Illinois General Assembly - Full Text of SB0114
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Full Text of SB0114  102nd General Assembly

SB0114 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB0114

 

Introduced 2/3/2021, 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.


LRB102 04158 LNS 14175 b

 

 

A BILL FOR

 

SB0114LRB102 04158 LNS 14175 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 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

 

 

SB0114- 2 -LRB102 04158 LNS 14175 b

1the maintenance, repair, and replacement of the common areas
2and payments therefor, including the method of approving
3payment vouchers.
4    (d) (Blank).
5    (e) The association may engage the services of a manager
6or management 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
11(c) of 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
21be added 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

 

 

SB0114- 3 -LRB102 04158 LNS 14175 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
7    and copying at convenient hours of weekdays by any member
8    or unit owner in a common interest community subject to
9    the authority of the board, their mortgagees, and their
10    duly 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
24        areas and any other expenses incurred, and copies of
25        all contracts, leases, or other agreements entered
26        into by the board shall be maintained.

 

 

SB0114- 4 -LRB102 04158 LNS 14175 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.

 

 

SB0114- 5 -LRB102 04158 LNS 14175 b

1        (4) If the board fails to provide records properly
2    requested under paragraph (1) of this subsection (i)
3    within the time period provided in that paragraph (1), the
4    member may seek appropriate relief and shall be entitled
5    to an award of reasonable attorney's fees and costs if the
6    member prevails and the court finds that such failure is
7    due to the acts or omissions of the board of managers or
8    the board 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;
1498-756, eff. 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
24of the common expenses commencing with the first conveyance.

 

 

SB0114- 6 -LRB102 04158 LNS 14175 b

1The proportionate share shall be in the same ratio as his
2percentage of ownership in the common elements set forth in
3the declaration.
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
12    assessments and other income. The initial budget and
13    common expense assessment based thereon shall be adopted
14    prior to the conveyance of any unit. The budget shall also
15    set forth each unit owner's proposed common expense
16    assessment.
17        (2) All budgets adopted by a board of managers on or
18    after July 1, 1990 shall provide for reasonable reserves
19    for capital expenditures and deferred maintenance for
20    repair or replacement of the common elements. To determine
21    the amount of reserves appropriate for an association, the
22    board of managers shall take into consideration the
23    following: (i) the repair and replacement cost, and the
24    estimated useful life, of the property which the
25    association is obligated to maintain, including but not
26    limited to structural and mechanical components, surfaces

 

 

SB0114- 7 -LRB102 04158 LNS 14175 b

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

 

 

SB0114- 8 -LRB102 04158 LNS 14175 b

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

 

 

SB0114- 9 -LRB102 04158 LNS 14175 b

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

 

 

SB0114- 10 -LRB102 04158 LNS 14175 b

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

 

 

SB0114- 11 -LRB102 04158 LNS 14175 b

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

 

 

SB0114- 12 -LRB102 04158 LNS 14175 b

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

 

 

SB0114- 13 -LRB102 04158 LNS 14175 b

1    issued to a prospective purchaser under Section 22.1 of
2    this Act, shall state the amount of the assessments and
3    the legal fees, if any, required by subdivisions (g)(1)
4    and (g)(4) of Section 9 of this Act.
5    (h) A lien for common expenses shall be in favor of the
6members of the board of managers and their successors in
7office and shall be for the benefit of all other unit owners.
8Notice of the lien may be recorded by the board of managers, or
9if the developer is the manager or has a majority of seats on
10the board of managers and the manager or board of managers
11fails to do so, any unit owner may record notice of the lien.
12Upon the recording of such notice the lien may be foreclosed by
13an action brought in the name of the board of managers in the
14same manner as a mortgage of real property.
15    (i) Unless otherwise provided in the declaration, the
16members of the board of managers and their successors in
17office, acting on behalf of the other unit owners, shall have
18the power to bid on the interest so foreclosed at the
19foreclosure sale, and to acquire and hold, lease, mortgage and
20convey it.
21    (j) Any encumbrancer may from time to time request in
22writing a written statement from the manager or board of
23managers setting forth the unpaid common expenses with respect
24to the unit covered by his encumbrance. Unless the request is
25complied with within 20 days, all unpaid common expenses which
26become due prior to the date of the making of such request

 

 

SB0114- 14 -LRB102 04158 LNS 14175 b

1shall be subordinate to the lien of the encumbrance. Any
2encumbrancer holding a lien on a unit may pay any unpaid common
3expenses payable with respect to the unit, and upon payment
4the encumbrancer shall have a lien on the unit for the amounts
5paid at the same rank as the lien of his encumbrance.
6    (k) Nothing in Public Act 83-1271 is intended to change
7the lien priorities of any encumbrance created prior to August
830, 1984.
9(Source: P.A. 100-292, eff. 1-1-18.)
 
10    (765 ILCS 605/15)  (from Ch. 30, par. 315)
11    Sec. 15. Sale of property.
12    (a) Unless a greater percentage is provided for in the
13declaration or bylaws, and notwithstanding the provisions of
14Sections 13 and 14 hereof, a majority of the unit owners where
15the property contains 2 units, or not less than 66 2/3% where
16the property contains 3 three units, or and not less than 75%
17where the property contains 4 to 6 or more units, or not less
18than 85% where the property contains 7 or more units may, by
19affirmative vote at a meeting of unit owners duly called for
20such purpose, elect to sell the property. A vote to approve a
21deconversion shall be independently conducted and shall be at
22the expense of the party acquiring ownership rights to the
23property. Any party, including the board of managers, involved
24in the marketing or sale of the property may be privy only to
25the percentage of votes collected, but not the voting tallies,

 

 

SB0114- 15 -LRB102 04158 LNS 14175 b

1until the final vote is revealed. Such action shall be binding
2upon all unit owners, and it shall thereupon become the duty of
3every unit owner to execute and deliver such instruments and
4to perform all acts as in manner and form may be necessary to
5effect such sale, provided, however, that any unit owner who
6did not vote in favor of such action and who has filed written
7objection thereto with the manager or board of managers within
820 days after the date of the meeting at which such sale was
9approved shall be entitled to receive from the proceeds of
10such sale an amount equivalent to the greater of: (i) the value
11of his or her interest, as determined by a fair appraisal, less
12the amount of any unpaid assessments or charges due and owing
13from such unit owner or (ii) the outstanding balance of any
14bona fide debt secured by the objecting unit owner's interest
15which was incurred by such unit owner in connection with the
16acquisition or refinance of the unit owner's interest, less
17the amount of any unpaid assessments or charges due and owing
18from such unit owner. The objecting unit owner is also
19entitled to receive from the proceeds of a sale under this
20Section reimbursement for reasonable relocation costs,
21determined in the same manner as under the federal Uniform
22Relocation Assistance and Real Property Acquisition Policies
23Act of 1970, as amended from time to time, and as implemented
24by regulations promulgated under that Act.
25    (b) If there is a disagreement as to the value of the
26interest of a unit owner who did not vote in favor of the sale

 

 

SB0114- 16 -LRB102 04158 LNS 14175 b

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

 

 

SB0114- 17 -LRB102 04158 LNS 14175 b

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

 

 

SB0114- 18 -LRB102 04158 LNS 14175 b

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

 

 

SB0114- 19 -LRB102 04158 LNS 14175 b

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

 

 

SB0114- 20 -LRB102 04158 LNS 14175 b

1    in the current fiscal year exceeding 115% of the sum of all
2    regular and separate assessments payable during the
3    preceding fiscal year, the board of managers, upon written
4    petition by unit owners with 20 percent of the votes of the
5    association delivered to the board within 21 days of the
6    board action, shall call a meeting of the unit owners
7    within 30 days of the date of delivery of the petition to
8    consider the budget or separate assessment; unless a
9    majority of the total votes of the unit owners are cast at
10    the meeting to reject the budget or separate assessment,
11    it is ratified, (iii) that any common expense not set
12    forth in the budget or any increase in assessments over
13    the amount adopted in the budget shall be separately
14    assessed against all unit owners, (iv) that separate
15    assessments for expenditures relating to emergencies or
16    mandated by law may be adopted by the board of managers
17    without being subject to unit owner approval or the
18    provisions of item (ii) above or item (v) below. As used
19    herein, "emergency" means an immediate danger to the
20    structural integrity of the common elements or to the
21    life, health, safety or property of the unit owners, (v)
22    that assessments for additions and alterations to the
23    common elements or to association-owned property not
24    included in the adopted annual budget, shall be separately
25    assessed and are subject to approval of two-thirds of the
26    total votes of all unit owners, (vi) that the board of

 

 

SB0114- 21 -LRB102 04158 LNS 14175 b

1    managers may adopt separate assessments payable over more
2    than one fiscal year. With respect to multi-year
3    assessments not governed by items (iv) and (v), the entire
4    amount of the multi-year assessment shall be deemed
5    considered and authorized in the first fiscal year in
6    which the assessment is approved;
7        (9)(A) that every meeting of the board of managers
8    shall be open to any unit owner, except that the board may
9    close any portion of a noticed meeting or meet separately
10    from a noticed meeting to: (i) discuss litigation when an
11    action against or on behalf of the particular association
12    has been filed and is pending in a court or administrative
13    tribunal, or when the board of managers finds that such an
14    action is probable or imminent, (ii) discuss the
15    appointment, employment, engagement, or dismissal of an
16    employee, independent contractor, agent, or other provider
17    of goods and services, (iii) interview a potential
18    employee, independent contractor, agent, or other provider
19    of goods and services, (iv) discuss violations of rules
20    and regulations of the association, (v) discuss a unit
21    owner's unpaid share of common expenses, or (vi) consult
22    with the association's legal counsel; that any vote on
23    these matters shall take place at a meeting of the board of
24    managers or portion thereof open to any unit owner;
25        (B) that board members may participate in and act at
26    any meeting of the board of managers in person, by

 

 

SB0114- 22 -LRB102 04158 LNS 14175 b

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

 

 

SB0114- 23 -LRB102 04158 LNS 14175 b

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

 

 

SB0114- 24 -LRB102 04158 LNS 14175 b

1    filling a vacancy on the board no later than 30 days
2    following the filing of a petition signed by unit owners
3    holding 20% of the votes of the association requesting
4    such a meeting, and the method of filling vacancies among
5    the officers that shall include the authority for the
6    members of the board to fill the vacancy for the unexpired
7    portion of the term;
8        (14) what percentage of the board of managers, if
9    other than a majority, shall constitute a quorum;
10        (15) provisions concerning notice of board meetings to
11    members of the board;
12        (16) the board of managers may not enter into a
13    contract with a current board member or with a corporation
14    or partnership or affiliate of the corporation in which a
15    board member or a member of the board member's immediate
16    family has 25% or more interest, unless notice of intent
17    to enter the contract is given to unit owners within 20
18    days after a decision is made to enter into the contract
19    and the unit owners are afforded an opportunity by filing
20    a petition, signed by 20% of the unit owners, for an
21    election to approve or disapprove the contract; such
22    petition shall be filed within 30 days after such notice
23    and such election shall be held within 30 days after
24    filing the petition; for purposes of this subsection, a
25    board member's immediate family means the board member's
26    spouse, parents, and children;

 

 

SB0114- 25 -LRB102 04158 LNS 14175 b

1        (17) that the board of managers may disseminate to
2    unit owners biographical and background information about
3    candidates for election to the board if (i) reasonable
4    efforts to identify all candidates are made and all
5    candidates are given an opportunity to include
6    biographical and background information in the information
7    to be disseminated; and (ii) the board does not express a
8    preference in favor of any candidate;
9        (18) any proxy distributed for board elections by the
10    board of managers gives unit owners the opportunity to
11    designate any person as the proxy holder, and gives the
12    unit owner the opportunity to express a preference for any
13    of the known candidates for the board or to write in a
14    name;
15        (19) that special meetings of the board of managers
16    can be called by the president or 25% of the members of the
17    board;
18        (20) that the board of managers may establish and
19    maintain a system of master metering of public utility
20    services and collect payments in connection therewith,
21    subject to the requirements of the Tenant Utility Payment
22    Disclosure Act; and
23        (21) that the board may ratify and confirm actions of
24    the members of the board taken in response to an
25    emergency, as that term is defined in subdivision
26    (a)(8)(iv) of this Section; that the board shall give

 

 

SB0114- 26 -LRB102 04158 LNS 14175 b

1    notice to the unit owners of: (i) the occurrence of the
2    emergency event within 7 business days after the emergency
3    event, and (ii) the general description of the actions
4    taken to address the event within 7 days after the
5    emergency event.
6        The intent of the provisions of Public Act 99-472
7    adding this paragraph (21) is to empower and support
8    boards to act in emergencies.
9        (b)(1) What percentage of the unit owners, if other
10    than 20%, shall constitute a quorum provided that, for
11    condominiums with 20 or more units, the percentage of unit
12    owners constituting a quorum shall be 20% unless the unit
13    owners holding a majority of the percentage interest in
14    the association provide for a higher percentage, provided
15    that in voting on amendments to the association's bylaws,
16    a unit owner who is in arrears on the unit owner's regular
17    or separate assessments for 60 days or more, shall not be
18    counted for purposes of determining if a quorum is
19    present, but that unit owner retains the right to vote on
20    amendments to the association's bylaws;
21        (2) that the association shall have one class of
22    voting membership;
23        (3) that the members shall hold an annual meeting, one
24    of the purposes of which shall be to elect members of the
25    board of managers;
26        (4) the method of calling meetings of the unit owners;

 

 

SB0114- 27 -LRB102 04158 LNS 14175 b

1        (5) that special meetings of the members can be called
2    by the president, board of managers, or by 20% of unit
3    owners;
4        (6) that written notice of any membership meeting
5    shall be mailed or delivered giving members no less than
6    10 and no more than 30 days notice of the time, place and
7    purpose of such meeting except that notice may be sent, to
8    the extent the condominium instruments or rules adopted
9    thereunder expressly so provide, by electronic
10    transmission consented to by the unit owner to whom the
11    notice is given, provided the director and officer or his
12    agent certifies in writing to the delivery by electronic
13    transmission;
14        (7) that voting shall be on a percentage basis, and
15    that the percentage vote to which each unit is entitled is
16    the percentage interest of the undivided ownership of the
17    common elements appurtenant thereto, provided that the
18    bylaws may provide for approval by unit owners in
19    connection with matters where the requisite approval on a
20    percentage basis is not specified in this Act, on the
21    basis of one vote per unit;
22        (8) that, where there is more than one owner of a unit,
23    if only one of the multiple owners is present at a meeting
24    of the association, he is entitled to cast all the votes
25    allocated to that unit, if more than one of the multiple
26    owners are present, the votes allocated to that unit may

 

 

SB0114- 28 -LRB102 04158 LNS 14175 b

1    be cast only in accordance with the agreement of a
2    majority in interest of the multiple owners, unless the
3    declaration expressly provides otherwise, that there is
4    majority agreement if any one of the multiple owners cast
5    the votes allocated to that unit without protest being
6    made promptly to the person presiding over the meeting by
7    any of the other owners of the unit;
8        (9)(A) except as provided in subparagraph (B) of this
9    paragraph (9) in connection with board elections, that a
10    unit owner may vote by proxy executed in writing by the
11    unit owner or by his duly authorized attorney in fact;
12    that the proxy must bear the date of execution and, unless
13    the condominium instruments or the written proxy itself
14    provide otherwise, is invalid after 11 months from the
15    date of its execution; to the extent the condominium
16    instruments or rules adopted thereunder expressly so
17    provide, a vote or proxy may be submitted by electronic
18    transmission, provided that any such electronic
19    transmission shall either set forth or be submitted with
20    information from which it can be determined that the
21    electronic transmission was authorized by the unit owner
22    or the unit owner's proxy;
23        (B) that if a rule adopted at least 120 days before a
24    board election or the declaration or bylaws provide for
25    balloting as set forth in this subsection, unit owners may
26    not vote by proxy in board elections, but may vote only (i)

 

 

SB0114- 29 -LRB102 04158 LNS 14175 b

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

 

 

SB0114- 30 -LRB102 04158 LNS 14175 b

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

 

 

SB0114- 31 -LRB102 04158 LNS 14175 b

1    the board within 30 days after the board's approval of a
2    rule adopted pursuant to subparagraph (B) or subparagraph
3    (B-5) of this paragraph (9), the board shall call a
4    meeting of the unit owners within 30 days after the date of
5    delivery of the petition; that unless a majority of the
6    total votes of the unit owners are cast at the meeting to
7    reject the rule, the rule is ratified;
8        (D) that votes cast by ballot under subparagraph (B)
9    or electronic or acceptable technological means under
10    subparagraph (B-5) of this paragraph (9) are valid for the
11    purpose of establishing a quorum;
12        (10) that the association may, upon adoption of the
13    appropriate rules by the board of managers, conduct
14    elections by secret ballot whereby the voting ballot is
15    marked only with the percentage interest for the unit and
16    the vote itself, provided that the board further adopt
17    rules to verify the status of the unit owner issuing a
18    proxy or casting a ballot; and further, that a candidate
19    for election to the board of managers or such candidate's
20    representative shall have the right to be present at the
21    counting of ballots at such election;
22        (11) that in the event of a resale of a condominium
23    unit the purchaser of a unit from a seller other than the
24    developer pursuant to an installment sales contract for
25    purchase shall during such times as he or she resides in
26    the unit be counted toward a quorum for purposes of

 

 

SB0114- 32 -LRB102 04158 LNS 14175 b

1    election of members of the board of managers at any
2    meeting of the unit owners called for purposes of electing
3    members of the board, shall have the right to vote for the
4    election of members of the board of managers and to be
5    elected to and serve on the board of managers unless the
6    seller expressly retains in writing any or all of such
7    rights. In no event may the seller and purchaser both be
8    counted toward a quorum, be permitted to vote for a
9    particular office or be elected and serve on the board.
10    Satisfactory evidence of the installment sales contract
11    shall be made available to the association or its agents.
12    For purposes of this subsection, "installment sales
13    contract" shall have the same meaning as set forth in
14    Section 5 of the Installment Sales Contract Act and
15    Section 1(e) of the Dwelling Unit Installment Contract
16    Act;
17        (12) the method by which matters subject to the
18    approval of unit owners set forth in this Act, or in the
19    condominium instruments, will be submitted to the unit
20    owners at special membership meetings called for such
21    purposes; and
22        (13) that matters subject to the affirmative vote of
23    not less than 2/3 of the votes of unit owners at a meeting
24    duly called for that purpose, shall include, but not be
25    limited to:
26            (i) merger or consolidation of the association;

 

 

SB0114- 33 -LRB102 04158 LNS 14175 b

1            (ii) sale, lease, exchange, or other disposition
2        (excluding the mortgage or pledge) of all, or
3        substantially all of the property and assets of the
4        association; and
5            (iii) the purchase or sale of land or of units on
6        behalf of all unit owners.
7        (c) Election of a president from among the board of
8    managers, who shall preside over the meetings of the board
9    of managers and of the unit owners.
10        (d) Election of a secretary from among the board of
11    managers, who shall keep the minutes of all meetings of
12    the board of managers and of the unit owners and who shall,
13    in general, perform all the duties incident to the office
14    of secretary.
15        (e) Election of a treasurer from among the board of
16    managers, who shall keep the financial records and books
17    of account.
18        (f) Maintenance, repair and replacement of the common
19    elements and payments therefor, including the method of
20    approving payment vouchers.
21        (g) An association with 30 or more units shall obtain
22    and maintain fidelity insurance covering persons who
23    control or disburse funds of the association for the
24    maximum amount of coverage available to protect funds in
25    the custody or control of the association plus the
26    association reserve fund. All management companies which

 

 

SB0114- 34 -LRB102 04158 LNS 14175 b

1    are responsible for the funds held or administered by the
2    association shall maintain and furnish to the association
3    a fidelity bond for the maximum amount of coverage
4    available to protect funds in the custody of the
5    management company at any time. The association shall bear
6    the cost of the fidelity insurance and fidelity bond,
7    unless otherwise provided by contract between the
8    association and a management company. The association
9    shall be the direct obligee of any such fidelity bond. A
10    management company holding reserve funds of an association
11    shall at all times maintain a separate account for each
12    association, provided, however, that for investment
13    purposes, the Board of Managers of an association may
14    authorize a management company to maintain the
15    association's reserve funds in a single interest bearing
16    account with similar funds of other associations. The
17    management company shall at all times maintain records
18    identifying all moneys of each association in such
19    investment account. The management company may hold all
20    operating funds of associations which it manages in a
21    single operating account but shall at all times maintain
22    records identifying all moneys of each association in such
23    operating account. Such operating and reserve funds held
24    by the management company for the association shall not be
25    subject to attachment by any creditor of the management
26    company.

 

 

SB0114- 35 -LRB102 04158 LNS 14175 b

1        For the purpose of this subsection, a management
2    company shall be defined as a person, partnership,
3    corporation, or other legal entity entitled to transact
4    business on behalf of others, acting on behalf of or as an
5    agent for a unit owner, unit owners or association of unit
6    owners for the purpose of carrying out the duties,
7    responsibilities, and other obligations necessary for the
8    day to day operation and management of any property
9    subject to this Act. For purposes of this subsection, the
10    term "fiduciary insurance coverage" shall be defined as
11    both a fidelity bond and directors and officers liability
12    coverage, the fidelity bond in the full amount of
13    association funds and association reserves that will be in
14    the custody of the association, and the directors and
15    officers liability coverage at a level as shall be
16    determined to be reasonable by the board of managers, if
17    not otherwise established by the declaration or by laws.
18        Until one year after September 21, 1985 (the effective
19    date of Public Act 84-722), if a condominium association
20    has reserves plus assessments in excess of $250,000 and
21    cannot reasonably obtain 100% fidelity bond coverage for
22    such amount, then it must obtain a fidelity bond coverage
23    of $250,000.
24        (h) Method of estimating the amount of the annual
25    budget, and the manner of assessing and collecting from
26    the unit owners their respective shares of such estimated

 

 

SB0114- 36 -LRB102 04158 LNS 14175 b

1    expenses, and of any other expenses lawfully agreed upon.
2        (i) That upon 10 days notice to the manager or board of
3    managers and payment of a reasonable fee, any unit owner
4    shall be furnished a statement of his account setting
5    forth the amount of any unpaid assessments or other
6    charges due and owing from such owner.
7        (j) Designation and removal of personnel necessary for
8    the maintenance, repair and replacement of the common
9    elements.
10        (k) Such restrictions on and requirements respecting
11    the use and maintenance of the units and the use of the
12    common elements, not set forth in the declaration, as are
13    designed to prevent unreasonable interference with the use
14    of their respective units and of the common elements by
15    the several unit owners.
16        (l) Method of adopting and of amending administrative
17    rules and regulations governing the operation and use of
18    the common elements.
19        (m) The percentage of votes required to modify or
20    amend the bylaws, but each one of the particulars set
21    forth in this section shall always be embodied in the
22    bylaws.
23        (n)(i) The provisions of this Act, the declaration,
24    bylaws, other condominium instruments, and rules and
25    regulations that relate to the use of the individual unit
26    or the common elements shall be applicable to any person

 

 

SB0114- 37 -LRB102 04158 LNS 14175 b

1    leasing a unit and shall be deemed to be incorporated in
2    any lease executed or renewed on or after August 30, 1984
3    (the effective date of Public Act 83-1271).
4        (ii) With regard to any lease entered into subsequent
5    to July 1, 1990 (the effective date of Public Act 86-991),
6    the unit owner leasing the unit shall deliver a copy of the
7    signed lease to the board or if the lease is oral, a
8    memorandum of the lease, not later than the date of
9    occupancy or 10 days after the lease is signed, whichever
10    occurs first. In addition to any other remedies, by filing
11    an action jointly against the tenant and the unit owner,
12    an association may seek to enjoin a tenant from occupying
13    a unit or seek to evict a tenant under the provisions of
14    Article IX of the Code of Civil Procedure for failure of
15    the lessor-owner to comply with the leasing requirements
16    prescribed by this Section or by the declaration, bylaws,
17    and rules and regulations. The board of managers may
18    proceed directly against a tenant, at law or in equity, or
19    under the provisions of Article IX of the Code of Civil
20    Procedure, for any other breach by tenant of any
21    covenants, rules, regulations or bylaws.
22        (o) The association shall have no authority to forbear
23    the payment of assessments by any unit owner.
24        (p) That when 30% or fewer of the units, by number,
25    possess over 50% in the aggregate of the votes in the
26    association, any percentage vote of members specified

 

 

SB0114- 38 -LRB102 04158 LNS 14175 b

1    herein or in the condominium instruments shall require the
2    specified percentage by number of units rather than by
3    percentage of interest in the common elements allocated to
4    units that would otherwise be applicable and garage units
5    or storage units, or both, shall have, in total, no more
6    votes than their aggregate percentage of ownership in the
7    common elements; this shall mean that if garage units or
8    storage units, or both, are to be given a vote, or portion
9    of a vote, that the association must add the total number
10    of votes cast of garage units, storage units, or both, and
11    divide the total by the number of garage units, storage
12    units, or both, and multiply by the aggregate percentage
13    of ownership of garage units and storage units to
14    determine the vote, or portion of a vote, that garage
15    units or storage units, or both, have. For purposes of
16    this subsection (p), when making a determination of
17    whether 30% or fewer of the units, by number, possess over
18    50% in the aggregate of the votes in the association, a
19    unit shall not include a garage unit or a storage unit.
20        (q) That a unit owner may not assign, delegate,
21    transfer, surrender, or avoid the duties,
22    responsibilities, and liabilities of a unit owner under
23    this Act, the condominium instruments, or the rules and
24    regulations of the Association; and that such an attempted
25    assignment, delegation, transfer, surrender, or avoidance
26    shall be deemed void.

 

 

SB0114- 39 -LRB102 04158 LNS 14175 b

1        (r) Unless a lesser percentage of ownership is
2    provided for in the bylaws, no person, heir assign, family
3    member, affiliate, partnership, corporation, proxy of a
4    corporation and its beneficial owners, other legal entity
5    entitled to transact business on behalf of others, or
6    legal entity acting on behalf of a corporation or its
7    beneficial owners may own more than 10% of the units for a
8    property containing 30 or more units, more than 15% of the
9    units for a property containing 20 to 29 units, more than
10    20% of the units for a property containing 5 to 19 units,
11    and no more than a single unit for a property containing
12    fewer than 5 units.
13    The provisions of this Section are applicable to all
14condominium instruments recorded under this Act. Any portion
15of a condominium instrument which contains provisions contrary
16to these provisions shall be void as against public policy and
17ineffective. Any such instrument which fails to contain the
18provisions required by this Section shall be deemed to
19incorporate such provisions by operation of law.
20(Source: P.A. 99-472, eff. 6-1-16; 99-567, eff. 1-1-17;
2199-642, eff. 7-28-16; 100-292, eff. 1-1-18; 100-416, eff.
221-1-18; 100-863, eff. 8-14-18.)
 
23    (765 ILCS 605/18.4)  (from Ch. 30, par. 318.4)
24    Sec. 18.4. Powers and duties of board of managers. The
25board of managers shall exercise for the association all

 

 

SB0114- 40 -LRB102 04158 LNS 14175 b

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

 

 

SB0114- 41 -LRB102 04158 LNS 14175 b

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

 

 

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

 

 

SB0114- 43 -LRB102 04158 LNS 14175 b

1    and any other special taxes or charges of the State of
2    Illinois or of any political subdivision thereof, or other
3    lawful taxing or assessing body, which are authorized by
4    law to be assessed and levied upon the real property of the
5    condominium.
6        (l) To impose charges for late payment of a unit
7    owner's proportionate share of the common expenses, or any
8    other expenses lawfully agreed upon, and after notice and
9    an opportunity to be heard, to levy reasonable fines for
10    violation of the declaration, by-laws, and rules and
11    regulations of the association.
12        (m) By a majority vote of the entire board of
13    managers, to assign the right of the association to future
14    income from common expenses or other sources, and to
15    mortgage or pledge substantially all of the remaining
16    assets of the association.
17        (n) To record the dedication of a portion of the
18    common elements to a public body for use as, or in
19    connection with, a street or utility where authorized by
20    the unit owners under the provisions of Section 14.2.
21        (o) To record the granting of an easement for the
22    laying of cable television or high speed Internet cable
23    where authorized by the unit owners under the provisions
24    of Section 14.3; to obtain, if available and determined by
25    the board to be in the best interests of the association,
26    cable television or bulk high speed Internet service for

 

 

SB0114- 44 -LRB102 04158 LNS 14175 b

1    all of the units of the condominium on a bulk identical
2    service and equal cost per unit basis; and to assess and
3    recover the expense as a common expense and, if so
4    determined by the board, to assess each and every unit on
5    the same equal cost per unit basis.
6        (p) To seek relief on behalf of all unit owners when
7    authorized pursuant to subsection (c) of Section 10 from
8    or in connection with the assessment or levying of real
9    property taxes, special assessments, and any other special
10    taxes or charges of the State of Illinois or of any
11    political subdivision thereof or of any lawful taxing or
12    assessing body.
13        (q) To reasonably accommodate the needs of a unit
14    owner who is a person with a disability as required by the
15    federal Civil Rights Act of 1968, the Human Rights Act and
16    any applicable local ordinances in the exercise of its
17    powers with respect to the use of common elements or
18    approval of modifications in an individual unit.
19        (r) To accept service of a notice of claim for
20    purposes of the Mechanics Lien Act on behalf of each
21    respective member of the Unit Owners' Association with
22    respect to improvements performed pursuant to any contract
23    entered into by the Board of Managers or any contract
24    entered into prior to the recording of the condominium
25    declaration pursuant to this Act, for a property
26    containing more than 8 units, and to distribute the notice

 

 

SB0114- 45 -LRB102 04158 LNS 14175 b

1    to the unit owners within 7 days of the acceptance of the
2    service by the Board of Managers. The service shall be
3    effective as if each individual unit owner had been served
4    individually with notice.
5        (s) To adopt and amend rules and regulations (l)
6    authorizing electronic delivery of notices and other
7    communications required or contemplated by this Act to
8    each unit owner who provides the association with written
9    authorization for electronic delivery and an electronic
10    address to which such communications are to be
11    electronically transmitted; and (2) authorizing each unit
12    owner to designate an electronic address or a U.S. Postal
13    Service address, or both, as the unit owner's address on
14    any list of members or unit owners which an association is
15    required to provide upon request pursuant to any provision
16    of this Act or any condominium instrument.
17        (t) To reject any arrangement that establishes an
18    agreement for a buyer to purchase a condominium building,
19    including a letter of intent.
20        (u) To refrain from investigating an offer to purchase
21    a condominium property or listing the property for sale
22    without first receiving authorization from the association
23    through an affirmative vote of not less than 75% of unit
24    owners based on the percentage of ownership.
25    In the performance of their duties, the officers and
26members of the board, whether appointed by the developer or

 

 

SB0114- 46 -LRB102 04158 LNS 14175 b

1elected by the unit owners, shall exercise the care required
2of a fiduciary of the unit owners. Every officer and member of
3the board who violates, participates in, or permits any
4officer, agent, or assign of the board to breach his or her
5fiduciary duty shall be held liable in his or her personal or
6individual capacity under this Section for the following:
7        (1) an act or omission that is grossly negligent;
8        (2) a breach of the officer's duty of loyalty to the
9    association;
10        (3) an act or omission not in good faith or that
11    involves intentional misconduct or a knowing violation of
12    the law;
13        (4) a transaction from which the officer derived an
14    improper personal benefit; or
15        (5) an act or omission occurring before the effective
16    date of a provision authorized by this Section.
17    The collection of assessments from unit owners by an
18association, board of managers or their duly authorized agents
19shall not be considered acts constituting a collection agency
20for purposes of the Collection Agency Act.
21    The provisions of this Section are applicable to all
22condominium instruments recorded under this Act. Any portion
23of a condominium instrument which contains provisions contrary
24to these provisions shall be void as against public policy and
25ineffective. Any such instrument that fails to contain the
26provisions required by this Section shall be deemed to

 

 

SB0114- 47 -LRB102 04158 LNS 14175 b

1incorporate such provisions by operation of law.
2(Source: P.A. 99-143, eff. 7-27-15; 99-849, eff. 1-1-17;
3100-292, eff. 1-1-18.)
 
4    (765 ILCS 605/19)  (from Ch. 30, par. 319)
5    Sec. 19. Records of the association; availability for
6examination.
7    (a) The board of managers of every association shall keep
8and maintain the following records, or true and complete
9copies of these records, at the association's principal
10office:
11        (1) the association's declaration, bylaws, and plats
12    of survey, and all amendments of these;
13        (2) the rules and regulations of the association, if
14    any;
15        (3) if the association is incorporated as a
16    corporation, the articles of incorporation of the
17    association and all amendments to the articles of
18    incorporation;
19        (4) minutes of all meetings of the association and its
20    board of managers for the immediately preceding 7 years;
21        (5) all current policies of insurance of the
22    association;
23        (6) all contracts, leases, and other agreements then
24    in effect to which the association is a party or under
25    which the association or the unit owners have obligations

 

 

SB0114- 48 -LRB102 04158 LNS 14175 b

1    or liabilities;
2        (6.5) all statements from licensed independent
3    contractors validating the need and the cost for any
4    expenditures for repair, replacement, or restoration of
5    the common elements;
6        (7) a current listing of the names, addresses, email
7    addresses, telephone numbers, and weighted vote of all
8    members entitled to vote;
9        (8) ballots and proxies related to ballots for all
10    matters voted on by the members of the association during
11    the immediately preceding 12 months, including, but not
12    limited to, the election of members of the board of
13    managers; and
14        (9) the books and records for the association's
15    current and 10 immediately preceding fiscal years,
16    including, but not limited to, itemized and detailed
17    records of all receipts, expenditures, and accounts; and .
18        (10) the communications of any member of the board of
19    managers regarding an attempt to sell the condominium
20    property.
21    (b) Any member of an association shall have the right to
22inspect, examine, and make copies of the records described in
23subdivisions (1), (2), (3), (4), (5), (6), (6.5), and (9), and
24(10) of subsection (a) of this Section, in person or by agent,
25at any reasonable time or times, at the association's
26principal office. The board of managers shall provide unit

 

 

SB0114- 49 -LRB102 04158 LNS 14175 b

1owners a copy of the records described in subdivision (6.5) of
2subsection (a), so that the unit owners may review them before
3voting to approve expenditures. In order to exercise this
4right, a member must submit a written request to the
5association's board of managers or its authorized agent,
6stating with particularity the records sought to be examined.
7Failure of an association's board of managers to make
8available all records so requested within 10 business days of
9receipt of the member's written request shall be deemed a
10denial.
11    Any member who prevails in an enforcement action to compel
12examination of records described in subdivisions (1), (2),
13(3), (4), (5), (6), (6.5), and (9), and (10) of subsection (a)
14of this Section shall be entitled to recover reasonable
15attorney's fees and costs from the association.
16    (c) (Blank).
17    (d) (Blank).
18    (d-5) As used in this Section, "commercial purpose" means
19the use of any part of a record or records described in
20subdivisions (7) and (8) of subsection (a) of this Section, or
21information derived from such records, in any form for sale,
22resale, or solicitation or advertisement for sales or
23services.
24    (e) Except as otherwise provided in subsection (g) of this
25Section, any member of an association shall have the right to
26inspect, examine, and make copies of the records described in

 

 

SB0114- 50 -LRB102 04158 LNS 14175 b

1subdivisions (7) and (8) of subsection (a) of this Section, in
2person or by agent, at any reasonable time or times but only
3for a purpose that relates to the association, at the
4association's principal office. In order to exercise this
5right, a member must submit a written request, to the
6association's board of managers or its authorized agent,
7stating with particularity the records sought to be examined.
8As a condition for exercising this right, the board of
9managers or authorized agent of the association may require
10the member to certify in writing that the information
11contained in the records obtained by the member will not be
12used by the member for any commercial purpose or for any
13purpose that does not relate to the association. The board of
14managers of the association may impose a fine in accordance
15with item (l) of Section 18.4 upon any person who makes a false
16certification. Subject to the provisions of subsection (g) of
17this Section, failure of an association's board of managers to
18make available all records so requested within 10 business
19days of receipt of the member's written request shall be
20deemed a denial; provided, however, that the board of managers
21of an association that has adopted a secret ballot election
22process as provided in Section 18 of this Act shall not be
23deemed to have denied a member's request for records described
24in subdivision (8) of subsection (a) of this Section if voting
25ballots, without identifying unit numbers, are made available
26to the requesting member within 10 business days of receipt of

 

 

SB0114- 51 -LRB102 04158 LNS 14175 b

1the member's written request. All information and
2documentation regarding the process, including all parties
3involved and all information and documentation regarding the
4need for and cost of a repair, replacement, or other alleged
5need for a special assessment for the condominium property,
6shall be disclosed to all unit owners at least 30 days prior to
7a vote.
8    Any member who prevails in an enforcement action to compel
9examination of records described in subdivision (7) or (8) of
10subsection (a) of this Section shall be entitled to recover
11reasonable attorney's fees and costs from the association only
12if the court finds that the board of directors acted in bad
13faith in denying the member's request.
14    (f) The actual cost to the association of retrieving and
15making requested records available for inspection and
16examination under this Section may be charged by the
17association to the requesting member. If a member requests
18copies of records requested under this Section, the actual
19costs to the association of reproducing the records may also
20be charged by the association to the requesting member.
21    (g) Notwithstanding the provisions of subsection (e) of
22this Section, unless otherwise directed by court order, an
23association need not make the following records available for
24inspection, examination, or copying by its members:
25        (1) documents relating to appointment, employment,
26    discipline, or dismissal of association employees;

 

 

SB0114- 52 -LRB102 04158 LNS 14175 b

1        (2) documents relating to actions pending against or
2    on behalf of the association or its board of managers in a
3    court or administrative tribunal;
4        (3) documents relating to actions threatened against,
5    or likely to be asserted on behalf of, the association or
6    its board of managers in a court or administrative
7    tribunal;
8        (4) documents relating to common expenses or other
9    charges owed by a member other than the requesting member;
10    and
11        (5) documents provided to an association in connection
12    with the lease, sale, or other transfer of a unit by a
13    member other than the requesting member.
14    (h) The provisions of this Section are applicable to all
15condominium instruments recorded under this Act. Any portion
16of a condominium instrument that contains provisions contrary
17to these provisions shall be void as against public policy and
18ineffective. Any condominium instrument that fails to contain
19the provisions required by this Section shall be deemed to
20incorporate the provisions by operation of law.
21(Source: P.A. 100-292, eff. 1-1-18; 100-863, eff. 8-14-18.)

 

 

SB0114- 53 -LRB102 04158 LNS 14175 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