
9    are multiple owners of a single unit, only one of the
10    multiple owners shall be eligible to serve as a member of
11    the board at any one time;
12        (2) the powers and duties of the board;
13        (3) the compensation, if any, of the members of the
14    board;
15        (4) the method of removal from office of members of the
16    board;
17        (5) that the board may engage the services of a manager
18    or managing agent;
19        (6) that each unit owner shall receive, at least 25
20    days prior to the adoption thereof by the board of
21    managers, a copy of the proposed annual budget together
22    with an indication of which portions are intended for
23    reserves, capital expenditures or repairs or payment of
24    real estate taxes;
25        (7) that the board of managers shall annually supply to

 

 

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1    all unit owners an itemized accounting of the common
2    expenses for the preceding year actually incurred or paid,
3    together with an indication of which portions were for
4    reserves, capital expenditures or repairs or payment of
5    real estate taxes and with a tabulation of the amounts
6    collected pursuant to the budget or assessment, and showing
7    the net excess or deficit of income over expenditures plus
8    reserves;
9        (8)(i) that each unit owner shall receive notice, in
10    the same manner as is provided in this Act for membership
11    meetings, of any meeting of the board of managers
12    concerning the adoption of the proposed annual budget and
13    regular assessments pursuant thereto or to adopt a separate
14    (special) assessment, (ii) that except as provided in
15    subsection (iv) below, if an adopted budget or any separate
16    assessment adopted by the board would result in the sum of
17    all regular and separate assessments payable in the current
18    fiscal year exceeding 115% of the sum of all regular and
19    separate assessments payable during the preceding fiscal
20    year, the board of managers, upon written petition by unit
21    owners with 20 percent of the votes of the association
22    delivered to the board within 21 days of the board action,
23    shall call a meeting of the unit owners within 30 days of
24    the date of delivery of the petition to consider the budget
25    or separate assessment; unless a majority of the total
26    votes of the unit owners are cast at the meeting to reject

 

 

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1    the budget or separate assessment, it is ratified, (iii)
2    that any common expense not set forth in the budget or any
3    increase in assessments over the amount adopted in the
4    budget shall be separately assessed against all unit
5    owners, (iv) that separate assessments for expenditures
6    relating to emergencies or mandated by law may be adopted
7    by the board of managers without being subject to unit
8    owner approval or the provisions of item (ii) above or item
9    (v) below. As used herein, "emergency" means an immediate
10    danger to the structural integrity of the common elements
11    or to the life, health, safety or property of the unit
12    owners, (v) that assessments for additions and alterations
13    to the common elements or to association-owned property not
14    included in the adopted annual budget, shall be separately
15    assessed and are subject to approval of two-thirds of the
16    total votes of all unit owners, (vi) that the board of
17    managers may adopt separate assessments payable over more
18    than one fiscal year. With respect to multi-year
19    assessments not governed by items (iv) and (v), the entire
20    amount of the multi-year assessment shall be deemed
21    considered and authorized in the first fiscal year in which
22    the assessment is approved;
23        (9)(A) that every meeting of the board of managers
24    shall be open to any unit owner, except that the board may
25    close any portion of a noticed meeting or meet separately
26    from a noticed meeting to: (i) discuss litigation when an

 

 

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1    action against or on behalf of the particular association
2    has been filed and is pending in a court or administrative
3    tribunal, or when the board of managers finds that such an
4    action is probable or imminent, (ii) discuss the
5    appointment, employment, engagement, or dismissal of an
6    employee, independent contractor, agent, or other provider
7    of goods and services, (iii) interview a potential
8    employee, independent contractor, agent, or other provider
9    of goods and services, (iv) discuss violations of rules and
10    regulations of the association, (v) discuss a unit owner's
11    unpaid share of common expenses, or (vi) consult with the
12    association's legal counsel; that any vote on these matters
13    shall take place at a meeting of the board of managers or
14    portion thereof open to any unit owner;
15        (B) that board members may participate in and act at
16    any meeting of the board of managers in person, by
17    telephonic means, or by use of any acceptable technological
18    means whereby all persons participating in the meeting can
19    communicate with each other; that participation
20    constitutes attendance and presence in person at the
21    meeting;
22        (C) that any unit owner may record the proceedings at
23    meetings of the board of managers or portions thereof
24    required to be open by this Act by tape, film or other
25    means, and that the board may prescribe reasonable rules
26    and regulations to govern the right to make such

 

 

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1    recordings;
2        (D) that notice of every meeting of the board of
3    managers shall be given to every board member at least 48
4    hours prior thereto, unless the board member waives notice
5    of the meeting pursuant to subsection (a) of Section 18.8;
6    and
7        (E) that notice of every meeting of the board of
8    managers shall be posted in entranceways, elevators, or
9    other conspicuous places in the condominium at least 48
10    hours prior to the meeting of the board of managers except
11    where there is no common entranceway for 7 or more units,
12    the board of managers may designate one or more locations
13    in the proximity of these units where the notices of
14    meetings shall be posted; that notice of every meeting of
15    the board of managers shall also be given at least 48 hours
16    prior to the meeting, or such longer notice as this Act may
17    separately require, to: (i) each unit owner who has
18    provided the association with written authorization to
19    conduct business by acceptable technological means, and
20    (ii) to the extent that the condominium instruments of an
21    association require, to each other unit owner, as required
22    by subsection (f) of Section 18.8, by mail or delivery, and
23    that no other notice of a meeting of the board of managers
24    need be given to any unit owner;
25        (10) that the board shall meet at least 4 times
26    annually;

 

 

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1        (11) that no member of the board or officer shall be
2    elected for a term of more than 2 years, but that officers
3    and board members may succeed themselves;
4        (12) the designation of an officer to mail and receive
5    all notices and execute amendments to condominium
6    instruments as provided for in this Act and in the
7    condominium instruments;
8        (13) the method of filling vacancies on the board which
9    shall include authority for the remaining members of the
10    board to fill the vacancy by two-thirds vote until the next
11    annual meeting of unit owners or for a period terminating
12    no later than 30 days following the filing of a petition
13    signed by unit owners holding 20% of the votes of the
14    association requesting a meeting of the unit owners to fill
15    the vacancy for the balance of the term, and that a meeting
16    of the unit owners shall be called for purposes of filling
17    a vacancy on the board no later than 30 days following the
18    filing of a petition signed by unit owners holding 20% of
19    the votes of the association requesting such a meeting, and
20    the method of filling vacancies among the officers that
21    shall include the authority for the members of the board to
22    fill the vacancy for the unexpired portion of the term;
23        (14) what percentage of the board of managers, if other
24    than a majority, shall constitute a quorum;
25        (15) provisions concerning notice of board meetings to
26    members of the board;

 

 

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1        (16) the board of managers may not enter into a
2    contract with a current board member or with a corporation
3    or partnership in which a board member or a member of the
4    board member's immediate family has 25% or more interest,
5    unless notice of intent to enter the contract is given to
6    unit owners within 20 days after a decision is made to
7    enter into the contract and the unit owners are afforded an
8    opportunity by filing a petition, signed by 20% of the unit
9    owners, for an election to approve or disapprove the
10    contract; such petition shall be filed within 30 days after
11    such notice and such election shall be held within 30 days
12    after filing the petition; for purposes of this subsection,
13    a board member's immediate family means the board member's
14    spouse, parents, and children;
15        (17) that the board of managers may disseminate to unit
16    owners biographical and background information about
17    candidates for election to the board if (i) reasonable
18    efforts to identify all candidates are made and all
19    candidates are given an opportunity to include
20    biographical and background information in the information
21    to be disseminated; and (ii) the board does not express a
22    preference in favor of any candidate;
23        (18) any proxy distributed for board elections by the
24    board of managers gives unit owners the opportunity to
25    designate any person as the proxy holder, and gives the
26    unit owner the opportunity to express a preference for any

 

 

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1    of the known candidates for the board or to write in a
2    name;
3        (19) that special meetings of the board of managers can
4    be called by the president or 25% of the members of the
5    board;
6        (20) that the board of managers may establish and
7    maintain a system of master metering of public utility
8    services and collect payments in connection therewith,
9    subject to the requirements of the Tenant Utility Payment
10    Disclosure Act; and
11        (21) that the board may ratify and confirm actions of
12    the members of the board taken in response to an emergency,
13    as that term is defined in subdivision (a)(8)(iv) of this
14    Section; that the board shall give notice to the unit
15    owners of: (i) the occurrence of the emergency event within
16    7 business days after the emergency event, and (ii) the
17    general description of the actions taken to address the
18    event within 7 days after the emergency event.
19        The intent of the provisions of Public Act 99-472
20    adding this paragraph (21) is to empower and support boards
21    to act in emergencies.
22        (b)(1) What percentage of the unit owners, if other
23    than 20%, shall constitute a quorum provided that, for
24    condominiums with 20 or more units, the percentage of unit
25    owners constituting a quorum shall be 20% unless the unit
26    owners holding a majority of the percentage interest in the

 

 

SB0220- 19 -LRB101 07990 LNS 53047 b

1    association provide for a higher percentage, provided that
2    in voting on amendments to the association's bylaws, a unit
3    owner who is in arrears on the unit owner's regular or
4    separate assessments for 60 days or more, shall not be
5    counted for purposes of determining if a quorum is present,
6    but that unit owner retains the right to vote on amendments
7    to the association's bylaws;
8        (2) that the association shall have one class of
9    membership;
10        (3) that the members shall hold an annual meeting, one
11    of the purposes of which shall be to elect members of the
12    board of managers;
13        (4) the method of calling meetings of the unit owners;
14        (5) that special meetings of the members can be called
15    by the president, board of managers, or by 20% of unit
16    owners;
17        (6) that written notice of any membership meeting shall
18    be mailed or delivered giving members no less than 10 and
19    no more than 30 days notice of the time, place and purpose
20    of such meeting except that notice may be sent, to the
21    extent the condominium instruments or rules adopted
22    thereunder expressly so provide, by electronic
23    transmission consented to by the unit owner to whom the
24    notice is given, provided the director and officer or his
25    or her agent certifies in writing to the delivery by
26    electronic transmission;

 

 

SB0220- 20 -LRB101 07990 LNS 53047 b

1        (7) that voting shall be on a percentage basis, and
2    that the percentage vote to which each unit is entitled is
3    the percentage interest of the undivided ownership of the
4    common elements appurtenant thereto, provided that the
5    bylaws may provide for approval by unit owners in
6    connection with matters where the requisite approval on a
7    percentage basis is not specified in this Act, on the basis
8    of one vote per unit;
9        (8) that, where there is more than one owner of a unit,
10    if only one of the multiple owners is present at a meeting
11    of the association, he or she is entitled to cast all the
12    votes allocated to that unit, if more than one of the
13    multiple owners are present, the votes allocated to that
14    unit may be cast only in accordance with the agreement of a
15    majority in interest of the multiple owners, unless the
16    declaration expressly provides otherwise, that there is
17    majority agreement if any one of the multiple owners cast
18    the votes allocated to that unit without protest being made
19    promptly to the person presiding over the meeting by any of
20    the other owners of the unit;
21        (9)(A) except as provided in subparagraph (B) of this
22    paragraph (9) in connection with board elections, that a
23    unit owner may vote by proxy executed in writing by the
24    unit owner or by his or her duly authorized attorney in
25    fact; that the proxy must bear the date of execution and,
26    unless the condominium instruments or the written proxy

 

 

SB0220- 21 -LRB101 07990 LNS 53047 b

1    itself provide otherwise, is invalid after 11 months from
2    the date of its execution; to the extent the condominium
3    instruments or rules adopted thereunder expressly so
4    provide, a vote or proxy may be submitted by electronic
5    transmission, provided that any such electronic
6    transmission shall either set forth or be submitted with
7    information from which it can be determined that the
8    electronic transmission was authorized by the unit owner or
9    the unit owner's proxy;
10        (B) that if a rule adopted at least 120 days before a
11    board election or the declaration or bylaws provide for
12    balloting as set forth in this subsection, unit owners may
13    not vote by proxy in board elections, but may vote only (i)
14    by submitting an association-issued ballot in person at the
15    election meeting or (ii) by submitting an
16    association-issued ballot to the association or its
17    designated agent by mail or other means of delivery
18    specified in the declaration, bylaws, or rule; that the
19    ballots shall be mailed or otherwise distributed to unit
20    owners not less than 10 and not more than 30 days before
21    the election meeting, and the board shall give unit owners
22    not less than 21 days' prior written notice of the deadline
23    for inclusion of a candidate's name on the ballots; that
24    the deadline shall be no more than 7 days before the
25    ballots are mailed or otherwise distributed to unit owners;
26    that every such ballot must include the names of all

 

 

SB0220- 22 -LRB101 07990 LNS 53047 b

1    candidates who have given the board or its authorized agent
2    timely written notice of their candidacy and must give the
3    person casting the ballot the opportunity to cast votes for
4    candidates whose names do not appear on the ballot; that a
5    ballot received by the association or its designated agent
6    after the close of voting shall not be counted; that a unit
7    owner who submits a ballot by mail or other means of
8    delivery specified in the declaration, bylaws, or rule may
9    request and cast a ballot in person at the election
10    meeting, and thereby void any ballot previously submitted
11    by that unit owner;
12        (B-5) that if a rule adopted at least 120 days before a
13    board election or the declaration or bylaws provide for
14    balloting as set forth in this subparagraph, unit owners
15    may not vote by proxy in board elections, but may vote only
16    (i) by submitting an association-issued ballot in person at
17    the election meeting; or (ii) by any acceptable
18    technological means as defined in Section 2 of this Act;
19    instructions regarding the use of electronic means for
20    voting shall be distributed to all unit owners not less
21    than 10 and not more than 30 days before the election
22    meeting, and the board shall give unit owners not less than
23    21 days' prior written notice of the deadline for inclusion
24    of a candidate's name on the ballots; the deadline shall be
25    no more than 7 days before the instructions for voting
26    using electronic or acceptable technological means is

 

 

SB0220- 23 -LRB101 07990 LNS 53047 b

1    distributed to unit owners; every instruction notice must
2    include the names of all candidates who have given the
3    board or its authorized agent timely written notice of
4    their candidacy and must give the person voting through
5    electronic or acceptable technological means the
6    opportunity to cast votes for candidates whose names do not
7    appear on the ballot; a unit owner who submits a vote using
8    electronic or acceptable technological means may request
9    and cast a ballot in person at the election meeting,
10    thereby voiding any vote previously submitted by that unit
11    owner;
12        (C) that if a written petition by unit owners with at
13    least 20% of the votes of the association is delivered to
14    the board within 30 days after the board's approval of a
15    rule adopted pursuant to subparagraph (B) or subparagraph
16    (B-5) of this paragraph (9), the board shall call a meeting
17    of the unit owners within 30 days after the date of
18    delivery of the petition; that unless a majority of the
19    total votes of the unit owners are cast at the meeting to
20    reject the rule, the rule is ratified;
21        (D) that votes cast by ballot under subparagraph (B) or
22    electronic or acceptable technological means under
23    subparagraph (B-5) of this paragraph (9) are valid for the
24    purpose of establishing a quorum;
25        (10) that the association may, upon adoption of the
26    appropriate rules by the board of managers, conduct

 

 

SB0220- 24 -LRB101 07990 LNS 53047 b

1    elections by secret ballot whereby the voting ballot is
2    marked only with the percentage interest for the unit and
3    the vote itself, provided that the board further adopt
4    rules to verify the status of the unit owner issuing a
5    proxy or casting a ballot; and further, that a candidate
6    for election to the board of managers or such candidate's
7    representative shall have the right to be present at the
8    counting of ballots at such election;
9        (11) that in the event of a resale of a condominium
10    unit the purchaser of a unit from a seller other than the
11    developer pursuant to an installment sales contract for
12    purchase shall during such times as he or she resides in
13    the unit be counted toward a quorum for purposes of
14    election of members of the board of managers at any meeting
15    of the unit owners called for purposes of electing members
16    of the board, shall have the right to vote for the election
17    of members of the board of managers and to be elected to
18    and serve on the board of managers unless the seller
19    expressly retains in writing any or all of such rights. In
20    no event may the seller and purchaser both be counted
21    toward a quorum, be permitted to vote for a particular
22    office or be elected and serve on the board. Satisfactory
23    evidence of the installment sales contract shall be made
24    available to the association or its agents. For purposes of
25    this subsection, "installment sales contract" shall have
26    the same meaning as set forth in Section 5 of the

 

 

SB0220- 25 -LRB101 07990 LNS 53047 b

1    Installment Sales Contract Act and Section 1(e) of the
2    Dwelling Unit Installment Contract Act;
3        (12) the method by which matters subject to the
4    approval of unit owners set forth in this Act, or in the
5    condominium instruments, will be submitted to the unit
6    owners at special membership meetings called for such
7    purposes; and
8        (13) that matters subject to the affirmative vote of
9    not less than 2/3 of the votes of unit owners at a meeting
10    duly called for that purpose, shall include, but not be
11    limited to:
12        (i) merger or consolidation of the association;
13        (ii) sale, lease, exchange, or other disposition
14        (excluding the mortgage or pledge) of all, or
15        substantially all of the property and assets of the
16        association; and
17        (iii) the purchase or sale of land or of units on
18        behalf of all unit owners.
19        (c) Election of a president from among the board of
20    managers, who shall preside over the meetings of the board
21    of managers and of the unit owners.
22        (d) Election of a secretary from among the board of
23    managers, who shall keep the minutes of all meetings of the
24    board of managers and of the unit owners and who shall, in
25    general, perform all the duties incident to the office of
26    secretary.

 

 

SB0220- 26 -LRB101 07990 LNS 53047 b

1        (e) Election of a treasurer from among the board of
2    managers, who shall keep the financial records and books of
3    account.
4        (f) Maintenance, repair and replacement of the common
5    elements and payments therefor, including the method of
6    approving payment vouchers.
7        (g) An association with 30 or more units shall obtain
8    and maintain fidelity insurance covering persons who
9    control or disburse funds of the association for the
10    maximum amount of coverage available to protect funds in
11    the custody or control of the association plus the
12    association reserve fund. All management companies which
13    are responsible for the funds held or administered by the
14    association shall maintain and furnish to the association a
15    fidelity bond for the maximum amount of coverage available
16    to protect funds in the custody of the management company
17    at any time. The association shall bear the cost of the
18    fidelity insurance and fidelity bond, unless otherwise
19    provided by contract between the association and a
20    management company. The association shall be the direct
21    obligee of any such fidelity bond. A management company
22    holding reserve funds of an association shall at all times
23    maintain a separate account for each association,
24    provided, however, that for investment purposes, the Board
25    of Managers of an association may authorize a management
26    company to maintain the association's reserve funds in a

 

 

SB0220- 27 -LRB101 07990 LNS 53047 b

1    single interest bearing account with similar funds of other
2    associations. The management company shall at all times
3    maintain records identifying all moneys of each
4    association in such investment account. The management
5    company may hold all operating funds of associations which
6    it manages in a single operating account but shall at all
7    times maintain records identifying all moneys of each
8    association in such operating account. Such operating and
9    reserve funds held by the management company for the
10    association shall not be subject to attachment by any
11    creditor of the management company.
12        For the purpose of this subsection, a management
13    company shall be defined as a person, partnership,
14    corporation, or other legal entity entitled to transact
15    business on behalf of others, acting on behalf of or as an
16    agent for a unit owner, unit owners or association of unit
17    owners for the purpose of carrying out the duties,
18    responsibilities, and other obligations necessary for the
19    day to day operation and management of any property subject
20    to this Act. For purposes of this subsection, the term
21    "fiduciary insurance coverage" shall be defined as both a
22    fidelity bond and directors and officers liability
23    coverage, the fidelity bond in the full amount of
24    association funds and association reserves that will be in
25    the custody of the association, and the directors and
26    officers liability coverage at a level as shall be

 

 

SB0220- 28 -LRB101 07990 LNS 53047 b

1    determined to be reasonable by the board of managers, if
2    not otherwise established by the declaration or by laws.
3        Until one year after September 21, 1985 (the effective
4    date of Public Act 84-722), if a condominium association
5    has reserves plus assessments in excess of $250,000 and
6    cannot reasonably obtain 100% fidelity bond coverage for
7    such amount, then it must obtain a fidelity bond coverage
8    of $250,000.
9        (h) Method of estimating the amount of the annual
10    budget, and the manner of assessing and collecting from the
11    unit owners their respective shares of such estimated
12    expenses, and of any other expenses lawfully agreed upon.
13        (i) That upon 10 days notice to the manager or board of
14    managers and payment of a reasonable fee, any unit owner
15    shall be furnished a statement of his or her account
16    setting forth the amount of any unpaid assessments or other
17    charges due and owing from such owner.
18        (j) Designation and removal of personnel necessary for
19    the maintenance, repair and replacement of the common
20    elements.
21        (k) Such restrictions on and requirements respecting
22    the use and maintenance of the units and the use of the
23    common elements, not set forth in the declaration, as are
24    designed to prevent unreasonable interference with the use
25    of their respective units and of the common elements by the
26    several unit owners.

 

 

SB0220- 29 -LRB101 07990 LNS 53047 b

1        (l) Method of adopting and of amending administrative
2    rules and regulations governing the operation and use of
3    the common elements.
4        (m) The percentage of votes required to modify or amend
5    the bylaws, but each one of the particulars set forth in
6    this section shall always be embodied in the bylaws.
7        (n)(i) The provisions of this Act, the declaration,
8    bylaws, other condominium instruments, and rules and
9    regulations that relate to the use of the individual unit
10    or the common elements shall be applicable to any person
11    leasing a unit and shall be deemed to be incorporated in
12    any lease executed or renewed on or after August 30, 1984
13    (the effective date of Public Act 83-1271).
14        (ii) With regard to any lease entered into subsequent
15    to July 1, 1990 (the effective date of Public Act 86-991),
16    the unit owner leasing the unit shall deliver a copy of the
17    signed lease to the board or if the lease is oral, a
18    memorandum of the lease, not later than the date of
19    occupancy or 10 days after the lease is signed, whichever
20    occurs first. In addition to any other remedies, by filing
21    an action jointly against the tenant and the unit owner, an
22    association may seek to enjoin a tenant from occupying a
23    unit or seek to evict a tenant under the provisions of
24    Article IX of the Code of Civil Procedure for failure of
25    the lessor-owner to comply with the leasing requirements
26    prescribed by this Section or by the declaration, bylaws,

 

 

SB0220- 30 -LRB101 07990 LNS 53047 b

1    and rules and regulations. The board of managers may
2    proceed directly against a tenant, at law or in equity, or
3    under the provisions of Article IX of the Code of Civil
4    Procedure, for any other breach by tenant of any covenants,
5    rules, regulations or bylaws.
6        (o) The association shall have no authority to forbear
7    the payment of assessments by any unit owner.
8        (p) That when 30% or fewer of the units, by number,
9    possess over 50% in the aggregate of the votes in the
10    association, any percentage vote of members specified
11    herein or in the condominium instruments shall require the
12    specified percentage by number of units rather than by
13    percentage of interest in the common elements allocated to
14    units that would otherwise be applicable and garage units
15    or storage units, or both, shall have, in total, no more
16    votes than their aggregate percentage of ownership in the
17    common elements; this shall mean that if garage units or
18    storage units, or both, are to be given a vote, or portion
19    of a vote, that the association must add the total number
20    of votes cast of garage units, storage units, or both, and
21    divide the total by the number of garage units, storage
22    units, or both, and multiply by the aggregate percentage of
23    ownership of garage units and storage units to determine
24    the vote, or portion of a vote, that garage units or
25    storage units, or both, have. For purposes of this
26    subsection (p), when making a determination of whether 30%

 

 

SB0220- 31 -LRB101 07990 LNS 53047 b

1    or fewer of the units, by number, possess over 50% in the
2    aggregate of the votes in the association, a unit shall not
3    include a garage unit or a storage unit.
4        (q) That a unit owner may not assign, delegate,
5    transfer, surrender, or avoid the duties,
6    responsibilities, and liabilities of a unit owner under
7    this Act, the condominium instruments, or the rules and
8    regulations of the Association; and that such an attempted
9    assignment, delegation, transfer, surrender, or avoidance
10    shall be deemed void.
11        (r) That the association has no authority to report
12    adverse information to a credit reporting agency or
13    initiate collection proceedings against a unit owner for an
14    unpaid fine unless the board levied the fine in accordance
15    with subsection (l) of Section 18.4.
16    The provisions of this Section are applicable to all
17condominium instruments recorded under this Act. Any portion of
18a condominium instrument which contains provisions contrary to
19these provisions shall be void as against public policy and
20ineffective. Any such instrument which fails to contain the
21provisions required by this Section shall be deemed to
22incorporate such provisions by operation of law.
23(Source: P.A. 99-472, eff. 6-1-16; 99-567, eff. 1-1-17; 99-642,
24eff. 7-28-16; 100-292, eff. 1-1-18; 100-416, eff. 1-1-18;
25100-863, eff. 8-14-18.)
 

 

 

SB0220- 32 -LRB101 07990 LNS 53047 b

1    (765 ILCS 605/18.4)  (from Ch. 30, par. 318.4)
2    Sec. 18.4. Powers and duties of board of managers. The
3board of managers shall exercise for the association all
4powers, duties and authority vested in the association by law
5or the condominium instruments except for such powers, duties
6and authority reserved by law to the members of the
7association. The powers and duties of the board of managers
8shall include, but shall not be limited to, the following:
9        (a) To provide for the operation, care, upkeep,
10    maintenance, replacement and improvement of the common
11    elements. Nothing in this subsection (a) shall be deemed to
12    invalidate any provision in a condominium instrument
13    placing limits on expenditures for the common elements,
14    provided, that such limits shall not be applicable to
15    expenditures for repair, replacement, or restoration of
16    existing portions of the common elements. The term "repair,
17    replacement or restoration" means expenditures to
18    deteriorated or damaged portions of the property related to
19    the existing decorating, facilities, or structural or
20    mechanical components, interior or exterior surfaces, or
21    energy systems and equipment with the functional
22    equivalent of the original portions of such areas.
23    Replacement of the common elements may result in an
24    improvement over the original quality of such elements or
25    facilities; provided that, unless the improvement is
26    mandated by law or is an emergency as defined in item (iv)

 

 

SB0220- 33 -LRB101 07990 LNS 53047 b

1    of subparagraph (8) of paragraph (a) of Section 18, if the
2    improvement results in a proposed expenditure exceeding 5%
3    of the annual budget, the board of managers, upon written
4    petition by unit owners with 20% of the votes of the
5    association delivered to the board within 21 days of the
6    board action to approve the expenditure, shall call a
7    meeting of the unit owners within 30 days of the date of
8    delivery of the petition to consider the expenditure.
9    Unless a majority of the total votes of the unit owners are
10    cast at the meeting to reject the expenditure, it is
11    ratified.
12        (b) To prepare, adopt and distribute the annual budget
13    for the property.
14        (c) To levy and expend assessments.
15        (d) To collect assessments from unit owners.
16        (e) To provide for the employment and dismissal of the
17    personnel necessary or advisable for the maintenance and
18    operation of the common elements.
19        (f) To obtain adequate and appropriate kinds of
20    insurance.
21        (g) To own, convey, encumber, lease, and otherwise deal
22    with units conveyed to or purchased by it.
23        (h) To adopt and amend rules and regulations covering
24    the details of the operation and use of the property, after
25    a meeting of the unit owners called for the specific
26    purpose of discussing the proposed rules and regulations.

 

 

SB0220- 34 -LRB101 07990 LNS 53047 b

1    Notice of the meeting shall contain the full text of the
2    proposed rules and regulations, and the meeting shall
3    conform to the requirements of Section 18(b) of this Act,
4    except that no quorum is required at the meeting of the
5    unit owners unless the declaration, bylaws or other
6    condominium instrument expressly provides to the contrary.
7    However, no rule or regulation may impair any rights
8    guaranteed by the First Amendment to the Constitution of
9    the United States or Section 4 of Article I of the Illinois
10    Constitution including, but not limited to, the free
11    exercise of religion, nor may any rules or regulations
12    conflict with the provisions of this Act or the condominium
13    instruments. No rule or regulation shall prohibit any
14    reasonable accommodation for religious practices,
15    including the attachment of religiously mandated objects
16    to the front-door area of a condominium unit.
17        (i) To keep detailed, accurate records of the receipts
18    and expenditures affecting the use and operation of the
19    property.
20        (j) To have access to each unit from time to time as
21    may be necessary for the maintenance, repair or replacement
22    of any common elements or for making emergency repairs
23    necessary to prevent damage to the common elements or to
24    other units.
25        (k) To pay real property taxes, special assessments,
26    and any other special taxes or charges of the State of

 

 

SB0220- 35 -LRB101 07990 LNS 53047 b

1    Illinois or of any political subdivision thereof, or other
2    lawful taxing or assessing body, which are authorized by
3    law to be assessed and levied upon the real property of the
4    condominium.
5        (l) To impose charges for late payment of a unit
6    owner's proportionate share of the common expenses, or any
7    other expenses lawfully agreed upon, and to levy reasonable
8    fines for violation of the declaration, bylaws, and rules
9    and regulations of the association. Before the board may
10    levy a fine, it shall first provide the unit owner a
11    minimum of 20 days' written notice and an opportunity to be
12    heard. The written notice shall be made in accordance with
13    the requirements of this Act. The written notice and
14    opportunity to be heard requirements of this subsection
15    apply only to the ability to levy fines, and nothing
16    contained in this subsection limits or restricts the
17    ability of the board to pursue or enforce the rights of the
18    association , and after notice and an opportunity to be
19    heard, to levy reasonable fines for violation of the
20    declaration, by-laws, and rules and regulations of the
21    association.
22        (m) By a majority vote of the entire board of managers,
23    to assign the right of the association to future income
24    from common expenses or other sources, and to mortgage or
25    pledge substantially all of the remaining assets of the
26    association.

 

 

SB0220- 36 -LRB101 07990 LNS 53047 b

1        (n) To record the dedication of a portion of the common
2    elements to a public body for use as, or in connection
3    with, a street or utility where authorized by the unit
4    owners under the provisions of Section 14.2.
5        (o) To record the granting of an easement for the
6    laying of cable television or high speed Internet cable
7    where authorized by the unit owners under the provisions of
8    Section 14.3; to obtain, if available and determined by the
9    board to be in the best interests of the association, cable
10    television or bulk high speed Internet service for all of
11    the units of the condominium on a bulk identical service
12    and equal cost per unit basis; and to assess and recover
13    the expense as a common expense and, if so determined by
14    the board, to assess each and every unit on the same equal
15    cost per unit basis.
16        (p) To seek relief on behalf of all unit owners when
17    authorized pursuant to subsection (c) of Section 10 from or
18    in connection with the assessment or levying of real
19    property taxes, special assessments, and any other special
20    taxes or charges of the State of Illinois or of any
21    political subdivision thereof or of any lawful taxing or
22    assessing body.
23        (q) To reasonably accommodate the needs of a unit owner
24    who is a person with a disability as required by the
25    federal Civil Rights Act of 1968, the Human Rights Act and
26    any applicable local ordinances in the exercise of its

 

 

SB0220- 37 -LRB101 07990 LNS 53047 b

1    powers with respect to the use of common elements or
2    approval of modifications in an individual unit.
3        (r) To accept service of a notice of claim for purposes
4    of the Mechanics Lien Act on behalf of each respective
5    member of the Unit Owners' Association with respect to
6    improvements performed pursuant to any contract entered
7    into by the Board of Managers or any contract entered into
8    prior to the recording of the condominium declaration
9    pursuant to this Act, for a property containing more than 8
10    units, and to distribute the notice to the unit owners
11    within 7 days of the acceptance of the service by the Board
12    of Managers. The service shall be effective as if each
13    individual unit owner had been served individually with
14    notice.
15        (s) To adopt and amend rules and regulations (l)
16    authorizing electronic delivery of notices and other
17    communications required or contemplated by this Act to each
18    unit owner who provides the association with written
19    authorization for electronic delivery and an electronic
20    address to which such communications are to be
21    electronically transmitted; and (2) authorizing each unit
22    owner to designate an electronic address or a U.S. Postal
23    Service address, or both, as the unit owner's address on
24    any list of members or unit owners which an association is
25    required to provide upon request pursuant to any provision
26    of this Act or any condominium instrument.

 

 

SB0220- 38 -LRB101 07990 LNS 53047 b

1    In the performance of their duties, the officers and
2members of the board, whether appointed by the developer or
3elected by the unit owners, shall exercise the care required of
4a fiduciary of the unit owners.
5    The collection of assessments from unit owners by an
6association, board of managers or their duly authorized agents
7shall not be considered acts constituting a collection agency
8for purposes of the Collection Agency Act.
9    The provisions of this Section are applicable to all
10condominium instruments recorded under this Act. Any portion of
11a condominium instrument which contains provisions contrary to
12these provisions shall be void as against public policy and
13ineffective. Any such instrument that fails to contain the
14provisions required by this Section shall be deemed to
15incorporate such provisions by operation of law.
16(Source: P.A. 99-143, eff. 7-27-15; 99-849, eff. 1-1-17;
17100-292, eff. 1-1-18.)