Full Text of SB3572 97th General Assembly
SB3572ham002 97TH GENERAL ASSEMBLY | Rep. Tom Cross Filed: 5/17/2012
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| 1 | | AMENDMENT TO SENATE BILL 3572
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 3572, AS AMENDED, | 3 | | by replacing everything after the enacting clause with the | 4 | | following:
| 5 | | "Section 5. The Common Interest Community Association Act | 6 | | is amended by changing Sections 1-5, 1-15, 1-20, 1-25, 1-30, | 7 | | 1-35, 1-40, 1-45, 1-50, 1-60, and 1-75 as follows: | 8 | | (765 ILCS 160/1-5)
| 9 | | Sec. 1-5. Definitions. | 10 | | (a) As used in this Act, unless the context otherwise | 11 | | requires: | 12 | | "Association" or "common interest community association" | 13 | | means the association of all the members unit owners of a | 14 | | common interest community, acting pursuant to bylaws through | 15 | | its duly elected board of managers or board of directors. | 16 | | "Board" means a common interest community association's |
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| 1 | | board of managers or board of directors, whichever is | 2 | | applicable. | 3 | | "Board member" or "member of the board" means a member of | 4 | | the board of managers or the board of directors, whichever is | 5 | | applicable. | 6 | | "Board of directors" means, for a common interest community | 7 | | that has been incorporated as an Illinois not-for-profit | 8 | | corporation, the group of people elected by the members unit | 9 | | owners of a common interest community as the governing body to | 10 | | exercise for the members unit owners of the common interest | 11 | | community association all powers, duties, and authority vested | 12 | | in the board of directors under this Act and the common | 13 | | interest community association's declaration and bylaws. | 14 | | "Board of managers" means, for a common interest community | 15 | | that is an unincorporated association, the group of people | 16 | | elected by the members unit owners of a common interest | 17 | | community as the governing body to exercise for the members | 18 | | unit owners of the common interest community association all | 19 | | powers, duties, and authority vested in the board of managers | 20 | | under this Act and the common interest community association's | 21 | | declaration and bylaws. | 22 | | "Building" means all structures, attached or unattached, | 23 | | containing one or more units. | 24 | | "Common areas" means the portion of the property other than | 25 | | a unit. | 26 | | "Common expenses" means the proposed or actual expenses |
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| 1 | | affecting the property, including reserves, if any, lawfully | 2 | | assessed by the common interest community association. | 3 | | "Common interest community" means real estate other than a | 4 | | condominium or cooperative with respect to which any person by | 5 | | virtue of his or her ownership of a partial interest or a unit | 6 | | therein is obligated to pay for the maintenance, improvement, | 7 | | insurance premiums or real estate taxes of common areas | 8 | | described in a declaration which is administered by an | 9 | | association. "Common interest community" may include, but not | 10 | | be limited to, an attached or detached townhome, villa, or | 11 | | single-family home. A "common interest community" does not | 12 | | include a master association. | 13 | | "Community instruments" means all documents and authorized | 14 | | amendments thereto recorded by a developer or common interest | 15 | | community association, including, but not limited to, the | 16 | | declaration, bylaws, plat of survey, and rules and regulations. | 17 | | "Declaration" means any duly recorded instruments, however | 18 | | designated, that have created a common interest community and | 19 | | any duly recorded amendments to those instruments. | 20 | | "Developer" means any person who submits property legally | 21 | | or equitably owned in fee simple by the person to the | 22 | | provisions of this Act, or any person who offers units legally | 23 | | or equitably owned in fee simple by the person for sale in the | 24 | | ordinary course of such person's business, including any | 25 | | successor to such person's entire interest in the property | 26 | | other than the purchaser of an individual unit. |
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| 1 | | "Developer control" means such control at a time prior to | 2 | | the election of the board of the common interest community | 3 | | association by a majority of the members unit owners other than | 4 | | the developer. | 5 | | "Majority" or "majority of the members unit owners " means | 6 | | the owners of more than 50% in the aggregate in interest of the | 7 | | undivided ownership of the common elements. Any specified | 8 | | percentage of the members unit owners means such percentage in | 9 | | the aggregate in interest of such undivided ownership. | 10 | | "Majority" or "majority of the members of the board of the | 11 | | common interest community association" means more than 50% of | 12 | | the total number of persons constituting such board pursuant to | 13 | | the bylaws. Any specified percentage of the members of the | 14 | | common interest community association means that percentage of | 15 | | the total number of persons constituting such board pursuant to | 16 | | the bylaws. | 17 | | "Management company" or "community association manager" | 18 | | means a person, partnership, corporation, or other legal entity | 19 | | entitled to transact business on behalf of others, acting on | 20 | | behalf of or as an agent for an association for the purpose of | 21 | | carrying out the duties, responsibilities, and other | 22 | | obligations necessary for the day to day operation and | 23 | | management of any property subject to this Act.
| 24 | | "Meeting of the board" or "board meeting" means any | 25 | | gathering of a quorum of the members of the board of the common | 26 | | interest community association held for the purpose of |
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| 1 | | conducting board business. | 2 | | "Member" means the person or entity designated as an owner | 3 | | and entitled to one vote as defined by the community | 4 | | instruments , subject to the provisions of subsection (b) . | 5 | | "Membership" means the collective group of members | 6 | | entitled to vote as defined by the community instruments. | 7 | | "Parcel" means the lot or lots or tract or tracts of land | 8 | | described in the declaration as part of a common interest | 9 | | community. | 10 | | "Person" means a natural individual, corporation, | 11 | | partnership, trustee, or other legal entity capable of holding | 12 | | title to real property. | 13 | | "Plat" means a plat or plats of survey of the parcel and of | 14 | | all units in the common interest community, which may consist | 15 | | of a three-dimensional horizontal and vertical delineation of | 16 | | all such units, structures, easements, and common areas on the | 17 | | property. | 18 | | "Prescribed delivery method" means mailing, delivering, | 19 | | posting in an association publication that is routinely mailed | 20 | | to all members unit owners , or any other delivery method that | 21 | | is approved in writing by the member unit owner and authorized | 22 | | by the community instruments. | 23 | | "Property" means all the land, property, and space | 24 | | comprising the parcel, all improvements and structures | 25 | | erected, constructed or contained therein or thereon, | 26 | | including any building and all easements, rights, and |
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| 1 | | appurtenances belonging thereto, and all fixtures and | 2 | | equipment intended for the mutual use, benefit, or enjoyment of | 3 | | the members unit owners , under the authority or control of a | 4 | | common interest community association. | 5 | | "Purchaser" means any person or persons, other than the | 6 | | developer, who purchase a unit in a bona fide transaction for | 7 | | value. | 8 | | "Record" means to record in the office of the recorder of | 9 | | the county wherein the property is located. | 10 | | "Reserves" means those sums paid by members unit owners | 11 | | which are separately maintained by the common interest | 12 | | community association for purposes specified by the | 13 | | declaration and bylaws of the common interest community | 14 | | 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 , subject to the provisions of | 20 | | subsection (b) .
| 21 | | (b) The terms "member" and "unit owner" may be used | 22 | | interchangeably. In situations in which a matter of legal title | 23 | | to the unit is involved or at issue, the term "unit owner" is | 24 | | the applicable term. In a county with a population under | 25 | | 500,000, if "member" or "unit owner" is defined differently by | 26 | | the community instruments, the definition in the community |
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| 1 | | instruments shall control. | 2 | | (Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.) | 3 | | (765 ILCS 160/1-15)
| 4 | | Sec. 1-15. Construction, interpretation, and validity of | 5 | | community instruments. | 6 | | (a) Except to the extent otherwise provided by the | 7 | | declaration or other community instruments, the terms defined | 8 | | in Section 1-5 of this Act shall be deemed to have the meaning | 9 | | specified therein unless the context otherwise requires. | 10 | | (b) All provisions of the declaration, bylaws, and other | 11 | | community instruments severed by this Act shall be revised by | 12 | | the board of directors independent of the membership to comply | 13 | | with this Act 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 | | (d) Every common interest community association shall | 24 | | define a member and its relationship to the units or unit | 25 | | owners in its community instruments. |
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| 1 | | (Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.) | 2 | | (765 ILCS 160/1-20)
| 3 | | Sec. 1-20. Amendments to the declaration or bylaws. | 4 | | (a) The administration of every property shall be governed | 5 | | by the declaration and bylaws, which may either be embodied in | 6 | | the declaration or in a separate instrument, a true copy of | 7 | | which shall be appended to and recorded with the declaration. | 8 | | No modification or amendment of the declaration or bylaws shall | 9 | | be valid unless the same is set forth in an amendment thereof | 10 | | and such amendment is duly recorded. An amendment of the | 11 | | declaration or bylaws shall be deemed effective upon | 12 | | recordation, unless the amendment sets forth a different | 13 | | effective date. | 14 | | (b) Unless otherwise provided by this Act, amendments to | 15 | | community instruments authorized to be recorded shall be | 16 | | executed and recorded by the president of the board or such | 17 | | other officer authorized by the common interest community | 18 | | association or the community instruments. | 19 | | (c) If an association that currently permits leasing amends | 20 | | its declaration, bylaws, or rules and regulations to prohibit | 21 | | leasing, nothing in this Act or the declarations, bylaws, rules | 22 | | and regulations of an association shall prohibit a unit owner | 23 | | incorporated under 26 USC 501(c)(3) which is leasing a unit at | 24 | | the time of the prohibition from continuing to do so until such | 25 | | time that the unit owner voluntarily sells the unit; and no |
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| 1 | | special fine, fee, dues, or penalty shall be assessed against | 2 | | the unit owner for leasing its unit.
| 3 | | (d) No action to incorporate a common interest community as | 4 | | a municipality shall commence until an instrument agreeing to | 5 | | incorporation has been signed by two-thirds of the members. | 6 | | (Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.) | 7 | | (765 ILCS 160/1-25)
| 8 | | Sec. 1-25. Board of managers, board of directors, duties, | 9 | | elections, and voting. | 10 | | (a) Elections shall be held in accordance with the | 11 | | community instruments, provided that an election shall be held | 12 | | no less frequently than once every 24 months, for There shall | 13 | | be an annual election of the board of managers or board of | 14 | | directors from among the membership of a common interest | 15 | | community association. | 16 | | (b) (Blank). | 17 | | (c) The members of the board shall serve without | 18 | | compensation, unless the community instruments indicate | 19 | | otherwise. | 20 | | (d) No member of the board or officer shall be elected for | 21 | | a term of more than 4 3 years, but officers and board members | 22 | | may succeed themselves. | 23 | | (e) If there is a vacancy on the board, the remaining | 24 | | members of the board may fill the vacancy by a two-thirds vote | 25 | | of the remaining board members until the next annual meeting of |
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| 1 | | the membership or until members holding 20% of the votes of the | 2 | | association request a meeting of the members to fill the | 3 | | vacancy for the balance of the term. A meeting of the members | 4 | | shall be called for purposes of filling a vacancy on the board | 5 | | no later than 30 days following the filing of a petition signed | 6 | | by membership holding 20% of the votes of the association | 7 | | requesting such a meeting. | 8 | | (f) There shall be an election of a: | 9 | | (1) president from among the members of the board, who | 10 | | shall preside over the meetings of the board and of the | 11 | | membership; | 12 | | (2) secretary from among the members of the board, who | 13 | | shall keep the minutes of all meetings of the board and of | 14 | | the membership and who shall, in general, perform all the | 15 | | duties incident to the office of secretary; and | 16 | | (3) treasurer from among the members of the board, who | 17 | | shall keep the financial records and books of account. | 18 | | (g) If no election is held to elect board members within | 19 | | the time period specified in the bylaws, or within a reasonable | 20 | | amount of time thereafter not to exceed 90 days, then 20% of | 21 | | the members may bring an action to compel compliance with the | 22 | | election requirements specified in the bylaws. If the court | 23 | | finds that an election was not held to elect members of the | 24 | | board within the required period due to the bad faith acts or | 25 | | omissions of the board of managers or the board of directors, | 26 | | the members unit owners shall be entitled to recover their |
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| 1 | | reasonable attorney's fees and costs from the association. If | 2 | | the relevant notice requirements have been met and an election | 3 | | is not held solely due to a lack of a quorum, then this | 4 | | subsection (g) does not apply. | 5 | | (h) Where there is more than one owner of a unit and there | 6 | | is only one member vote associated with that unit, if only one | 7 | | of the multiple owners is present at a meeting of the | 8 | | membership, he or she is entitled to cast the member vote | 9 | | associated with that unit. | 10 | | (h-5) A member may vote: | 11 | | (1) by proxy executed in writing by the member or by | 12 | | his or her duly authorized attorney in fact, provided, | 13 | | however, that the proxy bears the date of execution. Unless | 14 | | the community instruments or the written proxy itself | 15 | | provide otherwise, proxies will not be valid for more than | 16 | | 11 months after the date of its execution; or | 17 | | (2) by submitting an association-issued ballot in | 18 | | person at the election meeting; or | 19 | | (3) by submitting an association-issued ballot to the | 20 | | association or its designated agent by mail or other means | 21 | | of delivery specified in the declaration or bylaws. | 22 | | (i) The association may, upon adoption of the appropriate | 23 | | rules by the board, conduct elections by secret ballot, | 24 | | distributed by the association, whereby the voting ballot is | 25 | | marked only with the voting interest for the member and the | 26 | | vote itself, provided that the association shall further adopt |
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| 1 | | rules to verify the status of the member issuing a proxy or | 2 | | casting a ballot and provided further that proxies shall not be | 3 | | allowed . A candidate for election to the board or such | 4 | | candidate's representative shall have the right to be present | 5 | | at the counting of ballots at such election. | 6 | | (j) Upon proof of purchase, the purchaser of a unit from a | 7 | | seller other than the developer pursuant to an installment | 8 | | contract for purchase shall, during such times as he or she | 9 | | resides in the unit, be counted toward a quorum for purposes of | 10 | | election of members of the board at any meeting of the | 11 | | membership called for purposes of electing members of the | 12 | | board, shall have the right to vote for the members of the | 13 | | board of the common interest community association and to be | 14 | | elected to and serve on the board unless the seller expressly | 15 | | retains in writing any or all of such rights.
| 16 | | (Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.) | 17 | | (765 ILCS 160/1-30)
| 18 | | Sec. 1-30. Board duties and obligations; records. | 19 | | (a) The board shall meet at least 4 times annually. | 20 | | (b) A member of the board of the common interest community | 21 | | association may not enter into a contract with a current board | 22 | | member, or with a corporation or partnership in which a board | 23 | | member or a member of his or her immediate family has 25% or | 24 | | more interest, unless notice of intent to enter into the | 25 | | contract is given to members unit owners within 20 days after a |
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| 1 | | decision is made to enter into the contract and the members | 2 | | unit owners are afforded an opportunity by filing a petition, | 3 | | signed by 20% of the membership, for an election to approve or | 4 | | disapprove the contract; such petition shall be filed within 20 | 5 | | days after such notice and such election shall be held within | 6 | | 30 days after filing the petition. For purposes of this | 7 | | subsection, a board member's immediate family means the board | 8 | | member's spouse, parents, and children. | 9 | | (c) The bylaws shall provide for the maintenance, repair, | 10 | | and replacement of the common areas and payments therefor, | 11 | | including the method of approving payment vouchers. | 12 | | (d) (Blank). | 13 | | (e) The association may engage the services of a manager or | 14 | | management company. | 15 | | (f) The association shall have one class of membership | 16 | | unless the declaration or bylaws provide otherwise; however, | 17 | | this subsection (f) shall not be construed to limit the | 18 | | operation of subsection (c) of Section 1-20 of this Act. | 19 | | (g) The board shall have the power, after notice and an | 20 | | opportunity to be heard, to levy and collect reasonable fines | 21 | | from members or unit owners for violations of the declaration, | 22 | | bylaws, and rules and regulations of the common interest | 23 | | community association. | 24 | | (h) Other than attorney's fees and court or arbitration | 25 | | costs, no fees pertaining to the collection of a member's or | 26 | | unit owner's financial obligation to the association, |
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| 1 | | including fees charged by a manager or managing agent, shall be | 2 | | added to and deemed a part of a member's or unit owner's | 3 | | respective share of the common expenses unless: (i) the | 4 | | managing agent fees relate to the costs to collect common | 5 | | expenses for the association; (ii) the fees are set forth in a | 6 | | contract between the managing agent and the association; and | 7 | | (iii) the authority to add the management fees to a member's or | 8 | | unit owner's respective share of the common expenses is | 9 | | specifically stated in the declaration or bylaws of the | 10 | | association. | 11 | | (i) Board records. | 12 | | (1) The board shall maintain the following records of | 13 | | the association and make them available for examination and | 14 | | copying at convenient hours of weekdays by any member or | 15 | | unit owner in a common interest community subject to the | 16 | | authority of the board, their mortgagees, and their duly | 17 | | authorized agents or attorneys: | 18 | | (i) Copies of the recorded declaration, other | 19 | | community instruments, other duly recorded covenants | 20 | | and bylaws and any amendments, articles of | 21 | | incorporation, annual reports, and any rules and | 22 | | regulations adopted by the board shall be available. | 23 | | Prior to the organization of the board, the developer | 24 | | shall maintain and make available the records set forth | 25 | | in this paragraph (i) for examination and copying. | 26 | | (ii) Detailed and accurate records in |
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| 1 | | chronological order of the receipts and expenditures | 2 | | affecting the common areas, specifying and itemizing | 3 | | the maintenance and repair expenses of the common areas | 4 | | and any other expenses incurred, and copies of all | 5 | | contracts, leases, or other agreements entered into by | 6 | | the board shall be maintained. | 7 | | (iii) The minutes of all meetings of the board | 8 | | which shall be maintained for not less than 7 years. | 9 | | (iv) With a written statement of a proper purpose, | 10 | | ballots and proxies related thereto, if any, for any | 11 | | election held for the board and for any other matters | 12 | | voted on by the members unit owners , which shall be | 13 | | maintained for not less than one year. | 14 | | (v) With a written statement of a proper purpose, | 15 | | such other records of the board as are available for | 16 | | inspection by members of a not-for-profit corporation | 17 | | pursuant to Section 107.75 of the General Not For | 18 | | Profit Corporation Act of 1986 shall be maintained. | 19 | | (vi) With respect to units owned by a land trust, a | 20 | | living trust, or other legal entity, the trustee, | 21 | | officer, or manager of the entity may designate, in | 22 | | writing, a person to cast votes on behalf of the member | 23 | | or unit owner and a designation shall remain in effect | 24 | | until a subsequent document is filed with the | 25 | | association. | 26 | | (2) Where a request for records under this subsection |
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| 1 | | is made in writing to the board or its agent, failure to | 2 | | provide the requested record or to respond within 30 days | 3 | | shall be deemed a denial by the board. | 4 | | (3) A reasonable fee may be charged by the board for | 5 | | the cost of retrieving and copying records properly | 6 | | requested. | 7 | | (4) If the board fails to provide records properly | 8 | | requested under paragraph (1) of this subsection (i) within | 9 | | the time period provided in that paragraph (1), the member | 10 | | unit owner may seek appropriate relief and shall be | 11 | | entitled to an award of reasonable attorney's fees and | 12 | | costs if the member unit owner prevails and the court finds | 13 | | that such failure is due to the acts or omissions of the | 14 | | board of managers or the board of directors. | 15 | | (j) The board shall have standing and capacity to act in a | 16 | | representative capacity in relation to matters involving the | 17 | | common areas or more than one unit, on behalf of the members or | 18 | | unit owners as their interests may appear.
| 19 | | (Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.) | 20 | | (765 ILCS 160/1-35)
| 21 | | Sec. 1-35. Member Unit owner powers, duties, and | 22 | | obligations. | 23 | | (a) The provisions of this Act, the declaration, bylaws, | 24 | | other community instruments, and rules and regulations that | 25 | | relate to the use of an individual unit or the common areas |
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| 1 | | shall be applicable to any person leasing a unit and shall be | 2 | | deemed to be incorporated in any lease executed or renewed on | 3 | | or after the effective date of this Act. With regard to any | 4 | | lease entered into subsequent to the effective date of this | 5 | | Act, the member or unit owner leasing the unit shall deliver a | 6 | | copy of the signed lease to the association or if the lease is | 7 | | oral, a memorandum of the lease, not later than the date of | 8 | | occupancy or 10 days after the lease is signed, whichever | 9 | | occurs first. | 10 | | (b) If there are multiple owners of a single unit, only one | 11 | | of the multiple owners shall be eligible to serve as a member | 12 | | of the board at any one time , unless the unit owner owns | 13 | | another unit independently . | 14 | | (c) Two-thirds of the membership may remove a board member | 15 | | as a director at a duly called special meeting. | 16 | | (d) In the event of any resale of a unit in a common | 17 | | interest community association by a member or unit owner other | 18 | | than the developer, the board shall make available for | 19 | | inspection to the prospective purchaser, upon demand, the | 20 | | following:
| 21 | | (1) A copy of the declaration, other instruments, and | 22 | | any rules and regulations.
| 23 | | (2) A statement of any liens, including a statement of | 24 | | the account of the unit setting forth the amounts of unpaid | 25 | | assessments and other charges due and owing.
| 26 | | (3) A statement of any capital expenditures |
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| 1 | | anticipated by the association within the current or | 2 | | succeeding 2 fiscal years.
| 3 | | (4) A statement of the status and amount of any reserve | 4 | | or replacement fund and any other fund specifically | 5 | | designated for association projects.
| 6 | | (5) A copy of the statement of financial condition of | 7 | | the association for the last fiscal year for which such a | 8 | | statement is available.
| 9 | | (6) A statement of the status of any pending suits or | 10 | | judgments in which the association is a party.
| 11 | | (7) A statement setting forth what insurance coverage | 12 | | is provided for all members or unit owners by the | 13 | | association for common properties .
| 14 | | The principal officer of the board or such other officer as | 15 | | is specifically designated shall furnish the above information | 16 | | within 30 days after receiving a written request for such | 17 | | information. | 18 | | A reasonable fee covering the direct out-of-pocket cost of | 19 | | copying and providing such information may be charged by the | 20 | | association or the board to the unit seller for providing the | 21 | | information.
| 22 | | (Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.) | 23 | | (765 ILCS 160/1-40)
| 24 | | Sec. 1-40. Meetings. | 25 | | (a) Notice of any membership meeting shall be given |
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| 1 | | detailing the time, place, and purpose of such meeting no less | 2 | | than 10 and no more than 30 days prior to the meeting through a | 3 | | prescribed delivery method. | 4 | | (b) Meetings. | 5 | | (1) Twenty percent of the membership shall constitute a | 6 | | quorum, unless the community instruments indicate a lesser | 7 | | amount. | 8 | | (2) The membership shall hold an annual meeting. The | 9 | | board of directors may be elected at the annual meeting. | 10 | | (3) Special meetings of the board may be called by the | 11 | | president, by 25% of the members of the board, or by any | 12 | | other method that is prescribed in the community | 13 | | instruments. Special meetings of the membership may be | 14 | | called by the president, the board, 20% of the membership, | 15 | | or any other method that is prescribed in the community | 16 | | instruments. | 17 | | (4) Except to the extent otherwise provided by this | 18 | | Act, the board shall give the members unit owners notice of | 19 | | all board meetings at least 48 hours prior to the meeting | 20 | | by sending notice by using a prescribed delivery method or | 21 | | by posting copies of notices of meetings in entranceways, | 22 | | elevators, or other conspicuous places in the common areas | 23 | | of the common interest community at least 48 hours prior to | 24 | | the meeting except where there is no common entranceway for | 25 | | 7 or more units, the board may designate one or more | 26 | | locations in the proximity of these units where the notices |
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| 1 | | of meetings shall be posted. The board shall give members | 2 | | unit owners notice of any board meeting, through a | 3 | | prescribed delivery method, concerning the adoption of (i) | 4 | | the proposed annual budget, (ii) regular assessments, or | 5 | | (iii) a separate or special assessment within 10 to 60 days | 6 | | prior to the meeting, unless otherwise provided in Section | 7 | | 1-45 (a) or any other provision of this Act. | 8 | | (5) Meetings of the board shall be open to any unit | 9 | | owner, except for the portion of any meeting held (i) to | 10 | | discuss litigation when an action against or on behalf of | 11 | | the particular association has been filed and is pending in | 12 | | a court or administrative tribunal, or when the common | 13 | | interest community association finds that such an action is | 14 | | probable or imminent, (ii) to consider third party | 15 | | contracts or information regarding appointment, | 16 | | employment, or dismissal of an employee, or (iii) to | 17 | | discuss violations of rules and regulations of the | 18 | | association or a member's or unit owner's unpaid share of | 19 | | common expenses. Any vote on these matters shall be taken | 20 | | at a meeting or portion thereof open to any member unit | 21 | | owner . | 22 | | (6) The board must reserve a portion of the meeting of | 23 | | the board for comments by members unit owners ; provided, | 24 | | however, the duration and meeting order for the member unit | 25 | | owner comment period is within the sole discretion of the | 26 | | board.
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| 1 | | (Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.) | 2 | | (765 ILCS 160/1-45)
| 3 | | Sec. 1-45. Finances. | 4 | | (a) Each member unit owner shall receive through a | 5 | | prescribed delivery method, at least 30 days but not more than | 6 | | 60 days prior to the adoption thereof by the board, a copy of | 7 | | the proposed annual budget together with an indication of which | 8 | | portions are intended for reserves, capital expenditures or | 9 | | repairs or payment of real estate taxes. | 10 | | (b) The board shall provide all members unit owners with a | 11 | | reasonably detailed summary of the receipts, common expenses, | 12 | | and reserves for the preceding budget year. The board shall (i) | 13 | | make available for review to all members unit owners an | 14 | | itemized accounting of the common expenses for the preceding | 15 | | year actually incurred or paid, together with an indication of | 16 | | which portions were for reserves, capital expenditures or | 17 | | repairs or payment of real estate taxes and with a tabulation | 18 | | of the amounts collected pursuant to the budget or assessment, | 19 | | and showing the net excess or deficit of income over | 20 | | expenditures plus reserves or (ii) provide a consolidated | 21 | | annual independent audit report of the financial status of all | 22 | | fund accounts within the association. | 23 | | (c) If an adopted budget or any separate assessment adopted | 24 | | by the board would result in the sum of all regular and | 25 | | separate assessments payable in the current fiscal year |
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| 1 | | exceeding 115% of the sum of all regular and separate | 2 | | assessments payable during the preceding fiscal year, the | 3 | | common interest community association, upon written petition | 4 | | by members unit owners with 20% of the votes of the association | 5 | | delivered to the board within 14 days of the board action, | 6 | | shall call a meeting of the members unit owners within 30 days | 7 | | of the date of delivery of the petition to consider the budget | 8 | | or separate assessment; unless a majority of the total votes of | 9 | | the members unit owners are cast at the meeting to reject the | 10 | | budget or separate assessment, it shall be deemed ratified. | 11 | | (d) If total common expenses exceed the total amount of the | 12 | | approved and adopted budget, the common interest community | 13 | | association shall disclose this variance to all its members and | 14 | | specifically identify the subsequent assessments needed to | 15 | | offset this variance in future budgets. Any common expense not | 16 | | set forth in the budget or any increase in assessments over the | 17 | | amount adopted in the budget shall be separately assessed | 18 | | against all unit owners. | 19 | | (e) Separate assessments for expenditures relating to | 20 | | emergencies or mandated by law may be adopted by the board | 21 | | without being subject to member unit owner approval or the | 22 | | provisions of subsection (c) or (f) of this Section. As used | 23 | | herein, "emergency" means a danger to or a compromise of the | 24 | | structural integrity of the common areas or any of the common | 25 | | facilities of the common interest community. "Emergency" also | 26 | | includes a danger to the life, health, or safety of the |
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| 1 | | membership an immediate danger to the structural integrity of | 2 | | the common areas or to the life, health, safety, or property of | 3 | | the unit owners . | 4 | | (f) Assessments for additions and alterations to the common | 5 | | areas or to association-owned property not included in the | 6 | | adopted annual budget, shall be separately assessed and are | 7 | | subject to approval of a simple majority two-thirds of the | 8 | | total members at a meeting called for that purpose. | 9 | | (g) The board may adopt separate assessments payable over | 10 | | more than one fiscal year. With respect to multi-year | 11 | | assessments not governed by subsections (e) and (f) of this | 12 | | Section, the entire amount of the multi-year assessment shall | 13 | | be deemed considered and authorized in the first fiscal year in | 14 | | which the assessment is approved. | 15 | | (h) The board of a common interest community association | 16 | | shall have the authority to establish and maintain a system of | 17 | | master metering of public utility services to collect payments | 18 | | in conjunction therewith, subject to the requirements of the | 19 | | Tenant Utility Payment Disclosure Act.
| 20 | | (Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.) | 21 | | (765 ILCS 160/1-50)
| 22 | | Sec. 1-50. Administration of property prior to election of | 23 | | the initial board of directors. | 24 | | (a) Until the election of the initial board whose | 25 | | declaration is recorded on or after the effective date of this |
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| 1 | | Act, the same rights, titles, powers, privileges, trusts, | 2 | | duties, and obligations that are vested in or imposed upon the | 3 | | board by this Act or in the declaration or other duly recorded | 4 | | covenant shall be held and performed by the developer.
| 5 | | (b) The election of the initial board, whose declaration is | 6 | | recorded on or after the effective date of this Act, shall be | 7 | | held not later than 60 days after the conveyance by the | 8 | | developer of 75% of the units, or 3 years after the recording | 9 | | of the declaration, whichever is earlier. The developer shall | 10 | | give at least 21 days' notice of the meeting to elect the | 11 | | initial board of directors and shall upon request provide to | 12 | | any member unit owner , within 3 working days of the request, | 13 | | the names, addresses, and weighted vote of each member unit | 14 | | owner entitled to vote at the meeting. Any member unit owner | 15 | | shall, upon receipt of the request, be provided with the same | 16 | | information, within 10 days after the request, with respect to | 17 | | each subsequent meeting to elect members of the board of | 18 | | directors.
| 19 | | (c) If the initial board of a common interest community | 20 | | association whose declaration is recorded on or after the | 21 | | effective date of this Act is not elected by the time | 22 | | established in subsection (b), the developer shall continue in | 23 | | office for a period of 30 days, whereupon written notice of his | 24 | | or her resignation shall be sent to all of the unit owners or | 25 | | members.
| 26 | | (d) Within 60 days following the election of a majority of |
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| 1 | | the board, other than the developer, by members unit owners , | 2 | | the developer shall deliver to the board:
| 3 | | (1) All original documents as recorded or filed | 4 | | pertaining to the property, its administration, and the | 5 | | association, such as the declaration, articles of | 6 | | incorporation, other instruments, annual reports, minutes, | 7 | | rules and regulations, and contracts, leases, or other | 8 | | agreements entered into by the association. If any original | 9 | | documents are unavailable, a copy may be provided if | 10 | | certified by affidavit of the developer, or an officer or | 11 | | agent of the developer, as being a complete copy of the | 12 | | actual document recorded or filed.
| 13 | | (2) A detailed accounting by the developer, setting | 14 | | forth the source and nature of receipts and expenditures in | 15 | | connection with the management, maintenance, and operation | 16 | | of the property, copies of all insurance policies, and a | 17 | | list of any loans or advances to the association which are | 18 | | outstanding.
| 19 | | (3) Association funds, which shall have been at all | 20 | | times segregated from any other moneys of the developer.
| 21 | | (4) A schedule of all real or personal property, | 22 | | equipment, and fixtures belonging to the association, | 23 | | including documents transferring the property, warranties, | 24 | | if any, for all real and personal property and equipment, | 25 | | deeds, title insurance policies, and all tax bills.
| 26 | | (5) A list of all litigation, administrative action, |
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| 1 | | and arbitrations involving the association, any notices of | 2 | | governmental bodies involving actions taken or which may be | 3 | | taken concerning the association, engineering and | 4 | | architectural drawings and specifications as approved by | 5 | | any governmental authority, all other documents filed with | 6 | | any other governmental authority, all governmental | 7 | | certificates, correspondence involving enforcement of any | 8 | | association requirements, copies of any documents relating | 9 | | to disputes involving members or unit owners, and originals | 10 | | of all documents relating to everything listed in this | 11 | | paragraph.
| 12 | | (6) If the developer fails to fully comply with this | 13 | | subsection (d) within the 60 days provided and fails to | 14 | | fully comply within 10 days after written demand mailed by | 15 | | registered or certified mail to his or her last known | 16 | | address, the board may bring an action to compel compliance | 17 | | with this subsection (d). If the court finds that any of | 18 | | the required deliveries were not made within the required | 19 | | period, the board shall be entitled to recover its | 20 | | reasonable attorney's fees and costs incurred from and | 21 | | after the date of expiration of the 10-day demand.
| 22 | | (e) With respect to any common interest community | 23 | | association whose declaration is recorded on or after the | 24 | | effective date of this Act, any contract, lease, or other | 25 | | agreement made prior to the election of a majority of the board | 26 | | other than the developer by or on behalf of members unit owners |
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| 1 | | or underlying common interest community association, the | 2 | | association or the board, which extends for a period of more | 3 | | than 2 years from the recording of the declaration, shall be | 4 | | subject to cancellation by more than one-half of the votes of | 5 | | the members unit owners , other than the developer, cast at a | 6 | | special meeting of members called for that purpose during a | 7 | | period of 90 days prior to the expiration of the 2-year period | 8 | | if the board is elected by the members unit owners , otherwise | 9 | | by more than one-half of the underlying common interest | 10 | | community association board. At least 60 days prior to the | 11 | | expiration of the 2-year period, the board or, if the board is | 12 | | still under developer control, the developer shall send notice | 13 | | to every member unit owner notifying them of this provision, of | 14 | | what contracts, leases, and other agreements are affected, and | 15 | | of the procedure for calling a meeting of the members unit | 16 | | owners or for action by the board for the purpose of acting to | 17 | | terminate such contracts, leases or other agreements. During | 18 | | the 90-day period the other party to the contract, lease, or | 19 | | other agreement shall also have the right of cancellation.
| 20 | | (f) The statute of limitations for any actions in law or | 21 | | equity that the board may bring shall not begin to run until | 22 | | the members unit owners have elected a majority of the members | 23 | | of the board.
| 24 | | (Source: P.A. 96-1400, eff. 7-29-10.) | 25 | | (765 ILCS 160/1-60)
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| 1 | | Sec. 1-60. Errors and omissions. | 2 | | (a) If there is an omission or error in the declaration or | 3 | | other instrument of the association, the association may | 4 | | correct the error or omission by an amendment to the | 5 | | declaration or other instrument, as may be required to conform | 6 | | it to this Act, to any other applicable statute, or to the | 7 | | declaration. The amendment shall be adopted by vote of | 8 | | two-thirds of the members of the board of directors or by a | 9 | | majority vote of the members at a meeting called for that | 10 | | purpose, unless the Act or the declaration of the association | 11 | | specifically provides for greater percentages or different | 12 | | procedures. | 13 | | (b) If, through a scrivener's error, a unit has not been | 14 | | designated as owning an appropriate undivided share of the | 15 | | common areas or does not bear an appropriate share of the | 16 | | common expenses, or if all of the common expenses or all of the | 17 | | common elements have not been distributed in the declaration, | 18 | | so that the sum total of the shares of common areas which have | 19 | | been distributed or the sum total of the shares of the common | 20 | | expenses fail to equal 100%, or if it appears that more than | 21 | | 100% of the common elements or common expenses have been | 22 | | distributed, the error may be corrected by operation of law by | 23 | | filing an amendment to the declaration, approved by vote of | 24 | | two-thirds of the members of the board or a majority vote of | 25 | | the members at a meeting called for that purpose, which | 26 | | proportionately adjusts all percentage interests so that the |
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| 1 | | total is equal to 100%, unless the declaration specifically | 2 | | provides for a different procedure or different percentage vote | 3 | | by the owners of the units and the owners of mortgages thereon | 4 | | affected by modification being made in the undivided interest | 5 | | in the common areas, the number of votes in the association or | 6 | | the liability for common expenses appertaining to the unit.
| 7 | | (c) If a scrivener's error in the declaration or other | 8 | | instrument is corrected by vote of two-thirds of the members of | 9 | | the board pursuant to the authority established in subsection | 10 | | (a) or subsection (b), the board, upon written petition by | 11 | | members with 20% of the votes of the association received | 12 | | within 30 days of the board action, shall call a meeting of the | 13 | | members within 30 days of the filing of the petition to | 14 | | consider the board action. Unless a majority of the votes of | 15 | | the members of the association are cast at the meeting to | 16 | | reject the action, it is ratified whether or not a quorum is | 17 | | present.
| 18 | | (d) Nothing contained in this Section shall be construed to | 19 | | invalidate any provision of a declaration authorizing the | 20 | | developer to amend an instrument prior to the latest date on | 21 | | which the initial membership meeting of the members unit owners | 22 | | must be held, whether or not it has actually been held, to | 23 | | bring the instrument into compliance with the legal | 24 | | requirements of the Federal National Mortgage Association, the | 25 | | Federal Home Loan Mortgage Corporation, the Federal Housing | 26 | | Administration, the United States Department of Veterans |
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| 1 | | Affairs, or their respective successors and assigns.
| 2 | | (Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.) | 3 | | (765 ILCS 160/1-75)
| 4 | | Sec. 1-75. Exemptions for small common community interest | 5 | | communities. | 6 | | (a) A common interest community association organized | 7 | | under the General Not for Profit Corporation Act of 1986 and | 8 | | having either (i) 10 units or less or (ii) annual budgeted | 9 | | assessments of $100,000 or less shall be exempt from this Act | 10 | | unless the association affirmatively elects to be covered by | 11 | | this Act by a majority of its directors or members. | 12 | | (b) Common interest community associations which in their | 13 | | declaration, bylaws, or other governing documents provide that | 14 | | the association may not use the courts or an arbitration | 15 | | process to collect or enforce assessments, fines, or similar | 16 | | levies and common interest community associations (i) of 10 | 17 | | units or less or (ii) having annual budgeted assessments of | 18 | | $50,000 or less shall be exempt from subsection (a) of Section | 19 | | 1-30, subsections (a) and (b) of Section 1-40, and Section 1-55 | 20 | | but shall be required to provide notice of meetings to members | 21 | | unit owners in a manner and at a time that will allow members | 22 | | unit owners to participate in those meetings.
| 23 | | (Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
| 24 | | Section 99. Effective date. This Act takes effect upon |
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| 1 | | becoming law.".
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