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Full Text of SB2485  100th General Assembly

SB2485sam002 100TH GENERAL ASSEMBLY

Sen. Laura M. Murphy

Filed: 4/20/2018

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 2485

2    AMENDMENT NO. ______. Amend Senate Bill 2485, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Condominium Property Act is amended by
6changing Sections 9, 9.2, 18, and 18.4 as follows:
 
7    (765 ILCS 605/9)  (from Ch. 30, par. 309)
8    Sec. 9. Sharing of expenses - Lien for nonpayment.
9    (a) All common expenses incurred or accrued prior to the
10first conveyance of a unit shall be paid by the developer, and
11during this period no common expense assessment shall be
12payable to the association. It shall be the duty of each unit
13owner including the developer to pay his or her proportionate
14share of the common expenses commencing with the first
15conveyance. The proportionate share shall be in the same ratio
16as his or her percentage of ownership in the common elements

 

 

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1set forth in the declaration.
2    (b) The condominium instruments may provide that common
3expenses for insurance premiums be assessed on a basis
4reflecting increased charges for coverage on certain units.
5    (c) Budget and reserves.
6        (1) The board of managers shall prepare and distribute
7    to all unit owners a detailed proposed annual budget,
8    setting forth with particularity all anticipated common
9    expenses by category as well as all anticipated assessments
10    and other income. The initial budget and common expense
11    assessment based thereon shall be adopted prior to the
12    conveyance of any unit. The budget shall also set forth
13    each unit owner's proposed common expense assessment.
14        (2) All budgets adopted by a board of managers on or
15    after July 1, 1990 shall provide for reasonable reserves
16    for capital expenditures and deferred maintenance for
17    repair or replacement of the common elements. To determine
18    the amount of reserves appropriate for an association, the
19    board of managers shall take into consideration the
20    following: (i) the repair and replacement cost, and the
21    estimated useful life, of the property which the
22    association is obligated to maintain, including but not
23    limited to structural and mechanical components, surfaces
24    of the buildings and common elements, and energy systems
25    and equipment; (ii) the current and anticipated return on
26    investment of association funds; (iii) any independent

 

 

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1    professional reserve study which the association may
2    obtain; (iv) the financial impact on unit owners, and the
3    market value of the condominium units, of any assessment
4    increase needed to fund reserves; and (v) the ability of
5    the association to obtain financing or refinancing.
6        (3) Notwithstanding the provisions of this subsection
7    (c), an association without a reserve requirement in its
8    condominium instruments may elect to waive in whole or in
9    part the reserve requirements of this Section by a vote of
10    2/3 of the total votes of the association. Any association
11    having elected under this paragraph (3) to waive the
12    provisions of subsection (c) may by a vote of 2/3 of the
13    total votes of the association elect to again be governed
14    by the requirements of subsection (c).
15        (4) In the event that an association elects to waive
16    all or part of the reserve requirements of this Section,
17    that fact must be disclosed after the meeting at which the
18    waiver occurs by the association in the financial
19    statements of the association and, highlighted in bold
20    print, in the response to any request of a prospective
21    purchaser for the information prescribed under Section
22    22.1; and no member of the board of managers or the
23    managing agent of the association shall be liable, and no
24    cause of action may be brought for damages against these
25    parties, for the lack or inadequacy of reserve funds in the
26    association budget.

 

 

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1        (5) At the end of an association's fiscal year and
2    after the association has approved any end-of-year fiscal
3    audit, if applicable, if the fiscal year ended with a
4    surplus of funds over actual expenses, including budgeted
5    reserve fund contributions, then, to the extent that there
6    are not any contrary provisions in the association's
7    declaration and bylaws, the board of managers has the
8    authority, in its discretion, to dispose of the surplus in
9    one or more of the following ways: (i) contribute the
10    surplus to the association's reserve fund; (ii) return the
11    surplus to the unit owners as a credit against the
12    remaining monthly assessments for the current fiscal year;
13    (iii) return the surplus to the unit owners in the form of
14    a direct payment to the unit owners; or (iv) maintain the
15    funds in the operating account, in which case the funds
16    shall be applied as a credit when calculating the following
17    year's annual budget. If the fiscal year ends in a deficit,
18    then, to the extent that there are not any contrary
19    provisions in the association's declaration and bylaws,
20    the board of managers has the authority, in its discretion,
21    to address the deficit by incorporating it into the
22    following year's annual budget. If 20% of the unit owners
23    of the association deliver a petition objecting to the
24    action under this paragraph (5) within 30 days after notice
25    to the unit owners of the action, the board of managers
26    shall call a meeting of the unit owners within 30 days of

 

 

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1    the date of delivery of the petition. At the meeting, the
2    unit owners may vote to select a different option than the
3    option selected by the board of managers. Unless a majority
4    of the total votes of the unit owners are cast at the
5    meeting to reject the board's selection and select a
6    different option, the board's decision is ratified.
7    (d) (Blank).
8    (e) The condominium instruments may provide for the
9assessment, in connection with expenditures for the limited
10common elements, of only those units to which the limited
11common elements are assigned.
12    (f) Payment of any assessment shall be in amounts and at
13times determined by the board of managers.
14    (g) Lien.
15        (1) If any unit owner shall fail or refuse to make when
16    due any payment of (i) the common expenses; or (ii) or the
17    amount of any unpaid fine imposed in accordance with
18    subsection (l) of Section 18.4, then when due, the amount
19    thereof together with any interest, late charges,
20    reasonable attorney fees incurred enforcing the covenants
21    of the condominium instruments, rules and regulations of
22    the board of managers, or any applicable statute or
23    ordinance, and costs of collections shall constitute a lien
24    on the interest of the unit owner in the property prior to
25    all other liens and encumbrances, recorded or unrecorded,
26    except only (a) taxes, special assessments and special

 

 

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1    taxes theretofore or thereafter levied by any political
2    subdivision or municipal corporation of this State and
3    other State or federal taxes which by law are a lien on the
4    interest of the unit owner prior to preexisting recorded
5    encumbrances thereon and (b) encumbrances on the interest
6    of the unit owner recorded prior to the date of such
7    failure or refusal which by law would be a lien thereon
8    prior to subsequently recorded encumbrances. Any action
9    brought to extinguish the lien of the association shall
10    include the association as a party.
11        (2) With respect to encumbrances executed prior to
12    August 30, 1984 or encumbrances executed subsequent to
13    August 30, 1984 which are neither bonafide first mortgages
14    nor trust deeds and which encumbrances contain a statement
15    of a mailing address in the State of Illinois where notice
16    may be mailed to the encumbrancer thereunder, if and
17    whenever and as often as the manager or board of managers
18    shall send, by United States certified or registered mail,
19    return receipt requested, to any such encumbrancer at the
20    mailing address set forth in the recorded encumbrance a
21    statement of the amounts and due dates of the unpaid common
22    expenses with respect to the encumbered unit, then, unless
23    otherwise provided in the declaration or bylaws, the prior
24    recorded encumbrance shall be subject to the lien of all
25    unpaid common expenses with respect to the unit which
26    become due and payable within a period of 90 days after the

 

 

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1    date of mailing of each such notice.
2        (3) The purchaser of a condominium unit at a judicial
3    foreclosure sale, or a mortgagee who receives title to a
4    unit by deed in lieu of foreclosure or judgment by common
5    law strict foreclosure or otherwise takes possession
6    pursuant to court order under the Illinois Mortgage
7    Foreclosure Law, shall have the duty to pay the unit's
8    proportionate share of the common expenses for the unit
9    assessed from and after the first day of the month after
10    the date of the judicial foreclosure sale, delivery of the
11    deed in lieu of foreclosure, entry of a judgment in common
12    law strict foreclosure, or taking of possession pursuant to
13    such court order. Such payment confirms the extinguishment
14    of any lien created pursuant to paragraph (1) or (2) of
15    this subsection (g) by virtue of the failure or refusal of
16    a prior unit owner to make payment of common expenses,
17    where the judicial foreclosure sale has been confirmed by
18    order of the court, a deed in lieu thereof has been
19    accepted by the lender, or a consent judgment has been
20    entered by the court.
21        (4) The purchaser of a condominium unit at a judicial
22    foreclosure sale, other than a mortgagee, who takes
23    possession of a condominium unit pursuant to a court order
24    or a purchaser who acquires title from a mortgagee shall
25    have the duty to pay the proportionate share, if any, of
26    the common expenses for the unit which would have become

 

 

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1    due in the absence of any assessment acceleration during
2    the 6 months immediately preceding institution of an action
3    to enforce the collection of assessments, and which remain
4    unpaid by the owner during whose possession the assessments
5    accrued. If the outstanding assessments are paid at any
6    time during any action to enforce the collection of
7    assessments, the purchaser shall have no obligation to pay
8    any assessments which accrued before he or she acquired
9    title.
10        (5) The notice of sale of a condominium unit under
11    subsection (c) of Section 15-1507 of the Code of Civil
12    Procedure shall state that the purchaser of the unit other
13    than a mortgagee shall pay the assessments and the legal
14    fees required by subdivisions (g)(1) and (g)(4) of Section
15    9 of this Act. The statement of assessment account issued
16    by the association to a unit owner under subsection (i) of
17    Section 18 of this Act, and the disclosure statement issued
18    to a prospective purchaser under Section 22.1 of this Act,
19    shall state the amount of the assessments and the legal
20    fees, if any, required by subdivisions (g)(1) and (g)(4) of
21    Section 9 of this Act.
22    (h) A lien for common expenses shall be in favor of the
23members of the board of managers and their successors in office
24and shall be for the benefit of all other unit owners. Notice
25of the lien may be recorded by the board of managers, or if the
26developer is the manager or has a majority of seats on the

 

 

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1board of managers and the manager or board of managers fails to
2do so, any unit owner may record notice of the lien. Upon the
3recording of such notice the lien may be foreclosed by an
4action brought in the name of the board of managers in the same
5manner as a mortgage of real property.
6    (i) Unless otherwise provided in the declaration, the
7members of the board of managers and their successors in
8office, acting on behalf of the other unit owners, shall have
9the power to bid on the interest so foreclosed at the
10foreclosure sale, and to acquire and hold, lease, mortgage and
11convey it.
12    (j) Any encumbrancer may from time to time request in
13writing a written statement from the manager or board of
14managers setting forth the unpaid common expenses with respect
15to the unit covered by his or her encumbrance. Unless the
16request is complied with within 20 days, all unpaid common
17expenses which become due prior to the date of the making of
18such request shall be subordinate to the lien of the
19encumbrance. Any encumbrancer holding a lien on a unit may pay
20any unpaid common expenses payable with respect to the unit,
21and upon payment the encumbrancer shall have a lien on the unit
22for the amounts paid at the same rank as the lien of his or her
23encumbrance.
24    (k) Nothing in Public Act 83-1271 is intended to change the
25lien priorities of any encumbrance created prior to August 30,
261984.

 

 

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1(Source: P.A. 100-292, eff. 1-1-18.)
 
2    (765 ILCS 605/9.2)  (from Ch. 30, par. 309.2)
3    Sec. 9.2. Other remedies.
4    (a) In the event of any default by any unit owner, his or
5her tenant, invitee or guest in the performance of his or her
6obligations under this Act or under the declaration, bylaws, or
7the rules and regulations of the board of managers, the board
8of managers or its agents shall have such rights and remedies
9as provided in the Act or condominium instruments including the
10right to maintain an eviction action against such defaulting
11unit owner or his or her tenant for the benefit of all the
12other unit owners in the manner prescribed by Article IX of the
13Code of Civil Procedure. However, the board may not collect an
14unpaid fine unless the board levied the fine in accordance with
15subsection (l) of Section 18.4.
16    (b) Any attorneys' fees incurred by the Association arising
17out of a default by any unit owner, his or her tenant, invitee
18or guest in the performance of any of the provisions of the
19condominium instruments, rules and regulations or any
20applicable statute or ordinance shall be added to, and deemed a
21part of, his or her respective share of the common expense.
22    (c) Other than attorney's fees, no fees pertaining to the
23collection of a unit owner's financial obligation to the
24Association, including fees charged by a manager or managing
25agent, shall be added to and deemed a part of an owner's

 

 

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1respective share of the common expenses unless: (i) the
2managing agent fees relate to the costs to collect common
3expenses for the Association; (ii) the fees are set forth in a
4contract between the managing agent and the Association; and
5(iii) the authority to add the management fees to an owner's
6respective share of the common expenses is specifically stated
7in the declaration or bylaws of the Association.
8(Source: P.A. 100-173, eff. 1-1-18.)
 
9    (765 ILCS 605/18)  (from Ch. 30, par. 318)
10    Sec. 18. Contents of bylaws. The bylaws shall provide for
11at least the following:
12        (a)(1) The election from among the unit owners of a
13    board of managers, the number of persons constituting such
14    board, and that the terms of at least one-third of the
15    members of the board shall expire annually and that all
16    members of the board shall be elected at large; if there
17    are multiple owners of a single unit, only one of the
18    multiple owners shall be eligible to serve as a member of
19    the board at any one time;
20        (2) the powers and duties of the board;
21        (3) the compensation, if any, of the members of the
22    board;
23        (4) the method of removal from office of members of the
24    board;
25        (5) that the board may engage the services of a manager

 

 

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1    or managing agent;
2        (6) that each unit owner shall receive, at least 25
3    days prior to the adoption thereof by the board of
4    managers, a copy of the proposed annual budget together
5    with an indication of which portions are intended for
6    reserves, capital expenditures or repairs or payment of
7    real estate taxes;
8        (7) that the board of managers shall annually supply to
9    all unit owners an itemized accounting of the common
10    expenses for the preceding year actually incurred or paid,
11    together with an indication of which portions were for
12    reserves, capital expenditures or repairs or payment of
13    real estate taxes and with a tabulation of the amounts
14    collected pursuant to the budget or assessment, and showing
15    the net excess or deficit of income over expenditures plus
16    reserves;
17        (8)(i) that each unit owner shall receive notice, in
18    the same manner as is provided in this Act for membership
19    meetings, of any meeting of the board of managers
20    concerning the adoption of the proposed annual budget and
21    regular assessments pursuant thereto or to adopt a separate
22    (special) assessment, (ii) that except as provided in
23    subsection (iv) below, if an adopted budget or any separate
24    assessment adopted by the board would result in the sum of
25    all regular and separate assessments payable in the current
26    fiscal year exceeding 115% of the sum of all regular and

 

 

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1    separate assessments payable during the preceding fiscal
2    year, the board of managers, upon written petition by unit
3    owners with 20 percent of the votes of the association
4    delivered to the board within 21 days of the board action,
5    shall call a meeting of the unit owners within 30 days of
6    the date of delivery of the petition to consider the budget
7    or separate assessment; unless a majority of the total
8    votes of the unit owners are cast at the meeting to reject
9    the budget or separate assessment, it is ratified, (iii)
10    that any common expense not set forth in the budget or any
11    increase in assessments over the amount adopted in the
12    budget shall be separately assessed against all unit
13    owners, (iv) that separate assessments for expenditures
14    relating to emergencies or mandated by law may be adopted
15    by the board of managers without being subject to unit
16    owner approval or the provisions of item (ii) above or item
17    (v) below. As used herein, "emergency" means an immediate
18    danger to the structural integrity of the common elements
19    or to the life, health, safety or property of the unit
20    owners, (v) that assessments for additions and alterations
21    to the common elements or to association-owned property not
22    included in the adopted annual budget, shall be separately
23    assessed and are subject to approval of two-thirds of the
24    total votes of all unit owners, (vi) that the board of
25    managers may adopt separate assessments payable over more
26    than one fiscal year. With respect to multi-year

 

 

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1    assessments not governed by items (iv) and (v), the entire
2    amount of the multi-year assessment shall be deemed
3    considered and authorized in the first fiscal year in which
4    the assessment is approved;
5        (9)(A) that every meeting of the board of managers
6    shall be open to any unit owner, except that the board may
7    close any portion of a noticed meeting or meet separately
8    from a noticed meeting to: (i) discuss litigation when an
9    action against or on behalf of the particular association
10    has been filed and is pending in a court or administrative
11    tribunal, or when the board of managers finds that such an
12    action is probable or imminent, (ii) discuss the
13    appointment, employment, engagement, or dismissal of an
14    employee, independent contractor, agent, or other provider
15    of goods and services, (iii) interview a potential
16    employee, independent contractor, agent, or other provider
17    of goods and services, (iv) discuss violations of rules and
18    regulations of the association, (v) discuss a unit owner's
19    unpaid share of common expenses, or (vi) consult with the
20    association's legal counsel; that any vote on these matters
21    shall take place at a meeting of the board of managers or
22    portion thereof open to any unit owner;
23        (B) that board members may participate in and act at
24    any meeting of the board of managers in person, by
25    telephonic means, or by use of any acceptable technological
26    means whereby all persons participating in the meeting can

 

 

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1    communicate with each other; that participation
2    constitutes attendance and presence in person at the
3    meeting;
4        (C) that any unit owner may record the proceedings at
5    meetings of the board of managers or portions thereof
6    required to be open by this Act by tape, film or other
7    means, and that the board may prescribe reasonable rules
8    and regulations to govern the right to make such
9    recordings;
10        (D) that notice of every meeting of the board of
11    managers shall be given to every board member at least 48
12    hours prior thereto, unless the board member waives notice
13    of the meeting pursuant to subsection (a) of Section 18.8;
14    and
15        (E) that notice of every meeting of the board of
16    managers shall be posted in entranceways, elevators, or
17    other conspicuous places in the condominium at least 48
18    hours prior to the meeting of the board of managers except
19    where there is no common entranceway for 7 or more units,
20    the board of managers may designate one or more locations
21    in the proximity of these units where the notices of
22    meetings shall be posted; that notice of every meeting of
23    the board of managers shall also be given at least 48 hours
24    prior to the meeting, or such longer notice as this Act may
25    separately require, to: (i) each unit owner who has
26    provided the association with written authorization to

 

 

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1    conduct business by acceptable technological means, and
2    (ii) to the extent that the condominium instruments of an
3    association require, to each other unit owner, as required
4    by subsection (f) of Section 18.8, by mail or delivery, and
5    that no other notice of a meeting of the board of managers
6    need be given to any unit owner;
7        (10) that the board shall meet at least 4 times
8    annually;
9        (11) that no member of the board or officer shall be
10    elected for a term of more than 2 years, but that officers
11    and board members may succeed themselves;
12        (12) the designation of an officer to mail and receive
13    all notices and execute amendments to condominium
14    instruments as provided for in this Act and in the
15    condominium instruments;
16        (13) the method of filling vacancies on the board which
17    shall include authority for the remaining members of the
18    board to fill the vacancy by two-thirds vote until the next
19    annual meeting of unit owners or for a period terminating
20    no later than 30 days following the filing of a petition
21    signed by unit owners holding 20% of the votes of the
22    association requesting a meeting of the unit owners to fill
23    the vacancy for the balance of the term, and that a meeting
24    of the unit owners shall be called for purposes of filling
25    a vacancy on the board no later than 30 days following the
26    filing of a petition signed by unit owners holding 20% of

 

 

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1    the votes of the association requesting such a meeting, and
2    the method of filling vacancies among the officers that
3    shall include the authority for the members of the board to
4    fill the vacancy for the unexpired portion of the term;
5        (14) what percentage of the board of managers, if other
6    than a majority, shall constitute a quorum;
7        (15) provisions concerning notice of board meetings to
8    members of the board;
9        (16) the board of managers may not enter into a
10    contract with a current board member or with a corporation
11    or partnership in which a board member or a member of the
12    board member's immediate family has 25% or more interest,
13    unless notice of intent to enter the contract is given to
14    unit owners within 20 days after a decision is made to
15    enter into the contract and the unit owners are afforded an
16    opportunity by filing a petition, signed by 20% of the unit
17    owners, for an election to approve or disapprove the
18    contract; such petition shall be filed within 30 days after
19    such notice and such election shall be held within 30 days
20    after filing the petition; for purposes of this subsection,
21    a board member's immediate family means the board member's
22    spouse, parents, and children;
23        (17) that the board of managers may disseminate to unit
24    owners biographical and background information about
25    candidates for election to the board if (i) reasonable
26    efforts to identify all candidates are made and all

 

 

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1    candidates are given an opportunity to include
2    biographical and background information in the information
3    to be disseminated; and (ii) the board does not express a
4    preference in favor of any candidate;
5        (18) any proxy distributed for board elections by the
6    board of managers gives unit owners the opportunity to
7    designate any person as the proxy holder, and gives the
8    unit owner the opportunity to express a preference for any
9    of the known candidates for the board or to write in a
10    name;
11        (19) that special meetings of the board of managers can
12    be called by the president or 25% of the members of the
13    board;
14        (20) that the board of managers may establish and
15    maintain a system of master metering of public utility
16    services and collect payments in connection therewith,
17    subject to the requirements of the Tenant Utility Payment
18    Disclosure Act; and
19        (21) that the board may ratify and confirm actions of
20    the members of the board taken in response to an emergency,
21    as that term is defined in subdivision (a)(8)(iv) of this
22    Section; that the board shall give notice to the unit
23    owners of: (i) the occurrence of the emergency event within
24    7 business days after the emergency event, and (ii) the
25    general description of the actions taken to address the
26    event within 7 days after the emergency event.

 

 

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1        The intent of the provisions of Public Act 99-472
2    adding this paragraph (21) is to empower and support boards
3    to act in emergencies.
4        (b)(1) What percentage of the unit owners, if other
5    than 20%, shall constitute a quorum provided that, for
6    condominiums with 20 or more units, the percentage of unit
7    owners constituting a quorum shall be 20% unless the unit
8    owners holding a majority of the percentage interest in the
9    association provide for a higher percentage, provided that
10    in voting on amendments to the association's bylaws, a unit
11    owner who is in arrears on the unit owner's regular or
12    separate assessments for 60 days or more, shall not be
13    counted for purposes of determining if a quorum is present,
14    but that unit owner retains the right to vote on amendments
15    to the association's bylaws;
16        (2) that the association shall have one class of
17    membership;
18        (3) that the members shall hold an annual meeting, one
19    of the purposes of which shall be to elect members of the
20    board of managers;
21        (4) the method of calling meetings of the unit owners;
22        (5) that special meetings of the members can be called
23    by the president, board of managers, or by 20% of unit
24    owners;
25        (6) that written notice of any membership meeting shall
26    be mailed or delivered giving members no less than 10 and

 

 

10000SB2485sam002- 20 -LRB100 18203 HEP 38939 a

1    no more than 30 days notice of the time, place and purpose
2    of such meeting except that notice may be sent, to the
3    extent the condominium instruments or rules adopted
4    thereunder expressly so provide, by electronic
5    transmission consented to by the unit owner to whom the
6    notice is given, provided the director and officer or his
7    or her agent certifies in writing to the delivery by
8    electronic transmission;
9        (7) that voting shall be on a percentage basis, and
10    that the percentage vote to which each unit is entitled is
11    the percentage interest of the undivided ownership of the
12    common elements appurtenant thereto, provided that the
13    bylaws may provide for approval by unit owners in
14    connection with matters where the requisite approval on a
15    percentage basis is not specified in this Act, on the basis
16    of one vote per unit;
17        (8) that, where there is more than one owner of a unit,
18    if only one of the multiple owners is present at a meeting
19    of the association, he or she is entitled to cast all the
20    votes allocated to that unit, if more than one of the
21    multiple owners are present, the votes allocated to that
22    unit may be cast only in accordance with the agreement of a
23    majority in interest of the multiple owners, unless the
24    declaration expressly provides otherwise, that there is
25    majority agreement if any one of the multiple owners cast
26    the votes allocated to that unit without protest being made

 

 

10000SB2485sam002- 21 -LRB100 18203 HEP 38939 a

1    promptly to the person presiding over the meeting by any of
2    the other owners of the unit;
3        (9)(A) except as provided in subparagraph (B) of this
4    paragraph (9) in connection with board elections, that a
5    unit owner may vote by proxy executed in writing by the
6    unit owner or by his or her duly authorized attorney in
7    fact; that the proxy must bear the date of execution and,
8    unless the condominium instruments or the written proxy
9    itself provide otherwise, is invalid after 11 months from
10    the date of its execution; to the extent the condominium
11    instruments or rules adopted thereunder expressly so
12    provide, a vote or proxy may be submitted by electronic
13    transmission, provided that any such electronic
14    transmission shall either set forth or be submitted with
15    information from which it can be determined that the
16    electronic transmission was authorized by the unit owner or
17    the unit owner's proxy;
18        (B) that if a rule adopted at least 120 days before a
19    board election or the declaration or bylaws provide for
20    balloting as set forth in this subsection, unit owners may
21    not vote by proxy in board elections, but may vote only (i)
22    by submitting an association-issued ballot in person at the
23    election meeting or (ii) by submitting an
24    association-issued ballot to the association or its
25    designated agent by mail or other means of delivery
26    specified in the declaration, bylaws, or rule; that the

 

 

10000SB2485sam002- 22 -LRB100 18203 HEP 38939 a

1    ballots shall be mailed or otherwise distributed to unit
2    owners not less than 10 and not more than 30 days before
3    the election meeting, and the board shall give unit owners
4    not less than 21 days' prior written notice of the deadline
5    for inclusion of a candidate's name on the ballots; that
6    the deadline shall be no more than 7 days before the
7    ballots are mailed or otherwise distributed to unit owners;
8    that every such ballot must include the names of all
9    candidates who have given the board or its authorized agent
10    timely written notice of their candidacy and must give the
11    person casting the ballot the opportunity to cast votes for
12    candidates whose names do not appear on the ballot; that a
13    ballot received by the association or its designated agent
14    after the close of voting shall not be counted; that a unit
15    owner who submits a ballot by mail or other means of
16    delivery specified in the declaration, bylaws, or rule may
17    request and cast a ballot in person at the election
18    meeting, and thereby void any ballot previously submitted
19    by that unit owner;
20        (B-5) that if a rule adopted at least 120 days before a
21    board election or the declaration or bylaws provide for
22    balloting as set forth in this subparagraph, unit owners
23    may not vote by proxy in board elections, but may vote only
24    (i) by submitting an association-issued ballot in person at
25    the election meeting; or (ii) by any acceptable
26    technological means as defined in Section 2 of this Act;

 

 

10000SB2485sam002- 23 -LRB100 18203 HEP 38939 a

1    instructions regarding the use of electronic means for
2    voting shall be distributed to all unit owners not less
3    than 10 and not more than 30 days before the election
4    meeting, and the board shall give unit owners not less than
5    21 days' prior written notice of the deadline for inclusion
6    of a candidate's name on the ballots; the deadline shall be
7    no more than 7 days before the instructions for voting
8    using electronic or acceptable technological means is
9    distributed to unit owners; every instruction notice must
10    include the names of all candidates who have given the
11    board or its authorized agent timely written notice of
12    their candidacy and must give the person voting through
13    electronic or acceptable technological means the
14    opportunity to cast votes for candidates whose names do not
15    appear on the ballot; a unit owner who submits a vote using
16    electronic or acceptable technological means may request
17    and cast a ballot in person at the election meeting,
18    thereby voiding any vote previously submitted by that unit
19    owner;
20        (C) that if a written petition by unit owners with at
21    least 20% of the votes of the association is delivered to
22    the board within 30 days after the board's approval of a
23    rule adopted pursuant to subparagraph (B) or subparagraph
24    (B-5) of this paragraph (9), the board shall call a meeting
25    of the unit owners within 30 days after the date of
26    delivery of the petition; that unless a majority of the

 

 

10000SB2485sam002- 24 -LRB100 18203 HEP 38939 a

1    total votes of the unit owners are cast at the meeting to
2    reject the rule, the rule is ratified;
3        (D) that votes cast by ballot under subparagraph (B) or
4    electronic or acceptable technological means under
5    subparagraph (B-5) of this paragraph (9) are valid for the
6    purpose of establishing a quorum;
7        (10) that the association may, upon adoption of the
8    appropriate rules by the board of managers, conduct
9    elections by secret ballot whereby the voting ballot is
10    marked only with the percentage interest for the unit and
11    the vote itself, provided that the board further adopt
12    rules to verify the status of the unit owner issuing a
13    proxy or casting a ballot; and further, that a candidate
14    for election to the board of managers or such candidate's
15    representative shall have the right to be present at the
16    counting of ballots at such election;
17        (11) that in the event of a resale of a condominium
18    unit the purchaser of a unit from a seller other than the
19    developer pursuant to an installment sales contract for
20    purchase shall during such times as he or she resides in
21    the unit be counted toward a quorum for purposes of
22    election of members of the board of managers at any meeting
23    of the unit owners called for purposes of electing members
24    of the board, shall have the right to vote for the election
25    of members of the board of managers and to be elected to
26    and serve on the board of managers unless the seller

 

 

10000SB2485sam002- 25 -LRB100 18203 HEP 38939 a

1    expressly retains in writing any or all of such rights. In
2    no event may the seller and purchaser both be counted
3    toward a quorum, be permitted to vote for a particular
4    office or be elected and serve on the board. Satisfactory
5    evidence of the installment sales contract shall be made
6    available to the association or its agents. For purposes of
7    this subsection, "installment sales contract" shall have
8    the same meaning as set forth in Section 5 of the
9    Installment Sales Contract Act and Section 1(e) of the
10    Dwelling Unit Installment Contract Act;
11        (12) the method by which matters subject to the
12    approval of unit owners set forth in this Act, or in the
13    condominium instruments, will be submitted to the unit
14    owners at special membership meetings called for such
15    purposes; and
16        (13) that matters subject to the affirmative vote of
17    not less than 2/3 of the votes of unit owners at a meeting
18    duly called for that purpose, shall include, but not be
19    limited to:
20        (i) merger or consolidation of the association;
21        (ii) sale, lease, exchange, or other disposition
22        (excluding the mortgage or pledge) of all, or
23        substantially all of the property and assets of the
24        association; and
25        (iii) the purchase or sale of land or of units on
26        behalf of all unit owners.

 

 

10000SB2485sam002- 26 -LRB100 18203 HEP 38939 a

1        (c) Election of a president from among the board of
2    managers, who shall preside over the meetings of the board
3    of managers and of the unit owners.
4        (d) Election of a secretary from among the board of
5    managers, who shall keep the minutes of all meetings of the
6    board of managers and of the unit owners and who shall, in
7    general, perform all the duties incident to the office of
8    secretary.
9        (e) Election of a treasurer from among the board of
10    managers, who shall keep the financial records and books of
11    account.
12        (f) Maintenance, repair and replacement of the common
13    elements and payments therefor, including the method of
14    approving payment vouchers.
15        (g) An association with 30 or more units shall obtain
16    and maintain fidelity insurance covering persons who
17    control or disburse funds of the association for the
18    maximum amount of coverage available to protect funds in
19    the custody or control of the association plus the
20    association reserve fund. All management companies which
21    are responsible for the funds held or administered by the
22    association shall maintain and furnish to the association a
23    fidelity bond for the maximum amount of coverage available
24    to protect funds in the custody of the management company
25    at any time. The association shall bear the cost of the
26    fidelity insurance and fidelity bond, unless otherwise

 

 

10000SB2485sam002- 27 -LRB100 18203 HEP 38939 a

1    provided by contract between the association and a
2    management company. The association shall be the direct
3    obligee of any such fidelity bond. A management company
4    holding reserve funds of an association shall at all times
5    maintain a separate account for each association,
6    provided, however, that for investment purposes, the Board
7    of Managers of an association may authorize a management
8    company to maintain the association's reserve funds in a
9    single interest bearing account with similar funds of other
10    associations. The management company shall at all times
11    maintain records identifying all moneys of each
12    association in such investment account. The management
13    company may hold all operating funds of associations which
14    it manages in a single operating account but shall at all
15    times maintain records identifying all moneys of each
16    association in such operating account. Such operating and
17    reserve funds held by the management company for the
18    association shall not be subject to attachment by any
19    creditor of the management company.
20        For the purpose of this subsection, a management
21    company shall be defined as a person, partnership,
22    corporation, or other legal entity entitled to transact
23    business on behalf of others, acting on behalf of or as an
24    agent for a unit owner, unit owners or association of unit
25    owners for the purpose of carrying out the duties,
26    responsibilities, and other obligations necessary for the

 

 

10000SB2485sam002- 28 -LRB100 18203 HEP 38939 a

1    day to day operation and management of any property subject
2    to this Act. For purposes of this subsection, the term
3    "fiduciary insurance coverage" shall be defined as both a
4    fidelity bond and directors and officers liability
5    coverage, the fidelity bond in the full amount of
6    association funds and association reserves that will be in
7    the custody of the association, and the directors and
8    officers liability coverage at a level as shall be
9    determined to be reasonable by the board of managers, if
10    not otherwise established by the declaration or by laws.
11        Until one year after September 21, 1985 (the effective
12    date of Public Act 84-722), if a condominium association
13    has reserves plus assessments in excess of $250,000 and
14    cannot reasonably obtain 100% fidelity bond coverage for
15    such amount, then it must obtain a fidelity bond coverage
16    of $250,000.
17        (h) Method of estimating the amount of the annual
18    budget, and the manner of assessing and collecting from the
19    unit owners their respective shares of such estimated
20    expenses, and of any other expenses lawfully agreed upon.
21        (i) That upon 10 days notice to the manager or board of
22    managers and payment of a reasonable fee, any unit owner
23    shall be furnished a statement of his or her account
24    setting forth the amount of any unpaid assessments or other
25    charges due and owing from such owner.
26        (j) Designation and removal of personnel necessary for

 

 

10000SB2485sam002- 29 -LRB100 18203 HEP 38939 a

1    the maintenance, repair and replacement of the common
2    elements.
3        (k) Such restrictions on and requirements respecting
4    the use and maintenance of the units and the use of the
5    common elements, not set forth in the declaration, as are
6    designed to prevent unreasonable interference with the use
7    of their respective units and of the common elements by the
8    several unit owners.
9        (l) Method of adopting and of amending administrative
10    rules and regulations governing the operation and use of
11    the common elements.
12        (m) The percentage of votes required to modify or amend
13    the bylaws, but each one of the particulars set forth in
14    this section shall always be embodied in the bylaws.
15        (n)(i) The provisions of this Act, the declaration,
16    bylaws, other condominium instruments, and rules and
17    regulations that relate to the use of the individual unit
18    or the common elements shall be applicable to any person
19    leasing a unit and shall be deemed to be incorporated in
20    any lease executed or renewed on or after August 30, 1984
21    (the effective date of Public Act 83-1271).
22        (ii) With regard to any lease entered into subsequent
23    to July 1, 1990 (the effective date of Public Act 86-991),
24    the unit owner leasing the unit shall deliver a copy of the
25    signed lease to the board or if the lease is oral, a
26    memorandum of the lease, not later than the date of

 

 

10000SB2485sam002- 30 -LRB100 18203 HEP 38939 a

1    occupancy or 10 days after the lease is signed, whichever
2    occurs first. In addition to any other remedies, by filing
3    an action jointly against the tenant and the unit owner, an
4    association may seek to enjoin a tenant from occupying a
5    unit or seek to evict a tenant under the provisions of
6    Article IX of the Code of Civil Procedure for failure of
7    the lessor-owner to comply with the leasing requirements
8    prescribed by this Section or by the declaration, bylaws,
9    and rules and regulations. The board of managers may
10    proceed directly against a tenant, at law or in equity, or
11    under the provisions of Article IX of the Code of Civil
12    Procedure, for any other breach by tenant of any covenants,
13    rules, regulations or bylaws.
14        (o) The association shall have no authority to forbear
15    the payment of assessments by any unit owner.
16        (p) That when 30% or fewer of the units, by number,
17    possess over 50% in the aggregate of the votes in the
18    association, any percentage vote of members specified
19    herein or in the condominium instruments shall require the
20    specified percentage by number of units rather than by
21    percentage of interest in the common elements allocated to
22    units that would otherwise be applicable and garage units
23    or storage units, or both, shall have, in total, no more
24    votes than their aggregate percentage of ownership in the
25    common elements; this shall mean that if garage units or
26    storage units, or both, are to be given a vote, or portion

 

 

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1    of a vote, that the association must add the total number
2    of votes cast of garage units, storage units, or both, and
3    divide the total by the number of garage units, storage
4    units, or both, and multiply by the aggregate percentage of
5    ownership of garage units and storage units to determine
6    the vote, or portion of a vote, that garage units or
7    storage units, or both, have. For purposes of this
8    subsection (p), when making a determination of whether 30%
9    or fewer of the units, by number, possess over 50% in the
10    aggregate of the votes in the association, a unit shall not
11    include a garage unit or a storage unit.
12        (q) That a unit owner may not assign, delegate,
13    transfer, surrender, or avoid the duties,
14    responsibilities, and liabilities of a unit owner under
15    this Act, the condominium instruments, or the rules and
16    regulations of the Association; and that such an attempted
17    assignment, delegation, transfer, surrender, or avoidance
18    shall be deemed void.
19        (r) That the association has no authority to report
20    adverse information to a credit reporting agency or
21    initiate collection proceedings against a unit owner for an
22    unpaid fine unless the board levied the fine in accordance
23    with subsection (l) of Section 18.4.
24    The provisions of this Section are applicable to all
25condominium instruments recorded under this Act. Any portion of
26a condominium instrument which contains provisions contrary to

 

 

10000SB2485sam002- 32 -LRB100 18203 HEP 38939 a

1these provisions shall be void as against public policy and
2ineffective. Any such instrument which fails to contain the
3provisions required by this Section shall be deemed to
4incorporate such provisions by operation of law.
5(Source: P.A. 99-472, eff. 6-1-16; 99-567, eff. 1-1-17; 99-642,
6eff. 7-28-16; 100-292, eff. 1-1-18; 100-416, eff. 1-1-18;
7revised 10-6-17.)
 
8    (765 ILCS 605/18.4)  (from Ch. 30, par. 318.4)
9    Sec. 18.4. Powers and duties of board of managers. The
10board of managers shall exercise for the association all
11powers, duties and authority vested in the association by law
12or the condominium instruments except for such powers, duties
13and authority reserved by law to the members of the
14association. The powers and duties of the board of managers
15shall include, but shall not be limited to, the following:
16        (a) To provide for the operation, care, upkeep,
17    maintenance, replacement and improvement of the common
18    elements. Nothing in this subsection (a) shall be deemed to
19    invalidate any provision in a condominium instrument
20    placing limits on expenditures for the common elements,
21    provided, that such limits shall not be applicable to
22    expenditures for repair, replacement, or restoration of
23    existing portions of the common elements. The term "repair,
24    replacement or restoration" means expenditures to
25    deteriorated or damaged portions of the property related to

 

 

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1    the existing decorating, facilities, or structural or
2    mechanical components, interior or exterior surfaces, or
3    energy systems and equipment with the functional
4    equivalent of the original portions of such areas.
5    Replacement of the common elements may result in an
6    improvement over the original quality of such elements or
7    facilities; provided that, unless the improvement is
8    mandated by law or is an emergency as defined in item (iv)
9    of subparagraph (8) of paragraph (a) of Section 18, if the
10    improvement results in a proposed expenditure exceeding 5%
11    of the annual budget, the board of managers, upon written
12    petition by unit owners with 20% of the votes of the
13    association delivered to the board within 21 days of the
14    board action to approve the expenditure, shall call a
15    meeting of the unit owners within 30 days of the date of
16    delivery of the petition to consider the expenditure.
17    Unless a majority of the total votes of the unit owners are
18    cast at the meeting to reject the expenditure, it is
19    ratified.
20        (b) To prepare, adopt and distribute the annual budget
21    for the property.
22        (c) To levy and expend assessments.
23        (d) To collect assessments from unit owners.
24        (e) To provide for the employment and dismissal of the
25    personnel necessary or advisable for the maintenance and
26    operation of the common elements.

 

 

10000SB2485sam002- 34 -LRB100 18203 HEP 38939 a

1        (f) To obtain adequate and appropriate kinds of
2    insurance.
3        (g) To own, convey, encumber, lease, and otherwise deal
4    with units conveyed to or purchased by it.
5        (h) To adopt and amend rules and regulations covering
6    the details of the operation and use of the property, after
7    a meeting of the unit owners called for the specific
8    purpose of discussing the proposed rules and regulations.
9    Notice of the meeting shall contain the full text of the
10    proposed rules and regulations, and the meeting shall
11    conform to the requirements of Section 18(b) of this Act,
12    except that no quorum is required at the meeting of the
13    unit owners unless the declaration, bylaws or other
14    condominium instrument expressly provides to the contrary.
15    However, no rule or regulation may impair any rights
16    guaranteed by the First Amendment to the Constitution of
17    the United States or Section 4 of Article I of the Illinois
18    Constitution including, but not limited to, the free
19    exercise of religion, nor may any rules or regulations
20    conflict with the provisions of this Act or the condominium
21    instruments. No rule or regulation shall prohibit any
22    reasonable accommodation for religious practices,
23    including the attachment of religiously mandated objects
24    to the front-door area of a condominium unit.
25        (i) To keep detailed, accurate records of the receipts
26    and expenditures affecting the use and operation of the

 

 

10000SB2485sam002- 35 -LRB100 18203 HEP 38939 a

1    property.
2        (j) To have access to each unit from time to time as
3    may be necessary for the maintenance, repair or replacement
4    of any common elements or for making emergency repairs
5    necessary to prevent damage to the common elements or to
6    other units.
7        (k) To pay real property taxes, special assessments,
8    and any other special taxes or charges of the State of
9    Illinois or of any political subdivision thereof, or other
10    lawful taxing or assessing body, which are authorized by
11    law to be assessed and levied upon the real property of the
12    condominium.
13        (l) To impose charges for late payment of a unit
14    owner's proportionate share of the common expenses, or any
15    other expenses lawfully agreed upon, and to levy reasonable
16    fines for violation of the declaration, bylaws, and rules
17    and regulations of the association. Before the board may
18    levy a fine, it shall first provide the unit owner a
19    minimum of 20 days' written notice and an opportunity to be
20    heard. The written notice shall be made in accordance with
21    the requirements of this Act. The written notice and
22    opportunity to be heard requirements of this subsection
23    apply only to the ability to levy fines, and nothing
24    contained in this subsection limits or restricts the
25    ability of the board to pursue or enforce the rights of the
26    association. , and after notice and an opportunity to be

 

 

10000SB2485sam002- 36 -LRB100 18203 HEP 38939 a

1    heard, to levy reasonable fines for violation of the
2    declaration, by-laws, and rules and regulations of the
3    association.
4        (m) By a majority vote of the entire board of managers,
5    to assign the right of the association to future income
6    from common expenses or other sources, and to mortgage or
7    pledge substantially all of the remaining assets of the
8    association.
9        (n) To record the dedication of a portion of the common
10    elements to a public body for use as, or in connection
11    with, a street or utility where authorized by the unit
12    owners under the provisions of Section 14.2.
13        (o) To record the granting of an easement for the
14    laying of cable television or high speed Internet cable
15    where authorized by the unit owners under the provisions of
16    Section 14.3; to obtain, if available and determined by the
17    board to be in the best interests of the association, cable
18    television or bulk high speed Internet service for all of
19    the units of the condominium on a bulk identical service
20    and equal cost per unit basis; and to assess and recover
21    the expense as a common expense and, if so determined by
22    the board, to assess each and every unit on the same equal
23    cost per unit basis.
24        (p) To seek relief on behalf of all unit owners when
25    authorized pursuant to subsection (c) of Section 10 from or
26    in connection with the assessment or levying of real

 

 

10000SB2485sam002- 37 -LRB100 18203 HEP 38939 a

1    property taxes, special assessments, and any other special
2    taxes or charges of the State of Illinois or of any
3    political subdivision thereof or of any lawful taxing or
4    assessing body.
5        (q) To reasonably accommodate the needs of a unit owner
6    who is a person with a disability as required by the
7    federal Civil Rights Act of 1968, the Human Rights Act and
8    any applicable local ordinances in the exercise of its
9    powers with respect to the use of common elements or
10    approval of modifications in an individual unit.
11        (r) To accept service of a notice of claim for purposes
12    of the Mechanics Lien Act on behalf of each respective
13    member of the Unit Owners' Association with respect to
14    improvements performed pursuant to any contract entered
15    into by the Board of Managers or any contract entered into
16    prior to the recording of the condominium declaration
17    pursuant to this Act, for a property containing more than 8
18    units, and to distribute the notice to the unit owners
19    within 7 days of the acceptance of the service by the Board
20    of Managers. The service shall be effective as if each
21    individual unit owner had been served individually with
22    notice.
23        (s) To adopt and amend rules and regulations (l)
24    authorizing electronic delivery of notices and other
25    communications required or contemplated by this Act to each
26    unit owner who provides the association with written

 

 

10000SB2485sam002- 38 -LRB100 18203 HEP 38939 a

1    authorization for electronic delivery and an electronic
2    address to which such communications are to be
3    electronically transmitted; and (2) authorizing each unit
4    owner to designate an electronic address or a U.S. Postal
5    Service address, or both, as the unit owner's address on
6    any list of members or unit owners which an association is
7    required to provide upon request pursuant to any provision
8    of this Act or any condominium instrument.
9    In the performance of their duties, the officers and
10members of the board, whether appointed by the developer or
11elected by the unit owners, shall exercise the care required of
12a fiduciary of the unit owners.
13    The collection of assessments from unit owners by an
14association, board of managers or their duly authorized agents
15shall not be considered acts constituting a collection agency
16for purposes of the Collection Agency Act.
17    The provisions of this Section are applicable to all
18condominium instruments recorded under this Act. Any portion of
19a condominium instrument which contains provisions contrary to
20these provisions shall be void as against public policy and
21ineffective. Any such instrument that fails to contain the
22provisions required by this Section shall be deemed to
23incorporate such provisions by operation of law.
24(Source: P.A. 99-143, eff. 7-27-15; 99-849, eff. 1-1-17;
25100-292, eff. 1-1-18.)".