Illinois General Assembly - Full Text of HB0274
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Full Text of HB0274  102nd General Assembly

HB0274 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB0274

 

Introduced 1/29/2021, by Rep. Sam Yingling

 

SYNOPSIS AS INTRODUCED:
 
765 ILCS 160/1-5
765 ILCS 160/1-45

    Amends the Common Interest Community Association Act. Defines a "retirement community" as a community intended and operated: (i) for occupancy by persons 55 years of age or older; and (ii) with at least 80% of the occupied units occupied by at least one person 55 years of age or older. Provides that the real estate taxes on a unit in a retirement community shall be assessed on the unit and paid by the unit owner. Provides that only real estate taxes on a common area may be included in an assessment. Provides that a common interest community shall provide a detailed breakdown of all costs in an association assessment, including a breakdown of real estate tax information. Effective immediately.


LRB102 10086 LNS 15406 b

 

 

A BILL FOR

 

HB0274LRB102 10086 LNS 15406 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
5is amended by changing Sections 1-5 and 1-45 as follows:
 
6    (765 ILCS 160/1-5)
7    Sec. 1-5. Definitions. As used in this Act, unless the
8context otherwise requires:
9    "Acceptable technological means" includes, without
10limitation, electronic transmission over the Internet or other
11network, whether by direct connection, intranet, telecopier,
12electronic mail, and any generally available technology that,
13by rule of the association, is deemed to provide reasonable
14security, reliability, identification, and verifiability.
15    "Association" or "common interest community association"
16means the association of all the members of a common interest
17community, acting pursuant to bylaws or an operating agreement
18through its duly elected board of managers or board of
19directors.
20    "Board" means a common interest community association's
21board of managers or board of directors, whichever is
22applicable.
23    "Board member" or "member of the board" means a member of

 

 

HB0274- 2 -LRB102 10086 LNS 15406 b

1the board of managers or the board of directors, whichever is
2applicable.
3    "Board of directors" means, for a common interest
4community that has been incorporated as an Illinois
5not-for-profit corporation, the group of people elected by the
6members of a common interest community as the governing body
7to exercise for the members of the common interest community
8association all powers, duties, and authority vested in the
9board of directors under this Act and the common interest
10community association's declaration and bylaws.
11    "Board of managers" means, for a common interest community
12that is an unincorporated association or organized as a
13limited liability company, the group of people elected by the
14members of a common interest community as the governing body
15to exercise for the members of the common interest community
16association all powers, duties, and authority vested in the
17board of managers under this Act and the common interest
18community association's declaration, bylaws, or operating
19agreement.
20    "Building" means all structures, attached or unattached,
21containing one or more units.
22    "Common areas" means the portion of the property other
23than a unit.
24    "Common expenses" means the proposed or actual expenses
25affecting the property, including reserves, if any, lawfully
26assessed by the common interest community association.

 

 

HB0274- 3 -LRB102 10086 LNS 15406 b

1    "Common interest community" means real estate other than a
2condominium or cooperative with respect to which any person by
3virtue of his or her ownership of a partial interest or a unit
4therein is obligated to pay for the maintenance, improvement,
5insurance premiums or real estate taxes of common areas
6described in a declaration which is administered by an
7association. "Common interest community" may include, but not
8be limited to, an attached or detached townhome, villa, or
9single-family home. A "common interest community" does not
10include a master association.
11    "Community instruments" means all documents and authorized
12amendments thereto recorded by a developer or common interest
13community association, including, but not limited to, the
14declaration, bylaws, operating agreement, plat of survey, and
15rules and regulations.
16    "Declaration" means any duly recorded instruments, however
17designated, that have created a common interest community and
18any duly recorded amendments to those instruments.
19    "Developer" means any person who submits property legally
20or equitably owned in fee simple by the person to the
21provisions of this Act, or any person who offers units legally
22or equitably owned in fee simple by the person for sale in the
23ordinary course of such person's business, including any
24successor to such person's entire interest in the property
25other than the purchaser of an individual unit.
26    "Developer control" means such control at a time prior to

 

 

HB0274- 4 -LRB102 10086 LNS 15406 b

1the election of the board of the common interest community
2association by a majority of the members other than the
3developer.
4    "Electronic transmission" means any form of communication,
5not directly involving the physical transmission of paper,
6that creates a record that may be retained, retrieved, and
7reviewed by a recipient and that may be directly reproduced in
8paper form by the recipient through an automated process.
9    "Majority" or "majority of the members" means the owners
10of more than 50% in the aggregate in interest of the undivided
11ownership of the common elements. Any specified percentage of
12the members means such percentage in the aggregate in interest
13of such undivided ownership. "Majority" or "majority of the
14members of the board of the common interest community
15association" means more than 50% of the total number of
16persons constituting such board pursuant to the bylaws or
17operating agreement. Any specified percentage of the members
18of the common interest community association means that
19percentage of the total number of persons constituting such
20board pursuant to the bylaws or operating agreement.
21    "Management company" or "community association manager"
22means a person, partnership, corporation, or other legal
23entity entitled to transact business on behalf of others,
24acting on behalf of or as an agent for an association for the
25purpose of carrying out the duties, responsibilities, and
26other obligations necessary for the day to day operation and

 

 

HB0274- 5 -LRB102 10086 LNS 15406 b

1management of any property subject to this Act.
2    "Meeting of the board" or "board meeting" means any
3gathering of a quorum of the members of the board of the common
4interest community association held for the purpose of
5conducting board business.
6    "Member" means the person or entity designated as an owner
7and entitled to one vote as defined by the community
8instruments. The terms "member" and "unit owner" may be used
9interchangeably as defined by the community instruments,
10except in situations in which a matter of legal title to the
11unit is involved or at issue, in which case the term "unit
12owner" would be the applicable term used.
13    "Membership" means the collective group of members
14entitled to vote as defined by the community instruments.
15    "Parcel" means the lot or lots or tract or tracts of land
16described in the declaration as part of a common interest
17community.
18    "Person" means a natural individual, corporation,
19partnership, trustee, or other legal entity capable of holding
20title to real property.
21    "Plat" means a plat or plats of survey of the parcel and of
22all units in the common interest community, which may consist
23of a three-dimensional horizontal and vertical delineation of
24all such units, structures, easements, and common areas on the
25property.
26    "Prescribed delivery method" means mailing, delivering,

 

 

HB0274- 6 -LRB102 10086 LNS 15406 b

1posting in an association publication that is routinely mailed
2to all members, electronic transmission, or any other delivery
3method that is approved in writing by the member and
4authorized by the community instruments.
5    "Property" means all the land, property, and space
6comprising the parcel, all improvements and structures
7erected, constructed or contained therein or thereon,
8including any building and all easements, rights, and
9appurtenances belonging thereto, and all fixtures and
10equipment intended for the mutual use, benefit, or enjoyment
11of the members, under the authority or control of a common
12interest community association.
13    "Purchaser" means any person or persons, other than the
14developer, who purchase a unit in a bona fide transaction for
15value.
16    "Record" means to record in the office of the recorder of
17the county wherein the property is located.
18    "Reserves" means those sums paid by members which are
19separately maintained by the common interest community
20association for purposes specified by the declaration and
21bylaws of the common interest community association.
22    "Retirement community" means a community intended and
23operated: (i) for occupancy by persons 55 years of age or
24older; and (ii) with at least 80% of the occupied units
25occupied by at least one person 55 years of age or older.
26    "Unit" means a part of the property designed and intended

 

 

HB0274- 7 -LRB102 10086 LNS 15406 b

1for any type of independent use.
2    "Unit owner" means the person or persons whose estates or
3interests, individually or collectively, aggregate fee simple
4absolute ownership of a unit.
5(Source: P.A. 98-1042, eff. 1-1-15; 99-41, eff. 7-14-15;
699-612, eff. 1-1-17.)
 
7    (765 ILCS 160/1-45)
8    Sec. 1-45. Finances.
9    (a) Each member shall receive through a prescribed
10delivery method, at least 30 days but not more than 60 days
11prior to the adoption thereof by the board, a copy of the
12proposed annual budget together with an indication of which
13portions are intended for reserves, capital expenditures or
14repairs or payment of real estate taxes.
15    (b) The board shall provide all members with a reasonably
16detailed summary of the receipts, common expenses, and
17reserves for the preceding budget year. The board shall (i)
18make available for review to all members an itemized
19accounting of the common expenses for the preceding year
20actually incurred or paid, together with an indication of
21which portions were for reserves, capital expenditures or
22repairs or payment of real estate taxes and with a tabulation
23of the amounts collected pursuant to the budget or assessment,
24and showing the net excess or deficit of income over
25expenditures plus reserves or (ii) provide a consolidated

 

 

HB0274- 8 -LRB102 10086 LNS 15406 b

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

 

 

HB0274- 9 -LRB102 10086 LNS 15406 b

1facilities of the common interest community. "Emergency" also
2includes a danger to the life, health or safety of the
3membership.
4    (f) Assessments for additions and alterations to the
5common areas or to association-owned property not included in
6the adopted annual budget, shall be separately assessed and
7are subject to approval of a simple majority of the total
8members at 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
14in which 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) An association subject to this Act that consists of
21100 or more units shall use generally accepted accounting
22principles in fulfilling any accounting obligations under this
23Act.
24    (j) The real estate taxes on a unit in a retirement
25community shall be assessed on the unit and paid by the unit
26owner. The real estate taxes on a unit in a retirement

 

 

HB0274- 10 -LRB102 10086 LNS 15406 b

1community shall not be included in an assessment. Only real
2estate taxes on a common area may be included in an assessment.
3    (k) A common interest community shall provide a detailed
4breakdown of all costs in an association assessment, including
5a breakdown of real estate tax information.
6(Source: P.A. 100-292, eff. 1-1-18.)
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.