Full Text of SB1374 99th General Assembly
SB1374eng 99TH GENERAL ASSEMBLY |
| | SB1374 Engrossed | | LRB099 05853 HEP 25897 b |
|
| 1 | | AN ACT concerning civil law.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Code of Civil Procedure is amended by | 5 | | changing Section 9-102 as follows:
| 6 | | (735 ILCS 5/9-102) (from Ch. 110, par. 9-102)
| 7 | | Sec. 9-102. When action may be maintained.
| 8 | | (a) The person entitled to the possession of lands or | 9 | | tenements may be
restored thereto under any of the following | 10 | | circumstances:
| 11 | | (1) When a forcible entry is made thereon.
| 12 | | (2) When a peaceable entry is made and the possession | 13 | | unlawfully withheld.
| 14 | | (3) When entry is made into vacant or unoccupied lands | 15 | | or
tenements without right or title.
| 16 | | (4) When any lessee of the lands or tenements, or any | 17 | | person
holding under such lessee, holds possession without | 18 | | right after the
termination of the lease or tenancy by its | 19 | | own limitation, condition
or terms, or by notice to quit or | 20 | | otherwise.
| 21 | | (5) When a vendee having obtained possession under a | 22 | | written or
verbal agreement to purchase lands or tenements, | 23 | | and having failed to
comply with the agreement, withholds |
| | | SB1374 Engrossed | - 2 - | LRB099 05853 HEP 25897 b |
|
| 1 | | possession thereof, after demand in
writing by the person | 2 | | entitled to such possession; provided, however,
that any | 3 | | such agreement for residential real estate as defined in | 4 | | the
Illinois Mortgage Foreclosure Law entered into on or | 5 | | after July 1, 1987 where
the purchase price is to be paid | 6 | | in installments over a period in excess of 5
years and the | 7 | | amount unpaid under the terms of the contract at the time | 8 | | of
the filing of a foreclosure complaint under Article XV, | 9 | | including principal
and due and unpaid interest, is less | 10 | | than 80% of the original purchase price
shall be foreclosed | 11 | | under the Illinois Mortgage Foreclosure Law.
| 12 | | This amendatory Act of 1993 is declarative of existing | 13 | | law.
| 14 | | (6) When lands or tenements have been conveyed by any | 15 | | grantor in
possession, or sold under the order or judgment | 16 | | of any court in this State, or
by virtue of any sale in any | 17 | | mortgage or deed of trust contained and the
grantor in | 18 | | possession or party to such order or judgment or to such | 19 | | mortgage or
deed of trust, after the expiration of the time | 20 | | of redemption, when redemption
is allowed by law, refuses | 21 | | or neglects to surrender possession thereof, after
demand | 22 | | in writing by the person entitled thereto, or his or her | 23 | | agent.
| 24 | | (7) When any property is subject to the provisions of | 25 | | the Condominium
Property Act, the owner of a unit fails or | 26 | | refuses to pay when due his or
her proportionate share of |
| | | SB1374 Engrossed | - 3 - | LRB099 05853 HEP 25897 b |
|
| 1 | | the common expenses of such property, or of any
other | 2 | | expenses lawfully agreed upon or any unpaid fine, the Board | 3 | | of
Managers or its agents have served the demand set forth | 4 | | in Section 9-104.1
of this Article in the manner provided | 5 | | for in that Section and the unit
owner has failed to pay | 6 | | the amount claimed within the time prescribed in
the | 7 | | demand; or if the lessor-owner of a unit fails to comply | 8 | | with the leasing
requirements prescribed by subsection (n) | 9 | | of Section 18 of the Condominium
Property Act or by
the
| 10 | | declaration, by-laws, and rules and regulations of the | 11 | | condominium, or if a
lessee of an owner is in breach of any | 12 | | covenants, rules, regulations, or
by-laws of the | 13 | | condominium, and the Board of Managers or its agents have | 14 | | served
the demand set forth in Section 9-104.2 of this | 15 | | Article in the manner provided
in that Section.
| 16 | | (8) When any property is subject to the provisions of a | 17 | | declaration
establishing a common interest community and | 18 | | requiring the unit owner to
pay regular or special | 19 | | assessments for the maintenance or repair of common
areas | 20 | | owned in common by all of the owners of the common interest | 21 | | community
or by the community association and maintained | 22 | | for the use of the unit
owners or of any other expenses of | 23 | | the association lawfully agreed upon,
and the unit owner | 24 | | fails or refuses to pay when due his or her
proportionate | 25 | | share of such assessments or expenses and the board or its
| 26 | | agents have served the demand set forth in Section 9-104.1 |
| | | SB1374 Engrossed | - 4 - | LRB099 05853 HEP 25897 b |
|
| 1 | | of this Article
in the manner provided for in that Section | 2 | | and the unit owner has failed to
pay the amount claimed | 3 | | within the time prescribed in the demand.
| 4 | | (b) The provisions of paragraph (8) of subsection (a) of | 5 | | Section 9-102
and Section 9-104.3 of this Act shall not apply | 6 | | to any common interest
community unless (1) the association is | 7 | | a not-for-profit corporation or a limited liability company , | 8 | | (2)
unit owners are authorized to attend meetings of the board | 9 | | of directors or
board of managers of the association in the | 10 | | same manner as provided for
condominiums under the Condominium | 11 | | Property Act, and (3) the board of
managers or board of | 12 | | directors of the common interest community association
has, | 13 | | subsequent to the effective date of this amendatory Act of 1984 | 14 | | voted
to have the provisions of this Article apply to such | 15 | | association and has
delivered or mailed notice of such action | 16 | | to the unit owners or unless the
declaration of the association | 17 | | is recorded after the effective date of this
amendatory Act of | 18 | | 1985.
| 19 | | (c) For purposes of this Article:
| 20 | | (1) "Common interest community" means real estate | 21 | | other than a
condominium or cooperative with respect to | 22 | | which any person by virtue of
his or her ownership of a | 23 | | partial interest or unit therein is obligated to
pay for | 24 | | maintenance, improvement, insurance premiums, or real | 25 | | estate taxes
of other real estate described in a | 26 | | declaration which is administered by
an association.
|
| | | SB1374 Engrossed | - 5 - | LRB099 05853 HEP 25897 b |
|
| 1 | | (2) "Declaration" means any duly recorded instruments, | 2 | | however
designated, that have created a common interest | 3 | | community and any duly
recorded amendments to those | 4 | | instruments.
| 5 | | (3) "Unit" means a physical portion of the common | 6 | | interest community
designated by separate ownership or | 7 | | occupancy by boundaries which are
described in a | 8 | | declaration.
| 9 | | (4) "Unit owners' association" or "association" means | 10 | | the association
of all owners of units in the common | 11 | | interest community acting pursuant to
the declaration.
| 12 | | (d) If the board of a common interest community elects to | 13 | | have the
provisions of this Article apply to such association | 14 | | or the declaration of
the association is recorded after the | 15 | | effective date of this amendatory Act
of 1985, the provisions | 16 | | of subsections (c) through (h) of Section 18.5 of
the | 17 | | Condominium Property Act applicable to a Master Association and
| 18 | | condominium unit subject to such association under subsections | 19 | | (c) through
(h) of Section 18.5 shall be applicable to the | 20 | | community associations and
to its unit owners.
| 21 | | (Source: P.A. 88-47; 89-41, eff. 6-23-95; 89-626, eff. 8-9-96.)
| 22 | | Section 10. The Common Interest Community Association Act | 23 | | is amended by changing Sections 1-5, 1-20, 1-25, 1-30, and 1-50 | 24 | | as follows: |
| | | SB1374 Engrossed | - 6 - | LRB099 05853 HEP 25897 b |
|
| 1 | | (765 ILCS 160/1-5) | 2 | | Sec. 1-5. Definitions. As used in this Act, unless the | 3 | | context otherwise requires: | 4 | | "Acceptable technological means" includes, without | 5 | | limitation, electronic transmission over the Internet or other | 6 | | network, whether by direct connection, intranet, telecopier, | 7 | | or electronic mail. | 8 | | "Association" or "common interest community association" | 9 | | means the association of all the members of a common interest | 10 | | community, acting pursuant to bylaws or an operating agreement | 11 | | through its duly elected board of managers or board of | 12 | | directors. | 13 | | "Board" means a common interest community association's | 14 | | board of managers or board of directors, whichever is | 15 | | applicable. | 16 | | "Board member" or "member of the board" means a member of | 17 | | the board of managers or the board of directors, whichever is | 18 | | applicable. | 19 | | "Board of directors" means, for a common interest community | 20 | | that has been incorporated as an Illinois not-for-profit | 21 | | corporation, the group of people elected by the members of a | 22 | | common interest community as the governing body to exercise for | 23 | | the members of the common interest community association all | 24 | | powers, duties, and authority vested in the board of directors | 25 | | under this Act and the common interest community association's | 26 | | declaration and bylaws. |
| | | SB1374 Engrossed | - 7 - | LRB099 05853 HEP 25897 b |
|
| 1 | | "Board of managers" means, for a common interest community | 2 | | that is an unincorporated association or organized as a limited | 3 | | liability company , the group of people elected by the members | 4 | | of a common interest community as the governing body to | 5 | | exercise for the members of the common interest community | 6 | | association all powers, duties, and authority vested in the | 7 | | board of managers under this Act and the common interest | 8 | | community association's declaration , and bylaws , or operating | 9 | | agreement . | 10 | | "Building" means all structures, attached or unattached, | 11 | | containing one or more units. | 12 | | "Common areas" means the portion of the property other than | 13 | | a unit. | 14 | | "Common expenses" means the proposed or actual expenses | 15 | | affecting the property, including reserves, if any, lawfully | 16 | | assessed by the common interest community association. | 17 | | "Common interest community" means real estate other than a | 18 | | condominium or cooperative with respect to which any person by | 19 | | virtue of his or her ownership of a partial interest or a unit | 20 | | therein is obligated to pay for the maintenance, improvement, | 21 | | insurance premiums or real estate taxes of common areas | 22 | | described in a declaration which is administered by an | 23 | | association. "Common interest community" may include, but not | 24 | | be limited to, an attached or detached townhome, villa, or | 25 | | single-family home. A "common interest community" does not | 26 | | include a master association. |
| | | SB1374 Engrossed | - 8 - | LRB099 05853 HEP 25897 b |
|
| 1 | | "Community instruments" means all documents and authorized | 2 | | amendments thereto recorded by a developer or common interest | 3 | | community association, including, but not limited to, the | 4 | | declaration, bylaws, operating agreement, plat of survey, and | 5 | | rules and regulations. | 6 | | "Declaration" means any duly recorded instruments, however | 7 | | designated, that have created a common interest community and | 8 | | any duly recorded amendments to those instruments. | 9 | | "Developer" means any person who submits property legally | 10 | | or equitably owned in fee simple by the person to the | 11 | | provisions of this Act, or any person who offers units legally | 12 | | or equitably owned in fee simple by the person for sale in the | 13 | | ordinary course of such person's business, including any | 14 | | successor to such person's entire interest in the property | 15 | | other than the purchaser of an individual unit. | 16 | | "Developer control" means such control at a time prior to | 17 | | the election of the board of the common interest community | 18 | | association by a majority of the members other than the | 19 | | developer. | 20 | | "Electronic transmission" means any form of communication, | 21 | | not directly involving the physical transmission of paper, that | 22 | | creates a record that may be retained, retrieved, and reviewed | 23 | | by a recipient and that may be directly reproduced in paper | 24 | | form by the recipient through an automated process. | 25 | | "Majority" or "majority of the members" means the owners of | 26 | | more than 50% in the aggregate in interest of the undivided |
| | | SB1374 Engrossed | - 9 - | LRB099 05853 HEP 25897 b |
|
| 1 | | ownership of the common elements. Any specified percentage of | 2 | | the members means such percentage in the aggregate in interest | 3 | | of such undivided ownership. "Majority" or "majority of the | 4 | | members of the board of the common interest community | 5 | | association" means more than 50% of the total number of persons | 6 | | constituting such board pursuant to the bylaws or operating | 7 | | agreement . Any specified percentage of the members of the | 8 | | common interest community association means that percentage of | 9 | | the total number of persons constituting such board pursuant to | 10 | | the bylaws or operating agreement . | 11 | | "Management company" or "community association manager" | 12 | | means a person, partnership, corporation, or other legal entity | 13 | | entitled to transact business on behalf of others, acting on | 14 | | behalf of or as an agent for an association for the purpose of | 15 | | carrying out the duties, responsibilities, and other | 16 | | obligations necessary for the day to day operation and | 17 | | management of any property subject to this Act.
| 18 | | "Meeting of the board" or "board meeting" means any | 19 | | gathering of a quorum of the members of the board of the common | 20 | | interest community association held for the purpose of | 21 | | conducting board business. | 22 | | "Member" means the person or entity designated as an owner | 23 | | and entitled to one vote as defined by the community | 24 | | instruments. The terms "member" and "unit owner" may be used | 25 | | interchangeably as defined by the community instruments, | 26 | | except in situations in which a matter of legal title to the |
| | | SB1374 Engrossed | - 10 - | LRB099 05853 HEP 25897 b |
|
| 1 | | unit is involved or at issue, in which case the term "unit | 2 | | owner" would be the applicable term used. | 3 | | "Membership" means the collective group of members | 4 | | entitled to vote as defined by the community instruments. | 5 | | "Parcel" means the lot or lots or tract or tracts of land | 6 | | described in the declaration as part of a common interest | 7 | | community. | 8 | | "Person" means a natural individual, corporation, | 9 | | partnership, trustee, or other legal entity capable of holding | 10 | | title to real property. | 11 | | "Plat" means a plat or plats of survey of the parcel and of | 12 | | all units in the common interest community, which may consist | 13 | | of a three-dimensional horizontal and vertical delineation of | 14 | | all such units, structures, easements, and common areas on the | 15 | | property. | 16 | | "Prescribed delivery method" means mailing, delivering, | 17 | | posting in an association publication that is routinely mailed | 18 | | to all members, electronic transmission, or any other delivery | 19 | | method that is approved in writing by the member and authorized | 20 | | by the community instruments. | 21 | | "Property" means all the land, property, and space | 22 | | comprising the parcel, all improvements and structures | 23 | | erected, constructed or contained therein or thereon, | 24 | | including any building and all easements, rights, and | 25 | | appurtenances belonging thereto, and all fixtures and | 26 | | equipment intended for the mutual use, benefit, or enjoyment of |
| | | SB1374 Engrossed | - 11 - | LRB099 05853 HEP 25897 b |
|
| 1 | | the members, under the authority or control of a common | 2 | | interest community association. | 3 | | "Purchaser" means any person or persons, other than the | 4 | | developer, who purchase a unit in a bona fide transaction for | 5 | | value. | 6 | | "Record" means to record in the office of the recorder of | 7 | | the county wherein the property is located. | 8 | | "Reserves" means those sums paid by members which are | 9 | | separately maintained by the common interest community | 10 | | association for purposes specified by the declaration and | 11 | | bylaws of the common interest community association. | 12 | | "Unit" means a part of the property designed and intended | 13 | | for any type of independent use. | 14 | | "Unit owner" means the person or persons whose estates or | 15 | | interests, individually or collectively, aggregate fee simple | 16 | | absolute ownership of a unit.
| 17 | | (Source: P.A. 97-605, eff. 8-26-11; 97-1090, eff. 8-24-12; | 18 | | 98-1042, eff. 1-1-15 .) | 19 | | (765 ILCS 160/1-20)
| 20 | | Sec. 1-20. Amendments to the declaration , or bylaws , or | 21 | | operating agreement . | 22 | | (a) The administration of every property shall be governed | 23 | | by the declaration and bylaws or operating agreement , which may | 24 | | either be embodied in the declaration or in a separate | 25 | | instrument, a true copy of which shall be appended to and |
| | | SB1374 Engrossed | - 12 - | LRB099 05853 HEP 25897 b |
|
| 1 | | recorded with the declaration. No modification or amendment of | 2 | | the declaration , or bylaws , or operating agreement shall be | 3 | | valid unless the same is set forth in an amendment thereof and | 4 | | such amendment is duly recorded. An amendment of the | 5 | | declaration , or bylaws , or operating agreement shall be deemed | 6 | | effective upon recordation, unless the amendment sets forth a | 7 | | different effective date. | 8 | | (b) Unless otherwise provided by this Act, amendments to | 9 | | community instruments authorized to be recorded shall be | 10 | | executed and recorded by the president of the board or such | 11 | | other officer authorized by the common interest community | 12 | | association or the community instruments. | 13 | | (c) If an association that currently permits leasing amends | 14 | | its declaration, bylaws, or rules and regulations to prohibit | 15 | | leasing, nothing in this Act or the declarations, bylaws, rules | 16 | | and regulations of an association shall prohibit a unit owner | 17 | | incorporated under 26 USC 501(c)(3) which is leasing a unit at | 18 | | the time of the prohibition from continuing to do so until such | 19 | | time that the unit owner voluntarily sells the unit; and no | 20 | | special fine, fee, dues, or penalty shall be assessed against | 21 | | the unit owner for leasing its unit.
| 22 | | (d) No action to incorporate a common interest community as | 23 | | a municipality shall commence until an instrument agreeing to | 24 | | incorporation has been signed by two-thirds of the members. | 25 | | (Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11; | 26 | | 97-1090, eff. 8-24-12.) |
| | | SB1374 Engrossed | - 13 - | LRB099 05853 HEP 25897 b |
|
| 1 | | (765 ILCS 160/1-25) | 2 | | Sec. 1-25. Board of managers, board of directors, duties, | 3 | | elections, and voting. | 4 | | (a) Elections shall be held in accordance with the | 5 | | community instruments, provided that an election shall be held | 6 | | no less frequently than once every 24 months, for the board of | 7 | | managers or board of directors from among the membership of a | 8 | | common interest community association. | 9 | | (b) (Blank). | 10 | | (c) The members of the board shall serve without | 11 | | compensation, unless the community instruments indicate | 12 | | otherwise. | 13 | | (d) No member of the board or officer shall be elected for | 14 | | a term of more than 4 years, but officers and board members may | 15 | | succeed themselves. | 16 | | (e) If there is a vacancy on the board, the remaining | 17 | | members of the board may fill the vacancy by a two-thirds vote | 18 | | of the remaining board members until the next annual meeting of | 19 | | the membership or until members holding 20% of the votes of the | 20 | | association request a meeting of the members to fill the | 21 | | vacancy for the balance of the term. A meeting of the members | 22 | | shall be called for purposes of filling a vacancy on the board | 23 | | no later than 30 days following the filing of a petition signed | 24 | | by membership holding 20% of the votes of the association | 25 | | requesting such a meeting. |
| | | SB1374 Engrossed | - 14 - | LRB099 05853 HEP 25897 b |
|
| 1 | | (f) There shall be an election of a: | 2 | | (1) president from among the members of the board, who | 3 | | shall preside over the meetings of the board and of the | 4 | | membership; | 5 | | (2) secretary from among the members of the board, who | 6 | | shall keep the minutes of all meetings of the board and of | 7 | | the membership and who shall, in general, perform all the | 8 | | duties incident to the office of secretary; and | 9 | | (3) treasurer from among the members of the board, who | 10 | | shall keep the financial records and books of account. | 11 | | (g) If no election is held to elect board members within | 12 | | the time period specified in the bylaws, or within a reasonable | 13 | | amount of time thereafter not to exceed 90 days, then 20% of | 14 | | the members may bring an action to compel compliance with the | 15 | | election requirements specified in the bylaws or operating | 16 | | agreement . If the court finds that an election was not held to | 17 | | elect members of the board within the required period due to | 18 | | the bad faith acts or omissions of the board of managers or the | 19 | | board of directors, the members shall be entitled to recover | 20 | | their reasonable attorney's fees and costs from the | 21 | | association. If the relevant notice requirements have been met | 22 | | and an election is not held solely due to a lack of a quorum, | 23 | | then this subsection (g) does not apply. | 24 | | (h) Where there is more than one owner of a unit and there | 25 | | is only one member vote associated with that unit, if only one | 26 | | of the multiple owners is present at a meeting of the |
| | | SB1374 Engrossed | - 15 - | LRB099 05853 HEP 25897 b |
|
| 1 | | membership, he or she is entitled to cast the member vote | 2 | | associated with that unit. | 3 | | (h-5) A member may vote: | 4 | | (1) by proxy executed in writing by the member or by | 5 | | his or her duly authorized attorney in fact, provided, | 6 | | however, that the proxy bears the date of execution. Unless | 7 | | the community instruments or the written proxy itself | 8 | | provide otherwise, proxies will not be valid for more than | 9 | | 11 months after the date of its execution; or | 10 | | (2) by submitting an association-issued ballot in | 11 | | person at the election meeting; or | 12 | | (3) by submitting an association-issued ballot to the | 13 | | association or its designated agent by mail or other means | 14 | | of delivery specified in the declaration or bylaws; or | 15 | | (4) by any electronic or acceptable technological | 16 | | means. | 17 | | Votes cast under any paragraph of this subsection (h-5) are | 18 | | valid for the purpose of establishing a quorum. | 19 | | (i) The association may, upon adoption of the appropriate | 20 | | rules by the board, conduct elections by electronic or | 21 | | acceptable technological means. Members may not vote by proxy | 22 | | in board elections. Instructions regarding the use of | 23 | | electronic means or acceptable technological means for voting | 24 | | shall be distributed to all members not less than 10 and not | 25 | | more than 30 days before the election meeting. The instruction | 26 | | notice must include the names of all candidates who have given |
| | | SB1374 Engrossed | - 16 - | LRB099 05853 HEP 25897 b |
|
| 1 | | the board or its authorized agent timely written notice of | 2 | | their candidacy and must give the person voting through | 3 | | electronic or acceptable technological means the opportunity | 4 | | to cast votes for candidates whose names do not appear on the | 5 | | ballot. The board rules shall provide and the instructions | 6 | | provided to the member shall state that a member who submits a | 7 | | vote using electronic or acceptable technological means may | 8 | | request and cast a ballot in person at the election meeting, | 9 | | and thereby void any vote previously submitted by that member. | 10 | | (j) Upon proof of purchase, the purchaser of a unit from a | 11 | | seller other than the developer pursuant to an installment | 12 | | contract for purchase shall, during such times as he or she | 13 | | resides in the unit, be counted toward a quorum for purposes of | 14 | | election of members of the board at any meeting of the | 15 | | membership called for purposes of electing members of the | 16 | | board, shall have the right to vote for the members of the | 17 | | board of the common interest community association and to be | 18 | | elected to and serve on the board unless the seller expressly | 19 | | retains in writing any or all of such rights.
| 20 | | (Source: P.A. 97-605, eff. 8-26-11; 97-1090, eff. 8-24-12; | 21 | | 98-1042, eff. 1-1-15 .) | 22 | | (765 ILCS 160/1-30)
| 23 | | Sec. 1-30. Board duties and obligations; records. | 24 | | (a) The board shall meet at least 4 times annually. | 25 | | (b) A common interest community association may not enter |
| | | SB1374 Engrossed | - 17 - | LRB099 05853 HEP 25897 b |
|
| 1 | | into a contract with a current board member, or with a | 2 | | corporation , limited liability company, or partnership in | 3 | | which a board member or a member of his or her immediate family | 4 | | has 25% or more interest, unless notice of intent to enter into | 5 | | the contract is given to members within 20 days after a | 6 | | decision is made to enter into the contract and the members are | 7 | | afforded an opportunity by filing a petition, signed by 20% of | 8 | | the membership, for an election to approve or disapprove the | 9 | | contract; such petition shall be filed within 20 days after | 10 | | such notice and such election shall be held within 30 days | 11 | | after filing the petition. For purposes of this subsection, a | 12 | | board member's immediate family means the board member's | 13 | | spouse, parents, siblings, and children. | 14 | | (c) The bylaws or operating agreement shall provide for the | 15 | | maintenance, repair, and replacement of the common areas and | 16 | | payments therefor, including the method of approving payment | 17 | | vouchers. | 18 | | (d) (Blank). | 19 | | (e) The association may engage the services of a manager or | 20 | | management company. | 21 | | (f) The association shall have one class of membership | 22 | | unless the declaration , or bylaws , or operating agreement | 23 | | provide otherwise; however, this subsection (f) shall not be | 24 | | construed to limit the operation of subsection (c) of Section | 25 | | 1-20 of this Act. | 26 | | (g) The board shall have the power, after notice and an |
| | | SB1374 Engrossed | - 18 - | LRB099 05853 HEP 25897 b |
|
| 1 | | opportunity to be heard, to levy and collect reasonable fines | 2 | | from members or unit owners for violations of the declaration, | 3 | | bylaws, operating agreement, and rules and regulations of the | 4 | | common interest community association. | 5 | | (h) Other than attorney's fees and court or arbitration | 6 | | costs, no fees pertaining to the collection of a member's or | 7 | | unit owner's financial obligation to the association, | 8 | | including fees charged by a manager or managing agent, shall be | 9 | | added to and deemed a part of a member's or unit owner's | 10 | | respective share of the common expenses unless: (i) the | 11 | | managing agent fees relate to the costs to collect common | 12 | | expenses for the association; (ii) the fees are set forth in a | 13 | | contract between the managing agent and the association; and | 14 | | (iii) the authority to add the management fees to a member's or | 15 | | unit owner's respective share of the common expenses is | 16 | | specifically stated in the declaration , or bylaws , or operating | 17 | | agreement of the association. | 18 | | (i) Board records. | 19 | | (1) The board shall maintain the following records of | 20 | | the association and make them available for examination and | 21 | | copying at convenient hours of weekdays by any member or | 22 | | unit owner in a common interest community subject to the | 23 | | authority of the board, their mortgagees, and their duly | 24 | | authorized agents or attorneys: | 25 | | (i) Copies of the recorded declaration, other | 26 | | community instruments, other duly recorded covenants |
| | | SB1374 Engrossed | - 19 - | LRB099 05853 HEP 25897 b |
|
| 1 | | and bylaws and any amendments, articles of | 2 | | incorporation, articles of organization, annual | 3 | | reports, and any rules and regulations adopted by the | 4 | | board shall be available. Prior to the organization of | 5 | | the board, the developer shall maintain and make | 6 | | available the records set forth in this paragraph (i) | 7 | | for examination and copying. | 8 | | (ii) Detailed and accurate records in | 9 | | chronological order of the receipts and expenditures | 10 | | affecting the common areas, specifying and itemizing | 11 | | the maintenance and repair expenses of the common areas | 12 | | and any other expenses incurred, and copies of all | 13 | | contracts, leases, or other agreements entered into by | 14 | | the board shall be maintained. | 15 | | (iii) The minutes of all meetings of the board | 16 | | which shall be maintained for not less than 7 years. | 17 | | (iv) With a written statement of a proper purpose, | 18 | | ballots and proxies related thereto, if any, for any | 19 | | election held for the board and for any other matters | 20 | | voted on by the members, which shall be maintained for | 21 | | not less than one year. | 22 | | (v) With a written statement of a proper purpose, | 23 | | such other records of the board as are available for | 24 | | inspection by members of a not-for-profit corporation | 25 | | pursuant to Section 107.75 of the General Not For | 26 | | Profit Corporation Act of 1986 shall be maintained. |
| | | SB1374 Engrossed | - 20 - | LRB099 05853 HEP 25897 b |
|
| 1 | | (vi) With respect to units owned by a land trust, a | 2 | | living trust, or other legal entity, the trustee, | 3 | | officer, or manager of the entity may designate, in | 4 | | writing, a person to cast votes on behalf of the member | 5 | | or unit owner and a designation shall remain in effect | 6 | | until a subsequent document is filed with the | 7 | | association. | 8 | | (2) Where a request for records under this subsection | 9 | | is made in writing to the board or its agent, failure to | 10 | | provide the requested record or to respond within 30 days | 11 | | shall be deemed a denial by the board. | 12 | | (3) A reasonable fee may be charged by the board for | 13 | | the cost of retrieving and copying records properly | 14 | | requested. | 15 | | (4) If the board fails to provide records properly | 16 | | requested under paragraph (1) of this subsection (i) within | 17 | | the time period provided in that paragraph (1), the member | 18 | | may seek appropriate relief and shall be entitled to an | 19 | | award of reasonable attorney's fees and costs if the member | 20 | | prevails and the court finds that such failure is due to | 21 | | the acts or omissions of the board of managers or the board | 22 | | of directors. | 23 | | (j) The board shall have standing and capacity to act in a | 24 | | representative capacity in relation to matters involving the | 25 | | common areas or more than one unit, on behalf of the members or | 26 | | unit owners as their interests may appear.
|
| | | SB1374 Engrossed | - 21 - | LRB099 05853 HEP 25897 b |
|
| 1 | | (Source: P.A. 97-605, eff. 8-26-11; 97-1090, eff. 8-24-12; | 2 | | 98-232, eff. 1-1-14; 98-241, eff. 8-9-13; 98-756, eff. | 3 | | 7-16-14.) | 4 | | (765 ILCS 160/1-50)
| 5 | | Sec. 1-50. Administration of property prior to election of | 6 | | the initial board of directors. | 7 | | (a) Until the election of the initial board whose | 8 | | declaration is recorded on or after the effective date of this | 9 | | Act, the same rights, titles, powers, privileges, trusts, | 10 | | duties, and obligations that are vested in or imposed upon the | 11 | | board by this Act or in the declaration or other duly recorded | 12 | | covenant shall be held and performed by the developer.
| 13 | | (b) The election of the initial board, whose declaration is | 14 | | recorded on or after the effective date of this Act, shall be | 15 | | held not later than 60 days after the conveyance by the | 16 | | developer of 75% of the units, or 3 years after the recording | 17 | | of the declaration, whichever is earlier. The developer shall | 18 | | give at least 21 days' notice of the meeting to elect the | 19 | | initial board of directors and shall upon request provide to | 20 | | any member, within 3 working days of the request, the names, | 21 | | addresses, and weighted vote of each member entitled to vote at | 22 | | the meeting. Any member shall, upon receipt of the request, be | 23 | | provided with the same information, within 10 days after the | 24 | | request, with respect to each subsequent meeting to elect | 25 | | members of the board of directors.
|
| | | SB1374 Engrossed | - 22 - | LRB099 05853 HEP 25897 b |
|
| 1 | | (c) If the initial board of a common interest community | 2 | | association whose declaration is recorded on or after the | 3 | | effective date of this Act is not elected by the time | 4 | | established in subsection (b), the developer shall continue in | 5 | | office for a period of 30 days, whereupon written notice of his | 6 | | or her resignation shall be sent to all of the unit owners or | 7 | | members.
| 8 | | (d) Within 60 days following the election of a majority of | 9 | | the board, other than the developer, by members, the developer | 10 | | shall deliver to the board:
| 11 | | (1) All original documents as recorded or filed | 12 | | pertaining to the property, its administration, and the | 13 | | association, such as the declaration, articles of | 14 | | incorporation, articles of organization, other | 15 | | instruments, annual reports, minutes, rules and | 16 | | regulations, and contracts, leases, or other agreements | 17 | | entered into by the association. If any original documents | 18 | | are unavailable, a copy may be provided if certified by | 19 | | affidavit of the developer, or an officer or agent of the | 20 | | developer, as being a complete copy of the actual document | 21 | | recorded or filed.
| 22 | | (2) A detailed accounting by the developer, setting | 23 | | forth the source and nature of receipts and expenditures in | 24 | | connection with the management, maintenance, and operation | 25 | | of the property, copies of all insurance policies, and a | 26 | | list of any loans or advances to the association which are |
| | | SB1374 Engrossed | - 23 - | LRB099 05853 HEP 25897 b |
|
| 1 | | outstanding.
| 2 | | (3) Association funds, which shall have been at all | 3 | | times segregated from any other moneys of the developer.
| 4 | | (4) A schedule of all real or personal property, | 5 | | equipment, and fixtures belonging to the association, | 6 | | including documents transferring the property, warranties, | 7 | | if any, for all real and personal property and equipment, | 8 | | deeds, title insurance policies, and all tax bills.
| 9 | | (5) A list of all litigation, administrative action, | 10 | | and arbitrations involving the association, any notices of | 11 | | governmental bodies involving actions taken or which may be | 12 | | taken concerning the association, engineering and | 13 | | architectural drawings and specifications as approved by | 14 | | any governmental authority, all other documents filed with | 15 | | any other governmental authority, all governmental | 16 | | certificates, correspondence involving enforcement of any | 17 | | association requirements, copies of any documents relating | 18 | | to disputes involving members or unit owners, and originals | 19 | | of all documents relating to everything listed in this | 20 | | paragraph.
| 21 | | (6) If the developer fails to fully comply with this | 22 | | subsection (d) within the 60 days provided and fails to | 23 | | fully comply within 10 days after written demand mailed by | 24 | | registered or certified mail to his or her last known | 25 | | address, the board may bring an action to compel compliance | 26 | | with this subsection (d). If the court finds that any of |
| | | SB1374 Engrossed | - 24 - | LRB099 05853 HEP 25897 b |
|
| 1 | | the required deliveries were not made within the required | 2 | | period, the board shall be entitled to recover its | 3 | | reasonable attorney's fees and costs incurred from and | 4 | | after the date of expiration of the 10-day demand.
| 5 | | (e) With respect to any common interest community | 6 | | association whose declaration is recorded on or after the | 7 | | effective date of this Act, any contract, lease, or other | 8 | | agreement made prior to the election of a majority of the board | 9 | | other than the developer by or on behalf of members or | 10 | | underlying common interest community association, the | 11 | | association or the board, which extends for a period of more | 12 | | than 2 years from the recording of the declaration, shall be | 13 | | subject to cancellation by more than one-half of the votes of | 14 | | the members, other than the developer, cast at a special | 15 | | meeting of members called for that purpose during a period of | 16 | | 90 days prior to the expiration of the 2-year period if the | 17 | | board is elected by the members, otherwise by more than | 18 | | one-half of the underlying common interest community | 19 | | association board. At least 60 days prior to the expiration of | 20 | | the 2-year period, the board or, if the board is still under | 21 | | developer control, the developer shall send notice to every | 22 | | member notifying them of this provision, of what contracts, | 23 | | leases, and other agreements are affected, and of the procedure | 24 | | for calling a meeting of the members or for action by the board | 25 | | for the purpose of acting to terminate such contracts, leases | 26 | | or other agreements. During the 90-day period the other party |
| | | SB1374 Engrossed | - 25 - | LRB099 05853 HEP 25897 b |
|
| 1 | | to the contract, lease, or other agreement shall also have the | 2 | | right of cancellation.
| 3 | | (f) The statute of limitations for any actions in law or | 4 | | equity that the board may bring shall not begin to run until | 5 | | the members have elected a majority of the members of the | 6 | | board.
| 7 | | (Source: P.A. 96-1400, eff. 7-29-10; 97-1090, eff. 8-24-12.)
| 8 | | Section 99. Effective date. This Act takes effect upon | 9 | | becoming law.
|
|