Full Text of SB1651 97th General Assembly
SB1651sam001 97TH GENERAL ASSEMBLY | Sen. A. J. Wilhelmi Filed: 4/7/2011
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| 1 | | AMENDMENT TO SENATE BILL 1651
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1651 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Common Interest Community Association Act | 5 | | is amended by changing Sections 1-5, 1-15, 1-20, 1-25, 1-30, | 6 | | 1-35, 1-40, 1-45, 1-55, 1-60, and 1-75 and by adding Section | 7 | | 1-80 as follows: | 8 | | (765 ILCS 160/1-5)
| 9 | | Sec. 1-5. Definitions. As used in this Act, unless the | 10 | | context otherwise requires: | 11 | | "Association" or "common interest community association" | 12 | | means the association of all the unit owners of a common | 13 | | interest community, acting pursuant to bylaws through its duly | 14 | | elected board of managers or board of directors. | 15 | | "Board" means a common interest community association's | 16 | | board of managers or board of directors, whichever is |
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| 1 | | applicable. | 2 | | "Board member" or "member of the board" means a member of | 3 | | the board of managers or the board of directors, whichever is | 4 | | applicable. | 5 | | "Board of directors" means, for a common interest community | 6 | | that has been incorporated as an Illinois not-for-profit | 7 | | corporation, the group of people elected by the unit owners of | 8 | | a common interest community as the governing body to exercise | 9 | | for the unit owners of the common interest community | 10 | | association all powers, duties, and authority vested in the | 11 | | board of directors under this Act and the common interest | 12 | | community association's declaration and bylaws. | 13 | | "Board of managers" means, for a common interest community | 14 | | that is an unincorporated association, the group of people | 15 | | elected by the unit owners of a common interest community as | 16 | | the governing body to exercise for the unit owners of the | 17 | | common interest community association all powers, duties, and | 18 | | authority vested in the board of managers under this Act and | 19 | | the common interest community association's declaration and | 20 | | bylaws. | 21 | | "Building" means all structures, attached or unattached, | 22 | | containing one or more units. | 23 | | "Common areas" means the portion of the property other than | 24 | | a unit. | 25 | | "Common expenses" means the proposed or actual expenses | 26 | | affecting the property, including reserves, if any, lawfully |
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| 1 | | assessed by the common interest community association. | 2 | | "Common interest community" means real estate other than a | 3 | | condominium or cooperative with respect to which any person by | 4 | | virtue of his or her ownership of a partial interest or a unit | 5 | | therein is obligated to pay for the maintenance, improvement, | 6 | | insurance premiums or real estate taxes of common areas | 7 | | described in a declaration which is administered by an | 8 | | association. "Common interest community" may include, but not | 9 | | be limited to, an attached or detached townhome, villa, or | 10 | | single-family home , or master association . A "common interest | 11 | | community" does not include a master association. | 12 | | "Community instruments" means all documents and authorized | 13 | | amendments thereto recorded by a developer or common interest | 14 | | community association, including, but not limited to, the | 15 | | declaration, bylaws, plat of survey, and rules and regulations. | 16 | | "Declaration" means any duly recorded instruments, however | 17 | | designated, that have created a common interest community and | 18 | | any duly recorded amendments to those instruments. | 19 | | "Developer" means any person who submits property legally | 20 | | or equitably owned in fee simple by the person to the | 21 | | provisions of this Act, or any person who offers units legally | 22 | | or equitably owned in fee simple by the person for sale in the | 23 | | ordinary course of such person's business, including any | 24 | | successor to such person's entire interest in the property | 25 | | other than the purchaser of an individual unit. | 26 | | "Developer control" means such control at a time prior to |
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| 1 | | the election of the board of the common interest community | 2 | | association by a majority of the unit owners other than the | 3 | | developer. | 4 | | "Majority" or "majority of the unit owners" means the | 5 | | owners of more than 50% in the aggregate in interest of the | 6 | | undivided ownership of the common elements. Any specified | 7 | | percentage of the unit owners means such percentage in the | 8 | | aggregate in interest of such undivided ownership. "Majority" | 9 | | or "majority of the members of the board of the common interest | 10 | | community association" means more than 50% of the total number | 11 | | of persons constituting such board pursuant to the bylaws. Any | 12 | | specified percentage of the members of the common interest | 13 | | community association means that percentage of the total number | 14 | | of persons constituting such board pursuant to the bylaws. | 15 | | "Management company" or "community association manager" | 16 | | means a person, partnership, corporation, or other legal entity | 17 | | entitled to transact business on behalf of others, acting on | 18 | | behalf of or as an agent for an association for the purpose of | 19 | | carrying out the duties, responsibilities, and other | 20 | | obligations necessary for the day to day operation and | 21 | | management of any property subject to this Act.
| 22 | | "Master association" means an a common interest community | 23 | | association that exercises its powers on behalf of one or more | 24 | | condominium or other common interest community associations , | 25 | | or both, or for the benefit of unit owners in such | 26 | | associations. |
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| 1 | | "Meeting of the board" or "board meeting" means any | 2 | | gathering of a quorum of the members of the board of the common | 3 | | interest community association held for the purpose of | 4 | | conducting board business. | 5 | | "Member" means the person or entity entitled to one vote as | 6 | | defined by the community instruments. | 7 | | "Membership" means the collective group of members | 8 | | entitled to vote as defined by the community instruments. | 9 | | "Parcel" means the lot or lots or tract or tracts of land | 10 | | described in the declaration as part of a common interest | 11 | | community. | 12 | | "Person" means a natural individual, corporation, | 13 | | partnership, trustee, or other legal entity capable of holding | 14 | | title to real property. | 15 | | "Plat" means a plat or plats of survey of the parcel and of | 16 | | all units in the common interest community, which may consist | 17 | | of a three-dimensional horizontal and vertical delineation of | 18 | | all such units, structures, easements, and common areas on the | 19 | | property. | 20 | | "Prescribed delivery method" means mailing, delivering, | 21 | | posting in an association publication that is routinely mailed | 22 | | to all unit owners, or any other delivery method that is | 23 | | approved in writing by the unit owner. | 24 | | "Property" means all the land, property, and space | 25 | | comprising the parcel, all improvements and structures | 26 | | erected, constructed or contained therein or thereon, |
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| 1 | | including any building and all easements, rights, and | 2 | | appurtenances belonging thereto, and all fixtures and | 3 | | equipment intended for the mutual use, benefit, or enjoyment of | 4 | | the unit owners, under the authority or control of a common | 5 | | interest community association. | 6 | | "Purchaser" means any person or persons, other than the | 7 | | developer, who purchase a unit in a bona fide transaction for | 8 | | value. | 9 | | "Record" means to record in the office of the recorder of | 10 | | the county wherein the property is located. | 11 | | "Reserves" means those sums paid by unit owners which are | 12 | | separately maintained by the common interest community | 13 | | association for purposes specified by the declaration and | 14 | | bylaws of the common interest community association. | 15 | | "Unit" means a part of the property designed and intended | 16 | | for any type of independent use. | 17 | | "Unit owner" means the person or persons whose estates or | 18 | | interests, individually or collectively, aggregate fee simple | 19 | | absolute ownership of a unit.
| 20 | | (Source: P.A. 96-1400, eff. 7-29-10.) | 21 | | (765 ILCS 160/1-15)
| 22 | | Sec. 1-15. Construction, interpretation, and validity of | 23 | | community instruments. | 24 | | (a) Except to the extent otherwise provided by the | 25 | | declaration or other community instruments, the terms defined |
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| 1 | | in Section 1-5 of this Act shall be deemed to have the meaning | 2 | | specified therein unless the context otherwise requires. | 3 | | (b) All provisions of the declaration, bylaws, and other | 4 | | community instruments are severable. | 5 | | (c) A provision in the declaration limiting ownership, | 6 | | rental, or occupancy of a unit to a person 55 years of age or | 7 | | older shall be valid and deemed not to be in violation of | 8 | | Article 3 of the Illinois Human Rights Act provided that the | 9 | | person or the immediate family of a person owning, renting, or | 10 | | lawfully occupying such unit prior to the recording of the | 11 | | initial declaration shall not be deemed to be in violation of | 12 | | such age restriction so long as they continue to own or reside | 13 | | in such unit.
| 14 | | (d) Every common interest community association shall | 15 | | define a member and its relationship to the units or unit | 16 | | owners in its community instruments. | 17 | | (Source: P.A. 96-1400, eff. 7-29-10.) | 18 | | (765 ILCS 160/1-20)
| 19 | | Sec. 1-20. Amendments to the declaration or bylaws. | 20 | | (a) The administration of every property shall be governed | 21 | | by the declaration and bylaws, which may either be embodied in | 22 | | the declaration or in a separate instrument, a true copy of | 23 | | which shall be appended to and recorded with the declaration. | 24 | | No modification or amendment of the declaration or bylaws shall | 25 | | be valid unless the same is set forth in an amendment thereof |
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| 1 | | and such amendment is duly recorded. An amendment of the | 2 | | declaration or bylaws shall be deemed effective upon | 3 | | recordation, unless the amendment sets forth a different | 4 | | effective date. | 5 | | (b) Unless otherwise provided by this Act, amendments to | 6 | | community instruments authorized to be recorded shall be | 7 | | executed and recorded by the president of the board or such | 8 | | other officer authorized by the common interest community | 9 | | association or the community instruments declaration . | 10 | | (c) If an association that currently permits leasing amends | 11 | | its declaration, bylaws, or rules and regulations to prohibit | 12 | | leasing, nothing in this Act or the declarations, bylaws, rules | 13 | | and regulations of an association shall prohibit a unit owner | 14 | | incorporated under 26 USC 501(c)(3) which is leasing a unit at | 15 | | the time of the prohibition from continuing to do so until such | 16 | | time that the unit owner voluntarily sells the unit; and no | 17 | | special fine, fee, dues, or penalty shall be assessed against | 18 | | the unit owner for leasing its unit.
| 19 | | (Source: P.A. 96-1400, eff. 7-29-10.) | 20 | | (765 ILCS 160/1-25)
| 21 | | Sec. 1-25. Board of managers, board of directors, duties, | 22 | | elections, and voting. | 23 | | (a) There shall be an annual election of the board of | 24 | | managers or board of directors from among the membership unit | 25 | | owners of a common interest community association. |
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| 1 | | (b) (Blank). The terms of at least one-third of the members | 2 | | of the board shall expire annually and all members of the board | 3 | | shall be elected at large. | 4 | | (c) The members of the board shall serve without | 5 | | compensation, unless the community instruments indicate | 6 | | otherwise. | 7 | | (d) No member of the board or officer shall be elected for | 8 | | a term of more than 3 years, but officers and board members may | 9 | | succeed themselves. | 10 | | (e) If there is a vacancy on the board, the remaining | 11 | | members of the board may fill the vacancy by a two-thirds vote | 12 | | of the remaining board members until the next annual meeting of | 13 | | the membership unit owners or until members unit owners holding | 14 | | 20% of the votes of the association request a meeting of the | 15 | | members unit owners to fill the vacancy for the balance of the | 16 | | term. A meeting of the members unit owners shall be called for | 17 | | purposes of filling a vacancy on the board no later than 30 | 18 | | days following the filing of a petition signed by membership | 19 | | unit owners holding 20% of the votes of the association | 20 | | requesting such a meeting. | 21 | | (f) There shall be an election of a: | 22 | | (1) president from among the members of the board, who | 23 | | shall preside over the meetings of the board and of the | 24 | | membership unit owners ; | 25 | | (2) secretary from among the members of the board, who | 26 | | shall keep the minutes of all meetings of the board and of |
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| 1 | | the membership unit owners and who shall, in general, | 2 | | perform all the duties incident to the office of secretary; | 3 | | and | 4 | | (3) treasurer from among the members of the board, who | 5 | | shall keep the financial records and books of account. | 6 | | (g) If no election is held to elect board members within | 7 | | the time period specified in the bylaws, or within a reasonable | 8 | | amount of time thereafter not to exceed 90 days, then 20% of | 9 | | the members unit owners may bring an action to compel | 10 | | compliance with the election requirements specified in the | 11 | | bylaws. If the court finds that an election was not held to | 12 | | elect members of the board within the required period due to | 13 | | the bad faith acts or omissions of the board of managers or the | 14 | | board of directors, the unit owners shall be entitled to | 15 | | recover their reasonable attorney's fees and costs from the | 16 | | association. If the relevant notice requirements have been met | 17 | | and an election is not held solely due to a lack of a quorum, | 18 | | then this subsection (g) does not apply. | 19 | | (h) Where there is more than one owner of a unit and there | 20 | | is only one member vote associated with that unit , if only one | 21 | | of the multiple owners is present at a meeting of the | 22 | | membership association , he or she is entitled to cast the | 23 | | member vote associated with that unit all the votes allocated | 24 | | to that unit . | 25 | | (h-5) A member unit owner may vote: | 26 | | (1) by proxy executed in writing by the member unit |
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| 1 | | owner or by his or her duly authorized attorney in fact, | 2 | | provided, however, that the proxy bears the date of | 3 | | execution. Unless the community instruments or the written | 4 | | proxy itself provide otherwise, proxies will not be valid | 5 | | for more than 11 months after the date of its execution; or | 6 | | (2) by submitting an association-issued ballot in | 7 | | person at the election meeting; or | 8 | | (3) by submitting an association-issued ballot to the | 9 | | association or its designated agent by mail or other means | 10 | | of delivery specified in the declaration or bylaws. | 11 | | (i) The association may, upon adoption of the appropriate | 12 | | rules by the board, conduct elections by secret ballot , | 13 | | distributed by the association, whereby the voting ballot is | 14 | | marked only with the voting interest for the member unit and | 15 | | the vote itself, provided that the association shall further | 16 | | adopt rules to verify the status of the member unit owner | 17 | | issuing a proxy or casting a ballot. A candidate for election | 18 | | to the board or such candidate's representative shall have the | 19 | | right to be present at the counting of ballots at such | 20 | | election. | 21 | | (j) Upon proof of purchase, the The purchaser of a unit | 22 | | from a seller other than the developer pursuant to an | 23 | | installment contract for purchase shall, during such times as | 24 | | he or she resides in the unit, be counted toward a quorum for | 25 | | purposes of election of members of the board at any meeting of | 26 | | the membership unit owners called for purposes of electing |
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| 1 | | members of the board, shall have the right to vote for the | 2 | | election of members of the board of the common interest | 3 | | community association and to be elected to and serve on the | 4 | | board unless the seller expressly retains in writing any or all | 5 | | of such rights.
| 6 | | (Source: P.A. 96-1400, eff. 7-29-10.) | 7 | | (765 ILCS 160/1-30)
| 8 | | Sec. 1-30. Board duties and obligations; records. | 9 | | (a) The board shall meet at least 4 times annually. | 10 | | (b) A member of the board of the common interest community | 11 | | association may not enter into a contract with a current board | 12 | | member, or with a corporation or partnership in which a board | 13 | | member or a member of his or her immediate family has 25% or | 14 | | more interest, unless notice of intent to enter into the | 15 | | contract is given to unit owners within 20 days after a | 16 | | decision is made to enter into the contract and the unit owners | 17 | | are afforded an opportunity by filing a petition, signed by 20% | 18 | | of the membership unit owners , for an election to approve or | 19 | | disapprove the contract; such petition shall be filed within 20 | 20 | | days after such notice and such election shall be held within | 21 | | 30 days after filing the petition. For purposes of this | 22 | | subsection, a board member's immediate family means the board | 23 | | member's spouse, parents, and children. | 24 | | (c) The bylaws shall provide for the maintenance, repair, | 25 | | and replacement of the common areas and payments therefor, |
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| 1 | | including the method of approving payment vouchers. | 2 | | (d) (Blank). | 3 | | (e) The association may engage the services of a manager or | 4 | | management company. | 5 | | (f) The association shall have one class of membership | 6 | | unless the declaration or bylaws provide otherwise; however, | 7 | | this subsection (f) shall not be construed to limit the | 8 | | operation of subsection (c) of Section 1-20 of this Act. | 9 | | (g) The board shall have the power, after notice and an | 10 | | opportunity to be heard, to levy and collect reasonable fines | 11 | | from unit owners for violations of the declaration, bylaws, and | 12 | | rules and regulations of the common interest community | 13 | | association. | 14 | | (h) Other than attorney's fees and court costs , no fees | 15 | | pertaining to the collection of a unit owner's financial | 16 | | obligation to the association, including fees charged by a | 17 | | manager or managing agent, shall be added to and deemed a part | 18 | | of a unit owner's respective share of the common expenses | 19 | | unless: (i) the managing agent fees relate to the costs to | 20 | | collect common expenses for the association; (ii) the fees are | 21 | | set forth in a contract between the managing agent and the | 22 | | association; and (iii) the authority to add the management fees | 23 | | to a unit owner's respective share of the common expenses is | 24 | | specifically stated in the declaration or bylaws of the | 25 | | association. | 26 | | (i) Board records. |
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| 1 | | (1) The board shall maintain the following records of | 2 | | the association and make them available for examination and | 3 | | copying at convenient hours of weekdays by any unit owner | 4 | | in a common interest community subject to the authority of | 5 | | the board, their mortgagees, and their duly authorized | 6 | | agents or attorneys: | 7 | | (i) Copies of the recorded declaration, other | 8 | | community instruments, other duly recorded covenants | 9 | | and bylaws and any amendments, articles of | 10 | | incorporation, annual reports, and any rules and | 11 | | regulations adopted by the board shall be available. | 12 | | Prior to the organization of the board, the developer | 13 | | shall maintain and make available the records set forth | 14 | | in this paragraph (i) for examination and copying. | 15 | | (ii) Detailed and accurate records in | 16 | | chronological order of the receipts and expenditures | 17 | | affecting the common areas, specifying and itemizing | 18 | | the maintenance and repair expenses of the common areas | 19 | | and any other expenses incurred, and copies of all | 20 | | contracts, leases, or other agreements entered into by | 21 | | the board shall be maintained. | 22 | | (iii) The minutes of all meetings of the board | 23 | | which shall be maintained for not less than 7 years. | 24 | | (iv) With a written statement of a proper purpose, | 25 | | ballots and proxies related thereto, if any, for any | 26 | | election held for the board and for any other matters |
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| 1 | | voted on by the unit owners, which shall be maintained | 2 | | for not less than one year. | 3 | | (v) With a written statement of a proper purpose, | 4 | | such other records of the board as are available for | 5 | | inspection by members of a not-for-profit corporation | 6 | | pursuant to Section 107.75 of the General Not For | 7 | | Profit Corporation Act of 1986 shall be maintained. | 8 | | (vi) With respect to units owned by a land trust, a | 9 | | living trust, or other legal entity, the trustee, | 10 | | officer, or manager of the entity may designate, in | 11 | | writing, a person to cast votes on behalf of the unit | 12 | | owner and a designation shall remain in effect until a | 13 | | subsequent document is filed with the association. | 14 | | (2) Where a request for records under this subsection | 15 | | is made in writing to the board or its agent, failure to | 16 | | provide the requested record or to respond within 30 days | 17 | | shall be deemed a denial by the board. | 18 | | (3) A reasonable fee may be charged by the board for | 19 | | the cost of retrieving and copying records properly | 20 | | requested. | 21 | | (4) If the board fails to provide records properly | 22 | | requested under paragraph (1) of this subsection (i) within | 23 | | the time period provided in that paragraph (1), the unit | 24 | | owner may seek appropriate relief and shall be entitled to | 25 | | an award of reasonable attorney's fees and costs if the | 26 | | unit owner prevails and the court finds that such failure |
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| 1 | | is due to the acts or omissions of the board of managers or | 2 | | the board of directors. | 3 | | (j) The board shall have standing and capacity to act in a | 4 | | representative capacity in relation to matters involving the | 5 | | common areas or more than one unit, on behalf of the unit | 6 | | owners as their interests may appear.
| 7 | | (Source: P.A. 96-1400, eff. 7-29-10.) | 8 | | (765 ILCS 160/1-35)
| 9 | | Sec. 1-35. Unit owner powers, duties, and obligations. | 10 | | (a) The provisions of this Act, the declaration, bylaws, | 11 | | other community instruments, and rules and regulations that | 12 | | relate to the use of an individual unit or the common areas | 13 | | shall be applicable to any person leasing a unit and shall be | 14 | | deemed to be incorporated in any lease executed or renewed on | 15 | | or after the effective date of this Act. With regard to any | 16 | | lease entered into subsequent to the effective date of this | 17 | | Act, the unit owner leasing the unit shall deliver a copy of | 18 | | the signed lease to the association or if the lease is oral, a | 19 | | memorandum of the lease, not later than the date of occupancy | 20 | | or 10 days after the lease is signed, whichever occurs first. | 21 | | (b) If there are multiple owners of a single unit, only one | 22 | | of the multiple owners shall be eligible to serve as a member | 23 | | of the board at any one time. | 24 | | (c) Two-thirds of the membership unit owners may remove a | 25 | | board member as a director at a duly duty called special |
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| 1 | | meeting of the unit owners . | 2 | | (d) In the event of any resale of a unit in a common | 3 | | interest community association by a unit owner other than the | 4 | | developer, the board shall make available for inspection to the | 5 | | prospective purchaser, upon demand, the following:
| 6 | | (1) A copy of the declaration, other instruments, and | 7 | | any rules and regulations.
| 8 | | (2) A statement of any liens, including a statement of | 9 | | the account of the unit setting forth the amounts of unpaid | 10 | | assessments and other charges due and owing.
| 11 | | (3) A statement of any capital expenditures | 12 | | anticipated by the association within the current or | 13 | | succeeding 2 fiscal years.
| 14 | | (4) A statement of the status and amount of any reserve | 15 | | or for replacement fund and any other fund specifically | 16 | | designated for association projects portion of such fund | 17 | | earmarked for any specified project by the board .
| 18 | | (5) A copy of the statement of financial condition of | 19 | | the association for the last fiscal year for which such a | 20 | | statement is available.
| 21 | | (6) A statement of the status of any pending suits or | 22 | | judgments in which the association is a party.
| 23 | | (7) A statement setting forth what insurance coverage | 24 | | is provided for all unit owners by the association.
| 25 | | (8) A statement that any improvements or alterations | 26 | | made to the unit, or any part of the common areas assigned |
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| 1 | | thereto, by the prior unit owner are in good faith believed | 2 | | to be in compliance with the declaration of the | 3 | | association.
| 4 | | The principal officer of the board or such other officer as | 5 | | is specifically designated shall furnish the above information | 6 | | within 30 days after receiving a written request for such | 7 | | information. | 8 | | A reasonable fee covering the direct out-of-pocket cost of | 9 | | copying and providing such information may be charged by the | 10 | | association or the board to the unit seller for providing the | 11 | | information.
| 12 | | (Source: P.A. 96-1400, eff. 7-29-10.) | 13 | | (765 ILCS 160/1-40)
| 14 | | Sec. 1-40. Meetings. | 15 | | (a) Notice Written notice of any membership meeting shall | 16 | | be given detailing the time, place, and purpose of such meeting | 17 | | mailed or delivered giving members no less than 10 and no more | 18 | | than 30 days prior to the meeting through a prescribed delivery | 19 | | method notice of the time, place, and purpose of such meeting . | 20 | | (b) Meetings. | 21 | | (1) Twenty percent of the membership unit owners shall | 22 | | constitute a quorum, unless the community instruments | 23 | | indicate a lesser amount otherwise . | 24 | | (2) The membership unit owners shall hold an annual | 25 | | meeting , one of the purposes of which shall be to elect |
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| 1 | | members of the board of managers or board of directors of | 2 | | the common interest community association . The board of | 3 | | directors may be elected at the annual meeting. | 4 | | (3) Special meetings of the board may be called by the | 5 | | president , by or 25% of the members of the board , or by any | 6 | | other method that is prescribed in the community | 7 | | instruments . Special meetings of the membership unit | 8 | | owners may be called by the president, the board, or by 20% | 9 | | of the membership, or any other method that is prescribed | 10 | | in the community instruments unit owners . | 11 | | (4) Except to the extent otherwise provided by this | 12 | | Act, the board shall give the unit owners notice of all | 13 | | board meetings at least 48 hours prior to the meeting by | 14 | | sending notice by using a prescribed delivery method mail, | 15 | | personal delivery, or by posting copies of notices of | 16 | | meetings in entranceways, elevators, or other conspicuous | 17 | | places in the common areas of the common interest community | 18 | | at least 48 hours prior to the meeting except where there | 19 | | is no common entranceway for 7 or more units, the board may | 20 | | designate one or more locations in the proximity of these | 21 | | units where the notices of meetings shall be posted. The | 22 | | board shall give unit owners , by mail or personal delivery, | 23 | | notice of any board meeting , through a prescribed delivery | 24 | | method, concerning the adoption of (i) the proposed annual | 25 | | budget, (ii) regular assessments, or (iii) a separate or | 26 | | special assessment within 10 to 60 30 days prior to the |
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| 1 | | meeting, unless otherwise provided in Section 1-45 (a) or | 2 | | any other provision of this Act. | 3 | | (5) Meetings of the board shall be open to any unit | 4 | | owner, except for the portion of any meeting held (i) to | 5 | | discuss litigation when an action against or on behalf of | 6 | | the particular association has been filed and is pending in | 7 | | a court or administrative tribunal, or when the common | 8 | | interest community association finds that such an action is | 9 | | probable or imminent, (ii) to consider third party | 10 | | contracts or information regarding appointment, | 11 | | employment, or dismissal of an employee, or (iii) to | 12 | | discuss violations of rules and regulations of the | 13 | | association or a unit owner's unpaid share of common | 14 | | expenses. Any vote on these matters shall be taken at a | 15 | | meeting or portion thereof open to any unit owner. | 16 | | (6) The board must reserve a portion of the meeting of | 17 | | the board for comments by unit owners; provided, however, | 18 | | the duration and meeting order for the unit owner comment | 19 | | period is within the sole discretion of the board.
| 20 | | (Source: P.A. 96-1400, eff. 7-29-10.) | 21 | | (765 ILCS 160/1-45)
| 22 | | Sec. 1-45. Finances. | 23 | | (a) Each unit owner shall receive through a prescribed | 24 | | delivery method , at least 30 days but not more than 60 days | 25 | | prior to the adoption thereof by the board, a copy of the |
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| 1 | | proposed annual budget together with an indication of which | 2 | | portions are intended for reserves, capital expenditures or | 3 | | repairs or payment of real estate taxes. | 4 | | (b) The board shall provide all unit owners with a | 5 | | reasonably detailed summary of the receipts, common expenses, | 6 | | and reserves for the preceding budget year. The board shall (i) | 7 | | make available for review annually supply to all unit owners an | 8 | | itemized accounting of the common expenses for the preceding | 9 | | year actually incurred or paid, together with an indication of | 10 | | which portions were for reserves, capital expenditures or | 11 | | repairs or payment of real estate taxes and with a tabulation | 12 | | of the amounts collected pursuant to the budget or assessment, | 13 | | and showing the net excess or deficit of income over | 14 | | expenditures plus reserves or (ii) provide a consolidated | 15 | | annual independent audit report of the financial status of all | 16 | | fund accounts within the association . | 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 | 26 | | date of delivery of the petition to consider the budget or |
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| 1 | | separate assessment; unless a majority of the total votes of | 2 | | the unit owners are cast at the meeting to reject the budget or | 3 | | separate assessment, it shall be deemed ratified. | 4 | | (d) Any common expense not set forth in the budget or any | 5 | | increase in assessments over the amount adopted in the budget | 6 | | shall be separately assessed against all unit owners. | 7 | | (e) Separate assessments for expenditures relating to | 8 | | emergencies or mandated by law may be adopted by the board | 9 | | without being subject to unit owner approval or the provisions | 10 | | of subsection (c) or (f) of this Section. As used herein, | 11 | | "emergency" means an immediate danger to the structural | 12 | | integrity of the common areas or to the life, health, safety, | 13 | | or property of the unit owners. | 14 | | (f) Assessments for additions and alterations to the common | 15 | | areas or to association-owned property not included in the | 16 | | adopted annual budget, shall be separately assessed and are | 17 | | subject to approval of two-thirds of the total members at a | 18 | | meeting called for that purpose votes of all unit owners . | 19 | | (g) The board may adopt separate assessments payable over | 20 | | more than one fiscal year. With respect to multi-year | 21 | | assessments not governed by subsections (e) and (f) of this | 22 | | Section, the entire amount of the multi-year assessment shall | 23 | | be deemed considered and authorized in the first fiscal year in | 24 | | which the assessment is approved. | 25 | | (h) The board of a common interest community association | 26 | | shall have the authority to establish and maintain a system of |
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| 1 | | master metering of public utility services to collect payments | 2 | | in conjunction therewith, subject to the requirements of the | 3 | | Tenant Utility Payment Disclosure Act.
| 4 | | (Source: P.A. 96-1400, eff. 7-29-10.) | 5 | | (765 ILCS 160/1-55)
| 6 | | Sec. 1-55. Fidelity insurance. An association with 30 or | 7 | | more units shall obtain and maintain fidelity insurance | 8 | | covering persons who control or disburse funds of the | 9 | | association for the maximum amount of coverage that is | 10 | | commercially or reasonably required available to protect funds | 11 | | in the custody or control of the association plus the | 12 | | association reserve fund . All management companies which are | 13 | | responsible for the funds held or administered by the | 14 | | association shall maintain and furnish to the association a | 15 | | fidelity bond for the maximum amount of coverage that is | 16 | | commercially or reasonably required available to protect funds | 17 | | in the custody of the management company at any time. The | 18 | | association shall bear the cost of the fidelity insurance and | 19 | | fidelity bond, unless otherwise provided by contract between | 20 | | the association and a management company.
| 21 | | (Source: P.A. 96-1400, eff. 7-29-10.) | 22 | | (765 ILCS 160/1-60)
| 23 | | Sec. 1-60. Errors and omissions. | 24 | | (a) If there is an omission or error in the declaration or |
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| 1 | | other instrument of the association, the association may | 2 | | correct the error or omission by an amendment to the | 3 | | declaration or other instrument, as may be required to conform | 4 | | it to this Act, to any other applicable statute, or to the | 5 | | declaration. The amendment shall be adopted by vote of | 6 | | two-thirds of the members of the board of directors or by a | 7 | | majority vote of the members unit owners at a meeting called | 8 | | for that purpose, unless the Act or the declaration of the | 9 | | association specifically provides for greater percentages or | 10 | | different procedures. | 11 | | (b) If, through a scrivener's error, a unit has not been | 12 | | designated as owning an appropriate undivided share of the | 13 | | common areas or does not bear an appropriate share of the | 14 | | common expenses, or if all of the common expenses or all of the | 15 | | common elements have not been distributed in the declaration, | 16 | | so that the sum total of the shares of common areas which have | 17 | | been distributed or the sum total of the shares of the common | 18 | | expenses fail to equal 100%, or if it appears that more than | 19 | | 100% of the common elements or common expenses have been | 20 | | distributed, the error may be corrected by operation of law by | 21 | | filing an amendment to the declaration, approved by vote of | 22 | | two-thirds of the members of the board or a majority vote of | 23 | | the members unit owners at a meeting called for that purpose, | 24 | | which proportionately adjusts all percentage interests so that | 25 | | the total is equal to 100%, unless the declaration specifically | 26 | | provides for a different procedure or different percentage vote |
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| 1 | | by the owners of the units and the owners of mortgages thereon | 2 | | affected by modification being made in the undivided interest | 3 | | in the common areas, the number of votes in the association or | 4 | | the liability for common expenses appertaining to the unit.
| 5 | | (c) If a scrivener's error in the declaration or other | 6 | | instrument is corrected by vote of two-thirds of the members of | 7 | | the board pursuant to the authority established in subsection | 8 | | (a) or subsection (b), the board, upon written petition by | 9 | | members unit owners with 20% of the votes of the association | 10 | | received within 30 days of the board action, shall call a | 11 | | meeting of the members unit owners within 30 days of the filing | 12 | | of the petition to consider the board action. Unless a majority | 13 | | of the votes of the members unit owners of the association are | 14 | | cast at the meeting to reject the action, it is ratified | 15 | | whether or not a quorum is present.
| 16 | | (d) Nothing contained in this Section shall be construed to | 17 | | invalidate any provision of a declaration authorizing the | 18 | | developer to amend an instrument prior to the latest date on | 19 | | which the initial membership meeting of the unit owners must be | 20 | | held, whether or not it has actually been held, to bring the | 21 | | instrument into compliance with the legal requirements of the | 22 | | Federal National Mortgage Association, the Federal Home Loan | 23 | | Mortgage Corporation, the Federal Housing Administration, the | 24 | | United States Department of Veterans Affairs, or their | 25 | | respective successors and assigns.
| 26 | | (Source: P.A. 96-1400, eff. 7-29-10.) |
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| 1 | | (765 ILCS 160/1-75)
| 2 | | Sec. 1-75. Exemptions for small community interest | 3 | | communities. | 4 | | (a) A common interest community association organized | 5 | | under the General Not for Profit Corporation Act of 1986 and | 6 | | having either (i) 10 units or less or (ii) annual budgeted | 7 | | assessments of $100,000 or less shall be exempt from this Act | 8 | | unless the association affirmatively elects to be covered by | 9 | | this Act by a majority of its directors or members and unit | 10 | | owners . | 11 | | (b) Common interest community associations which in their | 12 | | declaration, bylaws, or other governing documents provide that | 13 | | the association may not use the courts or an arbitration | 14 | | process to collect or enforce assessments, fines, or similar | 15 | | levies and common interest community associations (i) of 10 | 16 | | units or less or (ii) having annual budgeted assessments of | 17 | | $50,000 or less shall be exempt from subsection (a) of Section | 18 | | 1-30, subsections (a) and (b) of Section 1-40, and Section 1-55 | 19 | | but shall be required to provide notice of meetings to unit | 20 | | owners in a manner and at a time that will allow unit owners to | 21 | | participate in those meetings.
| 22 | | (Source: P.A. 96-1400, eff. 7-29-10.) | 23 | | (765 ILCS 160/1-80 new) | 24 | | Sec. 1-80. Compliance. A common interest community |
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| 1 | | association shall be in full compliance with the provisions of | 2 | | this Act no later than January 1, 2012. | 3 | | Section 10. The Condominium Property Act is amended by | 4 | | changing Section 18.5 as follows:
| 5 | | (765 ILCS 605/18.5) (from Ch. 30, par. 318.5)
| 6 | | Sec. 18.5. Master Associations.
| 7 | | (a) If the declaration, other condominium instrument, or | 8 | | other duly
recorded covenants provide that any of the powers of | 9 | | the unit owners
associations are to be exercised by or may be | 10 | | delegated to a nonprofit
corporation or unincorporated | 11 | | association that exercises
those or other powers on behalf of | 12 | | one or more condominiums, or for the
benefit of the unit owners | 13 | | of one or more condominiums, such
corporation or association | 14 | | shall be a master association.
| 15 | | (b) There shall be included in the declaration, other
| 16 | | condominium instruments, or other duly recorded covenants | 17 | | establishing
the powers and duties of the master association | 18 | | the provisions set forth in
subsections (c) through (h).
| 19 | | In interpreting subsections (c) through (h), the courts | 20 | | should
interpret these provisions so that they are interpreted | 21 | | consistently with
the similar parallel provisions found in | 22 | | other parts of this Act.
| 23 | | (c) Meetings and finances.
| 24 | | (1) Each unit owner of a condominium subject to the |
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| 1 | | authority of
the board of the master association shall | 2 | | receive, at least 30 days prior
to the adoption thereof by | 3 | | the board of the master association, a copy of
the proposed | 4 | | annual budget.
| 5 | | (2) The board of the master association shall annually | 6 | | supply to
all unit owners of condominiums subject to the | 7 | | authority of the board
of the master association an | 8 | | itemized accounting of the common
expenses for the | 9 | | preceding year actually incurred or paid, together with a
| 10 | | tabulation of the amounts collected pursuant to the budget | 11 | | or assessment,
and showing the net excess or deficit of | 12 | | income over expenditures plus
reserves.
| 13 | | (3) Each unit owner of a condominium subject to the | 14 | | authority of
the board of the master association shall | 15 | | receive written notice mailed
or delivered no less than 10 | 16 | | and no more than 30 days prior to any meeting
of the board | 17 | | of the master association concerning the adoption of the | 18 | | proposed
annual budget or any increase in the budget, or | 19 | | establishment of an
assessment.
| 20 | | (4) Meetings of the board of the master association | 21 | | shall be open
to any unit owner in a condominium subject to | 22 | | the authority of the board
of the master association, | 23 | | except for the portion of any meeting held:
| 24 | | (A) to discuss litigation when an action against or | 25 | | on behalf of the
particular master association has been | 26 | | filed and is pending in a court or
administrative |
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| 1 | | tribunal, or when the board of the master association | 2 | | finds
that such an action is probable or imminent,
| 3 | | (B) to consider information regarding appointment, | 4 | | employment or
dismissal of an employee, or
| 5 | | (C) to discuss violations of rules and regulations | 6 | | of the master
association or unpaid common expenses | 7 | | owed to the master association.
| 8 | | Any vote on these matters shall be taken at a meeting or | 9 | | portion thereof
open to any unit owner of a condominium | 10 | | subject to the authority of the
master association.
| 11 | | Any unit owner may record the proceedings at meetings | 12 | | required
to be open by this Act by tape, film or other | 13 | | means; the board may
prescribe reasonable rules and | 14 | | regulations to govern the right to make such
recordings. | 15 | | Notice of meetings shall be mailed or delivered at least 48
| 16 | | hours prior thereto, unless a written waiver of such notice | 17 | | is signed by
the persons entitled to notice before the | 18 | | meeting is convened. Copies of
notices of meetings of the | 19 | | board of the master association shall be posted
in | 20 | | entranceways, elevators, or other conspicuous places in | 21 | | the condominium
at least 48 hours prior to the meeting of | 22 | | the board of the master
association. Where there is no | 23 | | common entranceway for 7 or more units, the
board of the | 24 | | master association may designate one or more locations in | 25 | | the
proximity of these units where the notices of meetings | 26 | | shall be posted.
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| 1 | | (5) If the declaration provides for election by unit | 2 | | owners of members
of the board of directors in the event of | 3 | | a resale of a unit in the master
association, the purchaser | 4 | | of a unit from a seller other than the developer
pursuant | 5 | | to an installment contract for purchase shall, during such
| 6 | | times as he or she resides in the unit, be counted toward a | 7 | | quorum for
purposes of election of members of the board of | 8 | | directors at any
meeting of the unit owners called for | 9 | | purposes of electing members of the
board, and shall have | 10 | | the right to vote for the election of members of
the board | 11 | | of directors and to be elected to and serve on the board of
| 12 | | directors unless the seller expressly retains in writing
| 13 | | any or all of those rights. In no event may the seller and
| 14 | | purchaser both be counted toward a quorum, be permitted to | 15 | | vote for a
particular office, or be elected and serve on | 16 | | the board. Satisfactory
evidence of the installment | 17 | | contract shall be made available to the
association or its | 18 | | agents. For purposes of this subsection, "installment
| 19 | | contract" shall have the same meaning as set forth in | 20 | | subsection (e) of
Section 1 of the Dwelling Unit | 21 | | Installment Contract Act.
| 22 | | (6) The board of the master association shall have the | 23 | | authority to
establish and maintain a system of master | 24 | | metering of public utility
services and to collect payments | 25 | | in connection therewith, subject to the
requirements of the | 26 | | Tenant Utility Payment Disclosure Act.
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| 1 | | (7) The board of the master association or a common | 2 | | interest community
association shall have the power, after | 3 | | notice and an opportunity to be heard,
to levy and collect | 4 | | reasonable fines from members for violations of the
| 5 | | declaration, bylaws, and rules and regulations of the | 6 | | master association or
the common interest community | 7 | | association. Nothing contained in this
subdivision (7) | 8 | | shall give rise to a statutory lien for unpaid fines.
| 9 | | (8) Other than attorney's fees, no fees pertaining to | 10 | | the collection of a unit owner's financial obligation to | 11 | | the Association, including fees charged by a manager or | 12 | | managing agent, shall be added to and deemed a part of an | 13 | | owner's respective share of the common expenses unless: (i) | 14 | | the managing agent fees relate to the costs to collect | 15 | | common expenses for the Association; (ii) the fees are set | 16 | | forth in a contract between the managing agent and the | 17 | | Association; and (iii) the authority to add the management | 18 | | fees to an owner's respective share of the common expenses | 19 | | is specifically stated in the declaration or bylaws of the | 20 | | Association. | 21 | | (d) Records.
| 22 | | (1) The board of the master association shall maintain | 23 | | the following
records of the association and make them | 24 | | available for examination and
copying at convenient hours | 25 | | of weekdays by any unit owners in a condominium
subject to | 26 | | the authority of the board or their mortgagees and their |
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| 1 | | duly
authorized agents or attorneys:
| 2 | | (i) Copies of the recorded declaration, other | 3 | | condominium instruments,
other duly recorded covenants | 4 | | and bylaws and any amendments, articles of
| 5 | | incorporation of the master association, annual | 6 | | reports and any rules and
regulations adopted by the | 7 | | master association or its board shall
be available. | 8 | | Prior to the organization of the master association, | 9 | | the
developer shall maintain and make available the | 10 | | records set forth in this
subdivision (d)(1) for | 11 | | examination and copying.
| 12 | | (ii) Detailed and accurate records in | 13 | | chronological order of the
receipts and expenditures | 14 | | affecting the common areas, specifying and
itemizing | 15 | | the maintenance and repair expenses of the common areas | 16 | | and any
other expenses incurred, and copies of all | 17 | | contracts, leases, or other
agreements entered into by | 18 | | the master association, shall be maintained.
| 19 | | (iii) The minutes of all meetings of the master | 20 | | association and the
board of the master association | 21 | | shall be maintained for not less than 7 years.
| 22 | | (iv) Ballots and proxies related thereto, if any, | 23 | | for any election
held for the board of the master | 24 | | association and for any other matters
voted on by the | 25 | | unit owners shall be maintained for
not less than one | 26 | | year.
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| 1 | | (v) Such other records of the master association as | 2 | | are available
for inspection by members of a | 3 | | not-for-profit corporation pursuant to
Section 107.75 | 4 | | of the General Not For Profit Corporation Act of 1986 | 5 | | shall
be maintained.
| 6 | | (vi) With respect to units owned by a land trust, | 7 | | if a trustee
designates in writing a person to cast | 8 | | votes on behalf of the unit
owner, the designation | 9 | | shall remain in effect until a subsequent document
is | 10 | | filed with the association.
| 11 | | (2) Where a request for records under this subsection | 12 | | is made in writing
to the board of managers or its agent, | 13 | | failure to provide the requested
record or to respond | 14 | | within 30 days shall be deemed a denial by the board
of | 15 | | directors.
| 16 | | (3) A reasonable fee may be charged by the master | 17 | | association or its
board for the cost of copying.
| 18 | | (4) If the board of directors fails to provide records | 19 | | properly
requested under subdivision (d)(1) within the
| 20 | | time period provided in subdivision (d)(2), the
unit owner | 21 | | may seek appropriate relief, including an award of
| 22 | | attorney's fees and costs.
| 23 | | (e) The board of directors shall have standing and capacity | 24 | | to act in
a representative capacity in relation to matters | 25 | | involving the common areas
of the master association or more | 26 | | than one unit, on behalf of the unit
owners as their interests |
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| 1 | | may appear.
| 2 | | (f) Administration of property prior to election of the | 3 | | initial board
of directors.
| 4 | | (1) Until the election, by the unit owners or the | 5 | | boards of
managers of the underlying condominium | 6 | | associations, of the initial board
of directors of a master | 7 | | association whose declaration is recorded on
or after | 8 | | August 10, 1990, the same rights, titles, powers, | 9 | | privileges,
trusts, duties and obligations that are vested | 10 | | in or imposed upon the board
of directors by this Act or in | 11 | | the declaration or other duly recorded
covenant shall be | 12 | | held and performed by the developer.
| 13 | | (2) The election of the initial board of directors of a | 14 | | master
association whose declaration is recorded on or | 15 | | after August 10, 1990, by
the unit owners or the boards of | 16 | | managers of the underlying condominium
associations, shall | 17 | | be held not later than 60 days after the conveyance by
the | 18 | | developer of 75% of the units, or 3 years after the | 19 | | recording of the
declaration, whichever is earlier. The | 20 | | developer shall give at least 21
days notice of the meeting | 21 | | to elect the initial board of directors and
shall upon | 22 | | request provide to any unit owner, within 3 working days of | 23 | | the
request, the names, addresses, and weighted vote of | 24 | | each unit owner entitled to vote at the
meeting. Any unit | 25 | | owner shall upon receipt of the request be provided with
| 26 | | the same
information, within 10 days of the request, with |
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| 1 | | respect to
each
subsequent meeting to elect members of the | 2 | | board of directors.
| 3 | | (3) If the initial board of directors of a master | 4 | | association
whose declaration is recorded on or after | 5 | | August 10, 1990 is not elected by
the unit owners or the | 6 | | members of the underlying condominium association
board of | 7 | | managers at the time established in subdivision (f)(2), the
| 8 | | developer shall continue in office for a period of 30 days, | 9 | | whereupon
written notice of his resignation shall be sent | 10 | | to all of the unit owners
or members of the underlying | 11 | | condominium board of managers entitled to vote
at an | 12 | | election for members of the board of directors.
| 13 | | (4) Within 60 days following the election of a majority | 14 | | of the board
of directors, other than the developer, by | 15 | | unit owners, the developer shall
deliver to the board of | 16 | | directors:
| 17 | | (i) All original documents as recorded or filed | 18 | | pertaining to the
property, its administration, and | 19 | | the association, such as the declaration,
articles of | 20 | | incorporation, other instruments, annual reports, | 21 | | minutes,
rules and regulations, and contracts, leases, | 22 | | or other
agreements entered into by the association. If | 23 | | any original documents are
unavailable, a copy may be | 24 | | provided if certified by affidavit of the
developer, or | 25 | | an officer or agent of the developer, as being a | 26 | | complete
copy of the actual document recorded or filed.
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| 1 | | (ii) A detailed accounting by the developer, | 2 | | setting forth the
source and nature of receipts and | 3 | | expenditures in connection with the
management, | 4 | | maintenance and operation of the property, copies
of | 5 | | all insurance policies, and a list of any loans or | 6 | | advances to the
association which are outstanding.
| 7 | | (iii) Association funds, which shall have been at | 8 | | all times
segregated from any other moneys of the | 9 | | developer.
| 10 | | (iv) A schedule of all real or personal property, | 11 | | equipment and
fixtures belonging to the association, | 12 | | including documents transferring the
property, | 13 | | warranties, if any, for all real and personal property | 14 | | and
equipment, deeds, title insurance policies, and | 15 | | all tax bills.
| 16 | | (v) A list of all litigation, administrative | 17 | | action and arbitrations
involving the association, any | 18 | | notices of governmental bodies involving
actions taken | 19 | | or which may be taken concerning the association, | 20 | | engineering and
architectural drawings and | 21 | | specifications as approved by any governmental
| 22 | | authority, all other documents filed with any other | 23 | | governmental authority,
all governmental certificates, | 24 | | correspondence involving enforcement of any
| 25 | | association requirements, copies of any documents | 26 | | relating to disputes
involving unit owners, and |
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| 1 | | originals of all documents relating to
everything | 2 | | listed in this subparagraph.
| 3 | | (vi) If the developer fails to fully comply with | 4 | | this paragraph (4)
within
the 60 days
provided and | 5 | | fails to fully comply within 10 days of written demand | 6 | | mailed by
registered
or certified mail to his or her | 7 | | last known address, the board may bring an
action to
| 8 | | compel compliance with this paragraph (4).
If the court | 9 | | finds that any of the
required
deliveries were not made | 10 | | within the required period, the board shall be
entitled | 11 | | to recover
its reasonable attorneys' fees and costs | 12 | | incurred from and after the date of
expiration of
the | 13 | | 10 day demand.
| 14 | | (5) With respect to any master association whose | 15 | | declaration is
recorded on or after August 10, 1990, any | 16 | | contract, lease, or other
agreement made prior to the | 17 | | election of a majority of the board of
directors other than | 18 | | the developer by or on behalf of unit owners or
underlying | 19 | | condominium associations, the association or the board of
| 20 | | directors, which extends for a period of more than 2 years | 21 | | from the
recording of the declaration, shall be subject to | 22 | | cancellation by more than
1/2 of the votes of the unit | 23 | | owners, other than the developer, cast at a
special meeting | 24 | | of members called for that purpose during a period of 90
| 25 | | days prior to the expiration of the 2 year period if the | 26 | | board of managers
is elected by the unit owners, otherwise |
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| 1 | | by more than 1/2 of the underlying
condominium board of | 2 | | managers. At least 60 days prior to the expiration of
the 2 | 3 | | year period, the board of directors, or, if the board is | 4 | | still under
developer control, then the board of managers | 5 | | or the developer shall send
notice to every unit owner or | 6 | | underlying condominium board of managers,
notifying them | 7 | | of this provision, of what contracts, leases and other
| 8 | | agreements are affected, and of the procedure for calling a | 9 | | meeting of the
unit owners or for action by the underlying | 10 | | condominium board of managers
for the purpose of acting to | 11 | | terminate such contracts, leases or other
agreements. | 12 | | During the 90 day period the other party to the contract,
| 13 | | lease, or other agreement shall also have the right of | 14 | | cancellation.
| 15 | | (6) The statute of limitations for any actions in law | 16 | | or equity which
the master association may bring shall not | 17 | | begin to run until the unit
owners or underlying | 18 | | condominium board of managers have elected a majority
of | 19 | | the members of the board of directors.
| 20 | | (g) In the event of any resale of a unit in a master | 21 | | association by a unit
owner other than the developer, the owner | 22 | | shall obtain from
the board of directors and shall make | 23 | | available for inspection to the
prospective purchaser, upon | 24 | | demand, the following:
| 25 | | (1) A copy of the declaration, other instruments and | 26 | | any rules and
regulations.
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| 1 | | (2) A statement of any liens, including a statement of | 2 | | the account of
the unit setting forth the amounts of unpaid | 3 | | assessments and other charges
due and owing.
| 4 | | (3) A statement of any capital expenditures | 5 | | anticipated by the
association within the current or | 6 | | succeeding 2 fiscal years.
| 7 | | (4) A statement of the status and amount of any reserve | 8 | | for
replacement fund and any portion of such fund earmarked | 9 | | for any specified
project by the board of directors.
| 10 | | (5) A copy of the statement of financial condition of | 11 | | the association
for the last fiscal year for which such a | 12 | | statement is available.
| 13 | | (6) A statement of the status of any pending suits or | 14 | | judgments in which
the association is a party.
| 15 | | (7) A statement setting forth what insurance coverage | 16 | | is provided for
all unit owners by the association.
| 17 | | (8) A statement that any improvements or alterations | 18 | | made to the unit,
or any part of the common areas assigned | 19 | | thereto, by the prior unit owner
are in good faith believed | 20 | | to be in compliance with the declaration of the
master | 21 | | association.
| 22 | | The principal officer of the unit owner's association or | 23 | | such
other officer as is specifically designated shall furnish | 24 | | the above
information when requested to do so in writing, | 25 | | within
30 days of receiving the request.
| 26 | | A reasonable fee covering the direct out-of-pocket cost of |
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| 1 | | copying
and providing such information may be charged
by the | 2 | | association or its board of directors to the unit
seller for | 3 | | providing the information.
| 4 | | (g-1) The purchaser of a unit of a common interest | 5 | | community at a judicial foreclosure sale, other than a | 6 | | mortgagee, who takes possession of a unit of a common interest | 7 | | community pursuant to a court order or a purchaser who acquires | 8 | | title from a mortgagee shall have the duty to pay the | 9 | | proportionate share, if any, of the common expenses for the | 10 | | unit that would have become due in the absence of any | 11 | | assessment acceleration during the 6 months immediately | 12 | | preceding institution of an action to enforce the collection of | 13 | | assessments, and that remain unpaid by the owner during whose | 14 | | possession the assessments accrued. If the outstanding | 15 | | assessments are paid at any time during any action to enforce | 16 | | the collection of assessments, the purchaser shall have no | 17 | | obligation to pay any assessments that accrued before he or she | 18 | | acquired title. The notice of sale of a unit of a common | 19 | | interest community under subsection (c) of Section 15-1507 of | 20 | | the Code of Civil Procedure shall state that the purchaser of | 21 | | the unit other than a mortgagee shall pay the assessments | 22 | | required by this subsection (g-1).
| 23 | | (h) Errors and omissions.
| 24 | | (1) If there is an omission or error in the declaration | 25 | | or other
instrument of the master association, the master | 26 | | association may correct
the error or omission by an |
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| 1 | | amendment to the declaration or other
instrument, as may be | 2 | | required to conform it to this Act, to any other
applicable | 3 | | statute, or to the declaration. The amendment shall be | 4 | | adopted
by vote of two-thirds of the members of the board | 5 | | of directors or by a
majority vote of the unit owners at a | 6 | | meeting called for that purpose,
unless the Act or the | 7 | | declaration of the master association specifically
| 8 | | provides for greater percentages or different procedures.
| 9 | | (2) If, through a scrivener's error, a unit has not | 10 | | been
designated as owning an appropriate undivided share of | 11 | | the common areas
or does not bear an appropriate share of | 12 | | the common expenses, or if
all of the common expenses or | 13 | | all of the common elements in
the condominium have not been | 14 | | distributed in the declaration, so that the
sum total of | 15 | | the shares of common areas which have been distributed or | 16 | | the
sum total of the shares of the common expenses fail to | 17 | | equal 100%, or if it
appears that more than 100% of the | 18 | | common elements or common expenses have
been distributed, | 19 | | the error may be corrected by operation of law by filing
an | 20 | | amendment to the declaration, approved by vote of | 21 | | two-thirds of the
members of the board of directors or a | 22 | | majority vote of the unit owners at
a meeting called for | 23 | | that purpose, which proportionately
adjusts all percentage | 24 | | interests so that the total is equal to 100%,
unless the | 25 | | declaration specifically provides for a different | 26 | | procedure or
different percentage vote by the owners of the |
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| 1 | | units and the owners of
mortgages thereon affected by | 2 | | modification being made in the undivided
interest in the | 3 | | common areas, the number of votes in the unit owners
| 4 | | association or the liability for common expenses | 5 | | appertaining to the unit.
| 6 | | (3) If an omission or error or a scrivener's error in | 7 | | the
declaration or other instrument is corrected by vote of | 8 | | two-thirds of
the members of the board of directors | 9 | | pursuant to the authority established
in subdivisions | 10 | | (h)(1) or (h)(2) of this Section, the board, upon
written | 11 | | petition by unit owners with 20% of the votes of the | 12 | | association or
resolutions adopted by the board of managers | 13 | | or board of directors of the
condominium and common | 14 | | interest community associations which select 20% of
the | 15 | | members of the board of directors of the master | 16 | | association, whichever
is applicable, received within 30 | 17 | | days of the board action, shall call a
meeting of the unit | 18 | | owners or the boards of the condominium and common
interest | 19 | | community associations which select members of the board of
| 20 | | directors of the master association within 30 days of the | 21 | | filing of the
petition or receipt of the condominium and | 22 | | common interest community
association resolution to | 23 | | consider the board action. Unless a majority of
the votes | 24 | | of the unit owners of the association are cast at the | 25 | | meeting to
reject the action, or board of managers or board | 26 | | of directors of
condominium and common interest community |
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| 1 | | associations which select over
50% of the members of the | 2 | | board of the master association adopt resolutions
prior to | 3 | | the meeting rejecting the action of the board of directors | 4 | | of the
master association, it is ratified whether or not a | 5 | | quorum is present.
| 6 | | (4) The procedures for amendments set forth in this | 7 | | subsection (h)
cannot be used if such an amendment would | 8 | | materially or adversely affect
property rights of the unit | 9 | | owners unless the affected unit owners consent
in writing. | 10 | | This Section does not restrict the powers of the | 11 | | association
to otherwise amend the declaration, bylaws, or | 12 | | other condominium
instruments, but authorizes a simple | 13 | | process of amendment requiring a
lesser vote for the | 14 | | purpose of correcting defects, errors, or omissions
when | 15 | | the property rights of the unit owners are not materially | 16 | | or adversely
affected.
| 17 | | (5) If there is an omission or error in the declaration | 18 | | or other
instruments that may not be corrected by an | 19 | | amendment procedure
set forth in subdivision (h)(1) or | 20 | | (h)(2) of this Section, then
the circuit court in the | 21 | | county in which the master
association is located shall | 22 | | have jurisdiction to hear a petition of one or
more of the | 23 | | unit owners thereon or of the association, to correct the | 24 | | error
or omission, and the action may be a class action. | 25 | | The court may require
that one or more methods of | 26 | | correcting the error or omission be submitted
to the unit |
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| 1 | | owners to determine the most acceptable correction. All | 2 | | unit
owners in the association must be joined as parties to | 3 | | the action. Service
of process on owners may be by | 4 | | publication, but the plaintiff shall furnish
all unit | 5 | | owners not personally served with process with copies of | 6 | | the
petition and final judgment of the court by certified | 7 | | mail, return receipt
requested, at their last known | 8 | | address.
| 9 | | (6) Nothing contained in this Section shall be | 10 | | construed to invalidate
any provision of a declaration | 11 | | authorizing the developer to amend
an instrument prior to | 12 | | the latest date on which the initial
membership meeting of | 13 | | the unit owners must be held, whether or not it has
| 14 | | actually been held, to bring the instrument into compliance | 15 | | with the legal
requirements of the Federal National | 16 | | Mortgage Association, the Federal Home
Loan Mortgage | 17 | | Corporation, the Federal Housing Administration, the | 18 | | United
States Veterans Administration or their respective | 19 | | successors and assigns.
| 20 | | (i) The provisions of subsections (c) through (h) are | 21 | | applicable
to all declarations, other condominium instruments, | 22 | | and other
duly recorded covenants establishing the powers and | 23 | | duties of the master
association recorded under this Act. Any | 24 | | portion of a declaration,
other condominium instrument, or | 25 | | other duly recorded covenant establishing
the powers and duties | 26 | | of a master association which contains provisions
contrary to |
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| 1 | | the provisions of subsection (c) through (h) shall be void as
| 2 | | against public policy and ineffective. Any declaration, other | 3 | | condominium
instrument, or other duly recorded covenant | 4 | | establishing the powers and
duties of the master association | 5 | | which fails to contain the provisions
required by subsections | 6 | | (c) through (h) shall be deemed to incorporate such
provisions | 7 | | by operation of law.
| 8 | | (j) (Blank). The provisions of subsections (c) through (h) | 9 | | are applicable to
all common interest community associations | 10 | | and their unit owners for common
interest community | 11 | | associations which are subject to the provisions of Section
| 12 | | 9-102(a)(8) of the Code of Civil Procedure. For purposes of | 13 | | this
subsection, the terms "common interest community" and | 14 | | "unit owners"
shall have the same meaning as set forth in | 15 | | Section 9-102(c) of the Code of
Civil Procedure.
| 16 | | (Source: P.A. 96-1045, eff. 7-14-10.)
| 17 | | Section 999. Effective date. This Act takes effect upon | 18 | | becoming law.".
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