Full Text of SB3180 96th General Assembly
SB3180enr 96TH GENERAL ASSEMBLY
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| AN ACT concerning civil law.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Article 1 | 5 |
| Section 1-1. Short title. This Article may be cited as the | 6 |
| Common Interest Community Association Act , and references in | 7 |
| this Article to "this Act" mean this Article. | 8 |
| Section 1-5. Definitions. As used in this Act, unless the | 9 |
| context otherwise requires: | 10 |
| "Association" or "common interest community association" | 11 |
| means the association of all the unit owners of a common | 12 |
| interest community, acting pursuant to bylaws through its duly | 13 |
| elected board of managers or board of directors. | 14 |
| "Board" means a common interest community association's | 15 |
| board of managers or board of directors, whichever is | 16 |
| applicable. | 17 |
| "Board member" or "member of the board" means a member of | 18 |
| the board of managers or the board of directors, whichever is | 19 |
| applicable. | 20 |
| "Board of directors" means, for a common interest community | 21 |
| that has been incorporated as an Illinois not-for-profit | 22 |
| corporation, the group of people elected by the unit owners of |
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| a common interest community as the governing body to exercise | 2 |
| for the unit owners of the common interest community | 3 |
| association all powers, duties, and authority vested in the | 4 |
| board of directors under this Act and the common interest | 5 |
| community association's declaration and bylaws. | 6 |
| "Board of managers" means, for a common interest community | 7 |
| that is an unincorporated association, the group of people | 8 |
| elected by the unit owners of a common interest community as | 9 |
| the governing body to exercise for the unit owners of the | 10 |
| common interest community association all powers, duties, and | 11 |
| authority vested in the board of managers under this Act and | 12 |
| the common interest community association's declaration and | 13 |
| bylaws. | 14 |
| "Building" means all structures, attached or unattached, | 15 |
| containing one or more units. | 16 |
| "Common areas" means the portion of the property other than | 17 |
| a unit. | 18 |
| "Common expenses" means the proposed or actual expenses | 19 |
| affecting the property, including reserves, if any, lawfully | 20 |
| assessed by the common interest community association. | 21 |
| "Common interest community" means real estate other than a | 22 |
| condominium or cooperative with respect to which any person by | 23 |
| virtue of his or her ownership of a partial interest or a unit | 24 |
| therein is obligated to pay for the maintenance, improvement, | 25 |
| insurance premiums or real estate taxes of common areas | 26 |
| described in a declaration which is administered by an |
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| association. "Common interest community" may include, but not | 2 |
| be limited to, an attached or detached townhome, villa, or | 3 |
| single-family home, or master association. | 4 |
| "Community instruments" means all documents and authorized | 5 |
| amendments thereto recorded by a developer or common interest | 6 |
| community association, including, but not limited to, the | 7 |
| declaration, bylaws, plat of survey, and rules and regulations. | 8 |
| "Declaration" means any duly recorded instruments, however | 9 |
| designated, that have created a common interest community and | 10 |
| any duly recorded amendments to those instruments. | 11 |
| "Developer" means any person who submits property legally | 12 |
| or equitably owned in fee simple by the person to the | 13 |
| provisions of this Act, or any person who offers units legally | 14 |
| or equitably owned in fee simple by the person for sale in the | 15 |
| ordinary course of such person's business, including any | 16 |
| successor to such person's entire interest in the property | 17 |
| other than the purchaser of an individual unit. | 18 |
| "Developer control" means such control at a time prior to | 19 |
| the election of the board of the common interest community | 20 |
| association by a majority of the unit owners other than the | 21 |
| developer. | 22 |
| "Majority" or "majority of the unit owners" means the | 23 |
| owners of more than 50% in the aggregate in interest of the | 24 |
| undivided ownership of the common elements. Any specified | 25 |
| percentage of the unit owners means such percentage in the | 26 |
| aggregate in interest of such undivided ownership. "Majority" |
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| or "majority of the members of the board of the common interest | 2 |
| community association" means more than 50% of the total number | 3 |
| of persons constituting such board pursuant to the bylaws. Any | 4 |
| specified percentage of the members of the common interest | 5 |
| community association means that percentage of the total number | 6 |
| of persons constituting such board pursuant to the bylaws. | 7 |
| "Management company" or "community association manager" | 8 |
| means a person, partnership, corporation, or other legal entity | 9 |
| entitled to transact business on behalf of others, acting on | 10 |
| behalf of or as an agent for an association for the purpose of | 11 |
| carrying out the duties, responsibilities, and other | 12 |
| obligations necessary for the day to day operation and | 13 |
| management of any property subject to this Act.
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| "Master association" means a common interest community | 15 |
| association that exercises its powers on behalf of one or more | 16 |
| condominium or other common interest community associations or | 17 |
| for the benefit of unit owners in such associations. | 18 |
| "Meeting of the board" or "board meeting" means any | 19 |
| gathering of a quorum of the members of the board of the common | 20 |
| interest community association held for the purpose of | 21 |
| conducting board business. | 22 |
| "Parcel" means the lot or lots or tract or tracts of land | 23 |
| described in the declaration as part of a common interest | 24 |
| community. | 25 |
| "Person" means a natural individual, corporation, | 26 |
| partnership, trustee, or other legal entity capable of holding |
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| title to real property. | 2 |
| "Plat" means a plat or plats of survey of the parcel and of | 3 |
| all units in the common interest community, which may consist | 4 |
| of a three-dimensional horizontal and vertical delineation of | 5 |
| all such units, structures, easements, and common areas on the | 6 |
| property. | 7 |
| "Property" means all the land, property, and space | 8 |
| comprising the parcel, all improvements and structures | 9 |
| erected, constructed or contained therein or thereon, | 10 |
| including any building and all easements, rights, and | 11 |
| appurtenances belonging thereto, and all fixtures and | 12 |
| equipment intended for the mutual use, benefit, or enjoyment of | 13 |
| the unit owners, under the authority or control of a common | 14 |
| interest community association. | 15 |
| "Purchaser" means any person or persons, other than the | 16 |
| developer, who purchase a unit in a bona fide transaction for | 17 |
| value. | 18 |
| "Record" means to record in the office of the recorder of | 19 |
| the county wherein the property is located. | 20 |
| "Reserves" means those sums paid by unit owners which are | 21 |
| separately maintained by the common interest community | 22 |
| association for purposes specified by the declaration and | 23 |
| bylaws of the common interest community association. | 24 |
| "Unit" means a part of the property designed and intended | 25 |
| for any type of independent use. | 26 |
| "Unit owner" means the person or persons whose estates or |
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| interests, individually or collectively, aggregate fee simple | 2 |
| absolute ownership of a unit. | 3 |
| Section 1-10. Applicability. Unless expressly provided | 4 |
| otherwise herein, the provisions of this Act are applicable to | 5 |
| all common interest community associations in this State. | 6 |
| Section 1-15. Construction, interpretation, and validity | 7 |
| of community instruments. | 8 |
| (a) Except to the extent otherwise provided by the | 9 |
| declaration or other community instruments, the terms defined | 10 |
| in Section 1-5 of this Act shall be deemed to have the meaning | 11 |
| specified therein unless the context otherwise requires. | 12 |
| (b) All provisions of the declaration, bylaws, and other | 13 |
| community instruments are severable. | 14 |
| (c) A provision in the declaration limiting ownership, | 15 |
| rental, or occupancy of a unit to a person 55 years of age or | 16 |
| older shall be valid and deemed not to be in violation of | 17 |
| Article 3 of the Illinois Human Rights Act provided that the | 18 |
| person or the immediate family of a person owning, renting, or | 19 |
| lawfully occupying such unit prior to the recording of the | 20 |
| initial declaration shall not be deemed to be in violation of | 21 |
| such age restriction so long as they continue to own or reside | 22 |
| in such unit. | 23 |
| Section 1-20. Amendments to the declaration or bylaws. |
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| (a) The administration of every property shall be governed | 2 |
| by the declaration and bylaws, which may either be embodied in | 3 |
| the declaration or in a separate instrument, a true copy of | 4 |
| which shall be appended to and recorded with the declaration. | 5 |
| No modification or amendment of the declaration or bylaws shall | 6 |
| be valid unless the same is set forth in an amendment thereof | 7 |
| and such amendment is duly recorded. An amendment of the | 8 |
| declaration or bylaws shall be deemed effective upon | 9 |
| recordation, unless the amendment sets forth a different | 10 |
| effective date. | 11 |
| (b) Unless otherwise provided by this Act, amendments to | 12 |
| community instruments authorized to be recorded shall be | 13 |
| executed and recorded by the president of the board or such | 14 |
| other officer authorized by the common interest community | 15 |
| association or the declaration. | 16 |
| (c) If an association that currently permits leasing amends | 17 |
| its declaration, bylaws, or rules and regulations to prohibit | 18 |
| leasing, nothing in this Act or the declarations, bylaws, rules | 19 |
| and regulations of an association shall prohibit a unit owner | 20 |
| incorporated under 26 USC 501(c)(3) which is leasing a unit at | 21 |
| the time of the prohibition from continuing to do so until such | 22 |
| time that the unit owner voluntarily sells the unit; and no | 23 |
| special fine, fee, dues, or penalty shall be assessed against | 24 |
| the unit owner for leasing its unit. | 25 |
| Section 1-25. Board of managers, board of directors, |
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| duties, elections, and voting. | 2 |
| (a) There shall be an election of the board of managers or | 3 |
| board of directors from among the unit owners of a common | 4 |
| interest community association. | 5 |
| (b) The terms of at least one-third of the members of the | 6 |
| board shall expire annually and all members of the board shall | 7 |
| be elected at large. | 8 |
| (c) The members of the board shall serve without | 9 |
| compensation, unless the community instruments indicate | 10 |
| otherwise. | 11 |
| (d) No member of the board or officer shall be elected for | 12 |
| a term of more than 3 years, but officers and board members may | 13 |
| succeed themselves. | 14 |
| (e) If there is a vacancy on the board, the remaining | 15 |
| members of the board may fill the vacancy by a two-thirds vote | 16 |
| of the remaining board members until the next annual meeting of | 17 |
| unit owners or until unit owners holding 20% of the votes of | 18 |
| the association request a meeting of the unit owners to fill | 19 |
| the vacancy for the balance of the term. A meeting of the unit | 20 |
| owners shall be called for purposes of filling a vacancy on the | 21 |
| board no later than 30 days following the filing of a petition | 22 |
| signed by unit owners holding 20% of the votes of the | 23 |
| association requesting such a meeting. | 24 |
| (f) There shall be an election of a: | 25 |
| (1) president from among the members of the board, who | 26 |
| shall preside over the meetings of the board and of the |
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| unit owners; | 2 |
| (2) secretary from among the members of the board, who | 3 |
| shall keep the minutes of all meetings of the board and of | 4 |
| the unit owners and who shall, in general, perform all the | 5 |
| duties incident to the office of secretary; and | 6 |
| (3) treasurer from among the members of the board, who | 7 |
| shall keep the financial records and books of account. | 8 |
| (g) If no election is held to elect board members within | 9 |
| the time period specified in the bylaws, or within a reasonable | 10 |
| amount of time thereafter not to exceed 90 days, then 20% of | 11 |
| the unit owners may bring an action to compel compliance with | 12 |
| the election requirements specified in the bylaws. If the court | 13 |
| finds that an election was not held to elect members of the | 14 |
| board within the required period due to the bad faith acts or | 15 |
| omissions of the board of managers or the board of directors, | 16 |
| the unit owners shall be entitled to recover their reasonable | 17 |
| attorney's fees and costs from the association. If the relevant | 18 |
| notice requirements have been met and an election is not held | 19 |
| solely due to a lack of a quorum, then this subsection (g) does | 20 |
| not apply. | 21 |
| (h) Where there is more than one owner of a unit, if only | 22 |
| one of the multiple owners is present at a meeting of the | 23 |
| association, he or she is entitled to cast all the votes | 24 |
| allocated to that unit. A unit owner may vote: | 25 |
| (1) by proxy executed in writing by the unit owner or | 26 |
| by his or her duly authorized attorney in fact, provided, |
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| however, that the proxy bears the date of execution. Unless | 2 |
| the community instruments or the written proxy itself | 3 |
| provide otherwise, proxies will not be valid for more than | 4 |
| 11 months after the date of its execution; or | 5 |
| (2) by submitting an association-issued ballot in | 6 |
| person at the election meeting; or | 7 |
| (3) by submitting an association-issued ballot to the | 8 |
| association or its designated agent by mail or other means | 9 |
| of delivery specified in the declaration or bylaws. | 10 |
| (i) The association may, upon adoption of the appropriate | 11 |
| rules by the board, conduct elections by secret ballot whereby | 12 |
| the voting ballot is marked only with the voting interest for | 13 |
| the unit and the vote itself, provided that the association | 14 |
| shall further adopt rules to verify the status of the unit | 15 |
| owner issuing a proxy or casting a ballot. A candidate for | 16 |
| election to the board or such candidate's representative shall | 17 |
| have the right to be present at the counting of ballots at such | 18 |
| election. | 19 |
| (j) The purchaser of a unit from a seller other than the | 20 |
| developer pursuant to an installment contract for purchase | 21 |
| shall, during such times as he or she resides in the unit, be | 22 |
| counted toward a quorum for purposes of election of members of | 23 |
| the board at any meeting of the unit owners called for purposes | 24 |
| of electing members of the board, shall have the right to vote | 25 |
| for the election of members of the common interest community | 26 |
| association and to be elected to and serve on the board unless |
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| the seller expressly retains in writing any or all of such | 2 |
| rights. | 3 |
| Section 1-30. Board duties and obligations; records. | 4 |
| (a) The board shall meet at least 4 times annually. | 5 |
| (b) A member of the board of the common interest community | 6 |
| association may not enter into a contract with a current board | 7 |
| member, or with a corporation or partnership in which a board | 8 |
| member or a member of his or her immediate family has 25% or | 9 |
| more interest, unless notice of intent to enter into the | 10 |
| contract is given to unit owners within 20 days after a | 11 |
| decision is made to enter into the contract and the unit owners | 12 |
| are afforded an opportunity by filing a petition, signed by 20% | 13 |
| of the unit owners, for an election to approve or disapprove | 14 |
| the contract; such petition shall be filed within 20 days after | 15 |
| such notice and such election shall be held within 30 days | 16 |
| after filing the petition. For purposes of this subsection, a | 17 |
| board member's immediate family means the board member's | 18 |
| spouse, parents, and children. | 19 |
| (c) The bylaws shall provide for the maintenance, repair, | 20 |
| and replacement of the common areas and payments therefor, | 21 |
| including the method of approving payment vouchers. | 22 |
| (d) (Blank). | 23 |
| (e) The association may engage the services of a manager or | 24 |
| management company. | 25 |
| (f) The association shall have one class of membership |
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| unless the declaration or bylaws provide otherwise; however, | 2 |
| this subsection (f) shall not be construed to limit the | 3 |
| operation of subsection (c) of Section 1-20 of this Act. | 4 |
| (g) The board shall have the power, after notice and an | 5 |
| opportunity to be heard, to levy and collect reasonable fines | 6 |
| from unit owners for violations of the declaration, bylaws, and | 7 |
| rules and regulations of the common interest community | 8 |
| association. | 9 |
| (h) Other than attorney's fees, no fees pertaining to the | 10 |
| collection of a unit owner's financial obligation to the | 11 |
| association, including fees charged by a manager or managing | 12 |
| agent, shall be added to and deemed a part of a unit owner's | 13 |
| respective share of the common expenses unless: (i) the | 14 |
| managing agent fees relate to the costs to collect common | 15 |
| expenses for the association; (ii) the fees are set forth in a | 16 |
| contract between the managing agent and the association; and | 17 |
| (iii) the authority to add the management fees to a unit | 18 |
| owner's respective share of the common expenses is specifically | 19 |
| stated in the declaration or bylaws of the association. | 20 |
| (i) Board records. | 21 |
| (1) The board shall maintain the following records of | 22 |
| the association and make them available for examination and | 23 |
| copying at convenient hours of weekdays by any unit owner | 24 |
| in a common interest community subject to the authority of | 25 |
| the board, their mortgagees, and their duly authorized | 26 |
| agents or attorneys: |
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| (i) Copies of the recorded declaration, other | 2 |
| community instruments, other duly recorded covenants | 3 |
| and bylaws and any amendments, articles of | 4 |
| incorporation, annual reports, and any rules and | 5 |
| regulations adopted by the board shall be available. | 6 |
| Prior to the organization of the board, the developer | 7 |
| shall maintain and make available the records set forth | 8 |
| in this paragraph (i) for examination and copying. | 9 |
| (ii) Detailed and accurate records in | 10 |
| chronological order of the receipts and expenditures | 11 |
| affecting the common areas, specifying and itemizing | 12 |
| the maintenance and repair expenses of the common areas | 13 |
| and any other expenses incurred, and copies of all | 14 |
| contracts, leases, or other agreements entered into by | 15 |
| the board shall be maintained. | 16 |
| (iii) The minutes of all meetings of the board | 17 |
| which shall be maintained for not less than 7 years. | 18 |
| (iv) With a written statement of a proper purpose, | 19 |
| ballots and proxies related thereto, if any, for any | 20 |
| election held for the board and for any other matters | 21 |
| voted on by the unit owners, which shall be maintained | 22 |
| for not less than one year. | 23 |
| (v) With a written statement of a proper purpose, | 24 |
| such other records of the board as are available for | 25 |
| inspection by members of a not-for-profit corporation | 26 |
| pursuant to Section 107.75 of the General Not For |
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| Profit Corporation Act of 1986 shall be maintained. | 2 |
| (vi) With respect to units owned by a land trust, a | 3 |
| living trust, or other legal entity, the trustee, | 4 |
| officer, or manager of the entity may designate, in | 5 |
| writing, a person to cast votes on behalf of the unit | 6 |
| owner and a designation shall remain in effect until a | 7 |
| subsequent document is filed with the association. | 8 |
| (2) Where a request for records under this subsection | 9 |
| is made in writing to the board or its agent, failure to | 10 |
| provide the requested record or to respond within 30 days | 11 |
| shall be deemed a denial by the board. | 12 |
| (3) A reasonable fee may be charged by the board for | 13 |
| the cost of retrieving and copying records properly | 14 |
| requested. | 15 |
| (4) If the board fails to provide records properly | 16 |
| requested under paragraph (1) of this subsection (i) within | 17 |
| the time period provided in that paragraph (1), the unit | 18 |
| owner may seek appropriate relief and shall be entitled to | 19 |
| an award of reasonable attorney's fees and costs if the | 20 |
| unit owner prevails and the court finds that such failure | 21 |
| is due to the acts or omissions of the board of managers or | 22 |
| the board of directors. | 23 |
| (j) The board shall have standing and capacity to act in a | 24 |
| representative capacity in relation to matters involving the | 25 |
| common areas or more than one unit, on behalf of the unit | 26 |
| owners as their interests may appear. |
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| Section 1-35. Unit owner powers, duties, and obligations. | 2 |
| (a) The provisions of this Act, the declaration, bylaws, | 3 |
| other community instruments, and rules and regulations that | 4 |
| relate to the use of an individual unit or the common areas | 5 |
| shall be applicable to any person leasing a unit and shall be | 6 |
| deemed to be incorporated in any lease executed or renewed on | 7 |
| or after the effective date of this Act. With regard to any | 8 |
| lease entered into subsequent to the effective date of this | 9 |
| Act, the unit owner leasing the unit shall deliver a copy of | 10 |
| the signed lease to the association or if the lease is oral, a | 11 |
| memorandum of the lease, not later than the date of occupancy | 12 |
| or 10 days after the lease is signed, whichever occurs first. | 13 |
| (b) If there are multiple owners of a single unit, only one | 14 |
| of the multiple owners shall be eligible to serve as a member | 15 |
| of the board at any one time. | 16 |
| (c) Two-thirds of the unit owners may remove a board member | 17 |
| as a director at a duty called special meeting of the unit | 18 |
| owners. | 19 |
| (d) In the event of any resale of a unit in a common | 20 |
| interest community association by a unit owner other than the | 21 |
| developer, the board shall make available for inspection to the | 22 |
| prospective purchaser, upon demand, the following:
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| (1) A copy of the declaration, other instruments, and | 24 |
| any rules and regulations.
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| (2) A statement of any liens, including a statement of |
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| the account of the unit setting forth the amounts of unpaid | 2 |
| assessments and other charges due and owing.
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| (3) A statement of any capital expenditures | 4 |
| anticipated by the association within the current or | 5 |
| succeeding 2 fiscal years.
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| (4) A statement of the status and amount of any reserve | 7 |
| for replacement fund and any portion of such fund earmarked | 8 |
| for any specified project by the board.
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| (5) A copy of the statement of financial condition of | 10 |
| the association for the last fiscal year for which such a | 11 |
| statement is available.
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| (6) A statement of the status of any pending suits or | 13 |
| judgments in which the association is a party.
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| (7) A statement setting forth what insurance coverage | 15 |
| is provided for all unit owners by the association.
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| (8) A statement that any improvements or alterations | 17 |
| made to the unit, or any part of the common areas assigned | 18 |
| thereto, by the prior unit owner are in good faith believed | 19 |
| to be in compliance with the declaration of the | 20 |
| association.
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| The principal officer of the board or such other officer as | 22 |
| is specifically designated shall furnish the above information | 23 |
| within 30 days after receiving a written request for such | 24 |
| information. | 25 |
| A reasonable fee covering the direct out-of-pocket cost of | 26 |
| copying and providing such information may be charged by the |
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| association or the board to the unit seller for providing the | 2 |
| information. | 3 |
| Section 1-40. Meetings. | 4 |
| (a) Written notice of any membership meeting shall be | 5 |
| mailed or delivered giving members no less than 10 and no more | 6 |
| than 30 days notice of the time, place, and purpose of such | 7 |
| meeting. | 8 |
| (b) Meetings. | 9 |
| (1) Twenty percent of the unit owners shall constitute | 10 |
| a quorum, unless the community instruments indicate | 11 |
| otherwise. | 12 |
| (2) The unit owners shall hold an annual meeting, one | 13 |
| of the purposes of which shall be to elect members of the | 14 |
| board of managers or board of directors of the common | 15 |
| interest community association. | 16 |
| (3) Special meetings of the board may be called by the | 17 |
| president or 25% of the members of the board. Special | 18 |
| meetings of the unit owners may be called by the president, | 19 |
| the board, or by 20% of unit owners. | 20 |
| (4) Except to the extent otherwise provided by this | 21 |
| Act, the board shall give the unit owners notice of all | 22 |
| board meetings at least 48 hours prior to the meeting by | 23 |
| sending notice by mail, personal delivery, or by posting | 24 |
| copies of notices of meetings in entranceways, elevators, | 25 |
| or other conspicuous places in the common interest |
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| community at least 48 hours prior to the meeting except | 2 |
| where there is no common entranceway for 7 or more units, | 3 |
| the board may designate one or more locations in the | 4 |
| proximity of these units where the notices of meetings | 5 |
| shall be posted. The board shall give unit owners, by mail | 6 |
| or personal delivery, notice of any board meeting | 7 |
| concerning the adoption of (i) the proposed annual budget, | 8 |
| (ii) regular assessments, or (iii) a separate or special | 9 |
| assessment within 10 to 30 days prior to the meeting, | 10 |
| unless otherwise provided in Section 1-45 (a) or any other | 11 |
| provision of this Act. | 12 |
| (5) Meetings of the board shall be open to any unit | 13 |
| owner, except for the portion of any meeting held (i) to | 14 |
| discuss litigation when an action against or on behalf of | 15 |
| the particular association has been filed and is pending in | 16 |
| a court or administrative tribunal, or when the common | 17 |
| interest community association finds that such an action is | 18 |
| probable or imminent, (ii) to consider information | 19 |
| regarding appointment, employment, or dismissal of an | 20 |
| employee, or (iii) to discuss violations of rules and | 21 |
| regulations of the association or a unit owner's unpaid | 22 |
| share of common expenses. Any vote on these matters shall | 23 |
| be taken at a meeting or portion thereof open to any unit | 24 |
| owner. | 25 |
| (6) The board must reserve a portion of the meeting of | 26 |
| the board for comments by unit owners; provided, however, |
|
|
|
SB3180 Enrolled |
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LRB096 20251 AJO 35836 b |
|
| 1 |
| the duration and meeting order for the unit owner comment | 2 |
| period is within the sole discretion of the board. | 3 |
| Section 1-45. Finances. | 4 |
| (a) Each unit owner shall receive, at least 30 days prior | 5 |
| to the adoption thereof by the board, a copy of the proposed | 6 |
| annual budget together with an indication of which portions are | 7 |
| intended for reserves, capital expenditures or repairs or | 8 |
| payment of real estate taxes. | 9 |
| (b) The board shall annually supply to all unit owners an | 10 |
| itemized accounting of the common expenses for the preceding | 11 |
| year actually incurred or paid, together with an indication of | 12 |
| which portions were for reserves, capital expenditures or | 13 |
| repairs or payment of real estate taxes and with a tabulation | 14 |
| of the amounts collected pursuant to the budget or assessment, | 15 |
| and showing the net excess or deficit of income over | 16 |
| expenditures plus reserves. | 17 |
| (c) If an adopted budget or any separate assessment adopted | 18 |
| by the board would result in the sum of all regular and | 19 |
| separate assessments payable in the current fiscal year | 20 |
| exceeding 115% of the sum of all regular and separate | 21 |
| assessments payable during the preceding fiscal year, the | 22 |
| common interest community association, upon written petition | 23 |
| by unit owners with 20% of the votes of the association | 24 |
| delivered to the board within 14 days of the board action, | 25 |
| shall call a meeting of the unit owners within 30 days of the |
|
|
|
SB3180 Enrolled |
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LRB096 20251 AJO 35836 b |
|
| 1 |
| date of delivery of the petition to consider the budget or | 2 |
| separate assessment; unless a majority of the total votes of | 3 |
| the unit owners are cast at the meeting to reject the budget or | 4 |
| separate assessment, it shall be deemed ratified. | 5 |
| (d) Any common expense not set forth in the budget or any | 6 |
| increase in assessments over the amount adopted in the budget | 7 |
| shall be separately assessed against all unit owners. | 8 |
| (e) Separate assessments for expenditures relating to | 9 |
| emergencies or mandated by law may be adopted by the board | 10 |
| without being subject to unit owner approval or the provisions | 11 |
| of subsection (c) or (f) of this Section. As used herein, | 12 |
| "emergency" means an immediate danger to the structural | 13 |
| integrity of the common areas or to the life, health, safety, | 14 |
| or property of the unit owners. | 15 |
| (f) Assessments for additions and alterations to the common | 16 |
| areas or to association-owned property not included in the | 17 |
| adopted annual budget, shall be separately assessed and are | 18 |
| subject to approval of two-thirds of the total votes of all | 19 |
| unit owners. | 20 |
| (g) The board may adopt separate assessments payable over | 21 |
| more than one fiscal year. With respect to multi-year | 22 |
| assessments not governed by subsections (e) and (f) of this | 23 |
| Section, the entire amount of the multi-year assessment shall | 24 |
| be deemed considered and authorized in the first fiscal year in | 25 |
| which the assessment is approved. | 26 |
| (h) The board of a common interest community association |
|
|
|
SB3180 Enrolled |
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LRB096 20251 AJO 35836 b |
|
| 1 |
| shall have the authority to establish and maintain a system of | 2 |
| master metering of public utility services to collect payments | 3 |
| in conjunction therewith, subject to the requirements of the | 4 |
| Tenant Utility Payment Disclosure Act. | 5 |
| Section 1-50. Administration of property prior to election | 6 |
| of the initial board of directors. | 7 |
| (a) Until the election of the initial board whose | 8 |
| declaration is recorded on or after the effective date of this | 9 |
| Act, the same rights, titles, powers, privileges, trusts, | 10 |
| duties, and obligations that are vested in or imposed upon the | 11 |
| board by this Act or in the declaration or other duly recorded | 12 |
| covenant shall be held and performed by the developer.
| 13 |
| (b) The election of the initial board, whose declaration is | 14 |
| recorded on or after the effective date of this Act, shall be | 15 |
| held not later than 60 days after the conveyance by the | 16 |
| developer of 75% of the units, or 3 years after the recording | 17 |
| of the declaration, whichever is earlier. The developer shall | 18 |
| give at least 21 days' notice of the meeting to elect the | 19 |
| initial board of directors and shall upon request provide to | 20 |
| any unit owner, within 3 working days of the request, the | 21 |
| names, addresses, and weighted vote of each unit owner entitled | 22 |
| to vote at the meeting. Any unit owner shall, upon receipt of | 23 |
| the request, be provided with the same information, within 10 | 24 |
| days after the request, with respect to each subsequent meeting | 25 |
| to elect members of the board of directors.
|
|
|
|
SB3180 Enrolled |
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LRB096 20251 AJO 35836 b |
|
| 1 |
| (c) If the initial board of a common interest community | 2 |
| association whose declaration is recorded on or after the | 3 |
| effective date of this Act is not elected by the time | 4 |
| established in subsection (b), the developer shall continue in | 5 |
| office for a period of 30 days, whereupon written notice of his | 6 |
| or her resignation shall be sent to all of the unit owners or | 7 |
| members.
| 8 |
| (d) Within 60 days following the election of a majority of | 9 |
| the board, other than the developer, by unit owners, the | 10 |
| developer shall deliver to the board:
| 11 |
| (1) All original documents as recorded or filed | 12 |
| pertaining to the property, its administration, and the | 13 |
| association, such as the declaration, articles of | 14 |
| incorporation, other instruments, annual reports, minutes, | 15 |
| rules and regulations, and contracts, leases, or other | 16 |
| agreements entered into by the association. If any original | 17 |
| documents are unavailable, a copy may be provided if | 18 |
| certified by affidavit of the developer, or an officer or | 19 |
| agent of the developer, as being a complete copy of the | 20 |
| actual document recorded or filed.
| 21 |
| (2) A detailed accounting by the developer, setting | 22 |
| forth the source and nature of receipts and expenditures in | 23 |
| connection with the management, maintenance, and operation | 24 |
| of the property, copies of all insurance policies, and a | 25 |
| list of any loans or advances to the association which are | 26 |
| outstanding.
|
|
|
|
SB3180 Enrolled |
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LRB096 20251 AJO 35836 b |
|
| 1 |
| (3) Association funds, which shall have been at all | 2 |
| times segregated from any other moneys of the developer.
| 3 |
| (4) A schedule of all real or personal property, | 4 |
| equipment, and fixtures belonging to the association, | 5 |
| including documents transferring the property, warranties, | 6 |
| if any, for all real and personal property and equipment, | 7 |
| deeds, title insurance policies, and all tax bills.
| 8 |
| (5) A list of all litigation, administrative action, | 9 |
| and arbitrations involving the association, any notices of | 10 |
| governmental bodies involving actions taken or which may be | 11 |
| taken concerning the association, engineering and | 12 |
| architectural drawings and specifications as approved by | 13 |
| any governmental authority, all other documents filed with | 14 |
| any other governmental authority, all governmental | 15 |
| certificates, correspondence involving enforcement of any | 16 |
| association requirements, copies of any documents relating | 17 |
| to disputes involving unit owners, and originals of all | 18 |
| documents relating to everything listed in this paragraph.
| 19 |
| (6) If the developer fails to fully comply with this | 20 |
| subsection (d) within the 60 days provided and fails to | 21 |
| fully comply within 10 days after written demand mailed by | 22 |
| registered or certified mail to his or her last known | 23 |
| address, the board may bring an action to compel compliance | 24 |
| with this subsection (d). If the court finds that any of | 25 |
| the required deliveries were not made within the required | 26 |
| period, the board shall be entitled to recover its |
|
|
|
SB3180 Enrolled |
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LRB096 20251 AJO 35836 b |
|
| 1 |
| reasonable attorney's fees and costs incurred from and | 2 |
| after the date of expiration of the 10-day demand.
| 3 |
| (e) With respect to any common interest community | 4 |
| association whose declaration is recorded on or after the | 5 |
| effective date of this Act, any contract, lease, or other | 6 |
| agreement made prior to the election of a majority of the board | 7 |
| other than the developer by or on behalf of unit owners or | 8 |
| underlying common interest community association, the | 9 |
| association or the board, which extends for a period of more | 10 |
| than 2 years from the recording of the declaration, shall be | 11 |
| subject to cancellation by more than one-half of the votes of | 12 |
| the unit owners, other than the developer, cast at a special | 13 |
| meeting of members called for that purpose during a period of | 14 |
| 90 days prior to the expiration of the 2-year period if the | 15 |
| board is elected by the unit owners, otherwise by more than | 16 |
| one-half of the underlying common interest community | 17 |
| association board. At least 60 days prior to the expiration of | 18 |
| the 2-year period, the board or, if the board is still under | 19 |
| developer control, the developer shall send notice to every | 20 |
| unit owner notifying them of this provision, of what contracts, | 21 |
| leases, and other agreements are affected, and of the procedure | 22 |
| for calling a meeting of the unit owners or for action by the | 23 |
| board for the purpose of acting to terminate such contracts, | 24 |
| leases or other agreements. During the 90-day period the other | 25 |
| party to the contract, lease, or other agreement shall also | 26 |
| have the right of cancellation.
|
|
|
|
SB3180 Enrolled |
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LRB096 20251 AJO 35836 b |
|
| 1 |
| (f) The statute of limitations for any actions in law or | 2 |
| equity that the board may bring shall not begin to run until | 3 |
| the unit owners have elected a majority of the members of the | 4 |
| board.
| 5 |
| Section 1-55. Fidelity insurance. An association with 30 or | 6 |
| more units shall obtain and maintain fidelity insurance | 7 |
| covering persons who control or disburse funds of the | 8 |
| association for the maximum amount of coverage available to | 9 |
| protect funds in the custody or control of the association plus | 10 |
| the association reserve fund. All management companies which | 11 |
| are responsible for the funds held or administered by the | 12 |
| association shall maintain and furnish to the association a | 13 |
| fidelity bond for the maximum amount of coverage available to | 14 |
| protect funds in the custody of the management company at any | 15 |
| time. The association shall bear the cost of the fidelity | 16 |
| insurance and fidelity bond, unless otherwise provided by | 17 |
| contract between the association and a management company. | 18 |
| Section 1-60. Errors and omissions. | 19 |
| (a) If there is an omission or error in the declaration or | 20 |
| other instrument of the association, the association may | 21 |
| correct the error or omission by an amendment to the | 22 |
| declaration or other instrument, as may be required to conform | 23 |
| it to this Act, to any other applicable statute, or to the | 24 |
| declaration. The amendment shall be adopted by vote of |
|
|
|
SB3180 Enrolled |
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LRB096 20251 AJO 35836 b |
|
| 1 |
| two-thirds of the members of the board of directors or by a | 2 |
| majority vote of the unit owners at a meeting called for that | 3 |
| purpose, unless the Act or the declaration of the association | 4 |
| specifically provides for greater percentages or different | 5 |
| procedures. | 6 |
| (b) If, through a scrivener's error, a unit has not been | 7 |
| designated as owning an appropriate undivided share of the | 8 |
| common areas or does not bear an appropriate share of the | 9 |
| common expenses, or if all of the common expenses or all of the | 10 |
| common elements have not been distributed in the declaration, | 11 |
| so that the sum total of the shares of common areas which have | 12 |
| been distributed or the sum total of the shares of the common | 13 |
| expenses fail to equal 100%, or if it appears that more than | 14 |
| 100% of the common elements or common expenses have been | 15 |
| distributed, the error may be corrected by operation of law by | 16 |
| filing an amendment to the declaration, approved by vote of | 17 |
| two-thirds of the members of the board or a majority vote of | 18 |
| the unit owners at a meeting called for that purpose, which | 19 |
| proportionately adjusts all percentage interests so that the | 20 |
| total is equal to 100%, unless the declaration specifically | 21 |
| provides for a different procedure or different percentage vote | 22 |
| by the owners of the units and the owners of mortgages thereon | 23 |
| affected by modification being made in the undivided interest | 24 |
| in the common areas, the number of votes in the association or | 25 |
| the liability for common expenses appertaining to the unit.
| 26 |
| (c) If a scrivener's error in the declaration or other |
|
|
|
SB3180 Enrolled |
- 27 - |
LRB096 20251 AJO 35836 b |
|
| 1 |
| instrument is corrected by vote of two-thirds of the members of | 2 |
| the board pursuant to the authority established in subsection | 3 |
| (a) or subsection (b), the board, upon written petition by unit | 4 |
| owners with 20% of the votes of the association received within | 5 |
| 30 days of the board action, shall call a meeting of the unit | 6 |
| owners within 30 days of the filing of the petition to consider | 7 |
| the board action. Unless a majority of the votes of the unit | 8 |
| owners of the association are cast at the meeting to reject the | 9 |
| action, it is ratified whether or not a quorum is present.
| 10 |
| (d) Nothing contained in this Section shall be construed to | 11 |
| invalidate any provision of a declaration authorizing the | 12 |
| developer to amend an instrument prior to the latest date on | 13 |
| which the initial membership meeting of the unit owners must be | 14 |
| held, whether or not it has actually been held, to bring the | 15 |
| instrument into compliance with the legal requirements of the | 16 |
| Federal National Mortgage Association, the Federal Home Loan | 17 |
| Mortgage Corporation, the Federal Housing Administration, the | 18 |
| United States Department of Veterans Affairs, or their | 19 |
| respective successors and assigns.
| 20 |
| Section 1-65. Management company. A management company | 21 |
| holding reserve funds of an association shall at all times | 22 |
| maintain a separate account for each association, unless by | 23 |
| contract the board of managers of the association authorizes a | 24 |
| management company to maintain association reserves in a single | 25 |
| account with other associations for investment purposes. With |
|
|
|
SB3180 Enrolled |
- 28 - |
LRB096 20251 AJO 35836 b |
|
| 1 |
| the consent of the board of managers of the association, the | 2 |
| management company may hold all operating funds of associations | 3 |
| which it manages in a single operating account, but shall at | 4 |
| all times maintain records identifying all moneys of each | 5 |
| association in such operating account. Such operating and | 6 |
| reserve funds held by the management company for the | 7 |
| association shall not be subject to attachment by any creditor | 8 |
| of the management company. A management company that provides | 9 |
| common interest community association management services for | 10 |
| more than one common interest community association shall | 11 |
| maintain separate, segregated accounts for each common | 12 |
| interest community association. The funds shall not, in any | 13 |
| event, be commingled with funds of the management company, the | 14 |
| firm of the management company, or any other common interest | 15 |
| community association. The maintenance of these accounts shall | 16 |
| be custodial, and the accounts shall be in the name of the | 17 |
| respective common interest community association. | 18 |
| Section 1-70. Display of American flag or military flag.
| 19 |
| (a) Notwithstanding any provision in the declaration, | 20 |
| bylaws, community instruments, rules, regulations, or | 21 |
| agreements or other instruments of a common interest community | 22 |
| association or a board's construction of any of those | 23 |
| instruments, a board may not prohibit the display of the | 24 |
| American flag or a military flag, or both, on or within the | 25 |
| limited common areas and facilities of a unit owner or on the |
|
|
|
SB3180 Enrolled |
- 29 - |
LRB096 20251 AJO 35836 b |
|
| 1 |
| immediately adjacent exterior of the building in which the unit | 2 |
| of a unit owner is located. A board may adopt reasonable rules | 3 |
| and regulations, consistent with Sections 4 through 10 of | 4 |
| Chapter 1 of Title 4 of the United States Code, regarding the | 5 |
| placement and manner of display of the American flag and a | 6 |
| board may adopt reasonable rules and regulations regarding the | 7 |
| placement and manner of display of a military flag. A board may | 8 |
| not prohibit the installation of a flagpole for the display of | 9 |
| the American flag or a military flag, or both, on or within the | 10 |
| limited common areas and facilities of a unit owner or on the | 11 |
| immediately adjacent exterior of the building in which the unit | 12 |
| of a unit owner is located, but a board may adopt reasonable | 13 |
| rules and regulations regarding the location and size of | 14 |
| flagpoles.
| 15 |
| (b) As used in this Section:
| 16 |
| "American flag" means the flag of the United States (as | 17 |
| defined in Section 1 of Chapter 1 of Title 4 of the United | 18 |
| States Code and the Executive Orders entered in connection | 19 |
| with that Section) made of fabric, cloth, or paper | 20 |
| displayed from a staff or flagpole or in a window, but | 21 |
| "American flag" does not include a depiction or emblem of | 22 |
| the American flag made of lights, paint, roofing, siding, | 23 |
| paving materials, flora, or balloons, or any other similar | 24 |
| building, landscaping, or decorative component.
| 25 |
| "Military flag" means a flag of any branch of the | 26 |
| United States armed forces or the Illinois National Guard |
|
|
|
SB3180 Enrolled |
- 30 - |
LRB096 20251 AJO 35836 b |
|
| 1 |
| made of fabric, cloth, or paper displayed from a staff or | 2 |
| flagpole or in a window, but "military flag" does not | 3 |
| include a depiction or emblem of a military flag made of | 4 |
| lights, paint, roofing, siding, paving materials, flora, | 5 |
| or balloons, or any other similar building, landscaping, or | 6 |
| decorative component.
| 7 |
| Section 1-75. Exemptions for small community interest | 8 |
| communities. | 9 |
| (a) A common interest community association organized | 10 |
| under the General Not for Profit Corporation Act of 1986 and | 11 |
| having either (i) 10 units or less or (ii) annual budgeted | 12 |
| assessments of $100,000 or less shall be exempt from this Act | 13 |
| unless the association affirmatively elects to be covered by | 14 |
| this Act by a majority of its directors and unit owners. | 15 |
| (b) Common interest community associations which in their | 16 |
| declaration, bylaws, or other governing documents provide that | 17 |
| the association may not use the courts or an arbitration | 18 |
| process to collect or enforce assessments, fines, or similar | 19 |
| levies and common interest community associations (i) of 10 | 20 |
| units or less or (ii) having annual budgeted assessments of | 21 |
| $50,000 or less shall be exempt from subsection (a) of Section | 22 |
| 1-30, subsections (a) and (b) of Section 1-40, and Section 1-55 | 23 |
| but shall be required to provide notice of meetings to unit | 24 |
| owners in a manner and at a time that will allow unit owners to | 25 |
| participate in those meetings. |
|
|
|
SB3180 Enrolled |
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LRB096 20251 AJO 35836 b |
|
| 1 |
| Article 5 | 2 |
| Section 5-1. Short title. This Article may be cited as the | 3 |
| Service Member Residential Property Act , and references in this | 4 |
| Article to "this Act" mean this Article. | 5 |
| Section 5-5. Definitions. For purposes of this Act: | 6 |
| "Military service" means Federal service or active duty | 7 |
| with any branch of service hereinafter referred to as well as | 8 |
| training or education under the supervision of the United | 9 |
| States preliminary to induction into the military service for a | 10 |
| period of not less than 180 days. "Military service" also | 11 |
| includes any period of active duty with the State of Illinois | 12 |
| pursuant to the orders of the President of the United States or | 13 |
| the Governor. | 14 |
| "Service member" means and includes the following persons | 15 |
| and no others: all members of the Army of the United States, | 16 |
| the United States Navy, the Marine Corps, the Air Force, the | 17 |
| Coast Guard and all members of the State Militia called into | 18 |
| the service or training of the United States of America or of | 19 |
| this State. | 20 |
| The foregoing definitions shall apply both to voluntary | 21 |
| enlistment and to induction into service by draft or | 22 |
| conscription. |
|
|
|
SB3180 Enrolled |
- 32 - |
LRB096 20251 AJO 35836 b |
|
| 1 |
| Section 5-10. Service member residential lease. The | 2 |
| provisions of this Act apply to a lease of residential premises | 3 |
| occupied, or intended to be occupied, by a service member or a | 4 |
| service member's dependents if: | 5 |
| (1) the lease is executed by or on behalf of a person | 6 |
| who thereafter and during the term of the lease enters | 7 |
| military service; or | 8 |
| (2) the service member, while in military service, | 9 |
| executes the lease and thereafter receives military orders | 10 |
| for a permanent change of station or to deploy with a | 11 |
| military unit, or as an individual in support of a military | 12 |
| operation, for a period of not less than 90 days. | 13 |
| Section 5-15. Termination by lessee. The lessee on a lease | 14 |
| described in Section 5-10 may, at the lessee's option, | 15 |
| terminate the lease at any time after (i) the lessee's entry | 16 |
| into military service or (ii) the date of the lessee's military | 17 |
| orders described in subdivision (2) of Section 5-10, as the | 18 |
| case may be. | 19 |
| Section 5-20. Manner of termination; effective date of | 20 |
| termination. | 21 |
| (a) A lessee's termination of a lease pursuant to this | 22 |
| subsection shall terminate any obligation a dependent of the | 23 |
| lessee may have under the lease. | 24 |
| (b) Termination of a lease under Section 5-15 is made by |
|
|
|
SB3180 Enrolled |
- 33 - |
LRB096 20251 AJO 35836 b |
|
| 1 |
| delivery by the lessee of written notice of such termination, | 2 |
| and a copy of the service member's military orders, to the | 3 |
| lessor, the lessor's grantee, the lessor's agent, or the | 4 |
| agent's grantee. Delivery of notice may be accomplished (i) by | 5 |
| hand delivery, (ii) by private business carrier, or (iii) by | 6 |
| placing the written notice in the United States mail in an | 7 |
| envelope with sufficient postage and with return receipt | 8 |
| requested, and addressed as designated by the lessor, the | 9 |
| lessor's grantee, the lessor's agent, or the agent's grantee. | 10 |
| (c) In the case of a lease that provides for monthly | 11 |
| payment of rent, termination of the lease under Section 5-15 is | 12 |
| effective 30 days after the first date on which the next rental | 13 |
| payment is due and payable after the date on which the notice | 14 |
| under subsection (b) of this Section is delivered. In the case | 15 |
| of any other lease, termination of the lease under Section 5-15 | 16 |
| is effective on the last day of the month following the month | 17 |
| in which the notice is delivered. | 18 |
| Section 5-25. Arrearages, obligations, and liabilities. | 19 |
| (a) Rents or lease amounts unpaid for the period preceding | 20 |
| the effective date of the lease termination shall be paid on a | 21 |
| prorated basis. Rents or lease amounts paid in advance for a | 22 |
| period after the effective date of the termination of the lease | 23 |
| shall be refunded to the lessee by the lessor, the lessor's | 24 |
| grantee, the lessor's agent, or the agent's grantee within 30 | 25 |
| days after the effective date of the termination of the lease. |
|
|
|
SB3180 Enrolled |
- 34 - |
LRB096 20251 AJO 35836 b |
|
| 1 |
| Any relief granted by this Act to a service member may be | 2 |
| modified as justice and equity require. | 3 |
| (b) Upon termination of a rental agreement under this Act, | 4 |
| the tenant is liable for the rent due under the rental | 5 |
| agreement prorated to the effective date of the termination | 6 |
| payable at such time as would have otherwise been required by | 7 |
| the terms of the rental agreement. The tenant is not liable for | 8 |
| any other rent or any liquidated damages due to the early | 9 |
| termination; provided, however, that a tenant may be liable for | 10 |
| the cost of repairing damage to the premises caused by an act | 11 |
| or omission of the tenant. | 12 |
| Section 5-30. Right of action. A person who is aggrieved by | 13 |
| a violation of this Act shall have a right of action in circuit | 14 |
| court to enforce the provisions of this Act and in doing so may | 15 |
| recover attorney's fees and costs. The remedy and rights | 16 |
| provided under this Act are in addition to and do not preclude | 17 |
| any remedy for wrongful conversion otherwise available under | 18 |
| law to the person claiming relief under this Act, including any | 19 |
| award for consequential or punitive damages.
| 20 |
| Article 99 | 21 |
| Section 99-5. Effective date. This Act takes effect upon | 22 |
| becoming law. |
|