Full Text of SB0948 100th General Assembly
SB0948eng 100TH GENERAL ASSEMBLY |
| | SB0948 Engrossed | | LRB100 06987 HEP 17040 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 Common Interest Community Association Act is | 5 | | amended by changing Section 1-45 as follows: | 6 | | (765 ILCS 160/1-45)
| 7 | | Sec. 1-45. Finances. | 8 | | (a) Each member shall receive through a prescribed delivery | 9 | | method, at least 25 30 days but not more than 60 days prior to | 10 | | the adoption thereof by the board, a copy of the proposed | 11 | | annual budget together with an indication of which portions are | 12 | | intended for reserves, capital expenditures or repairs or | 13 | | payment of real estate taxes. | 14 | | (b) The board shall provide all members with a reasonably | 15 | | detailed summary of the receipts, common expenses, and reserves | 16 | | for the preceding budget year. The board shall (i) make | 17 | | available for review to all members an itemized accounting of | 18 | | the common expenses for the preceding year actually incurred or | 19 | | paid, together with an indication of which portions were for | 20 | | reserves, capital expenditures or repairs or payment of real | 21 | | estate taxes and with a tabulation of the amounts collected | 22 | | pursuant to the budget or assessment, and showing the net | 23 | | excess or deficit of income over expenditures plus reserves or |
| | | SB0948 Engrossed | - 2 - | LRB100 06987 HEP 17040 b |
|
| 1 | | (ii) provide a consolidated annual independent audit report of | 2 | | the financial status of all fund accounts within the | 3 | | association. | 4 | | (c) If an adopted budget or any separate assessment adopted | 5 | | by the board would result in the sum of all regular and | 6 | | separate assessments payable in the current fiscal year | 7 | | exceeding 115% of the sum of all regular and separate | 8 | | assessments payable during the preceding fiscal year, the | 9 | | common interest community association, upon written petition | 10 | | by members with 20% of the votes of the association delivered | 11 | | to the board within 14 days of the board action, shall call a | 12 | | meeting of the members within 30 days of the date of delivery | 13 | | of the petition to consider the budget or separate assessment; | 14 | | unless a majority of the total votes of the members are cast at | 15 | | the meeting to reject the budget or separate assessment, it | 16 | | shall be deemed ratified. | 17 | | (d) If total common expenses exceed the total amount of the | 18 | | approved and adopted budget, the common interest community | 19 | | association shall disclose this variance to all its members and | 20 | | specifically identify the subsequent assessments needed to | 21 | | offset this variance in future budgets. | 22 | | (e) Separate assessments for expenditures relating to | 23 | | emergencies or mandated by law may be adopted by the board | 24 | | without being subject to member approval or the provisions of | 25 | | subsection (c) or (f) of this Section. As used herein, | 26 | | "emergency" means a danger to or a compromise of the structural |
| | | SB0948 Engrossed | - 3 - | LRB100 06987 HEP 17040 b |
|
| 1 | | integrity of the common areas or any of the common facilities | 2 | | of the common interest community. "Emergency" also includes a | 3 | | danger to the life, health or safety of the membership. | 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 of the total members | 8 | | 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 | | 97-1090, eff. 8-24-12.) | 22 | | Section 10. The Condominium Property Act is amended by | 23 | | changing Section 18.5 as follows:
| 24 | | (765 ILCS 605/18.5) (from Ch. 30, par. 318.5)
|
| | | SB0948 Engrossed | - 4 - | LRB100 06987 HEP 17040 b |
|
| 1 | | Sec. 18.5. Master Associations.
| 2 | | (a) If the declaration, other condominium instrument, or | 3 | | other duly
recorded covenants provide that any of the powers of | 4 | | the unit owners
associations are to be exercised by or may be | 5 | | delegated to a nonprofit
corporation or unincorporated | 6 | | association that exercises
those or other powers on behalf of | 7 | | one or more condominiums, or for the
benefit of the unit owners | 8 | | of one or more condominiums, such
corporation or association | 9 | | shall be a master association.
| 10 | | (b) There shall be included in the declaration, other
| 11 | | condominium instruments, or other duly recorded covenants | 12 | | establishing
the powers and duties of the master association | 13 | | the provisions set forth in
subsections (c) through (h).
| 14 | | In interpreting subsections (c) through (h), the courts | 15 | | should
interpret these provisions so that they are interpreted | 16 | | consistently with
the similar parallel provisions found in | 17 | | other parts of this Act.
| 18 | | (c) Meetings and finances.
| 19 | | (1) Each unit owner of a condominium subject to the | 20 | | authority of
the board of the master association shall | 21 | | receive, at least 25 30 days prior
to the adoption thereof | 22 | | by the board of the master association, a copy of
the | 23 | | proposed annual budget.
| 24 | | (2) The board of the master association shall annually | 25 | | supply to
all unit owners of condominiums subject to the | 26 | | authority of the board
of the master association an |
| | | SB0948 Engrossed | - 5 - | LRB100 06987 HEP 17040 b |
|
| 1 | | itemized accounting of the common
expenses for the | 2 | | preceding year actually incurred or paid, together with a
| 3 | | tabulation of the amounts collected pursuant to the budget | 4 | | or assessment,
and showing the net excess or deficit of | 5 | | income over expenditures plus
reserves.
| 6 | | (3) Each unit owner of a condominium subject to the | 7 | | authority of
the board of the master association shall | 8 | | receive written notice mailed
or delivered no less than 10 | 9 | | and no more than 30 days prior to any meeting
of the board | 10 | | of the master association concerning the adoption of the | 11 | | proposed
annual budget or any increase in the budget, or | 12 | | establishment of an
assessment.
| 13 | | (4) Meetings of the board of the master association | 14 | | shall be open
to any unit owner in a condominium subject to | 15 | | the authority of the board
of the master association, | 16 | | except the board may close any portion of a noticed meeting | 17 | | or meet separately from a noticed meeting to: | 18 | | (A)
discuss litigation when an action against or on | 19 | | behalf of the particular association has been filed and | 20 | | is
pending in a court or administrative tribunal, or | 21 | | when the board of managers finds that such an action is
| 22 | | probable or imminent; | 23 | | (B) discuss the appointment, employment, | 24 | | engagement, or dismissal of an employee,
independent | 25 | | contractor, agent, or other provider of goods and | 26 | | services; |
| | | SB0948 Engrossed | - 6 - | LRB100 06987 HEP 17040 b |
|
| 1 | | (C) interview a potential
employee, independent | 2 | | contractor, agent, or other provider of goods and | 3 | | services; | 4 | | (D) discuss violations
of rules and regulations of | 5 | | the association; | 6 | | (E) discuss a unit owner's unpaid share of common | 7 | | expenses; or | 8 | | (F) consult with the association's legal counsel. | 9 | | for the portion of any meeting held:
| 10 | | (A) to discuss litigation when an action against or | 11 | | on behalf of the
particular master association has been | 12 | | filed and is pending in a court or
administrative | 13 | | tribunal, or when the board of the master association | 14 | | finds
that such an action is probable or imminent,
| 15 | | (B) to consider information regarding appointment, | 16 | | employment or
dismissal of an employee, or
| 17 | | (C) to discuss violations of rules and regulations | 18 | | of the master
association or unpaid common expenses | 19 | | owed to the master association.
| 20 | | Any vote on these matters shall be taken at a meeting or | 21 | | portion thereof
open to any unit owner of a condominium | 22 | | subject to the authority of the
master association.
| 23 | | Any unit owner may record the proceedings at meetings | 24 | | required
to be open by this Act by tape, film or other | 25 | | means; the board may
prescribe reasonable rules and | 26 | | regulations to govern the right to make such
recordings. |
| | | SB0948 Engrossed | - 7 - | LRB100 06987 HEP 17040 b |
|
| 1 | | Notice of meetings shall be mailed or delivered at least 48
| 2 | | hours prior thereto, unless a written waiver of such notice | 3 | | is signed by
the persons entitled to notice before the | 4 | | meeting is convened. Copies of
notices of meetings of the | 5 | | board of the master association shall be posted
in | 6 | | entranceways, elevators, or other conspicuous places in | 7 | | the condominium
at least 48 hours prior to the meeting of | 8 | | the board of the master
association. Where there is no | 9 | | common entranceway for 7 or more units, the
board of the | 10 | | master association may designate one or more locations in | 11 | | the
proximity of these units where the notices of meetings | 12 | | shall be posted.
| 13 | | (5) If the declaration provides for election by unit | 14 | | owners of members
of the board of directors in the event of | 15 | | a resale of a unit in the master
association, the purchaser | 16 | | of a unit from a seller other than the developer
pursuant | 17 | | to an installment contract for purchase shall, during such
| 18 | | times as he or she resides in the unit, be counted toward a | 19 | | quorum for
purposes of election of members of the board of | 20 | | directors at any
meeting of the unit owners called for | 21 | | purposes of electing members of the
board, and shall have | 22 | | the right to vote for the election of members of
the board | 23 | | of directors and to be elected to and serve on the board of
| 24 | | directors unless the seller expressly retains in writing
| 25 | | any or all of those rights. In no event may the seller and
| 26 | | purchaser both be counted toward a quorum, be permitted to |
| | | SB0948 Engrossed | - 8 - | LRB100 06987 HEP 17040 b |
|
| 1 | | vote for a
particular office, or be elected and serve on | 2 | | the board. Satisfactory
evidence of the installment | 3 | | contract shall be made available to the
association or its | 4 | | agents. For purposes of this subsection, "installment
| 5 | | contract" shall have the same meaning as set forth in | 6 | | subsection (e) of
Section 1 of the Dwelling Unit | 7 | | Installment Contract Act.
| 8 | | (6) The board of the master association shall have the | 9 | | authority to
establish and maintain a system of master | 10 | | metering of public utility
services and to collect payments | 11 | | in connection therewith, subject to the
requirements of the | 12 | | Tenant Utility Payment Disclosure Act.
| 13 | | (7) The board of the master association or a common | 14 | | interest community
association shall have the power, after | 15 | | notice and an opportunity to be heard,
to levy and collect | 16 | | reasonable fines from members for violations of the
| 17 | | declaration, bylaws, and rules and regulations of the | 18 | | master association or
the common interest community | 19 | | association. Nothing contained in this
subdivision (7) | 20 | | shall give rise to a statutory lien for unpaid fines.
| 21 | | (8) Other than attorney's fees, no fees pertaining to | 22 | | the collection of a unit owner's financial obligation to | 23 | | the Association, including fees charged by a manager or | 24 | | managing agent, shall be added to and deemed a part of an | 25 | | owner's respective share of the common expenses unless: (i) | 26 | | the managing agent fees relate to the costs to collect |
| | | SB0948 Engrossed | - 9 - | LRB100 06987 HEP 17040 b |
|
| 1 | | common expenses for the Association; (ii) the fees are set | 2 | | forth in a contract between the managing agent and the | 3 | | Association; and (iii) the authority to add the management | 4 | | fees to an owner's respective share of the common expenses | 5 | | is specifically stated in the declaration or bylaws of the | 6 | | Association. | 7 | | (d) Records.
| 8 | | (1) The board of the master association shall maintain | 9 | | the following
records of the association and make them | 10 | | available for examination and
copying at convenient hours | 11 | | of weekdays by any unit owners in a condominium
subject to | 12 | | the authority of the board or their mortgagees and their | 13 | | duly
authorized agents or attorneys:
| 14 | | (i) Copies of the recorded declaration, other | 15 | | condominium instruments,
other duly recorded covenants | 16 | | and bylaws and any amendments, articles of
| 17 | | incorporation of the master association, annual | 18 | | reports and any rules and
regulations adopted by the | 19 | | master association or its board shall
be available. | 20 | | Prior to the organization of the master association, | 21 | | the
developer shall maintain and make available the | 22 | | records set forth in this
subdivision (d)(1) for | 23 | | examination and copying.
| 24 | | (ii) Detailed and accurate records in | 25 | | chronological order of the
receipts and expenditures | 26 | | affecting the common areas, specifying and
itemizing |
| | | SB0948 Engrossed | - 10 - | LRB100 06987 HEP 17040 b |
|
| 1 | | the maintenance and repair expenses of the common areas | 2 | | and any
other expenses incurred, and copies of all | 3 | | contracts, leases, or other
agreements entered into by | 4 | | the master association, shall be maintained.
| 5 | | (iii) The minutes of all meetings of the master | 6 | | association and the
board of the master association | 7 | | shall be maintained for not less than 7 years.
| 8 | | (iv) Ballots and proxies related thereto, if any, | 9 | | for any election
held for the board of the master | 10 | | association and for any other matters
voted on by the | 11 | | unit owners shall be maintained for
not less than one | 12 | | year.
| 13 | | (v) Such other records of the master association as | 14 | | are available
for inspection by members of a | 15 | | not-for-profit corporation pursuant to
Section 107.75 | 16 | | of the General Not For Profit Corporation Act of 1986 | 17 | | shall
be maintained.
| 18 | | (vi) With respect to units owned by a land trust, | 19 | | if a trustee
designates in writing a person to cast | 20 | | votes on behalf of the unit
owner, the designation | 21 | | shall remain in effect until a subsequent document
is | 22 | | filed with the association.
| 23 | | (2) Where a request for records under this subsection | 24 | | is made in writing
to the board of managers or its agent, | 25 | | failure to provide the requested
record or to respond | 26 | | within 30 days shall be deemed a denial by the board
of |
| | | SB0948 Engrossed | - 11 - | LRB100 06987 HEP 17040 b |
|
| 1 | | directors.
| 2 | | (3) A reasonable fee may be charged by the master | 3 | | association or its
board for the cost of copying.
| 4 | | (4) If the board of directors fails to provide records | 5 | | properly
requested under subdivision (d)(1) within the
| 6 | | time period provided in subdivision (d)(2), the
unit owner | 7 | | may seek appropriate relief, including an award of
| 8 | | attorney's fees and costs.
| 9 | | (e) The board of directors shall have standing and capacity | 10 | | to act in
a representative capacity in relation to matters | 11 | | involving the common areas
of the master association or more | 12 | | than one unit, on behalf of the unit
owners as their interests | 13 | | may appear.
| 14 | | (f) Administration of property prior to election of the | 15 | | initial board
of directors.
| 16 | | (1) Until the election, by the unit owners or the | 17 | | boards of
managers of the underlying condominium | 18 | | associations, of the initial board
of directors of a master | 19 | | association whose declaration is recorded on
or after | 20 | | August 10, 1990, the same rights, titles, powers, | 21 | | privileges,
trusts, duties and obligations that are vested | 22 | | in or imposed upon the board
of directors by this Act or in | 23 | | the declaration or other duly recorded
covenant shall be | 24 | | held and performed by the developer.
| 25 | | (2) The election of the initial board of directors of a | 26 | | master
association whose declaration is recorded on or |
| | | SB0948 Engrossed | - 12 - | LRB100 06987 HEP 17040 b |
|
| 1 | | after August 10, 1990, by
the unit owners or the boards of | 2 | | managers of the underlying condominium
associations, shall | 3 | | be held not later than 60 days after the conveyance by
the | 4 | | developer of 75% of the units, or 3 years after the | 5 | | recording of the
declaration, whichever is earlier. The | 6 | | developer shall give at least 21
days notice of the meeting | 7 | | to elect the initial board of directors and
shall upon | 8 | | request provide to any unit owner, within 3 working days of | 9 | | the
request, the names, addresses, and weighted vote of | 10 | | each unit owner entitled to vote at the
meeting. Any unit | 11 | | owner shall upon receipt of the request be provided with
| 12 | | the same
information, within 10 days of the request, with | 13 | | respect to
each
subsequent meeting to elect members of the | 14 | | board of directors.
| 15 | | (3) If the initial board of directors of a master | 16 | | association
whose declaration is recorded on or after | 17 | | August 10, 1990 is not elected by
the unit owners or the | 18 | | members of the underlying condominium association
board of | 19 | | managers at the time established in subdivision (f)(2), the
| 20 | | developer shall continue in office for a period of 30 days, | 21 | | whereupon
written notice of his resignation shall be sent | 22 | | to all of the unit owners
or members of the underlying | 23 | | condominium board of managers entitled to vote
at an | 24 | | election for members of the board of directors.
| 25 | | (4) Within 60 days following the election of a majority | 26 | | of the board
of directors, other than the developer, by |
| | | SB0948 Engrossed | - 13 - | LRB100 06987 HEP 17040 b |
|
| 1 | | unit owners, the developer shall
deliver to the board of | 2 | | directors:
| 3 | | (i) All original documents as recorded or filed | 4 | | pertaining to the
property, its administration, and | 5 | | the association, such as the declaration,
articles of | 6 | | incorporation, other instruments, annual reports, | 7 | | minutes,
rules and regulations, and contracts, leases, | 8 | | or other
agreements entered into by the association. If | 9 | | any original documents are
unavailable, a copy may be | 10 | | provided if certified by affidavit of the
developer, or | 11 | | an officer or agent of the developer, as being a | 12 | | complete
copy of the actual document recorded or filed.
| 13 | | (ii) A detailed accounting by the developer, | 14 | | setting forth the
source and nature of receipts and | 15 | | expenditures in connection with the
management, | 16 | | maintenance and operation of the property, copies
of | 17 | | all insurance policies, and a list of any loans or | 18 | | advances to the
association which are outstanding.
| 19 | | (iii) Association funds, which shall have been at | 20 | | all times
segregated from any other moneys of the | 21 | | developer.
| 22 | | (iv) A schedule of all real or personal property, | 23 | | equipment and
fixtures belonging to the association, | 24 | | including documents transferring the
property, | 25 | | warranties, if any, for all real and personal property | 26 | | and
equipment, deeds, title insurance policies, and |
| | | SB0948 Engrossed | - 14 - | LRB100 06987 HEP 17040 b |
|
| 1 | | all tax bills.
| 2 | | (v) A list of all litigation, administrative | 3 | | action and arbitrations
involving the association, any | 4 | | notices of governmental bodies involving
actions taken | 5 | | or which may be taken concerning the association, | 6 | | engineering and
architectural drawings and | 7 | | specifications as approved by any governmental
| 8 | | authority, all other documents filed with any other | 9 | | governmental authority,
all governmental certificates, | 10 | | correspondence involving enforcement of any
| 11 | | association requirements, copies of any documents | 12 | | relating to disputes
involving unit owners, and | 13 | | originals of all documents relating to
everything | 14 | | listed in this subparagraph.
| 15 | | (vi) If the developer fails to fully comply with | 16 | | this paragraph (4)
within
the 60 days
provided and | 17 | | fails to fully comply within 10 days of written demand | 18 | | mailed by
registered
or certified mail to his or her | 19 | | last known address, the board may bring an
action to
| 20 | | compel compliance with this paragraph (4).
If the court | 21 | | finds that any of the
required
deliveries were not made | 22 | | within the required period, the board shall be
entitled | 23 | | to recover
its reasonable attorneys' fees and costs | 24 | | incurred from and after the date of
expiration of
the | 25 | | 10 day demand.
| 26 | | (5) With respect to any master association whose |
| | | SB0948 Engrossed | - 15 - | LRB100 06987 HEP 17040 b |
|
| 1 | | declaration is
recorded on or after August 10, 1990, any | 2 | | contract, lease, or other
agreement made prior to the | 3 | | election of a majority of the board of
directors other than | 4 | | the developer by or on behalf of unit owners or
underlying | 5 | | condominium associations, the association or the board of
| 6 | | directors, which extends for a period of more than 2 years | 7 | | from the
recording of the declaration, shall be subject to | 8 | | cancellation by more than
1/2 of the votes of the unit | 9 | | owners, other than the developer, cast at a
special meeting | 10 | | of members called for that purpose during a period of 90
| 11 | | days prior to the expiration of the 2 year period if the | 12 | | board of managers
is elected by the unit owners, otherwise | 13 | | by more than 1/2 of the underlying
condominium board of | 14 | | managers. At least 60 days prior to the expiration of
the 2 | 15 | | year period, the board of directors, or, if the board is | 16 | | still under
developer control, then the board of managers | 17 | | or the developer shall send
notice to every unit owner or | 18 | | underlying condominium board of managers,
notifying them | 19 | | of this provision, of what contracts, leases and other
| 20 | | agreements are affected, and of the procedure for calling a | 21 | | meeting of the
unit owners or for action by the underlying | 22 | | condominium board of managers
for the purpose of acting to | 23 | | terminate such contracts, leases or other
agreements. | 24 | | During the 90 day period the other party to the contract,
| 25 | | lease, or other agreement shall also have the right of | 26 | | cancellation.
|
| | | SB0948 Engrossed | - 16 - | LRB100 06987 HEP 17040 b |
|
| 1 | | (6) The statute of limitations for any actions in law | 2 | | or equity which
the master association may bring shall not | 3 | | begin to run until the unit
owners or underlying | 4 | | condominium board of managers have elected a majority
of | 5 | | the members of the board of directors.
| 6 | | (g) In the event of any resale of a unit in a master | 7 | | association by a unit
owner other than the developer, the owner | 8 | | shall obtain from
the board of directors and shall make | 9 | | available for inspection to the
prospective purchaser, upon | 10 | | demand, the following:
| 11 | | (1) A copy of the declaration, other instruments and | 12 | | any rules and
regulations.
| 13 | | (2) A statement of any liens, including a statement of | 14 | | the account of
the unit setting forth the amounts of unpaid | 15 | | assessments and other charges
due and owing.
| 16 | | (3) A statement of any capital expenditures | 17 | | anticipated by the
association within the current or | 18 | | succeeding 2 fiscal years.
| 19 | | (4) A statement of the status and amount of any reserve | 20 | | for
replacement fund and any portion of such fund earmarked | 21 | | for any specified
project by the board of directors.
| 22 | | (5) A copy of the statement of financial condition of | 23 | | the association
for the last fiscal year for which such a | 24 | | statement is available.
| 25 | | (6) A statement of the status of any pending suits or | 26 | | judgments in which
the association is a party.
|
| | | SB0948 Engrossed | - 17 - | LRB100 06987 HEP 17040 b |
|
| 1 | | (7) A statement setting forth what insurance coverage | 2 | | is provided for
all unit owners by the association.
| 3 | | (8) A statement that any improvements or alterations | 4 | | made to the unit,
or any part of the common areas assigned | 5 | | thereto, by the prior unit owner
are in good faith believed | 6 | | to be in compliance with the declaration of the
master | 7 | | association.
| 8 | | The principal officer of the unit owner's association or | 9 | | such
other officer as is specifically designated shall furnish | 10 | | the above
information when requested to do so in writing, | 11 | | within
30 days of receiving the request.
| 12 | | A reasonable fee covering the direct out-of-pocket cost of | 13 | | copying
and providing such information may be charged
by the | 14 | | association or its board of directors to the unit
seller for | 15 | | providing the information.
| 16 | | (g-1) The purchaser of a unit of a common interest | 17 | | community at a judicial foreclosure sale, other than a | 18 | | mortgagee, who takes possession of a unit of a common interest | 19 | | community pursuant to a court order or a purchaser who acquires | 20 | | title from a mortgagee shall have the duty to pay the | 21 | | proportionate share, if any, of the common expenses for the | 22 | | unit that would have become due in the absence of any | 23 | | assessment acceleration during the 6 months immediately | 24 | | preceding institution of an action to enforce the collection of | 25 | | assessments and the court costs incurred by the association in | 26 | | an action to enforce the collection that remain unpaid by the |
| | | SB0948 Engrossed | - 18 - | LRB100 06987 HEP 17040 b |
|
| 1 | | owner during whose possession the assessments accrued. If the | 2 | | outstanding assessments and the court costs incurred by the | 3 | | association in an action to enforce the collection are paid at | 4 | | any time during any action to enforce the collection of | 5 | | assessments, the purchaser shall have no obligation to pay any | 6 | | assessments that accrued before he or she acquired title. The | 7 | | notice of sale of a unit of a common interest community under | 8 | | subsection (c) of Section 15-1507 of the Code of Civil | 9 | | Procedure shall state that the purchaser of the unit other than | 10 | | a mortgagee shall pay the assessments and court costs required | 11 | | by this subsection (g-1).
| 12 | | (h) Errors and omissions.
| 13 | | (1) If there is an omission or error in the declaration | 14 | | or other
instrument of the master association, the master | 15 | | association may correct
the error or omission by an | 16 | | amendment to the declaration or other
instrument, as may be | 17 | | required to conform it to this Act, to any other
applicable | 18 | | statute, or to the declaration. The amendment shall be | 19 | | adopted
by vote of two-thirds of the members of the board | 20 | | of directors or by a
majority vote of the unit owners at a | 21 | | meeting called for that purpose,
unless the Act or the | 22 | | declaration of the master association specifically
| 23 | | provides for greater percentages or different procedures.
| 24 | | (2) If, through a scrivener's error, a unit has not | 25 | | been
designated as owning an appropriate undivided share of | 26 | | the common areas
or does not bear an appropriate share of |
| | | SB0948 Engrossed | - 19 - | LRB100 06987 HEP 17040 b |
|
| 1 | | the common expenses, or if
all of the common expenses or | 2 | | all of the common elements in
the condominium have not been | 3 | | distributed in the declaration, so that the
sum total of | 4 | | the shares of common areas which have been distributed or | 5 | | the
sum total of the shares of the common expenses fail to | 6 | | equal 100%, or if it
appears that more than 100% of the | 7 | | common elements or common expenses have
been distributed, | 8 | | the error may be corrected by operation of law by filing
an | 9 | | amendment to the declaration, approved by vote of | 10 | | two-thirds of the
members of the board of directors or a | 11 | | majority vote of the unit owners at
a meeting called for | 12 | | that purpose, which proportionately
adjusts all percentage | 13 | | interests so that the total is equal to 100%,
unless the | 14 | | declaration specifically provides for a different | 15 | | procedure or
different percentage vote by the owners of the | 16 | | units and the owners of
mortgages thereon affected by | 17 | | modification being made in the undivided
interest in the | 18 | | common areas, the number of votes in the unit owners
| 19 | | association or the liability for common expenses | 20 | | appertaining to the unit.
| 21 | | (3) If an omission or error or a scrivener's error in | 22 | | the
declaration or other instrument is corrected by vote of | 23 | | two-thirds of
the members of the board of directors | 24 | | pursuant to the authority established
in subdivisions | 25 | | (h)(1) or (h)(2) of this Section, the board, upon
written | 26 | | petition by unit owners with 20% of the votes of the |
| | | SB0948 Engrossed | - 20 - | LRB100 06987 HEP 17040 b |
|
| 1 | | association or
resolutions adopted by the board of managers | 2 | | or board of directors of the
condominium and common | 3 | | interest community associations which select 20% of
the | 4 | | members of the board of directors of the master | 5 | | association, whichever
is applicable, received within 30 | 6 | | days of the board action, shall call a
meeting of the unit | 7 | | owners or the boards of the condominium and common
interest | 8 | | community associations which select members of the board of
| 9 | | directors of the master association within 30 days of the | 10 | | filing of the
petition or receipt of the condominium and | 11 | | common interest community
association resolution to | 12 | | consider the board action. Unless a majority of
the votes | 13 | | of the unit owners of the association are cast at the | 14 | | meeting to
reject the action, or board of managers or board | 15 | | of directors of
condominium and common interest community | 16 | | associations which select over
50% of the members of the | 17 | | board of the master association adopt resolutions
prior to | 18 | | the meeting rejecting the action of the board of directors | 19 | | of the
master association, it is ratified whether or not a | 20 | | quorum is present.
| 21 | | (4) The procedures for amendments set forth in this | 22 | | subsection (h)
cannot be used if such an amendment would | 23 | | materially or adversely affect
property rights of the unit | 24 | | owners unless the affected unit owners consent
in writing. | 25 | | This Section does not restrict the powers of the | 26 | | association
to otherwise amend the declaration, bylaws, or |
| | | SB0948 Engrossed | - 21 - | LRB100 06987 HEP 17040 b |
|
| 1 | | other condominium
instruments, but authorizes a simple | 2 | | process of amendment requiring a
lesser vote for the | 3 | | purpose of correcting defects, errors, or omissions
when | 4 | | the property rights of the unit owners are not materially | 5 | | or adversely
affected.
| 6 | | (5) If there is an omission or error in the declaration | 7 | | or other
instruments that may not be corrected by an | 8 | | amendment procedure
set forth in subdivision (h)(1) or | 9 | | (h)(2) of this Section, then
the circuit court in the | 10 | | county in which the master
association is located shall | 11 | | have jurisdiction to hear a petition of one or
more of the | 12 | | unit owners thereon or of the association, to correct the | 13 | | error
or omission, and the action may be a class action. | 14 | | The court may require
that one or more methods of | 15 | | correcting the error or omission be submitted
to the unit | 16 | | owners to determine the most acceptable correction. All | 17 | | unit
owners in the association must be joined as parties to | 18 | | the action. Service
of process on owners may be by | 19 | | publication, but the plaintiff shall furnish
all unit | 20 | | owners not personally served with process with copies of | 21 | | the
petition and final judgment of the court by certified | 22 | | mail, return receipt
requested, at their last known | 23 | | address.
| 24 | | (6) Nothing contained in this Section shall be | 25 | | construed to invalidate
any provision of a declaration | 26 | | authorizing the developer to amend
an instrument prior to |
| | | SB0948 Engrossed | - 22 - | LRB100 06987 HEP 17040 b |
|
| 1 | | the latest date on which the initial
membership meeting of | 2 | | the unit owners must be held, whether or not it has
| 3 | | actually been held, to bring the instrument into compliance | 4 | | with the legal
requirements of the Federal National | 5 | | Mortgage Association, the Federal Home
Loan Mortgage | 6 | | Corporation, the Federal Housing Administration, the | 7 | | United
States Veterans Administration or their respective | 8 | | successors and assigns.
| 9 | | (i) The provisions of subsections (c) through (h) are | 10 | | applicable
to all declarations, other condominium instruments, | 11 | | and other
duly recorded covenants establishing the powers and | 12 | | duties of the master
association recorded under this Act. Any | 13 | | portion of a declaration,
other condominium instrument, or | 14 | | other duly recorded covenant establishing
the powers and duties | 15 | | of a master association which contains provisions
contrary to | 16 | | the provisions of subsection (c) through (h) shall be void as
| 17 | | against public policy and ineffective. Any declaration, other | 18 | | condominium
instrument, or other duly recorded covenant | 19 | | establishing the powers and
duties of the master association | 20 | | which fails to contain the provisions
required by subsections | 21 | | (c) through (h) shall be deemed to incorporate such
provisions | 22 | | by operation of law.
| 23 | | (j) (Blank).
| 24 | | (Source: P.A. 96-1045, eff. 7-14-10; 97-535, eff. 1-1-12; | 25 | | 97-605, eff. 8-26-11; 97-813, eff. 7-13-12.)
|
|