101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB3731

 

Introduced 2/14/2020, by Sen. Sara Feigenholtz

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Condominium Property Act. Provides that to sell a condominium property, there shall be the following percentage of affirmative votes of the unit owners: 75% for a property with 4 to 6 units (rather than 4 or more units); or 85% for a property with 7 or more units. Provides that an association that has agreed to sell the property shall inform the unit owners that the association may choose outside counsel to represent its interests during the sale process. Provides that it is a violation for a person, partnership, corporation, or other legal entity entitled to transact business on behalf of others, acting on behalf of one seeking to communicate with a unit owner for the purpose of purchasing his or her property once the unit owner has affirmatively requested that such a communication not be made. Provides that the bylaws shall provide that: matters subject to the affirmative vote of not less than 2/3 of the votes of unit owners shall require an independent audit of the votes; and unless a lesser percentage of ownership is provided for in the bylaws, no person, heir assign, family member, affiliate, partnership, corporation, or other legal entity entitled to transact business on behalf of others may own more than 10% of the units for a property containing 30 or more units, more than 15% of the units for a property containing 20 to 29 units, more than 20% for a property containing 5 to 19 units, and no more than a single unit for a property containing fewer than 5 units. Provides that it is a power and duty of the board of managers to: reject any arrangement that establishes an agreement for a buyer to purchase a property; and refrain from investigating an offer to purchase a property without first receiving authorization from the association through an affirmative vote of not less than 75% of unit owners based on the percentage of ownership. Provides that every officer and member of the board who violates, participates in, or permits any of the officers, agents, or assigns of the board to breach his or her fiduciary duty shall be held liable in his or her personal or individual capacity. Makes other changes. Makes a corresponding change in the Common Interest Community Association Act.


LRB101 20341 LNS 69886 b

 

 

A BILL FOR

 

SB3731LRB101 20341 LNS 69886 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 Common Interest Community Association Act is
5amended by changing Section 1-30 as follows:
 
6    (765 ILCS 160/1-30)
7    Sec. 1-30. Board duties and obligations; records.
8    (a) The board shall meet at least 4 times annually.
9    (b) A common interest community association may not enter
10into a contract with a current board member, or with a
11corporation, limited liability company, or partnership in
12which a board member or a member of his or her immediate family
13has 25% or more interest, unless notice of intent to enter into
14the contract is given to members within 20 days after a
15decision is made to enter into the contract and the members are
16afforded an opportunity by filing a petition, signed by 20% of
17the membership, for an election to approve or disapprove the
18contract; such petition shall be filed within 20 days after
19such notice and such election shall be held within 30 days
20after filing the petition. For purposes of this subsection, a
21board member's immediate family means the board member's
22spouse, parents, siblings, and children.
23    (c) The bylaws or operating agreement shall provide for the

 

 

SB3731- 2 -LRB101 20341 LNS 69886 b

1maintenance, repair, and replacement of the common areas and
2payments therefor, including the method of approving payment
3vouchers.
4    (d) (Blank).
5    (e) The association may engage the services of a manager or
6management company.
7    (f) The association shall have one class of voting
8membership unless the declaration, bylaws, or operating
9agreement provide otherwise; however, this subsection (f)
10shall not be construed to limit the operation of subsection (c)
11of Section 1-20 of this Act.
12    (g) The board shall have the power, after notice and an
13opportunity to be heard, to levy and collect reasonable fines
14from members or unit owners for violations of the declaration,
15bylaws, operating agreement, and rules and regulations of the
16common interest community association.
17    (h) Other than attorney's fees and court or arbitration
18costs, no fees pertaining to the collection of a member's or
19unit owner's financial obligation to the association,
20including fees charged by a manager or managing agent, shall be
21added to and deemed a part of a member's or unit owner's
22respective share of the common expenses unless: (i) the
23managing agent fees relate to the costs to collect common
24expenses for the association; (ii) the fees are set forth in a
25contract between the managing agent and the association; and
26(iii) the authority to add the management fees to a member's or

 

 

SB3731- 3 -LRB101 20341 LNS 69886 b

1unit owner's respective share of the common expenses is
2specifically stated in the declaration, bylaws, or operating
3agreement of the association.
4    (i) Board records.
5        (1) The board shall maintain the following records of
6    the association and make them available for examination and
7    copying at convenient hours of weekdays by any member or
8    unit owner in a common interest community subject to the
9    authority of the board, their mortgagees, and their duly
10    authorized agents or attorneys:
11            (i) Copies of the recorded declaration, other
12        community instruments, other duly recorded covenants
13        and bylaws and any amendments, articles of
14        incorporation, articles of organization, annual
15        reports, and any rules and regulations adopted by the
16        board shall be available. Prior to the organization of
17        the board, the developer shall maintain and make
18        available the records set forth in this paragraph (i)
19        for examination and copying.
20            (ii) Detailed and accurate records in
21        chronological order of the receipts and expenditures
22        affecting the common areas, specifying and itemizing
23        the maintenance and repair expenses of the common areas
24        and any other expenses incurred, and copies of all
25        contracts, leases, or other agreements entered into by
26        the board shall be maintained.

 

 

SB3731- 4 -LRB101 20341 LNS 69886 b

1            (iii) The minutes of all meetings of the board
2        which shall be maintained for not less than 7 years.
3            (iv) With a written statement of a proper purpose,
4        ballots and proxies related thereto, if any, for any
5        election held for the board and for any other matters
6        voted on by the members, which shall be maintained for
7        not less than one year.
8            (v) With a written statement of a proper purpose,
9        such other records of the board as are available for
10        inspection by members of a not-for-profit corporation
11        pursuant to Section 107.75 of the General Not For
12        Profit Corporation Act of 1986 shall be maintained.
13            (vi) With respect to units owned by a land trust, a
14        living trust, or other legal entity, the trustee,
15        officer, or manager of the entity may designate, in
16        writing, a person to cast votes on behalf of the member
17        or unit owner and a designation shall remain in effect
18        until a subsequent document is filed with the
19        association.
20        (2) Where a request for records under this subsection
21    is made in writing to the board or its agent, failure to
22    provide the requested record or to respond within 30 days
23    shall be deemed a denial by the board.
24        (3) A reasonable fee may be charged by the board for
25    the cost of retrieving and copying records properly
26    requested.

 

 

SB3731- 5 -LRB101 20341 LNS 69886 b

1        (4) If the board fails to provide records properly
2    requested under paragraph (1) of this subsection (i) within
3    the time period provided in that paragraph (1), the member
4    may seek appropriate relief and shall be entitled to an
5    award of reasonable attorney's fees and costs if the member
6    prevails and the court finds that such failure is due to
7    the acts or omissions of the board of managers or the board
8    of directors.
9    (j) The board shall have standing and capacity to act in a
10representative capacity in relation to matters involving the
11common areas or more than one unit, on behalf of the members or
12unit owners as their interests may appear.
13(Source: P.A. 98-232, eff. 1-1-14; 98-241, eff. 8-9-13; 98-756,
14eff. 7-16-14; 99-41, eff. 7-14-15.)
 
15    Section 10. The Condominium Property Act is amended by
16changing Sections 9, 15, 18, 18.4, and 19 as follows:
 
17    (765 ILCS 605/9)  (from Ch. 30, par. 309)
18    Sec. 9. Sharing of expenses - Lien for nonpayment.
19    (a) All common expenses incurred or accrued prior to the
20first conveyance of a unit shall be paid by the developer, and
21during this period no common expense assessment shall be
22payable to the association. It shall be the duty of each unit
23owner including the developer to pay his proportionate share of
24the common expenses commencing with the first conveyance. The

 

 

SB3731- 6 -LRB101 20341 LNS 69886 b

1proportionate share shall be in the same ratio as his
2percentage of ownership in the common elements set forth in the
3declaration.
4    (b) The condominium instruments may provide that common
5expenses for insurance premiums be assessed on a basis
6reflecting increased charges for coverage on certain units.
7    (c) Budget and reserves.
8        (1) The board of managers shall prepare and distribute
9    to all unit owners a detailed proposed annual budget,
10    setting forth with particularity all anticipated common
11    expenses by category as well as all anticipated assessments
12    and other income. The initial budget and common expense
13    assessment based thereon shall be adopted prior to the
14    conveyance of any unit. The budget shall also set forth
15    each unit owner's proposed common expense assessment.
16        (2) All budgets adopted by a board of managers on or
17    after July 1, 1990 shall provide for reasonable reserves
18    for capital expenditures and deferred maintenance for
19    repair or replacement of the common elements. To determine
20    the amount of reserves appropriate for an association, the
21    board of managers shall take into consideration the
22    following: (i) the repair and replacement cost, and the
23    estimated useful life, of the property which the
24    association is obligated to maintain, including but not
25    limited to structural and mechanical components, surfaces
26    of the buildings and common elements, and energy systems

 

 

SB3731- 7 -LRB101 20341 LNS 69886 b

1    and equipment; (ii) the current and anticipated return on
2    investment of association funds; (iii) any independent
3    professional reserve study which the association shall may
4    obtain; (iv) the financial impact on unit owners, and the
5    market value of the condominium units, of any assessment
6    increase needed to fund reserves; and (v) the ability of
7    the association to obtain financing or refinancing.
8        Additionally, to assist the board of managers in
9    determining the appropriate amount of reserves, a reserve
10    study shall be conducted by a qualified independent
11    professional for all properties with 7 or more units. Every
12    3 years, an updated reserve study shall be prepared using a
13    visual site inspection by a qualified independent
14    professional.
15        (3) Notwithstanding the provisions of this subsection
16    (c), an association without a reserve requirement in its
17    condominium instruments may elect to waive in whole or in
18    part the reserve requirements of this Section by a vote of
19    2/3 of the total votes of the association. Any association
20    having elected under this paragraph (3) to waive the
21    provisions of subsection (c) may by a vote of 2/3 of the
22    total votes of the association elect to again be governed
23    by the requirements of subsection (c).
24        (4) In the event that an association elects to waive
25    all or part of the reserve requirements of this Section,
26    that fact must be disclosed after the meeting at which the

 

 

SB3731- 8 -LRB101 20341 LNS 69886 b

1    waiver occurs by the association in the financial
2    statements of the association and, highlighted in bold
3    print, in the response to any request of a prospective
4    purchaser for the information prescribed under Section
5    22.1; and no member of the board of managers or the
6    managing agent of the association shall be liable, and no
7    cause of action may be brought for damages against these
8    parties, for the lack or inadequacy of reserve funds in the
9    association budget.
10        (5) At the end of an association's fiscal year and
11    after the association has approved any end-of-year fiscal
12    audit, if applicable, if the fiscal year ended with a
13    surplus of funds over actual expenses, including budgeted
14    reserve fund contributions, then, to the extent that there
15    are not any contrary provisions in the association's
16    declaration and bylaws, the board of managers has the
17    authority, in its discretion, to dispose of the surplus in
18    one or more of the following ways: (i) contribute the
19    surplus to the association's reserve fund; (ii) return the
20    surplus to the unit owners as a credit against the
21    remaining monthly assessments for the current fiscal year;
22    (iii) return the surplus to the unit owners in the form of
23    a direct payment to the unit owners; or (iv) maintain the
24    funds in the operating account, in which case the funds
25    shall be applied as a credit when calculating the following
26    year's annual budget. If the fiscal year ends in a deficit,

 

 

SB3731- 9 -LRB101 20341 LNS 69886 b

1    then, to the extent that there are not any contrary
2    provisions in the association's declaration and bylaws,
3    the board of managers has the authority, in its discretion,
4    to address the deficit by incorporating it into the
5    following year's annual budget. If 20% of the unit owners
6    of the association deliver a petition objecting to the
7    action under this paragraph (5) within 30 days after notice
8    to the unit owners of the action, the board of managers
9    shall call a meeting of the unit owners within 30 days of
10    the date of delivery of the petition. At the meeting, the
11    unit owners may vote to select a different option than the
12    option selected by the board of managers. Unless a majority
13    of the total votes of the unit owners are cast at the
14    meeting to reject the board's selection and select a
15    different option, the board's decision is ratified.
16    (d) (Blank).
17    (e) The condominium instruments may provide for the
18assessment, in connection with expenditures for the limited
19common elements, of only those units to which the limited
20common elements are assigned.
21    (f) Payment of any assessment shall be in amounts and at
22times determined by the board of managers.
23    (g) Lien.
24        (1) If any unit owner shall fail or refuse to make any
25    payment of the common expenses or the amount of any unpaid
26    fine when due, the amount thereof together with any

 

 

SB3731- 10 -LRB101 20341 LNS 69886 b

1    interest, late charges, reasonable attorney fees incurred
2    enforcing the covenants of the condominium instruments,
3    rules and regulations of the board of managers, or any
4    applicable statute or ordinance, and costs of collections
5    shall constitute a lien on the interest of the unit owner
6    in the property prior to all other liens and encumbrances,
7    recorded or unrecorded, except only (a) taxes, special
8    assessments and special taxes theretofore or thereafter
9    levied by any political subdivision or municipal
10    corporation of this State and other State or federal taxes
11    which by law are a lien on the interest of the unit owner
12    prior to preexisting recorded encumbrances thereon and (b)
13    encumbrances on the interest of the unit owner recorded
14    prior to the date of such failure or refusal which by law
15    would be a lien thereon prior to subsequently recorded
16    encumbrances. Any action brought to extinguish the lien of
17    the association shall include the association as a party.
18        (2) With respect to encumbrances executed prior to
19    August 30, 1984 or encumbrances executed subsequent to
20    August 30, 1984 which are neither bonafide first mortgages
21    nor trust deeds and which encumbrances contain a statement
22    of a mailing address in the State of Illinois where notice
23    may be mailed to the encumbrancer thereunder, if and
24    whenever and as often as the manager or board of managers
25    shall send, by United States certified or registered mail,
26    return receipt requested, to any such encumbrancer at the

 

 

SB3731- 11 -LRB101 20341 LNS 69886 b

1    mailing address set forth in the recorded encumbrance a
2    statement of the amounts and due dates of the unpaid common
3    expenses with respect to the encumbered unit, then, unless
4    otherwise provided in the declaration or bylaws, the prior
5    recorded encumbrance shall be subject to the lien of all
6    unpaid common expenses with respect to the unit which
7    become due and payable within a period of 90 days after the
8    date of mailing of each such notice.
9        (3) The purchaser of a condominium unit at a judicial
10    foreclosure sale, or a mortgagee who receives title to a
11    unit by deed in lieu of foreclosure or judgment by common
12    law strict foreclosure or otherwise takes possession
13    pursuant to court order under the Illinois Mortgage
14    Foreclosure Law, shall have the duty to pay the unit's
15    proportionate share of the common expenses for the unit
16    assessed from and after the first day of the month after
17    the date of the judicial foreclosure sale, delivery of the
18    deed in lieu of foreclosure, entry of a judgment in common
19    law strict foreclosure, or taking of possession pursuant to
20    such court order. Such payment confirms the extinguishment
21    of any lien created pursuant to paragraph (1) or (2) of
22    this subsection (g) by virtue of the failure or refusal of
23    a prior unit owner to make payment of common expenses,
24    where the judicial foreclosure sale has been confirmed by
25    order of the court, a deed in lieu thereof has been
26    accepted by the lender, or a consent judgment has been

 

 

SB3731- 12 -LRB101 20341 LNS 69886 b

1    entered by the court.
2        (4) The purchaser of a condominium unit at a judicial
3    foreclosure sale, other than a mortgagee, who takes
4    possession of a condominium unit pursuant to a court order
5    or a purchaser who acquires title from a mortgagee shall
6    have the duty to pay the proportionate share, if any, of
7    the common expenses for the unit which would have become
8    due in the absence of any assessment acceleration during
9    the 6 months immediately preceding institution of an action
10    to enforce the collection of assessments, and which remain
11    unpaid by the owner during whose possession the assessments
12    accrued. If the outstanding assessments are paid at any
13    time during any action to enforce the collection of
14    assessments, the purchaser shall have no obligation to pay
15    any assessments which accrued before he or she acquired
16    title.
17        (5) The notice of sale of a condominium unit under
18    subsection (c) of Section 15-1507 of the Code of Civil
19    Procedure shall state that the purchaser of the unit other
20    than a mortgagee shall pay the assessments and the legal
21    fees required by subdivisions (g)(1) and (g)(4) of Section
22    9 of this Act. The statement of assessment account issued
23    by the association to a unit owner under subsection (i) of
24    Section 18 of this Act, and the disclosure statement issued
25    to a prospective purchaser under Section 22.1 of this Act,
26    shall state the amount of the assessments and the legal

 

 

SB3731- 13 -LRB101 20341 LNS 69886 b

1    fees, if any, required by subdivisions (g)(1) and (g)(4) of
2    Section 9 of this Act.
3    (h) A lien for common expenses shall be in favor of the
4members of the board of managers and their successors in office
5and shall be for the benefit of all other unit owners. Notice
6of the lien may be recorded by the board of managers, or if the
7developer is the manager or has a majority of seats on the
8board of managers and the manager or board of managers fails to
9do so, any unit owner may record notice of the lien. Upon the
10recording of such notice the lien may be foreclosed by an
11action brought in the name of the board of managers in the same
12manner as a mortgage of real property.
13    (i) Unless otherwise provided in the declaration, the
14members of the board of managers and their successors in
15office, acting on behalf of the other unit owners, shall have
16the power to bid on the interest so foreclosed at the
17foreclosure sale, and to acquire and hold, lease, mortgage and
18convey it.
19    (j) Any encumbrancer may from time to time request in
20writing a written statement from the manager or board of
21managers setting forth the unpaid common expenses with respect
22to the unit covered by his encumbrance. Unless the request is
23complied with within 20 days, all unpaid common expenses which
24become due prior to the date of the making of such request
25shall be subordinate to the lien of the encumbrance. Any
26encumbrancer holding a lien on a unit may pay any unpaid common

 

 

SB3731- 14 -LRB101 20341 LNS 69886 b

1expenses payable with respect to the unit, and upon payment the
2encumbrancer shall have a lien on the unit for the amounts paid
3at the same rank as the lien of his encumbrance.
4    (k) Nothing in Public Act 83-1271 is intended to change the
5lien priorities of any encumbrance created prior to August 30,
61984.
7(Source: P.A. 100-292, eff. 1-1-18.)
 
8    (765 ILCS 605/15)  (from Ch. 30, par. 315)
9    Sec. 15. Sale of property.
10    (a) Unless a greater percentage is provided for in the
11declaration or bylaws, and notwithstanding the provisions of
12Sections 13 and 14 hereof, a majority of the unit owners where
13the property contains 2 units, or not less than 66 2/3% where
14the property contains 3 three units, or and not less than 75%
15where the property contains 4 to 6 or more units, or not less
16than 85% where the property contains 7 or more units may, by
17affirmative vote at a meeting of unit owners duly called for
18such purpose, elect to sell the property. A vote to approve a
19deconversion shall be independently conducted and shall be at
20the expense of the party acquiring ownership rights to the
21property. Any party, including the board of managers, involved
22in the marketing or sale of the property may be privy only to
23the percentage of votes collected, but not the voting tallies,
24until the final vote is revealed. Such action shall be binding
25upon all unit owners, and it shall thereupon become the duty of

 

 

SB3731- 15 -LRB101 20341 LNS 69886 b

1every unit owner to execute and deliver such instruments and to
2perform all acts as in manner and form may be necessary to
3effect such sale, provided, however, that any unit owner who
4did not vote in favor of such action and who has filed written
5objection thereto with the manager or board of managers within
620 days after the date of the meeting at which such sale was
7approved shall be entitled to receive from the proceeds of such
8sale an amount equivalent to the greater of: (i) the value of
9his or her interest, as determined by a fair appraisal, less
10the amount of any unpaid assessments or charges due and owing
11from such unit owner or (ii) the outstanding balance of any
12bona fide debt secured by the objecting unit owner's interest
13which was incurred by such unit owner in connection with the
14acquisition or refinance of the unit owner's interest, less the
15amount of any unpaid assessments or charges due and owing from
16such unit owner. The objecting unit owner is also entitled to
17receive from the proceeds of a sale under this Section
18reimbursement for reasonable relocation costs, determined in
19the same manner as under the federal Uniform Relocation
20Assistance and Real Property Acquisition Policies Act of 1970,
21as amended from time to time, and as implemented by regulations
22promulgated under that Act.
23    (b) If there is a disagreement as to the value of the
24interest of a unit owner who did not vote in favor of the sale
25of the property, that unit owner shall have a right to
26designate an expert in appraisal or property valuation to

 

 

SB3731- 16 -LRB101 20341 LNS 69886 b

1represent him, in which case, the prospective purchaser of the
2property shall designate an expert in appraisal or property
3valuation to represent him, and both of these experts shall
4mutually designate a third expert in appraisal or property
5valuation. The 3 experts shall constitute a panel to determine
6by vote of at least 2 of the members of the panel, the value of
7that unit owner's interest in the property. The changes made by
8this amendatory Act of the 100th General Assembly apply to
9sales under this Section that are pending or commenced on and
10after the effective date of this amendatory Act of the 100th
11General Assembly.
12    (c) An association that has requested or received a written
13offer to sell the property shall inform the unit owners that
14the association shall choose counsel to represent its interests
15during the real estate sale process with an affirmative vote of
16not less than 75% of ownership. The association shall inform
17the unit owners at the time of an affirmative vote to
18investigate an offer to purchase a condominium property or list
19the property for sale that: (1) the attorney of record
20represents the association and not the individual unit owner;
21(2) the interests of the association may conflict with the
22interests of a specific unit owner; and (3) any unit owner may
23retain the representation of independent counsel. The attorney
24of record, or his or her employees, agents, or assigns, shall
25not engage in any work, paid or unpaid, that creates an actual
26or potential conflict of interest. If a conflict of interest

 

 

SB3731- 17 -LRB101 20341 LNS 69886 b

1exists, the attorney shall inform the association.
2    (d) It is a violation of this Act for a person,
3partnership, corporation, or other legal entity entitled to
4transact business on behalf of others, to communicate with a
5unit owner, or any member of his or her household, for the
6purpose of purchasing his or her property once the unit owner
7has affirmatively requested that such a communication not be
8made.
9    (e) It is a violation of this Act for a buyer, or his or her
10agent, representative, assign, or affiliate, who is
11considering buying a condominium building to make or attempt to
12make an offer on the property, or, in the process of purchasing
13the property, including any time after an offer has been made,
14to offer any consideration, financial or otherwise, as an
15incentive to procure the affirmative vote to the bulk sale from
16the unit owner or to influence the outcome of the condominium
17ownership's vote in favor of the buyer or his or her agent,
18representative, assign, affiliate, or related entity. A buyer
19may offer financial consideration in exchange for the purchase
20of a condominium unit or building, however, the buyer, or his
21or her agent, representative, or affiliate, may not offer
22consideration to any individual or entity who is an owner in
23the building he or she is seeking to purchase beyond what has
24been specified for each owner in the purchase offer document.
25Consideration, financial or otherwise, in excess of what was
26promised to each unit owner in a written contract that all

 

 

SB3731- 18 -LRB101 20341 LNS 69886 b

1owners are privy to is a prohibited form of vote-buying and a
2disallowed quid pro quo. Any violation of this subsection that
3occurs without the disclosure and consent of the board of
4managers and the condominium association shall render the bulk
5sale agreement illegitimate and unenforceable.
6(Source: P.A. 100-292, eff. 1-1-18.)
 
7    (765 ILCS 605/18)  (from Ch. 30, par. 318)
8    Sec. 18. Contents of bylaws. The bylaws shall provide for
9at least the following:
10        (a)(1) The election from among the unit owners of a
11    board of managers, the number of persons constituting such
12    board, and that the terms of at least one-third of the
13    members of the board shall expire annually and that all
14    members of the board shall be elected at large; if there
15    are multiple owners of a single unit, only one of the
16    multiple owners shall be eligible to serve as a member of
17    the board at any one time;
18        (2) the powers and duties of the board;
19        (3) the compensation, if any, of the members of the
20    board;
21        (4) the method of removal from office of members of the
22    board;
23        (5) that the board may engage the services of a manager
24    or managing agent;
25        (6) that each unit owner shall receive, at least 25

 

 

SB3731- 19 -LRB101 20341 LNS 69886 b

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

 

 

SB3731- 20 -LRB101 20341 LNS 69886 b

1    owners with 20 percent of the votes of the association
2    delivered to the board within 21 days of the board action,
3    shall call a meeting of the unit owners within 30 days of
4    the date of delivery of the petition to consider the budget
5    or separate assessment; unless a majority of the total
6    votes of the unit owners are cast at the meeting to reject
7    the budget or separate assessment, it is ratified, (iii)
8    that any common expense not set forth in the budget or any
9    increase in assessments over the amount adopted in the
10    budget shall be separately assessed against all unit
11    owners, (iv) that separate assessments for expenditures
12    relating to emergencies or mandated by law may be adopted
13    by the board of managers without being subject to unit
14    owner approval or the provisions of item (ii) above or item
15    (v) below. As used herein, "emergency" means an immediate
16    danger to the structural integrity of the common elements
17    or to the life, health, safety or property of the unit
18    owners, (v) that assessments for additions and alterations
19    to the common elements or to association-owned property not
20    included in the adopted annual budget, shall be separately
21    assessed and are subject to approval of two-thirds of the
22    total votes of all unit owners, (vi) that the board of
23    managers may adopt separate assessments payable over more
24    than one fiscal year. With respect to multi-year
25    assessments not governed by items (iv) and (v), the entire
26    amount of the multi-year assessment shall be deemed

 

 

SB3731- 21 -LRB101 20341 LNS 69886 b

1    considered and authorized in the first fiscal year in which
2    the assessment is approved;
3        (9)(A) that every meeting of the board of managers
4    shall be open to any unit owner, except that the board may
5    close any portion of a noticed meeting or meet separately
6    from a noticed meeting to: (i) discuss litigation when an
7    action against or on behalf of the particular association
8    has been filed and is pending in a court or administrative
9    tribunal, or when the board of managers finds that such an
10    action is probable or imminent, (ii) discuss the
11    appointment, employment, engagement, or dismissal of an
12    employee, independent contractor, agent, or other provider
13    of goods and services, (iii) interview a potential
14    employee, independent contractor, agent, or other provider
15    of goods and services, (iv) discuss violations of rules and
16    regulations of the association, (v) discuss a unit owner's
17    unpaid share of common expenses, or (vi) consult with the
18    association's legal counsel; that any vote on these matters
19    shall take place at a meeting of the board of managers or
20    portion thereof open to any unit owner;
21        (B) that board members may participate in and act at
22    any meeting of the board of managers in person, by
23    telephonic means, or by use of any acceptable technological
24    means whereby all persons participating in the meeting can
25    communicate with each other; that participation
26    constitutes attendance and presence in person at the

 

 

SB3731- 22 -LRB101 20341 LNS 69886 b

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

 

 

SB3731- 23 -LRB101 20341 LNS 69886 b

1    association require, to each other unit owner, as required
2    by subsection (f) of Section 18.8, by mail or delivery, and
3    that no other notice of a meeting of the board of managers
4    need be given to any unit owner;
5        (10) that the board shall meet at least 4 times
6    annually;
7        (11) that no member of the board or officer shall be
8    elected for a term of more than 2 years, but that officers
9    and board members may succeed themselves;
10        (12) the designation of an officer to mail and receive
11    all notices and execute amendments to condominium
12    instruments as provided for in this Act and in the
13    condominium instruments;
14        (13) the method of filling vacancies on the board which
15    shall include authority for the remaining members of the
16    board to fill the vacancy by two-thirds vote until the next
17    annual meeting of unit owners or for a period terminating
18    no later than 30 days following the filing of a petition
19    signed by unit owners holding 20% of the votes of the
20    association requesting a meeting of the unit owners to fill
21    the vacancy for the balance of the term, and that a meeting
22    of the unit owners shall be called for purposes of filling
23    a vacancy on the board no later than 30 days following the
24    filing of a petition signed by unit owners holding 20% of
25    the votes of the association requesting such a meeting, and
26    the method of filling vacancies among the officers that

 

 

SB3731- 24 -LRB101 20341 LNS 69886 b

1    shall include the authority for the members of the board to
2    fill the vacancy for the unexpired portion of the term;
3        (14) what percentage of the board of managers, if other
4    than a majority, shall constitute a quorum;
5        (15) provisions concerning notice of board meetings to
6    members of the board;
7        (16) the board of managers may not enter into a
8    contract with a current board member or with a corporation
9    or partnership or affiliate of the corporation in which a
10    board member or a member of the board member's immediate
11    family has 25% or more interest, unless notice of intent to
12    enter the contract is given to unit owners within 20 days
13    after a decision is made to enter into the contract and the
14    unit owners are afforded an opportunity by filing a
15    petition, signed by 20% of the unit owners, for an election
16    to approve or disapprove the contract; such petition shall
17    be filed within 30 days after such notice and such election
18    shall be held within 30 days after filing the petition; for
19    purposes of this subsection, a board member's immediate
20    family means the board member's spouse, parents, and
21    children;
22        (17) that the board of managers may disseminate to unit
23    owners biographical and background information about
24    candidates for election to the board if (i) reasonable
25    efforts to identify all candidates are made and all
26    candidates are given an opportunity to include

 

 

SB3731- 25 -LRB101 20341 LNS 69886 b

1    biographical and background information in the information
2    to be disseminated; and (ii) the board does not express a
3    preference in favor of any candidate;
4        (18) any proxy distributed for board elections by the
5    board of managers gives unit owners the opportunity to
6    designate any person as the proxy holder, and gives the
7    unit owner the opportunity to express a preference for any
8    of the known candidates for the board or to write in a
9    name;
10        (19) that special meetings of the board of managers can
11    be called by the president or 25% of the members of the
12    board;
13        (20) that the board of managers may establish and
14    maintain a system of master metering of public utility
15    services and collect payments in connection therewith,
16    subject to the requirements of the Tenant Utility Payment
17    Disclosure Act; and
18        (21) that the board may ratify and confirm actions of
19    the members of the board taken in response to an emergency,
20    as that term is defined in subdivision (a)(8)(iv) of this
21    Section; that the board shall give notice to the unit
22    owners of: (i) the occurrence of the emergency event within
23    7 business days after the emergency event, and (ii) the
24    general description of the actions taken to address the
25    event within 7 days after the emergency event.
26        The intent of the provisions of Public Act 99-472

 

 

SB3731- 26 -LRB101 20341 LNS 69886 b

1    adding this paragraph (21) is to empower and support boards
2    to act in emergencies.
3        (b)(1) What percentage of the unit owners, if other
4    than 20%, shall constitute a quorum provided that, for
5    condominiums with 20 or more units, the percentage of unit
6    owners constituting a quorum shall be 20% unless the unit
7    owners holding a majority of the percentage interest in the
8    association provide for a higher percentage, provided that
9    in voting on amendments to the association's bylaws, a unit
10    owner who is in arrears on the unit owner's regular or
11    separate assessments for 60 days or more, shall not be
12    counted for purposes of determining if a quorum is present,
13    but that unit owner retains the right to vote on amendments
14    to the association's bylaws;
15        (2) that the association shall have one class of voting
16    membership;
17        (3) that the members shall hold an annual meeting, one
18    of the purposes of which shall be to elect members of the
19    board of managers;
20        (4) the method of calling meetings of the unit owners;
21        (5) that special meetings of the members can be called
22    by the president, board of managers, or by 20% of unit
23    owners;
24        (6) that written notice of any membership meeting shall
25    be mailed or delivered giving members no less than 10 and
26    no more than 30 days notice of the time, place and purpose

 

 

SB3731- 27 -LRB101 20341 LNS 69886 b

1    of such meeting except that notice may be sent, to the
2    extent the condominium instruments or rules adopted
3    thereunder expressly so provide, by electronic
4    transmission consented to by the unit owner to whom the
5    notice is given, provided the director and officer or his
6    agent certifies in writing to the delivery by electronic
7    transmission;
8        (7) that voting shall be on a percentage basis, and
9    that the percentage vote to which each unit is entitled is
10    the percentage interest of the undivided ownership of the
11    common elements appurtenant thereto, provided that the
12    bylaws may provide for approval by unit owners in
13    connection with matters where the requisite approval on a
14    percentage basis is not specified in this Act, on the basis
15    of one vote per unit;
16        (8) that, where there is more than one owner of a unit,
17    if only one of the multiple owners is present at a meeting
18    of the association, he is entitled to cast all the votes
19    allocated to that unit, if more than one of the multiple
20    owners are present, the votes allocated to that unit may be
21    cast only in accordance with the agreement of a majority in
22    interest of the multiple owners, unless the declaration
23    expressly provides otherwise, that there is majority
24    agreement if any one of the multiple owners cast the votes
25    allocated to that unit without protest being made promptly
26    to the person presiding over the meeting by any of the

 

 

SB3731- 28 -LRB101 20341 LNS 69886 b

1    other owners of the unit;
2        (9)(A) except as provided in subparagraph (B) of this
3    paragraph (9) in connection with board elections, that a
4    unit owner may vote by proxy executed in writing by the
5    unit owner or by his duly authorized attorney in fact; that
6    the proxy must bear the date of execution and, unless the
7    condominium instruments or the written proxy itself
8    provide otherwise, is invalid after 11 months from the date
9    of its execution; to the extent the condominium instruments
10    or rules adopted thereunder expressly so provide, a vote or
11    proxy may be submitted by electronic transmission,
12    provided that any such electronic transmission shall
13    either set forth or be submitted with information from
14    which it can be determined that the electronic transmission
15    was authorized by the unit owner or the unit owner's proxy;
16        (B) that if a rule adopted at least 120 days before a
17    board election or the declaration or bylaws provide for
18    balloting as set forth in this subsection, unit owners may
19    not vote by proxy in board elections, but may vote only (i)
20    by submitting an association-issued ballot in person at the
21    election meeting or (ii) by submitting an
22    association-issued ballot to the association or its
23    designated agent by mail or other means of delivery
24    specified in the declaration, bylaws, or rule; that the
25    ballots shall be mailed or otherwise distributed to unit
26    owners not less than 10 and not more than 30 days before

 

 

SB3731- 29 -LRB101 20341 LNS 69886 b

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

 

 

SB3731- 30 -LRB101 20341 LNS 69886 b

1    than 10 and not more than 30 days before the election
2    meeting, and the board shall give unit owners not less than
3    21 days' prior written notice of the deadline for inclusion
4    of a candidate's name on the ballots; the deadline shall be
5    no more than 7 days before the instructions for voting
6    using electronic or acceptable technological means is
7    distributed to unit owners; every instruction notice must
8    include the names of all candidates who have given the
9    board or its authorized agent timely written notice of
10    their candidacy and must give the person voting through
11    electronic or acceptable technological means the
12    opportunity to cast votes for candidates whose names do not
13    appear on the ballot; a unit owner who submits a vote using
14    electronic or acceptable technological means may request
15    and cast a ballot in person at the election meeting,
16    thereby voiding any vote previously submitted by that unit
17    owner;
18        (C) that if a written petition by unit owners with at
19    least 20% of the votes of the association is delivered to
20    the board within 30 days after the board's approval of a
21    rule adopted pursuant to subparagraph (B) or subparagraph
22    (B-5) of this paragraph (9), the board shall call a meeting
23    of the unit owners within 30 days after the date of
24    delivery of the petition; that unless a majority of the
25    total votes of the unit owners are cast at the meeting to
26    reject the rule, the rule is ratified;

 

 

SB3731- 31 -LRB101 20341 LNS 69886 b

1        (D) that votes cast by ballot under subparagraph (B) or
2    electronic or acceptable technological means under
3    subparagraph (B-5) of this paragraph (9) are valid for the
4    purpose of establishing a quorum;
5        (10) that the association may, upon adoption of the
6    appropriate rules by the board of managers, conduct
7    elections by secret ballot whereby the voting ballot is
8    marked only with the percentage interest for the unit and
9    the vote itself, provided that the board further adopt
10    rules to verify the status of the unit owner issuing a
11    proxy or casting a ballot; and further, that a candidate
12    for election to the board of managers or such candidate's
13    representative shall have the right to be present at the
14    counting of ballots at such election;
15        (11) that in the event of a resale of a condominium
16    unit the purchaser of a unit from a seller other than the
17    developer pursuant to an installment sales contract for
18    purchase shall during such times as he or she resides in
19    the unit be counted toward a quorum for purposes of
20    election of members of the board of managers at any meeting
21    of the unit owners called for purposes of electing members
22    of the board, shall have the right to vote for the election
23    of members of the board of managers and to be elected to
24    and serve on the board of managers unless the seller
25    expressly retains in writing any or all of such rights. In
26    no event may the seller and purchaser both be counted

 

 

SB3731- 32 -LRB101 20341 LNS 69886 b

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

 

 

SB3731- 33 -LRB101 20341 LNS 69886 b

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

 

 

SB3731- 34 -LRB101 20341 LNS 69886 b

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

 

 

SB3731- 35 -LRB101 20341 LNS 69886 b

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

 

 

SB3731- 36 -LRB101 20341 LNS 69886 b

1        (k) Such restrictions on and requirements respecting
2    the use and maintenance of the units and the use of the
3    common elements, not set forth in the declaration, as are
4    designed to prevent unreasonable interference with the use
5    of their respective units and of the common elements by the
6    several unit owners.
7        (l) Method of adopting and of amending administrative
8    rules and regulations governing the operation and use of
9    the common elements.
10        (m) The percentage of votes required to modify or amend
11    the bylaws, but each one of the particulars set forth in
12    this section shall always be embodied in the bylaws.
13        (n)(i) The provisions of this Act, the declaration,
14    bylaws, other condominium instruments, and rules and
15    regulations that relate to the use of the individual unit
16    or the common elements shall be applicable to any person
17    leasing a unit and shall be deemed to be incorporated in
18    any lease executed or renewed on or after August 30, 1984
19    (the effective date of Public Act 83-1271).
20        (ii) With regard to any lease entered into subsequent
21    to July 1, 1990 (the effective date of Public Act 86-991),
22    the unit owner leasing the unit shall deliver a copy of the
23    signed lease to the board or if the lease is oral, a
24    memorandum of the lease, not later than the date of
25    occupancy or 10 days after the lease is signed, whichever
26    occurs first. In addition to any other remedies, by filing

 

 

SB3731- 37 -LRB101 20341 LNS 69886 b

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

 

 

SB3731- 38 -LRB101 20341 LNS 69886 b

1    divide the total by the number of garage units, storage
2    units, or both, and multiply by the aggregate percentage of
3    ownership of garage units and storage units to determine
4    the vote, or portion of a vote, that garage units or
5    storage units, or both, have. For purposes of this
6    subsection (p), when making a determination of whether 30%
7    or fewer of the units, by number, possess over 50% in the
8    aggregate of the votes in the association, a unit shall not
9    include a garage unit or a storage unit.
10        (q) That a unit owner may not assign, delegate,
11    transfer, surrender, or avoid the duties,
12    responsibilities, and liabilities of a unit owner under
13    this Act, the condominium instruments, or the rules and
14    regulations of the Association; and that such an attempted
15    assignment, delegation, transfer, surrender, or avoidance
16    shall be deemed void.
17        (r) Unless a lesser percentage of ownership is provided
18    for in the bylaws, no person, heir assign, family member,
19    affiliate, partnership, corporation, proxy of a
20    corporation and its beneficial owners, other legal entity
21    entitled to transact business on behalf of others, or legal
22    entity acting on behalf of a corporation or its beneficial
23    owners may own more than 10% of the units for a property
24    containing 30 or more units, more than 15% of the units for
25    a property containing 20 to 29 units, more than 20% of the
26    units for a property containing 5 to 19 units, and no more

 

 

SB3731- 39 -LRB101 20341 LNS 69886 b

1    than a single unit for a property containing fewer than 5
2    units.
3    The provisions of this Section are applicable to all
4condominium instruments recorded under this Act. Any portion of
5a condominium instrument which contains provisions contrary to
6these provisions shall be void as against public policy and
7ineffective. Any such instrument which fails to contain the
8provisions required by this Section shall be deemed to
9incorporate such provisions by operation of law.
10(Source: P.A. 99-472, eff. 6-1-16; 99-567, eff. 1-1-17; 99-642,
11eff. 7-28-16; 100-292, eff. 1-1-18; 100-416, eff. 1-1-18;
12100-863, eff. 8-14-18.)
 
13    (765 ILCS 605/18.4)  (from Ch. 30, par. 318.4)
14    Sec. 18.4. Powers and duties of board of managers. The
15board of managers shall exercise for the association all
16powers, duties and authority vested in the association by law
17or the condominium instruments except for such powers, duties
18and authority reserved by law to the members of the
19association. The powers and duties of the board of managers
20shall include, but shall not be limited to, the following:
21        (a) To provide for the operation, care, upkeep,
22    maintenance, replacement and improvement of the common
23    elements. Nothing in this subsection (a) shall be deemed to
24    invalidate any provision in a condominium instrument
25    placing limits on expenditures for the common elements,

 

 

SB3731- 40 -LRB101 20341 LNS 69886 b

1    provided, that such limits shall not be applicable to
2    expenditures for repair, replacement, or restoration of
3    existing portions of the common elements. The term "repair,
4    replacement or restoration" means expenditures to
5    deteriorated or damaged portions of the property related to
6    the existing decorating, facilities, or structural or
7    mechanical components, interior or exterior surfaces, or
8    energy systems and equipment with the functional
9    equivalent of the original portions of such areas.
10    Replacement of the common elements may result in an
11    improvement over the original quality of such elements or
12    facilities; provided that, unless the improvement is
13    mandated by law or is an emergency as defined in item (iv)
14    of subparagraph (8) of paragraph (a) of Section 18, if the
15    improvement results in a proposed expenditure exceeding 5%
16    of the annual budget, the board of managers, upon written
17    petition by unit owners with 20% of the votes of the
18    association delivered to the board within 21 days of the
19    board action to approve the expenditure, shall call a
20    meeting of the unit owners within 30 days of the date of
21    delivery of the petition to consider the expenditure.
22    Unless a majority of the total votes of the unit owners are
23    cast at the meeting to reject the expenditure, it is
24    ratified. The board of managers shall obtain statements
25    from licensed independent contractors validating the need
26    and the cost for any expenditures for repair, replacement,

 

 

SB3731- 41 -LRB101 20341 LNS 69886 b

1    or restoration of the common elements.
2        (b) To prepare, adopt and distribute the annual budget
3    for the property.
4        (c) To levy and expend assessments.
5        (d) To collect assessments from unit owners.
6        (e) To provide for the employment and dismissal of the
7    personnel necessary or advisable for the maintenance and
8    operation of the common elements.
9        (f) To obtain adequate and appropriate kinds of
10    insurance.
11        (g) To own, convey, encumber, lease, and otherwise deal
12    with units conveyed to or purchased by it.
13        (h) To adopt and amend rules and regulations covering
14    the details of the operation and use of the property, after
15    a meeting of the unit owners called for the specific
16    purpose of discussing the proposed rules and regulations.
17    Notice of the meeting shall contain the full text of the
18    proposed rules and regulations, and the meeting shall
19    conform to the requirements of Section 18(b) of this Act,
20    except that no quorum is required at the meeting of the
21    unit owners unless the declaration, bylaws or other
22    condominium instrument expressly provides to the contrary.
23    However, no rule or regulation may impair any rights
24    guaranteed by the First Amendment to the Constitution of
25    the United States or Section 4 of Article I of the Illinois
26    Constitution including, but not limited to, the free

 

 

SB3731- 42 -LRB101 20341 LNS 69886 b

1    exercise of religion, nor may any rules or regulations
2    conflict with the provisions of this Act or the condominium
3    instruments. No rule or regulation shall prohibit any
4    reasonable accommodation for religious practices,
5    including the attachment of religiously mandated objects
6    to the front-door area of a condominium unit.
7        (i) To keep detailed, accurate records of the receipts
8    and expenditures affecting the use and operation of the
9    property.
10        (j) To have access to each unit from time to time as
11    may be necessary for the maintenance, repair or replacement
12    of any common elements or for making emergency repairs
13    necessary to prevent damage to the common elements or to
14    other units.
15        (k) To pay real property taxes, special assessments,
16    and any other special taxes or charges of the State of
17    Illinois or of any political subdivision thereof, or other
18    lawful taxing or assessing body, which are authorized by
19    law to be assessed and levied upon the real property of the
20    condominium.
21        (l) To impose charges for late payment of a unit
22    owner's proportionate share of the common expenses, or any
23    other expenses lawfully agreed upon, and after notice and
24    an opportunity to be heard, to levy reasonable fines for
25    violation of the declaration, by-laws, and rules and
26    regulations of the association.

 

 

SB3731- 43 -LRB101 20341 LNS 69886 b

1        (m) By a majority vote of the entire board of managers,
2    to assign the right of the association to future income
3    from common expenses or other sources, and to mortgage or
4    pledge substantially all of the remaining assets of the
5    association.
6        (n) To record the dedication of a portion of the common
7    elements to a public body for use as, or in connection
8    with, a street or utility where authorized by the unit
9    owners under the provisions of Section 14.2.
10        (o) To record the granting of an easement for the
11    laying of cable television or high speed Internet cable
12    where authorized by the unit owners under the provisions of
13    Section 14.3; to obtain, if available and determined by the
14    board to be in the best interests of the association, cable
15    television or bulk high speed Internet service for all of
16    the units of the condominium on a bulk identical service
17    and equal cost per unit basis; and to assess and recover
18    the expense as a common expense and, if so determined by
19    the board, to assess each and every unit on the same equal
20    cost per unit basis.
21        (p) To seek relief on behalf of all unit owners when
22    authorized pursuant to subsection (c) of Section 10 from or
23    in connection with the assessment or levying of real
24    property taxes, special assessments, and any other special
25    taxes or charges of the State of Illinois or of any
26    political subdivision thereof or of any lawful taxing or

 

 

SB3731- 44 -LRB101 20341 LNS 69886 b

1    assessing body.
2        (q) To reasonably accommodate the needs of a unit owner
3    who is a person with a disability as required by the
4    federal Civil Rights Act of 1968, the Human Rights Act and
5    any applicable local ordinances in the exercise of its
6    powers with respect to the use of common elements or
7    approval of modifications in an individual unit.
8        (r) To accept service of a notice of claim for purposes
9    of the Mechanics Lien Act on behalf of each respective
10    member of the Unit Owners' Association with respect to
11    improvements performed pursuant to any contract entered
12    into by the Board of Managers or any contract entered into
13    prior to the recording of the condominium declaration
14    pursuant to this Act, for a property containing more than 8
15    units, and to distribute the notice to the unit owners
16    within 7 days of the acceptance of the service by the Board
17    of Managers. The service shall be effective as if each
18    individual unit owner had been served individually with
19    notice.
20        (s) To adopt and amend rules and regulations (l)
21    authorizing electronic delivery of notices and other
22    communications required or contemplated by this Act to each
23    unit owner who provides the association with written
24    authorization for electronic delivery and an electronic
25    address to which such communications are to be
26    electronically transmitted; and (2) authorizing each unit

 

 

SB3731- 45 -LRB101 20341 LNS 69886 b

1    owner to designate an electronic address or a U.S. Postal
2    Service address, or both, as the unit owner's address on
3    any list of members or unit owners which an association is
4    required to provide upon request pursuant to any provision
5    of this Act or any condominium instrument.
6        (t) To reject any arrangement that establishes an
7    agreement for a buyer to purchase a condominium building,
8    including a letter of intent.
9        (u) To refrain from investigating an offer to purchase
10    a condominium property or listing the property for sale
11    without first receiving authorization from the association
12    through an affirmative vote of not less than 75% of unit
13    owners based on the percentage of ownership.
14    In the performance of their duties, the officers and
15members of the board, whether appointed by the developer or
16elected by the unit owners, shall exercise the care required of
17a fiduciary of the unit owners. Every officer and member of the
18board who violates, participates in, or permits any officer,
19agent, or assign of the board to breach his or her fiduciary
20duty shall be held liable in his or her personal or individual
21capacity under this Section for the following:
22        (1) an act or omission that is grossly negligent;
23        (2) a breach of the officer's duty of loyalty to the
24    association;
25        (3) an act or omission not in good faith or that
26    involves intentional misconduct or a knowing violation of

 

 

SB3731- 46 -LRB101 20341 LNS 69886 b

1    the law;
2        (4) a transaction from which the officer derived an
3    improper personal benefit; or
4        (5) an act or omission occurring before the effective
5    date of a provision authorized by this Section.
6    The collection of assessments from unit owners by an
7association, board of managers or their duly authorized agents
8shall not be considered acts constituting a collection agency
9for purposes of the Collection Agency Act.
10    The provisions of this Section are applicable to all
11condominium instruments recorded under this Act. Any portion of
12a condominium instrument which contains provisions contrary to
13these provisions shall be void as against public policy and
14ineffective. Any such instrument that fails to contain the
15provisions required by this Section shall be deemed to
16incorporate such provisions by operation of law.
17(Source: P.A. 99-143, eff. 7-27-15; 99-849, eff. 1-1-17;
18100-292, eff. 1-1-18.)
 
19    (765 ILCS 605/19)  (from Ch. 30, par. 319)
20    Sec. 19. Records of the association; availability for
21examination.
22    (a) The board of managers of every association shall keep
23and maintain the following records, or true and complete copies
24of these records, at the association's principal office:
25        (1) the association's declaration, bylaws, and plats

 

 

SB3731- 47 -LRB101 20341 LNS 69886 b

1    of survey, and all amendments of these;
2        (2) the rules and regulations of the association, if
3    any;
4        (3) if the association is incorporated as a
5    corporation, the articles of incorporation of the
6    association and all amendments to the articles of
7    incorporation;
8        (4) minutes of all meetings of the association and its
9    board of managers for the immediately preceding 7 years;
10        (5) all current policies of insurance of the
11    association;
12        (6) all contracts, leases, and other agreements then in
13    effect to which the association is a party or under which
14    the association or the unit owners have obligations or
15    liabilities;
16        (6.5) all statements from licensed independent
17    contractors validating the need and the cost for any
18    expenditures for repair, replacement, or restoration of
19    the common elements;
20        (7) a current listing of the names, addresses, email
21    addresses, telephone numbers, and weighted vote of all
22    members entitled to vote;
23        (8) ballots and proxies related to ballots for all
24    matters voted on by the members of the association during
25    the immediately preceding 12 months, including, but not
26    limited to, the election of members of the board of

 

 

SB3731- 48 -LRB101 20341 LNS 69886 b

1    managers; and
2        (9) the books and records for the association's current
3    and 10 immediately preceding fiscal years, including, but
4    not limited to, itemized and detailed records of all
5    receipts, expenditures, and accounts; and .
6        (10) the communications of any member of the board of
7    managers regarding an attempt to sell the condominium
8    property.
9    (b) Any member of an association shall have the right to
10inspect, examine, and make copies of the records described in
11subdivisions (1), (2), (3), (4), (5), (6), (6.5), and (9), and
12(10) of subsection (a) of this Section, in person or by agent,
13at any reasonable time or times, at the association's principal
14office. The board of managers shall provide unit owners a copy
15of the records described in subdivision (6.5) of subsection
16(a), so that the unit owners may review them before voting to
17approve expenditures. In order to exercise this right, a member
18must submit a written request to the association's board of
19managers or its authorized agent, stating with particularity
20the records sought to be examined. Failure of an association's
21board of managers to make available all records so requested
22within 10 business days of receipt of the member's written
23request shall be deemed a denial.
24    Any member who prevails in an enforcement action to compel
25examination of records described in subdivisions (1), (2), (3),
26(4), (5), (6), (6.5), and (9), and (10) of subsection (a) of

 

 

SB3731- 49 -LRB101 20341 LNS 69886 b

1this Section shall be entitled to recover reasonable attorney's
2fees and costs from the association.
3    (c) (Blank).
4    (d) (Blank).
5    (d-5) As used in this Section, "commercial purpose" means
6the use of any part of a record or records described in
7subdivisions (7) and (8) of subsection (a) of this Section, or
8information derived from such records, in any form for sale,
9resale, or solicitation or advertisement for sales or services.
10    (e) Except as otherwise provided in subsection (g) of this
11Section, any member of an association shall have the right to
12inspect, examine, and make copies of the records described in
13subdivisions (7) and (8) of subsection (a) of this Section, in
14person or by agent, at any reasonable time or times but only
15for a purpose that relates to the association, at the
16association's principal office. In order to exercise this
17right, a member must submit a written request, to the
18association's board of managers or its authorized agent,
19stating with particularity the records sought to be examined.
20As a condition for exercising this right, the board of managers
21or authorized agent of the association may require the member
22to certify in writing that the information contained in the
23records obtained by the member will not be used by the member
24for any commercial purpose or for any purpose that does not
25relate to the association. The board of managers of the
26association may impose a fine in accordance with item (l) of

 

 

SB3731- 50 -LRB101 20341 LNS 69886 b

1Section 18.4 upon any person who makes a false certification.
2Subject to the provisions of subsection (g) of this Section,
3failure of an association's board of managers to make available
4all records so requested within 10 business days of receipt of
5the member's written request shall be deemed a denial;
6provided, however, that the board of managers of an association
7that has adopted a secret ballot election process as provided
8in Section 18 of this Act shall not be deemed to have denied a
9member's request for records described in subdivision (8) of
10subsection (a) of this Section if voting ballots, without
11identifying unit numbers, are made available to the requesting
12member within 10 business days of receipt of the member's
13written request. All information and documentation regarding
14the process, including all parties involved and all information
15and documentation regarding the need for and cost of a repair,
16replacement, or other alleged need for a special assessment for
17the condominium property, shall be disclosed to all unit owners
18at least 30 days prior to a vote.
19    Any member who prevails in an enforcement action to compel
20examination of records described in subdivision (7) or (8) of
21subsection (a) of this Section shall be entitled to recover
22reasonable attorney's fees and costs from the association only
23if the court finds that the board of directors acted in bad
24faith in denying the member's request.
25    (f) The actual cost to the association of retrieving and
26making requested records available for inspection and

 

 

SB3731- 51 -LRB101 20341 LNS 69886 b

1examination under this Section may be charged by the
2association to the requesting member. If a member requests
3copies of records requested under this Section, the actual
4costs to the association of reproducing the records may also be
5charged by the association to the requesting member.
6    (g) Notwithstanding the provisions of subsection (e) of
7this Section, unless otherwise directed by court order, an
8association need not make the following records available for
9inspection, examination, or copying by its members:
10        (1) documents relating to appointment, employment,
11    discipline, or dismissal of association employees;
12        (2) documents relating to actions pending against or on
13    behalf of the association or its board of managers in a
14    court or administrative tribunal;
15        (3) documents relating to actions threatened against,
16    or likely to be asserted on behalf of, the association or
17    its board of managers in a court or administrative
18    tribunal;
19        (4) documents relating to common expenses or other
20    charges owed by a member other than the requesting member;
21    and
22        (5) documents provided to an association in connection
23    with the lease, sale, or other transfer of a unit by a
24    member other than the requesting member.
25    (h) The provisions of this Section are applicable to all
26condominium instruments recorded under this Act. Any portion of

 

 

SB3731- 52 -LRB101 20341 LNS 69886 b

1a condominium instrument that contains provisions contrary to
2these provisions shall be void as against public policy and
3ineffective. Any condominium instrument that fails to contain
4the provisions required by this Section shall be deemed to
5incorporate the provisions by operation of law.
6(Source: P.A. 100-292, eff. 1-1-18; 100-863, eff. 8-14-18.)

 

 

SB3731- 53 -LRB101 20341 LNS 69886 b

1 INDEX
2 Statutes amended in order of appearance
3    765 ILCS 160/1-30
4    765 ILCS 605/9from Ch. 30, par. 309
5    765 ILCS 605/15from Ch. 30, par. 315
6    765 ILCS 605/18from Ch. 30, par. 318
7    765 ILCS 605/18.4from Ch. 30, par. 318.4
8    765 ILCS 605/19from Ch. 30, par. 319