Full Text of SB0884 100th General Assembly
SB0884 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 SB0884 Introduced 2/7/2017, by Sen. John G. Mulroe SYNOPSIS AS INTRODUCED: |
| 765 ILCS 160/1-25 | | 765 ILCS 605/18 | from Ch. 30, par. 318 |
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Amends the Common Interest Community Association Act. Provides that all voting by the members of a common interest community association shall be on a non-cumulative basis. Amends the Condominium Property Act. Provides that the bylaws shall provide that voting shall be on a non-cumulative basis.
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| | A BILL FOR |
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| 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 1-25 as follows: | 6 | | (765 ILCS 160/1-25) | 7 | | Sec. 1-25. Board of managers, board of directors, duties, | 8 | | elections, and voting. | 9 | | (a) Elections shall be held in accordance with the | 10 | | community instruments, provided that an election shall be held | 11 | | no less frequently than once every 24 months, for the board of | 12 | | managers or board of directors from among the membership of a | 13 | | common interest community association. | 14 | | (b) (Blank). | 15 | | (c) The members of the board shall serve without | 16 | | compensation, unless the community instruments indicate | 17 | | otherwise. | 18 | | (d) No member of the board or officer shall be elected for | 19 | | a term of more than 4 years, but officers and board members may | 20 | | succeed themselves. | 21 | | (e) If there is a vacancy on the board, the remaining | 22 | | members of the board may fill the vacancy by a two-thirds vote | 23 | | of the remaining board members until the next annual meeting of |
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| 1 | | the membership or until members holding 20% of the votes of the | 2 | | association request a meeting of the members to fill the | 3 | | vacancy for the balance of the term. A meeting of the members | 4 | | shall be called for purposes of filling a vacancy on the board | 5 | | no later than 30 days following the filing of a petition signed | 6 | | by membership holding 20% of the votes of the association | 7 | | requesting such a meeting. | 8 | | (f) There shall be an election of a: | 9 | | (1) president from among the members of the board, who | 10 | | shall preside over the meetings of the board and of the | 11 | | membership; | 12 | | (2) secretary from among the members of the board, who | 13 | | shall keep the minutes of all meetings of the board and of | 14 | | the membership and who shall, in general, perform all the | 15 | | duties incident to the office of secretary; and | 16 | | (3) treasurer from among the members of the board, who | 17 | | shall keep the financial records and books of account. | 18 | | (g) If no election is held to elect board members within | 19 | | the time period specified in the bylaws, or within a reasonable | 20 | | amount of time thereafter not to exceed 90 days, then 20% of | 21 | | the members may bring an action to compel compliance with the | 22 | | election requirements specified in the bylaws or operating | 23 | | agreement. If the court finds that an election was not held to | 24 | | elect members of the board within the required period due to | 25 | | the bad faith acts or omissions of the board of managers or the | 26 | | board of directors, the members shall be entitled to recover |
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| 1 | | their reasonable attorney's fees and costs from the | 2 | | association. If the relevant notice requirements have been met | 3 | | and an election is not held solely due to a lack of a quorum, | 4 | | then this subsection (g) does not apply. | 5 | | (h) Where there is more than one owner of a unit and there | 6 | | is only one member vote associated with that unit, if only one | 7 | | of the multiple owners is present at a meeting of the | 8 | | membership, he or she is entitled to cast the member vote | 9 | | associated with that unit. | 10 | | (h-5) A member may vote: | 11 | | (1) by proxy executed in writing by the member or by | 12 | | his or her duly authorized attorney in fact, provided, | 13 | | however, that the proxy bears the date of execution. Unless | 14 | | the community instruments or the written proxy itself | 15 | | provide otherwise, proxies will not be valid for more than | 16 | | 11 months after the date of its execution; or | 17 | | (2) by submitting an association-issued ballot in | 18 | | person at the election meeting; or | 19 | | (3) by submitting an association-issued ballot to the | 20 | | association or its designated agent by mail or other means | 21 | | of delivery specified in the declaration or bylaws; or | 22 | | (4) by any electronic or acceptable technological | 23 | | means. | 24 | | Votes cast under any paragraph of this subsection (h-5) are | 25 | | valid for the purpose of establishing a quorum. | 26 | | (i) The association may, upon adoption of the appropriate |
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| 1 | | rules by the board, conduct elections by electronic or | 2 | | acceptable technological means. Members may not vote by proxy | 3 | | in board elections. Instructions regarding the use of | 4 | | electronic means or acceptable technological means for voting | 5 | | shall be distributed to all members not less than 10 and not | 6 | | more than 30 days before the election meeting. The instruction | 7 | | notice must include the names of all candidates who have given | 8 | | the board or its authorized agent timely written notice of | 9 | | their candidacy and must give the person voting through | 10 | | electronic or acceptable technological means the opportunity | 11 | | to cast votes for candidates whose names do not appear on the | 12 | | ballot. The board rules shall provide and the instructions | 13 | | provided to the member shall state that a member who submits a | 14 | | vote using electronic or acceptable technological means may | 15 | | request and cast a ballot in person at the election meeting, | 16 | | and thereby void any vote previously submitted by that member. | 17 | | (j) Upon proof of purchase, the purchaser of a unit from a | 18 | | seller other than the developer pursuant to an installment | 19 | | contract for purchase shall, during such times as he or she | 20 | | resides in the unit, be counted toward a quorum for purposes of | 21 | | election of members of the board at any meeting of the | 22 | | membership called for purposes of electing members of the | 23 | | board, shall have the right to vote for the members of the | 24 | | board of the common interest community association and to be | 25 | | elected to and serve on the board unless the seller expressly | 26 | | retains in writing any or all of such rights.
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| 1 | | (k) All voting by the members of a common interest | 2 | | community association shall be on a non-cumulative basis. | 3 | | (Source: P.A. 98-1042, eff. 1-1-15; 99-41, eff. 7-14-15.) | 4 | | Section 10. The Condominium Property Act is amended by | 5 | | changing Section 18 as follows:
| 6 | | (765 ILCS 605/18) (from Ch. 30, par. 318)
| 7 | | Sec. 18. Contents of bylaws. The bylaws shall provide for | 8 | | at least
the following:
| 9 | | (a)(1) The election from among the unit owners of a | 10 | | board of managers,
the number of persons constituting such | 11 | | board, and that the terms of at
least one-third of the | 12 | | members of the board shall expire annually and that
all | 13 | | members of the board shall be elected at large; if there | 14 | | are multiple owners of a single unit, only one of the | 15 | | multiple
owners shall be eligible to serve as a member of | 16 | | the board at any one time;
| 17 | | (2) the powers and duties of the board;
| 18 | | (3) the compensation, if any, of the members of the | 19 | | board;
| 20 | | (4) the method of removal from office of members of the | 21 | | board;
| 22 | | (5) that the board may engage the services of a manager | 23 | | or managing agent;
| 24 | | (6) that each unit owner shall receive, at least 25 |
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| 1 | | days prior to the
adoption thereof by the board of | 2 | | managers, a copy of the proposed annual
budget together | 3 | | with an indication of which portions are intended for
| 4 | | reserves, capital expenditures or repairs or payment of | 5 | | real estate taxes;
| 6 | | (7) that the board of managers shall annually supply to
| 7 | | all unit owners an itemized accounting of the common | 8 | | expenses
for the preceding year actually incurred or paid, | 9 | | together
with an indication of which portions were for | 10 | | reserves, capital
expenditures or repairs or payment of | 11 | | real estate taxes and
with a tabulation of the amounts | 12 | | collected pursuant to the
budget or assessment, and showing | 13 | | the net excess or
deficit of income over expenditures plus | 14 | | reserves;
| 15 | | (8)(i) that each unit owner shall receive notice, in | 16 | | the same manner
as is provided in this Act for membership | 17 | | meetings, of any meeting of the
board of managers | 18 | | concerning the adoption of the proposed annual budget and
| 19 | | regular assessments pursuant thereto or to adopt a separate | 20 | | (special)
assessment, (ii) that except as provided in | 21 | | subsection (iv) below, if an
adopted
budget or any separate | 22 | | assessment adopted by the board would result in the
sum of | 23 | | all regular and separate assessments payable in the current | 24 | | fiscal year
exceeding 115% of the sum of all regular and | 25 | | separate
assessments payable during the
preceding fiscal | 26 | | year, the
board of managers, upon written petition by unit |
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| 1 | | owners with 20 percent of
the votes of the association | 2 | | delivered to the board within 14
days of the board action,
| 3 | | shall call a meeting of the unit owners within 30 days of | 4 | | the date of
delivery of the petition to consider the budget | 5 | | or separate
assessment; unless a
majority of
the total | 6 | | votes of the unit owners are cast at the meeting to reject | 7 | | the
budget or separate assessment,
it is ratified, (iii) | 8 | | that any common expense not set forth in the budget or
any | 9 | | increase in assessments over the amount adopted in the | 10 | | budget shall be
separately assessed against all unit | 11 | | owners, (iv) that separate assessments for
expenditures | 12 | | relating to emergencies or mandated by law may be adopted | 13 | | by the
board of managers without being subject to unit | 14 | | owner approval or the
provisions of item (ii) above or item | 15 | | (v) below. As used
herein, "emergency" means an immediate | 16 | | danger to the structural integrity of
the
common elements | 17 | | or to the life, health, safety or property of the unit | 18 | | owners,
(v) that assessments
for additions and alterations | 19 | | to the common elements or to association-owned
property not | 20 | | included in the adopted annual budget, shall be separately
| 21 | | assessed and are subject to approval of two-thirds of the | 22 | | total votes of all
unit owners, (vi) that the board of | 23 | | managers may adopt separate assessments
payable over more | 24 | | than one fiscal year. With respect to multi-year | 25 | | assessments
not governed by items (iv) and (v), the entire | 26 | | amount of the multi-year
assessment shall be deemed |
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| 1 | | considered and authorized in the first fiscal year
in which | 2 | | the assessment is approved;
| 3 | | (9)(A) that every meeting of the board of managers | 4 | | shall be open to any unit
owner, except that the board may | 5 | | close any portion of a noticed meeting or meet separately | 6 | | from a noticed meeting to: (i) discuss litigation
when an | 7 | | action against or on behalf of the particular association | 8 | | has been
filed and is pending in a court or administrative | 9 | | tribunal,
or when the board of managers finds that such an | 10 | | action is probable
or imminent, (ii) discuss the | 11 | | appointment, employment, engagement,
or dismissal of an | 12 | | employee, independent contractor, agent, or other provider | 13 | | of goods and services, (iii) interview a potential | 14 | | employee, independent contractor, agent, or other provider | 15 | | of goods and services, (iv) discuss violations of rules and
| 16 | | regulations of the association, (v) discuss a unit owner's | 17 | | unpaid share of common
expenses, or (vi) consult with the | 18 | | association's legal counsel; that any vote on these matters | 19 | | shall take place at a meeting of the board of managers or
| 20 | | portion thereof open to any unit owner; | 21 | | (B) that board members may participate in and act at | 22 | | any meeting of the board of managers in person, by | 23 | | telephonic means, or by use of any acceptable technological | 24 | | means whereby all persons participating in the meeting can | 25 | | communicate with each other; that participation | 26 | | constitutes attendance and presence in person at the |
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| 1 | | meeting; | 2 | | (C) that any unit owner may record the
proceedings at | 3 | | meetings of the board of managers or portions thereof | 4 | | required to be open by this
Act by tape, film or other | 5 | | means, and that the board may prescribe reasonable
rules | 6 | | and regulations to govern the right to make such | 7 | | recordings; | 8 | | (D) that
notice of every meeting of the board of | 9 | | managers shall be given to every board member at least 48 | 10 | | hours
prior thereto, unless the board member waives notice | 11 | | of the meeting pursuant to subsection (a) of Section 18.8; | 12 | | and | 13 | | (E) that notice of every meeting
of the board of | 14 | | managers shall be posted in entranceways,
elevators, or | 15 | | other conspicuous places in the condominium at least 48 | 16 | | hours
prior to the meeting of the board of managers except | 17 | | where there is no
common entranceway for 7 or more units, | 18 | | the board of managers may designate
one or more locations | 19 | | in the proximity of these units where the notices of
| 20 | | meetings shall be posted; that notice of every meeting of | 21 | | the board of managers shall also be given at least 48 hours | 22 | | prior to the meeting, or such longer notice as this Act may | 23 | | separately require, to: (i) each unit owner who has | 24 | | provided the association with written authorization to | 25 | | conduct business by acceptable technological means, and | 26 | | (ii) to the extent that the condominium instruments of an |
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| 1 | | association require, to each other unit owner, as required | 2 | | by subsection (f) of Section 18.8, by mail or delivery, and | 3 | | that no other notice of a meeting of the board of managers | 4 | | need be given to any unit owner;
| 5 | | (10) that the board shall meet at least 4 times | 6 | | annually;
| 7 | | (11) that no member of the board or officer shall be | 8 | | elected for a term
of more than 2 years, but that officers | 9 | | and board members may succeed
themselves;
| 10 | | (12) the designation of an officer to mail and receive | 11 | | all notices and
execute amendments to condominium | 12 | | instruments as provided for in this Act
and in the | 13 | | condominium instruments;
| 14 | | (13) the method of filling vacancies on the board
which | 15 | | shall include authority for the remaining members of the | 16 | | board to
fill the vacancy by two-thirds vote until the next | 17 | | annual meeting of unit
owners or for a period terminating | 18 | | no later than 30 days following the
filing of a petition | 19 | | signed by unit owners holding 20% of the votes of the
| 20 | | association requesting a meeting of the unit owners to fill | 21 | | the vacancy for
the balance of the term, and that a meeting | 22 | | of the unit owners shall be
called for purposes of filling | 23 | | a vacancy on the board no later than 30 days
following the | 24 | | filing of a petition signed by unit owners holding 20% of | 25 | | the
votes of the association requesting such a meeting, and | 26 | | the method of filling
vacancies among the officers that |
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| 1 | | shall include the authority for the members
of the board to | 2 | | fill the vacancy for the unexpired portion of the term;
| 3 | | (14) what percentage of the board of managers, if other | 4 | | than a majority,
shall constitute a quorum;
| 5 | | (15) provisions concerning notice of board meetings to | 6 | | members of the
board;
| 7 | | (16) the board of managers may not enter into a | 8 | | contract with a
current board member
or with a corporation | 9 | | or partnership in which a board
member or a member of the | 10 | | board member's immediate family has 25% or
more interest, | 11 | | unless notice of intent to enter the
contract is given to | 12 | | unit owners within 20 days after a decision is made
to | 13 | | enter into the contract and the unit owners are
afforded an | 14 | | opportunity by filing a petition, signed by 20% of the unit
| 15 | | owners, for an election to approve or disapprove the | 16 | | contract;
such petition shall be filed within 20 days after | 17 | | such notice and such
election shall be held within 30 days | 18 | | after filing the petition; for purposes
of this subsection, | 19 | | a board member's immediate family means the board member's
| 20 | | spouse, parents, and children;
| 21 | | (17) that the board of managers may disseminate
to unit | 22 | | owners biographical and background information about | 23 | | candidates for
election to the board if (i) reasonable | 24 | | efforts to identify all candidates are
made and all | 25 | | candidates are given an opportunity to include | 26 | | biographical and
background information in the information |
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| 1 | | to be disseminated; and (ii) the
board does not express a | 2 | | preference in favor of any candidate;
| 3 | | (18) any proxy distributed for board elections
by the | 4 | | board of managers gives unit owners the
opportunity to | 5 | | designate any person as the proxy holder, and gives the | 6 | | unit
owner the opportunity to express a preference for any | 7 | | of the known
candidates for the board or to write in a | 8 | | name;
| 9 | | (19) that special meetings of the board of managers can | 10 | | be called by
the president or 25% of the members of the | 11 | | board;
| 12 | | (20) that the board of managers may establish
and | 13 | | maintain a system of master metering of public utility | 14 | | services and
collect payments in connection therewith, | 15 | | subject to the requirements of the
Tenant Utility Payment | 16 | | Disclosure Act; and
| 17 | | (21) that the board may ratify and confirm actions of | 18 | | the
members of the board taken in response to an emergency, | 19 | | as that
term is defined in subdivision (a)(8)(iv) of this | 20 | | Section; that
the board shall give notice to the unit | 21 | | owners of: (i) the
occurrence of the emergency event within | 22 | | 7 business days after
the emergency event, and (ii) the | 23 | | general description of the
actions taken to address the | 24 | | event within 7 days after the
emergency event. | 25 | | The intent of the provisions of Public Act 99-472 | 26 | | adding this paragraph (21) is to empower and support boards |
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| 1 | | to act in
emergencies. | 2 | | (b)(1) What percentage of the unit owners, if other | 3 | | than 20%, shall
constitute a quorum provided that, for | 4 | | condominiums with 20 or more units,
the percentage of unit | 5 | | owners constituting a quorum shall be 20% unless the
unit | 6 | | owners holding a majority of the percentage interest in the
| 7 | | association provide for a higher percentage, provided that | 8 | | in voting on amendments to the association's bylaws, a unit | 9 | | owner who is in arrears on the unit owner's regular or | 10 | | separate assessments for 60 days or more, shall not be | 11 | | counted for purposes of determining if a quorum is present, | 12 | | but that unit owner retains the right to vote on amendments | 13 | | to the association's bylaws;
| 14 | | (2) that the association shall have one class of | 15 | | membership;
| 16 | | (3) that the members shall hold an annual meeting, one | 17 | | of the purposes
of which shall be to elect members of the | 18 | | board of managers;
| 19 | | (4) the method of calling meetings of the unit owners;
| 20 | | (5) that special meetings of the members can be called | 21 | | by the president,
board of managers, or by 20% of unit | 22 | | owners;
| 23 | | (6) that written notice of any membership meeting shall | 24 | | be mailed
or delivered giving members no less than 10 and | 25 | | no more than 30 days
notice of the time, place and purpose | 26 | | of such meeting except that notice may be sent, to the |
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| 1 | | extent the condominium instruments or rules adopted | 2 | | thereunder expressly so provide, by electronic | 3 | | transmission consented to by the unit owner to whom the | 4 | | notice is given, provided the director and officer or his | 5 | | agent certifies in writing to the delivery by electronic | 6 | | transmission;
| 7 | | (7) that voting shall be on a non-cumulative percentage | 8 | | basis, and that the percentage
vote to which each unit is | 9 | | entitled is the percentage interest of the
undivided | 10 | | ownership of the common elements appurtenant thereto, | 11 | | provided
that the bylaws may provide for approval by unit | 12 | | owners in connection with
matters where the requisite | 13 | | approval on a percentage basis is not specified
in this | 14 | | Act, on the basis of non-cumulative one vote per unit;
| 15 | | (8) that, where there is more than one owner of a unit, | 16 | | if only one
of the multiple owners is present at a meeting | 17 | | of the association, he is
entitled to cast all the votes | 18 | | allocated to that unit, if more than one of
the multiple | 19 | | owners are present, the votes allocated to that unit may be
| 20 | | cast only in accordance with the agreement of a majority in | 21 | | interest of the
multiple owners, unless the declaration | 22 | | expressly provides otherwise, that
there is majority | 23 | | agreement if any one of the multiple owners cast the
votes | 24 | | allocated to that unit without protest being made promptly | 25 | | to the
person presiding over the meeting by any of the | 26 | | other owners of the unit;
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| 1 | | (9)(A) except as provided in subparagraph (B) of this | 2 | | paragraph (9) in
connection with board elections, that
a | 3 | | unit owner may vote by proxy executed in writing by the | 4 | | unit
owner or by his duly authorized attorney in fact; that | 5 | | the proxy must bear the date of
execution
and, unless the | 6 | | condominium instruments or the written proxy itself | 7 | | provide
otherwise, is
invalid after 11 months from the date | 8 | | of its execution; to the extent the condominium instruments | 9 | | or rules adopted thereunder expressly so provide, a vote or | 10 | | proxy may be submitted by electronic transmission, | 11 | | provided that any such electronic transmission shall | 12 | | either set forth or be submitted with information from | 13 | | which it can be determined that the electronic transmission | 14 | | was authorized by the unit owner or the unit owner's proxy;
| 15 | | (B) that if a rule adopted at least 120 days before a | 16 | | board election
or the
declaration or bylaws provide for | 17 | | balloting as set forth in this subsection,
unit
owners may | 18 | | not vote by proxy in board elections, but may vote only (i) | 19 | | by
submitting an association-issued ballot in person at the | 20 | | election meeting or
(ii) by
submitting an | 21 | | association-issued ballot to the association or its | 22 | | designated
agent
by mail or other means of delivery | 23 | | specified in the declaration, bylaws, or
rule; that
the | 24 | | ballots shall be mailed or otherwise distributed to unit | 25 | | owners not less
than 10
and not more than 30 days before | 26 | | the election meeting, and the board shall give
unit owners |
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| 1 | | not less than 21 days' prior written notice of the deadline | 2 | | for
inclusion of a candidate's name on the ballots; that | 3 | | the deadline shall be no
more
than 7 days before the | 4 | | ballots are mailed or otherwise distributed to unit
owners; | 5 | | that
every such ballot must include the names of all | 6 | | candidates who have given the
board or its authorized agent | 7 | | timely written notice of their candidacy and must
give the | 8 | | person casting the ballot the opportunity to cast votes for | 9 | | candidates
whose names do not appear on the ballot; that a | 10 | | ballot received by the
association
or
its designated agent | 11 | | after the close of voting shall not be counted; that a
unit
| 12 | | owner
who submits a ballot by mail or other means of | 13 | | delivery specified in the
declaration, bylaws, or rule may | 14 | | request and cast a ballot in person at the
election
| 15 | | meeting, and thereby void any ballot previously submitted | 16 | | by that unit owner; | 17 | | (B-5) that if a rule adopted at least 120 days before a | 18 | | board election or the declaration or bylaws provide for | 19 | | balloting as set forth in this subparagraph, unit owners | 20 | | may not vote by proxy in board elections, but may vote only | 21 | | (i) by submitting an association-issued ballot in person at | 22 | | the election meeting; or (ii) by any acceptable | 23 | | technological means as defined in Section 2 of this Act; | 24 | | instructions regarding the use of electronic means for | 25 | | voting shall be distributed to all unit owners not less | 26 | | than 10 and not more than 30 days before the election |
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| 1 | | meeting, and the board shall give unit owners not less than | 2 | | 21 days' prior written notice of the deadline for inclusion | 3 | | of a candidate's name on the ballots; the deadline shall be | 4 | | no more than 7 days before the instructions for voting | 5 | | using electronic or acceptable technological means is | 6 | | distributed to unit owners; every instruction notice must | 7 | | include the names of all candidates who have given the | 8 | | board or its authorized agent timely written notice of | 9 | | their candidacy and must give the person voting through | 10 | | electronic or acceptable technological means the | 11 | | opportunity to cast votes for candidates whose names do not | 12 | | appear on the ballot; a unit owner who submits a vote using | 13 | | electronic or acceptable technological means may request | 14 | | and cast a ballot in person at the election meeting, | 15 | | thereby voiding any vote previously submitted by that unit | 16 | | owner;
| 17 | | (C) that if a written petition by unit owners with at | 18 | | least 20% of the
votes of
the association is delivered to | 19 | | the board within 14 days after the board's
approval
of a | 20 | | rule adopted pursuant to subparagraph (B) or subparagraph | 21 | | (B-5) of this paragraph (9), the board
shall call a meeting | 22 | | of the unit owners within 30 days after the date of
| 23 | | delivery of
the petition; that unless a majority of the | 24 | | total votes of the unit owners are
cast
at the
meeting to | 25 | | reject the rule, the rule is ratified;
| 26 | | (D) that votes cast by ballot under subparagraph (B) or |
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| 1 | | electronic or acceptable technological means under | 2 | | subparagraph (B-5) of this paragraph (9) are valid for the | 3 | | purpose of establishing a quorum; | 4 | | (10) that the association may, upon adoption of the | 5 | | appropriate rules by
the board of managers, conduct | 6 | | elections by secret ballot whereby the voting
ballot is | 7 | | marked only with the percentage interest for the unit and | 8 | | the vote
itself, provided that the board further adopt | 9 | | rules to verify the status of the
unit owner issuing a | 10 | | proxy or casting a ballot; and further, that a candidate
| 11 | | for election to the board of managers or such
candidate's | 12 | | representative shall have the right to be present at the
| 13 | | counting of ballots at such election;
| 14 | | (11) that in the event of a resale of a condominium | 15 | | unit the purchaser
of a unit from a seller other than the | 16 | | developer pursuant to an installment
contract for purchase | 17 | | shall during such times as he or she resides in the
unit be | 18 | | counted toward a quorum for purposes of election of members | 19 | | of the
board of managers at any meeting of the unit owners | 20 | | called for purposes of
electing members of the board, shall | 21 | | have the right to vote for the
election of members of the | 22 | | board of managers and to be elected to and serve
on the | 23 | | board of managers unless the seller expressly retains in | 24 | | writing any
or all of such rights. In no event may the | 25 | | seller and purchaser both be
counted toward a quorum, be | 26 | | permitted to vote for a particular office or be
elected and |
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| 1 | | serve on the board. Satisfactory evidence of the | 2 | | installment contract
shall be made available to the | 3 | | association or its agents. For
purposes of this subsection, | 4 | | "installment contract" shall have the same
meaning as set | 5 | | forth in Section 1(e) of the Dwelling Unit Installment | 6 | | Contract Act;
| 7 | | (12) the method by which matters subject to the | 8 | | approval of unit owners
set forth in this Act, or in the | 9 | | condominium instruments, will be
submitted to the unit | 10 | | owners at special membership meetings called for such
| 11 | | purposes; and
| 12 | | (13) that matters subject to the affirmative vote of | 13 | | not less than 2/3
of the votes of unit owners at a meeting | 14 | | duly called for that purpose,
shall include, but not be | 15 | | limited to:
| 16 | | (i) merger or consolidation of the association;
| 17 | | (ii) sale, lease, exchange, or other disposition | 18 | | (excluding the mortgage
or pledge) of all, or | 19 | | substantially all of the property and assets of the
| 20 | | association; and
| 21 | | (iii) the purchase or sale of land or of units on | 22 | | behalf of all unit owners.
| 23 | | (c) Election of a president from among the board of | 24 | | managers, who shall
preside over the meetings of the board | 25 | | of managers and of the unit owners.
| 26 | | (d) Election of a secretary from among the board of |
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| 1 | | managers, who shall
keep the minutes of all meetings
of the | 2 | | board of managers and of the unit owners and who shall, in | 3 | | general,
perform all the duties incident to the office of | 4 | | secretary.
| 5 | | (e) Election of a treasurer from among the board of | 6 | | managers, who shall
keep the financial records and
books of | 7 | | account.
| 8 | | (f) Maintenance, repair and replacement of the common | 9 | | elements and
payments therefor, including the method of | 10 | | approving payment vouchers.
| 11 | | (g) An association with 30 or more units shall obtain | 12 | | and maintain
fidelity insurance covering persons who | 13 | | control or disburse funds of the
association for the | 14 | | maximum amount of coverage available to protect funds
in | 15 | | the custody or control of the association plus the | 16 | | association reserve
fund. All management companies which | 17 | | are responsible for the funds held or
administered by the | 18 | | association shall maintain and furnish to the
association a | 19 | | fidelity bond for the maximum amount of coverage available | 20 | | to
protect funds in the custody of the management company | 21 | | at any time. The
association shall bear the cost of the | 22 | | fidelity insurance and fidelity
bond, unless otherwise | 23 | | provided by contract between the association and a
| 24 | | management company. The association shall be the direct | 25 | | obligee of any
such fidelity bond. A management company | 26 | | holding reserve funds of an
association shall at all times |
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| 1 | | maintain a separate account for each
association, | 2 | | provided, however, that for investment purposes, the Board | 3 | | of
Managers of an association may authorize a management | 4 | | company to maintain
the association's reserve funds in a | 5 | | single interest bearing account with
similar funds of other | 6 | | associations. The management company shall at all
times | 7 | | maintain records identifying all moneys of each | 8 | | association in such
investment account. The management | 9 | | company may hold all operating funds of
associations which | 10 | | it manages in a single operating account but shall at
all | 11 | | times maintain records identifying all moneys of each | 12 | | association in
such operating account. Such operating and | 13 | | reserve funds held by the
management company for the | 14 | | association shall not be subject to attachment
by any | 15 | | creditor of the management company.
| 16 | | For the purpose of this subsection, a management | 17 | | company shall be
defined as a person, partnership, | 18 | | corporation, or other legal entity
entitled to transact | 19 | | business on behalf of others, acting on behalf of or
as an | 20 | | agent for a unit owner, unit owners or association of unit | 21 | | owners for
the purpose of carrying out the duties, | 22 | | responsibilities, and other
obligations necessary for the | 23 | | day to day operation and management of any
property subject | 24 | | to this Act. For purposes of this subsection, the term
| 25 | | "fiduciary insurance coverage" shall be defined as both a | 26 | | fidelity bond and
directors and officers liability |
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| 1 | | coverage, the fidelity bond in the full
amount of | 2 | | association funds and association reserves that will be in | 3 | | the
custody of the association, and the directors and | 4 | | officers liability
coverage at a level as shall be | 5 | | determined to be reasonable by the board of
managers, if | 6 | | not otherwise established by the declaration or by laws.
| 7 | | Until one year after September 21, 1985 (the effective | 8 | | date of Public Act 84-722),
if a condominium association | 9 | | has reserves plus assessments in excess of
$250,000 and | 10 | | cannot reasonably obtain 100% fidelity bond coverage for | 11 | | such
amount, then it must obtain a fidelity bond coverage | 12 | | of $250,000.
| 13 | | (h) Method of estimating the amount of the annual | 14 | | budget, and the manner
of assessing and collecting from the | 15 | | unit owners their respective shares of
such estimated | 16 | | expenses, and of any other expenses lawfully agreed upon.
| 17 | | (i) That upon 10 days notice to the manager or board of | 18 | | managers and
payment of a reasonable fee, any unit owner | 19 | | shall be furnished a statement
of his account setting forth | 20 | | the amount of any unpaid assessments or other
charges due | 21 | | and owing from such owner.
| 22 | | (j) Designation and removal of personnel necessary for | 23 | | the maintenance,
repair and replacement of the common | 24 | | elements.
| 25 | | (k) Such restrictions on and requirements respecting | 26 | | the use and
maintenance of the units and the use of the |
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| 1 | | common elements, not set forth
in the declaration, as are | 2 | | designed to prevent unreasonable interference
with the use | 3 | | of their respective units and of the common elements by the
| 4 | | several unit owners.
| 5 | | (l) Method of adopting and of amending administrative | 6 | | rules and
regulations governing the operation and use of | 7 | | the common elements.
| 8 | | (m) The percentage of votes required to modify or amend | 9 | | the bylaws, but
each one of the particulars set forth in | 10 | | this section shall always be
embodied in the bylaws.
| 11 | | (n)(i) The provisions of this Act, the declaration, | 12 | | bylaws, other
condominium instruments, and rules and | 13 | | regulations that relate to the use
of the individual unit | 14 | | or the common elements shall be applicable to
any person | 15 | | leasing a unit and shall be deemed to be incorporated in | 16 | | any
lease executed or renewed on or after August 30, 1984 | 17 | | (the effective date of Public Act 83-1271). | 18 | | (ii) With regard to any lease entered into subsequent | 19 | | to July 1, 1990 (the
effective date of Public Act 86-991), | 20 | | the unit owner leasing the
unit shall deliver a copy of the | 21 | | signed lease to the board or if the
lease is oral, a | 22 | | memorandum of the lease, not later than the date of
| 23 | | occupancy or 10 days after the lease is signed, whichever | 24 | | occurs first. In
addition to any other remedies, by filing | 25 | | an action jointly against the
tenant and the unit owner, an | 26 | | association may seek to enjoin a tenant from
occupying a |
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| 1 | | unit or seek to evict a tenant under the provisions of | 2 | | Article
IX of the Code of Civil Procedure for failure of | 3 | | the lessor-owner to
comply with the leasing requirements | 4 | | prescribed by
this Section or by the declaration, bylaws, | 5 | | and
rules and regulations. The board of managers may | 6 | | proceed directly against a
tenant, at law or in equity, or | 7 | | under the provisions of Article IX of the
Code of Civil | 8 | | Procedure, for any other breach by tenant of any
covenants, | 9 | | rules, regulations or bylaws.
| 10 | | (o) The association shall have no authority to forbear | 11 | | the payment
of assessments by any unit owner.
| 12 | | (p) That when 30% or fewer of the units, by number,
| 13 | | possess over 50% in the aggregate of the votes in the | 14 | | association,
any percentage vote of members specified | 15 | | herein or in the condominium
instruments shall require the | 16 | | specified percentage by number of units
rather than by | 17 | | percentage of interest in the common elements allocated
to | 18 | | units that would otherwise be applicable and garage units | 19 | | or storage units, or both, shall have, in total, no more | 20 | | votes than their aggregate percentage of ownership in the | 21 | | common elements; this shall mean that if garage units or | 22 | | storage units, or both, are to be given a vote, or portion | 23 | | of a vote, that the association must add the total number | 24 | | of votes cast of garage units, storage units, or both, and | 25 | | divide the total by the number of garage units, storage | 26 | | units, or both, and multiply by the aggregate percentage of |
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| 1 | | ownership of garage units and storage units to determine | 2 | | the vote, or portion of a vote, that garage units or | 3 | | storage units, or both, have. For purposes of this | 4 | | subsection (p), when making a determination of whether 30% | 5 | | or fewer of the units, by number, possess over 50% in the | 6 | | aggregate of the votes in the association, a unit shall not | 7 | | include a garage unit or a storage unit.
| 8 | | (q) That a unit owner may not assign, delegate, | 9 | | transfer, surrender, or
avoid the duties, | 10 | | responsibilities, and liabilities of a unit owner under | 11 | | this
Act, the condominium instruments, or the rules and | 12 | | regulations of the
Association; and that such an attempted | 13 | | assignment, delegation, transfer,
surrender, or avoidance | 14 | | shall be deemed void.
| 15 | | The provisions of this Section are applicable to all | 16 | | condominium
instruments recorded under this Act. Any portion of | 17 | | a condominium
instrument which contains provisions contrary to | 18 | | these provisions shall be
void as against public policy and | 19 | | ineffective. Any such instrument which
fails to contain the | 20 | | provisions required by this Section shall be deemed to
| 21 | | incorporate such provisions by operation of law.
| 22 | | (Source: P.A. 98-1042, eff. 1-1-15; 99-472, eff. 6-1-16; | 23 | | 99-567, eff. 1-1-17; 99-642, eff. 7-28-16 .)
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