98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB2645

 

Introduced 2/21/2013, by Rep. Emily McAsey

 

SYNOPSIS AS INTRODUCED:
 
765 ILCS 160/1-45
765 ILCS 605/9  from Ch. 30, par. 309
765 ILCS 605/18.5  from Ch. 30, par. 318.5

    Amends the Common Interest Community Association Act. Provides that the purchaser of a unit of a common interest community, other than a mortgagee, must pay the common expenses for the unit, attorneys' fees, and other charges related to the common expenses that would have been due during the 12 months before a foreclosure judicial sale or the delivery of a deed in lieu of foreclosure and if common expenses are paid at any time, the purchaser, other than the mortgagee, has no obligation to pay any common expenses that accrued before the purchaser acquired title. Amends the Condominium Property Act. Provides that the purchaser of a condominium unit at a judicial foreclosure sale, other than a mortgagee, or a purchaser who acquires title from a mortgagee following a judicial foreclosure sale or the delivery of a deed in lieu of foreclosure must pay the proportionate share of the unit's common expenses, attorneys' fees, and other charges related to the common expenses that would have been due during the 12 months before a judicial sale or execution of a deed in lieu of foreclosure (instead of must pay common expenses, without attorney's fees included, for the 6 months incurred immediately before the filing of an action to collect common expenses) and if the common expenses are paid, the purchaser, other than the mortgagee, has no obligation to pay any common expenses that accrued before the purchaser acquired title. Provides that the board of a common interest community association and the board of a condominium master association shall have the authority to impose charges for the late payment of a unit owner's common expenses share or other expenses lawfully agreed upon. Makes other changes. Effective July 1, 2013.


LRB098 06628 HEP 36671 b

 

 

A BILL FOR

 

HB2645LRB098 06628 HEP 36671 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 1-45 as follows:
 
6    (765 ILCS 160/1-45)
7    Sec. 1-45. Finances.
8    (a) Each member shall receive through a prescribed delivery
9method, at least 30 days but not more than 60 days prior to the
10adoption thereof by the board, a copy of the proposed annual
11budget together with an indication of which portions are
12intended for reserves, capital expenditures or repairs or
13payment of real estate taxes.
14    (b) The board shall provide all members with a reasonably
15detailed summary of the receipts, common expenses, and reserves
16for the preceding budget year. The board shall (i) make
17available for review to all members an itemized accounting of
18the common expenses for the preceding year actually incurred or
19paid, together with an indication of which portions were for
20reserves, capital expenditures or repairs or payment of real
21estate taxes and with a tabulation of the amounts collected
22pursuant to the budget or assessment, and showing the net
23excess or deficit of income over expenditures plus reserves or

 

 

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1(ii) provide a consolidated annual independent audit report of
2the financial status of all fund accounts within the
3association.
4    (c) If an adopted budget or any separate assessment adopted
5by the board would result in the sum of all regular and
6separate assessments payable in the current fiscal year
7exceeding 115% of the sum of all regular and separate
8assessments payable during the preceding fiscal year, the
9common interest community association, upon written petition
10by members with 20% of the votes of the association delivered
11to the board within 14 days of the board action, shall call a
12meeting of the members within 30 days of the date of delivery
13of the petition to consider the budget or separate assessment;
14unless a majority of the total votes of the members are cast at
15the meeting to reject the budget or separate assessment, it
16shall be deemed ratified.
17    (d) If total common expenses exceed the total amount of the
18approved and adopted budget, the common interest community
19association shall disclose this variance to all its members and
20specifically identify the subsequent assessments needed to
21offset this variance in future budgets.
22    (e) Separate assessments for expenditures relating to
23emergencies or mandated by law may be adopted by the board
24without being subject to member approval or the provisions of
25subsection (c) or (f) of this Section. As used herein,
26"emergency" means a danger to or a compromise of the structural

 

 

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1integrity of the common areas or any of the common facilities
2of the common interest community. "Emergency" also includes a
3danger to the life, health or safety of the membership.
4    (f) Assessments for additions and alterations to the common
5areas or to association-owned property not included in the
6adopted annual budget, shall be separately assessed and are
7subject to approval of a simple majority of the total members
8at a meeting called for that purpose.
9    (g) The board may adopt separate assessments payable over
10more than one fiscal year. With respect to multi-year
11assessments not governed by subsections (e) and (f) of this
12Section, the entire amount of the multi-year assessment shall
13be deemed considered and authorized in the first fiscal year in
14which the assessment is approved.
15    (h) The board of a common interest community association
16shall have the authority to establish and maintain a system of
17master metering of public utility services to collect payments
18in conjunction therewith, subject to the requirements of the
19Tenant Utility Payment Disclosure Act.
20    (i) Notwithstanding any other provision of this Act, the
21purchaser of a unit of a common interest community at a
22judicial foreclosure sale, other than a mortgagee, who takes
23title to a unit of a common interest community pursuant to a
24court order or a purchaser who acquires title from a mortgagee
25following a judicial foreclosure sale or pursuant to a deed in
26lieu of foreclosure shall have the duty to pay the

 

 

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1proportionate share, if any, of the common expenses for the
2unit, attorneys' fees levied pursuant to subsection (k), and
3other charges related to the common expenses, that would have
4become due in the absence of any acceleration during the 12
5months immediately preceding a judicial foreclosure sale or
6delivery of a deed in lieu of foreclosure. If the 12 months of
7common expenses, related attorneys' fees, and other charges are
8paid at any time, the purchaser, other than the mortgagee,
9shall have no obligation to pay any common expenses, related
10attorneys' fees, and other charges that accrued before he or
11she acquired title.
12    The notice of sale of a unit of a common interest community
13under subsection (c) of Section 15-1507 of the Code of Civil
14Procedure shall state that the purchaser of the unit other than
15a mortgagee shall pay the common expenses, including but not
16limited to attorneys' fees levied pursuant to subsection (k),
17required by this Section.
18    The statement of assessment account issued by the
19association to a member and the disclosure statement issued to
20a prospective purchaser under paragraph (2) of subsection (d)
21of Section 1-35 shall state the amount of common expenses, if
22any, including but not limited to attorneys' fees levied
23pursuant to subsection (k), required by this Section.
24    (j) In the event of any default by any member or his or her
25tenant, invitee, or guest in the performance of the member's
26obligations under this Act or under the declaration, the

 

 

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1bylaws, or the rules and regulations of the board of managers,
2the board of managers or its agents shall have such rights and
3remedies as provided in this Act or the common interest
4community's instruments, including the right to maintain an
5action for possession against the defaulting member or his or
6her tenant for the benefit of all the other members in the
7manner prescribed by Article IX of the Code of Civil Procedure.
8    (k) Any attorneys' fees incurred by the common interest
9community arising out of a default by any member or his or her
10tenant, invitee, or guest in the performance of any of the
11provisions of the common interest community's instruments or
12rules and regulations, or any applicable statute or ordinance,
13shall be added to, and deemed a part of, his or her respective
14share of the common expense.
15    (l) The board of a common interest community association
16shall have the authority to impose charges for the late payment
17of a member's share of the common expenses, or any other
18expenses lawfully agreed upon.
19(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11;
2097-1090, eff. 8-24-12.)
 
21    Section 10. The Condominium Property Act is amended by
22changing Sections 9 and 18.5 as follows:
 
23    (765 ILCS 605/9)  (from Ch. 30, par. 309)
24    Sec. 9. Sharing of expenses - Lien for nonpayment.

 

 

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1    (a) All common expenses incurred or accrued prior to the
2first conveyance of a unit shall be paid by the developer, and
3during this period no common expense assessment shall be
4payable to the association. It shall be the duty of each unit
5owner including the developer to pay his proportionate share of
6the common expenses commencing with the first conveyance. The
7proportionate share shall be in the same ratio as his
8percentage of ownership in the common elements set forth in the
9declaration.
10    (b) The condominium instruments may provide that common
11expenses for insurance premiums be assessed on a basis
12reflecting increased charges for coverage on certain units.
13    (c) Budget and reserves.
14        (1) The board of managers shall prepare and distribute
15    to all unit owners a detailed proposed annual budget,
16    setting forth with particularity all anticipated common
17    expenses by category as well as all anticipated assessments
18    and other income. The initial budget and common expense
19    assessment based thereon shall be adopted prior to the
20    conveyance of any unit. The budget shall also set forth
21    each unit owner's proposed common expense assessment.
22        (2) All budgets adopted by a board of managers on or
23    after July 1, 1990 shall provide for reasonable reserves
24    for capital expenditures and deferred maintenance for
25    repair or replacement of the common elements. To determine
26    the amount of reserves appropriate for an association, the

 

 

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1    board of managers shall take into consideration the
2    following: (i) the repair and replacement cost, and the
3    estimated useful life, of the property which the
4    association is obligated to maintain, including but not
5    limited to structural and mechanical components, surfaces
6    of the buildings and common elements, and energy systems
7    and equipment; (ii) the current and anticipated return on
8    investment of association funds; (iii) any independent
9    professional reserve study which the association may
10    obtain; (iv) the financial impact on unit owners, and the
11    market value of the condominium units, of any assessment
12    increase needed to fund reserves; and (v) the ability of
13    the association to obtain financing or refinancing.
14        (3) Notwithstanding the provisions of this subsection
15    (c), an association without a reserve requirement in its
16    condominium instruments may elect to waive in whole or in
17    part the reserve requirements of this Section by a vote of
18    2/3 of the total votes of the association. Any association
19    having elected under this paragraph (3) to waive the
20    provisions of subsection (c) may by a vote of 2/3 of the
21    total votes of the association elect to again be governed
22    by the requirements of subsection (c).
23        (4) In the event that an association elects to waive
24    all or part of the reserve requirements of this Section,
25    that fact must be disclosed after the meeting at which the
26    waiver occurs by the association in the financial

 

 

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1    statements of the association and, highlighted in bold
2    print, in the response to any request of a prospective
3    purchaser for the information prescribed under Section
4    22.1; and no member of the board of managers or the
5    managing agent of the association shall be liable, and no
6    cause of action may be brought for damages against these
7    parties, for the lack or inadequacy of reserve funds in the
8    association budget.
9    (d) (Blank).
10    (e) The condominium instruments may provide for the
11assessment, in connection with expenditures for the limited
12common elements, of only those units to which the limited
13common elements are assigned.
14    (f) Payment of any assessment shall be in amounts and at
15times determined by the board of managers.
16    (g) Lien.
17        (1) If any unit owner shall fail or refuse to make any
18    payment of the common expenses or the amount of any unpaid
19    fine when due, the amount thereof together with any
20    interest, late charges, reasonable attorney fees incurred
21    enforcing the covenants of the condominium instruments,
22    rules and regulations of the board of managers, or any
23    applicable statute or ordinance, and costs of collections
24    shall constitute a lien on the interest of the unit owner
25    in the property prior to all other liens and encumbrances,
26    recorded or unrecorded, except only (a) taxes, special

 

 

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1    assessments and special taxes theretofore or thereafter
2    levied by any political subdivision or municipal
3    corporation of this State and other State or federal taxes
4    which by law are a lien on the interest of the unit owner
5    prior to preexisting recorded encumbrances thereon and (b)
6    encumbrances on the interest of the unit owner recorded
7    prior to the date of such failure or refusal which by law
8    would be a lien thereon prior to subsequently recorded
9    encumbrances. Any action brought to extinguish the lien of
10    the association shall include the association as a party.
11        (2) With respect to encumbrances executed prior to
12    August 30, 1984 or encumbrances executed subsequent to
13    August 30, 1984 which are neither bonafide first mortgages
14    nor trust deeds and which encumbrances contain a statement
15    of a mailing address in the State of Illinois where notice
16    may be mailed to the encumbrancer thereunder, if and
17    whenever and as often as the manager or board of managers
18    shall send, by United States certified or registered mail,
19    return receipt requested, to any such encumbrancer at the
20    mailing address set forth in the recorded encumbrance a
21    statement of the amounts and due dates of the unpaid common
22    expenses with respect to the encumbered unit, then, unless
23    otherwise provided in the declaration or bylaws, the prior
24    recorded encumbrance shall be subject to the lien of all
25    unpaid common expenses with respect to the unit which
26    become due and payable within a period of 90 days after the

 

 

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1    date of mailing of each such notice.
2        (3) The purchaser of a condominium unit at a judicial
3    foreclosure sale, or a mortgagee who receives title to a
4    unit by deed in lieu of foreclosure or judgment by common
5    law strict foreclosure or otherwise takes possession
6    pursuant to court order under the Illinois Mortgage
7    Foreclosure Law, shall have the duty to pay the unit's
8    proportionate share of the common expenses for the unit
9    assessed from and after the first day of the month after
10    the date of the judicial foreclosure sale, delivery of the
11    deed in lieu of foreclosure, entry of a judgment in common
12    law strict foreclosure, or taking of possession pursuant to
13    such court order. Such payment confirms the extinguishment
14    of any lien created pursuant to paragraph (1) or (2) of
15    this subsection (g) by virtue of the failure or refusal of
16    a prior unit owner to make payment of common expenses,
17    where the judicial foreclosure sale has been confirmed by
18    order of the court, a deed in lieu thereof has been
19    accepted by the lender, or a consent judgment has been
20    entered by the court.
21        (4) Notwithstanding any other provision of this Act,
22    the The purchaser of a condominium unit at a judicial
23    foreclosure sale, other than a mortgagee, who takes title
24    to possession of a condominium unit pursuant to a court
25    order or a purchaser who acquires title from a mortgagee
26    following a judicial foreclosure sale or pursuant to a deed

 

 

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1    in lieu of foreclosure shall have the duty to pay the
2    proportionate share, if any, of the common expenses for the
3    unit, attorneys' fees levied pursuant to subsection (b) of
4    Section 9.2, and other charges related to the common
5    expenses, that which would have become due in the absence
6    of any assessment acceleration during the 12 6 months
7    immediately preceding a judicial foreclosure sale or
8    delivery of a deed in lieu of foreclosure institution of an
9    action to enforce the collection of assessments, and which
10    remain unpaid by the owner during whose possession the
11    assessments accrued. If the 12 months of common expenses,
12    related attorneys' fees, and other charges outstanding
13    assessments are paid at any time during any action to
14    enforce the collection of assessments, the purchaser,
15    other than the mortgagee, shall have no obligation to pay
16    any common expenses, related attorneys' fees, and other
17    charges that assessments which accrued before he or she
18    acquired title.
19        (5) The notice of sale of a condominium unit under
20    subsection (c) of Section 15-1507 of the Code of Civil
21    Procedure shall state that the purchaser of the unit other
22    than a mortgagee shall pay the common expenses, including
23    but not limited to attorneys' fees levied pursuant to
24    subsection (b) of Section 9.2, required by subdivision
25    (g)(4) assessments and the legal fees required by
26    subdivisions (g)(1) and (g)(4) of Section 9 of this Act.

 

 

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1    The statement of assessment account issued by the
2    association to a unit owner under subsection (i) of Section
3    18 of this Act, and the disclosure statement issued to a
4    prospective purchaser under Section 22.1 of this Act, shall
5    state the amount of common expenses the assessments and the
6    legal fees, if any, including but not limited to attorneys'
7    fees levied pursuant to subsection (b) of Section 9.2 of
8    this Act, required by subdivisions (g)(1) and (g)(4) of
9    Section 9 of this Act.
10    (h) A lien for common expenses shall be in favor of the
11members of the board of managers and their successors in office
12and shall be for the benefit of all other unit owners. Notice
13of the lien may be recorded by the board of managers, or if the
14developer is the manager or has a majority of seats on the
15board of managers and the manager or board of managers fails to
16do so, any unit owner may record notice of the lien. Upon the
17recording of such notice the lien may be foreclosed by an
18action brought in the name of the board of managers in the same
19manner as a mortgage of real property.
20    (i) Unless otherwise provided in the declaration, the
21members of the board of managers and their successors in
22office, acting on behalf of the other unit owners, shall have
23the power to bid on the interest so foreclosed at the
24foreclosure sale, and to acquire and hold, lease, mortgage and
25convey it.
26    (j) Any encumbrancer may from time to time request in

 

 

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1writing a written statement from the manager or board of
2managers setting forth the unpaid common expenses with respect
3to the unit covered by his encumbrance. Unless the request is
4complied with within 20 days, all unpaid common expenses which
5become due prior to the date of the making of such request
6shall be subordinate to the lien of the encumbrance. Any
7encumbrancer holding a lien on a unit may pay any unpaid common
8expenses payable with respect to the unit, and upon payment the
9encumbrancer shall have a lien on the unit for the amounts paid
10at the same rank as the lien of his encumbrance.
11    (k) Nothing in Public Act 83-1271 is intended to change the
12lien priorities of any encumbrance created prior to August 30,
131984.
14(Source: P.A. 94-1049, eff. 1-1-07.)
 
15    (765 ILCS 605/18.5)  (from Ch. 30, par. 318.5)
16    Sec. 18.5. Master Associations.
17    (a) If the declaration, other condominium instrument, or
18other duly recorded covenants provide that any of the powers of
19the unit owners associations are to be exercised by or may be
20delegated to a nonprofit corporation or unincorporated
21association that exercises those or other powers on behalf of
22one or more condominiums, or for the benefit of the unit owners
23of one or more condominiums, such corporation or association
24shall be a master association.
25    (b) There shall be included in the declaration, other

 

 

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1condominium instruments, or other duly recorded covenants
2establishing the powers and duties of the master association
3the provisions set forth in subsections (c) through (h).
4    In interpreting subsections (c) through (h), the courts
5should interpret these provisions so that they are interpreted
6consistently with the similar parallel provisions found in
7other parts of this Act.
8    (c) Meetings and finances.
9        (1) Each unit owner of a condominium subject to the
10    authority of the board of the master association shall
11    receive, at least 30 days prior to the adoption thereof by
12    the board of the master association, a copy of the proposed
13    annual budget.
14        (2) The board of the master association shall annually
15    supply to all unit owners of condominiums subject to the
16    authority of the board of the master association an
17    itemized accounting of the common expenses for the
18    preceding year actually incurred or paid, together with a
19    tabulation of the amounts collected pursuant to the budget
20    or assessment, and showing the net excess or deficit of
21    income over expenditures plus reserves.
22        (3) Each unit owner of a condominium subject to the
23    authority of the board of the master association shall
24    receive written notice mailed or delivered no less than 10
25    and no more than 30 days prior to any meeting of the board
26    of the master association concerning the adoption of the

 

 

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1    proposed annual budget or any increase in the budget, or
2    establishment of an assessment.
3        (4) Meetings of the board of the master association
4    shall be open to any unit owner in a condominium subject to
5    the authority of the board of the master association,
6    except for the portion of any meeting held:
7            (A) to discuss litigation when an action against or
8        on behalf of the particular master association has been
9        filed and is pending in a court or administrative
10        tribunal, or when the board of the master association
11        finds that such an action is probable or imminent,
12            (B) to consider information regarding appointment,
13        employment or dismissal of an employee, or
14            (C) to discuss violations of rules and regulations
15        of the master association or unpaid common expenses
16        owed to the master association.
17    Any vote on these matters shall be taken at a meeting or
18    portion thereof open to any unit owner of a condominium
19    subject to the authority of the master association.
20        Any unit owner may record the proceedings at meetings
21    required to be open by this Act by tape, film or other
22    means; the board may prescribe reasonable rules and
23    regulations to govern the right to make such recordings.
24    Notice of meetings shall be mailed or delivered at least 48
25    hours prior thereto, unless a written waiver of such notice
26    is signed by the persons entitled to notice before the

 

 

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1    meeting is convened. Copies of notices of meetings of the
2    board of the master association shall be posted in
3    entranceways, elevators, or other conspicuous places in
4    the condominium at least 48 hours prior to the meeting of
5    the board of the master association. Where there is no
6    common entranceway for 7 or more units, the board of the
7    master association may designate one or more locations in
8    the proximity of these units where the notices of meetings
9    shall be posted.
10        (5) If the declaration provides for election by unit
11    owners of members of the board of directors in the event of
12    a resale of a unit in the master association, the purchaser
13    of a unit from a seller other than the developer pursuant
14    to an installment contract for purchase shall, during such
15    times as he or she resides in the unit, be counted toward a
16    quorum for purposes of election of members of the board of
17    directors at any meeting of the unit owners called for
18    purposes of electing members of the board, and shall have
19    the right to vote for the election of members of the board
20    of directors and to be elected to and serve on the board of
21    directors unless the seller expressly retains in writing
22    any or all of those rights. In no event may the seller and
23    purchaser both be counted toward a quorum, be permitted to
24    vote for a particular office, or be elected and serve on
25    the board. Satisfactory evidence of the installment
26    contract shall be made available to the association or its

 

 

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1    agents. For purposes of this subsection, "installment
2    contract" shall have the same meaning as set forth in
3    subsection (e) of Section 1 of the Dwelling Unit
4    Installment Contract Act.
5        (6) The board of the master association shall have the
6    authority to establish and maintain a system of master
7    metering of public utility services and to collect payments
8    in connection therewith, subject to the requirements of the
9    Tenant Utility Payment Disclosure Act.
10        (7) The board of the master association or a common
11    interest community association shall have the power, after
12    notice and an opportunity to be heard, to levy and collect
13    reasonable fines from members for violations of the
14    declaration, bylaws, and rules and regulations of the
15    master association or the common interest community
16    association. Nothing contained in this subdivision (7)
17    shall give rise to a statutory lien for unpaid fines.
18        (8) Other than attorney's fees, no fees pertaining to
19    the collection of a unit owner's financial obligation to
20    the Association, including fees charged by a manager or
21    managing agent, shall be added to and deemed a part of an
22    owner's respective share of the common expenses unless: (i)
23    the managing agent fees relate to the costs to collect
24    common expenses for the Association; (ii) the fees are set
25    forth in a contract between the managing agent and the
26    Association; and (iii) the authority to add the management

 

 

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1    fees to an owner's respective share of the common expenses
2    is specifically stated in the declaration or bylaws of the
3    Association.
4        (9) The board of the master association shall have the
5    authority to impose charges for the late payment of a unit
6    owner's share of the common expenses, or any other expenses
7    lawfully agreed upon.
8    (d) Records.
9        (1) The board of the master association shall maintain
10    the following records of the association and make them
11    available for examination and copying at convenient hours
12    of weekdays by any unit owners in a condominium subject to
13    the authority of the board or their mortgagees and their
14    duly authorized agents or attorneys:
15            (i) Copies of the recorded declaration, other
16        condominium instruments, other duly recorded covenants
17        and bylaws and any amendments, articles of
18        incorporation of the master association, annual
19        reports and any rules and regulations adopted by the
20        master association or its board shall be available.
21        Prior to the organization of the master association,
22        the developer shall maintain and make available the
23        records set forth in this subdivision (d)(1) for
24        examination and copying.
25            (ii) Detailed and accurate records in
26        chronological order of the receipts and expenditures

 

 

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1        affecting the common areas, specifying and itemizing
2        the maintenance and repair expenses of the common areas
3        and any other expenses incurred, and copies of all
4        contracts, leases, or other agreements entered into by
5        the master association, shall be maintained.
6            (iii) The minutes of all meetings of the master
7        association and the board of the master association
8        shall be maintained for not less than 7 years.
9            (iv) Ballots and proxies related thereto, if any,
10        for any election held for the board of the master
11        association and for any other matters voted on by the
12        unit owners shall be maintained for not less than one
13        year.
14            (v) Such other records of the master association as
15        are available for inspection by members of a
16        not-for-profit corporation pursuant to Section 107.75
17        of the General Not For Profit Corporation Act of 1986
18        shall be maintained.
19            (vi) With respect to units owned by a land trust,
20        if a trustee designates in writing a person to cast
21        votes on behalf of the unit owner, the designation
22        shall remain in effect until a subsequent document is
23        filed with the association.
24        (2) Where a request for records under this subsection
25    is made in writing to the board of managers or its agent,
26    failure to provide the requested record or to respond

 

 

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1    within 30 days shall be deemed a denial by the board of
2    directors.
3        (3) A reasonable fee may be charged by the master
4    association or its board for the cost of copying.
5        (4) If the board of directors fails to provide records
6    properly requested under subdivision (d)(1) within the
7    time period provided in subdivision (d)(2), the unit owner
8    may seek appropriate relief, including an award of
9    attorney's fees and costs.
10    (e) The board of directors shall have standing and capacity
11to act in a representative capacity in relation to matters
12involving the common areas of the master association or more
13than one unit, on behalf of the unit owners as their interests
14may appear.
15    (f) Administration of property prior to election of the
16initial board of directors.
17        (1) Until the election, by the unit owners or the
18    boards of managers of the underlying condominium
19    associations, of the initial board of directors of a master
20    association whose declaration is recorded on or after
21    August 10, 1990, the same rights, titles, powers,
22    privileges, trusts, duties and obligations that are vested
23    in or imposed upon the board of directors by this Act or in
24    the declaration or other duly recorded covenant shall be
25    held and performed by the developer.
26        (2) The election of the initial board of directors of a

 

 

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1    master association whose declaration is recorded on or
2    after August 10, 1990, by the unit owners or the boards of
3    managers of the underlying condominium associations, shall
4    be held not later than 60 days after the conveyance by the
5    developer of 75% of the units, or 3 years after the
6    recording of the declaration, whichever is earlier. The
7    developer shall give at least 21 days notice of the meeting
8    to elect the initial board of directors and shall upon
9    request provide to any unit owner, within 3 working days of
10    the request, the names, addresses, and weighted vote of
11    each unit owner entitled to vote at the meeting. Any unit
12    owner shall upon receipt of the request be provided with
13    the same information, within 10 days of the request, with
14    respect to each subsequent meeting to elect members of the
15    board of directors.
16        (3) If the initial board of directors of a master
17    association whose declaration is recorded on or after
18    August 10, 1990 is not elected by the unit owners or the
19    members of the underlying condominium association board of
20    managers at the time established in subdivision (f)(2), the
21    developer shall continue in office for a period of 30 days,
22    whereupon written notice of his resignation shall be sent
23    to all of the unit owners or members of the underlying
24    condominium board of managers entitled to vote at an
25    election for members of the board of directors.
26        (4) Within 60 days following the election of a majority

 

 

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1    of the board of directors, other than the developer, by
2    unit owners, the developer shall deliver to the board of
3    directors:
4            (i) All original documents as recorded or filed
5        pertaining to the property, its administration, and
6        the association, such as the declaration, articles of
7        incorporation, other instruments, annual reports,
8        minutes, rules and regulations, and contracts, leases,
9        or other agreements entered into by the association. If
10        any original documents are unavailable, a copy may be
11        provided if certified by affidavit of the developer, or
12        an officer or agent of the developer, as being a
13        complete copy of the actual document recorded or filed.
14            (ii) A detailed accounting by the developer,
15        setting forth the source and nature of receipts and
16        expenditures in connection with the management,
17        maintenance and operation of the property, copies of
18        all insurance policies, and a list of any loans or
19        advances to the association which are outstanding.
20            (iii) Association funds, which shall have been at
21        all times segregated from any other moneys of the
22        developer.
23            (iv) A schedule of all real or personal property,
24        equipment and fixtures belonging to the association,
25        including documents transferring the property,
26        warranties, if any, for all real and personal property

 

 

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1        and equipment, deeds, title insurance policies, and
2        all tax bills.
3            (v) A list of all litigation, administrative
4        action and arbitrations involving the association, any
5        notices of governmental bodies involving actions taken
6        or which may be taken concerning the association,
7        engineering and architectural drawings and
8        specifications as approved by any governmental
9        authority, all other documents filed with any other
10        governmental authority, all governmental certificates,
11        correspondence involving enforcement of any
12        association requirements, copies of any documents
13        relating to disputes involving unit owners, and
14        originals of all documents relating to everything
15        listed in this subparagraph.
16            (vi) If the developer fails to fully comply with
17        this paragraph (4) within the 60 days provided and
18        fails to fully comply within 10 days of written demand
19        mailed by registered or certified mail to his or her
20        last known address, the board may bring an action to
21        compel compliance with this paragraph (4). If the court
22        finds that any of the required deliveries were not made
23        within the required period, the board shall be entitled
24        to recover its reasonable attorneys' fees and costs
25        incurred from and after the date of expiration of the
26        10 day demand.

 

 

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1        (5) With respect to any master association whose
2    declaration is recorded on or after August 10, 1990, any
3    contract, lease, or other agreement made prior to the
4    election of a majority of the board of directors other than
5    the developer by or on behalf of unit owners or underlying
6    condominium associations, the association or the board of
7    directors, which extends for a period of more than 2 years
8    from the recording of the declaration, shall be subject to
9    cancellation by more than 1/2 of the votes of the unit
10    owners, other than the developer, cast at a special meeting
11    of members called for that purpose during a period of 90
12    days prior to the expiration of the 2 year period if the
13    board of managers is elected by the unit owners, otherwise
14    by more than 1/2 of the underlying condominium board of
15    managers. At least 60 days prior to the expiration of the 2
16    year period, the board of directors, or, if the board is
17    still under developer control, then the board of managers
18    or the developer shall send notice to every unit owner or
19    underlying condominium board of managers, notifying them
20    of this provision, of what contracts, leases and other
21    agreements are affected, and of the procedure for calling a
22    meeting of the unit owners or for action by the underlying
23    condominium board of managers for the purpose of acting to
24    terminate such contracts, leases or other agreements.
25    During the 90 day period the other party to the contract,
26    lease, or other agreement shall also have the right of

 

 

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1    cancellation.
2        (6) The statute of limitations for any actions in law
3    or equity which the master association may bring shall not
4    begin to run until the unit owners or underlying
5    condominium board of managers have elected a majority of
6    the members of the board of directors.
7    (g) In the event of any resale of a unit in a master
8association by a unit owner other than the developer, the owner
9shall obtain from the board of directors and shall make
10available for inspection to the prospective purchaser, upon
11demand, the following:
12        (1) A copy of the declaration, other instruments and
13    any rules and regulations.
14        (2) A statement of any liens, including a statement of
15    the account of the unit setting forth the amounts of unpaid
16    assessments and other charges due and owing.
17        (3) A statement of any capital expenditures
18    anticipated by the association within the current or
19    succeeding 2 fiscal years.
20        (4) A statement of the status and amount of any reserve
21    for replacement fund and any portion of such fund earmarked
22    for any specified project by the board of directors.
23        (5) A copy of the statement of financial condition of
24    the association for the last fiscal year for which such a
25    statement is available.
26        (6) A statement of the status of any pending suits or

 

 

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1    judgments in which the association is a party.
2        (7) A statement setting forth what insurance coverage
3    is provided for all unit owners by the association.
4        (8) A statement that any improvements or alterations
5    made to the unit, or any part of the common areas assigned
6    thereto, by the prior unit owner are in good faith believed
7    to be in compliance with the declaration of the master
8    association.
9    The principal officer of the unit owner's association or
10such other officer as is specifically designated shall furnish
11the above information when requested to do so in writing,
12within 30 days of receiving the request.
13    A reasonable fee covering the direct out-of-pocket cost of
14copying and providing such information may be charged by the
15association or its board of directors to the unit seller for
16providing the information.
17    (g-1) Notwithstanding any other provision of this Act, the
18The purchaser of a unit of a master association common interest
19community at a judicial foreclosure sale, other than a
20mortgagee, who takes title to possession of a unit of a master
21association common interest community pursuant to a court order
22or a purchaser who acquires title from a mortgagee following a
23judicial foreclosure sale or conveyance of a unit pursuant to a
24deed in lieu of foreclosure shall have the duty to pay the
25proportionate share, if any, of the common expenses for the
26unit, including but not limited to attorneys levied pursuant to

 

 

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1subsection (b) of Section 9.2 of this Act, that would have
2become due in the absence of any assessment acceleration during
3the 12 6 months immediately preceding a judicial foreclosure
4sale or execution of deed in lieu of foreclosure institution of
5an action to enforce the collection of assessments and the
6court costs incurred by the association in an action to enforce
7the collection that remain unpaid by the owner during whose
8possession the assessments accrued. If the 12 months of common
9expenses outstanding assessments and the court costs incurred
10by the association in an action to enforce the collection are
11paid at any time during any action to enforce the collection of
12assessments, the purchaser, other than the mortgagee, shall
13have no obligation to pay any common expense assessments that
14accrued before he or she acquired title. The notice of sale of
15a unit of a common interest community under subsection (c) of
16Section 15-1507 of the Code of Civil Procedure shall state that
17the purchaser of the unit other than a mortgagee shall pay the
18common expenses, including but not limited to attorneys' fees
19levied pursuant to subsection (b) of Section 9.2 of this Act,
20assessments and court costs required by this subsection (g-1).
21    (h) Errors and omissions.
22        (1) If there is an omission or error in the declaration
23    or other instrument of the master association, the master
24    association may correct the error or omission by an
25    amendment to the declaration or other instrument, as may be
26    required to conform it to this Act, to any other applicable

 

 

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1    statute, or to the declaration. The amendment shall be
2    adopted by vote of two-thirds of the members of the board
3    of directors or by a majority vote of the unit owners at a
4    meeting called for that purpose, unless the Act or the
5    declaration of the master association specifically
6    provides for greater percentages or different procedures.
7        (2) If, through a scrivener's error, a unit has not
8    been designated as owning an appropriate undivided share of
9    the common areas or does not bear an appropriate share of
10    the common expenses, or if all of the common expenses or
11    all of the common elements in the condominium have not been
12    distributed in the declaration, so that the sum total of
13    the shares of common areas which have been distributed or
14    the sum total of the shares of the common expenses fail to
15    equal 100%, or if it appears that more than 100% of the
16    common elements or common expenses have been distributed,
17    the error may be corrected by operation of law by filing an
18    amendment to the declaration, approved by vote of
19    two-thirds of the members of the board of directors or a
20    majority vote of the unit owners at a meeting called for
21    that purpose, which proportionately adjusts all percentage
22    interests so that the total is equal to 100%, unless the
23    declaration specifically provides for a different
24    procedure or different percentage vote by the owners of the
25    units and the owners of mortgages thereon affected by
26    modification being made in the undivided interest in the

 

 

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1    common areas, the number of votes in the unit owners
2    association or the liability for common expenses
3    appertaining to the unit.
4        (3) If an omission or error or a scrivener's error in
5    the declaration or other instrument is corrected by vote of
6    two-thirds of the members of the board of directors
7    pursuant to the authority established in subdivisions
8    (h)(1) or (h)(2) of this Section, the board, upon written
9    petition by unit owners with 20% of the votes of the
10    association or resolutions adopted by the board of managers
11    or board of directors of the condominium and common
12    interest community associations which select 20% of the
13    members of the board of directors of the master
14    association, whichever is applicable, received within 30
15    days of the board action, shall call a meeting of the unit
16    owners or the boards of the condominium and common interest
17    community associations which select members of the board of
18    directors of the master association within 30 days of the
19    filing of the petition or receipt of the condominium and
20    common interest community association resolution to
21    consider the board action. Unless a majority of the votes
22    of the unit owners of the association are cast at the
23    meeting to reject the action, or board of managers or board
24    of directors of condominium and common interest community
25    associations which select over 50% of the members of the
26    board of the master association adopt resolutions prior to

 

 

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1    the meeting rejecting the action of the board of directors
2    of the master association, it is ratified whether or not a
3    quorum is present.
4        (4) The procedures for amendments set forth in this
5    subsection (h) cannot be used if such an amendment would
6    materially or adversely affect property rights of the unit
7    owners unless the affected unit owners consent in writing.
8    This Section does not restrict the powers of the
9    association to otherwise amend the declaration, bylaws, or
10    other condominium instruments, but authorizes a simple
11    process of amendment requiring a lesser vote for the
12    purpose of correcting defects, errors, or omissions when
13    the property rights of the unit owners are not materially
14    or adversely affected.
15        (5) If there is an omission or error in the declaration
16    or other instruments that may not be corrected by an
17    amendment procedure set forth in subdivision (h)(1) or
18    (h)(2) of this Section, then the circuit court in the
19    county in which the master association is located shall
20    have jurisdiction to hear a petition of one or more of the
21    unit owners thereon or of the association, to correct the
22    error or omission, and the action may be a class action.
23    The court may require that one or more methods of
24    correcting the error or omission be submitted to the unit
25    owners to determine the most acceptable correction. All
26    unit owners in the association must be joined as parties to

 

 

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1    the action. Service of process on owners may be by
2    publication, but the plaintiff shall furnish all unit
3    owners not personally served with process with copies of
4    the petition and final judgment of the court by certified
5    mail, return receipt requested, at their last known
6    address.
7        (6) Nothing contained in this Section shall be
8    construed to invalidate any provision of a declaration
9    authorizing the developer to amend an instrument prior to
10    the latest date on which the initial membership meeting of
11    the unit owners must be held, whether or not it has
12    actually been held, to bring the instrument into compliance
13    with the legal requirements of the Federal National
14    Mortgage Association, the Federal Home Loan Mortgage
15    Corporation, the Federal Housing Administration, the
16    United States Veterans Administration or their respective
17    successors and assigns.
18    (i) The provisions of subsections (c) through (h) are
19applicable to all declarations, other condominium instruments,
20and other duly recorded covenants establishing the powers and
21duties of the master association recorded under this Act. Any
22portion of a declaration, other condominium instrument, or
23other duly recorded covenant establishing the powers and duties
24of a master association which contains provisions contrary to
25the provisions of subsection (c) through (h) shall be void as
26against public policy and ineffective. Any declaration, other

 

 

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1condominium instrument, or other duly recorded covenant
2establishing the powers and duties of the master association
3which fails to contain the provisions required by subsections
4(c) through (h) shall be deemed to incorporate such provisions
5by operation of law.
6    (j) (Blank).
7(Source: P.A. 96-1045, eff. 7-14-10; 97-535, eff. 1-1-12;
897-605, eff. 8-26-11; 97-813, eff. 7-13-12.)
 
9    Section 99. Effective date. This Act takes effect July 1,
102013.