Full Text of SB2354 99th General Assembly
SB2354enr 99TH GENERAL ASSEMBLY |
| | SB2354 Enrolled | | LRB099 16668 HEP 41006 b |
|
| 1 | | AN ACT concerning civil law.
| 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly:
| 4 | | Section 5. The Common Interest Community Association Act is | 5 | | amended by changing Section 1-40 as follows: | 6 | | (765 ILCS 160/1-40)
| 7 | | Sec. 1-40. Meetings. | 8 | | (a) Notice of any membership meeting shall be given | 9 | | detailing the time, place, and purpose of such meeting no less | 10 | | than 10 and no more than 30 days prior to the meeting through a | 11 | | prescribed delivery method. | 12 | | (b) Meetings. | 13 | | (1) Twenty percent of the membership shall constitute a | 14 | | quorum, unless the community instruments indicate a lesser | 15 | | amount. | 16 | | (2) The membership shall hold an annual meeting. The | 17 | | board of directors may be elected at the annual meeting. | 18 | | (3) Special meetings of the board may be called by the | 19 | | president, by 25% of the members of the board, or by any | 20 | | other method that is prescribed in the community | 21 | | instruments. Special meetings of the membership may be | 22 | | called by the president, the board, 20% of the membership, | 23 | | or any other method that is prescribed in the community |
| | | SB2354 Enrolled | - 2 - | LRB099 16668 HEP 41006 b |
|
| 1 | | instruments. | 2 | | (4) Except to the extent otherwise provided by this | 3 | | Act, the board shall give the members notice of all board | 4 | | meetings at least 48 hours prior to the meeting by sending | 5 | | notice by using a prescribed delivery method or by posting | 6 | | copies of notices of meetings in entranceways, elevators, | 7 | | or other conspicuous places in the common areas of the | 8 | | common interest community at least 48 hours prior to the | 9 | | meeting except where there is no common entranceway for 7 | 10 | | or more units, the board may designate one or more | 11 | | locations in the proximity of these units where the notices | 12 | | of meetings shall be posted. The board shall give members | 13 | | notice of any board meeting, through a prescribed delivery | 14 | | method, concerning the adoption of (i) the proposed annual | 15 | | budget, (ii) regular assessments, or (iii) a separate or | 16 | | special assessment within 10 to 60 days prior to the | 17 | | meeting, unless otherwise provided in Section 1-45 (a) or | 18 | | any other provision of this Act. | 19 | | (5) Meetings of the board shall be open to any unit | 20 | | owner, except that the board may close any portion of a | 21 | | noticed meeting or meet separately from a noticed meeting: | 22 | | for the portion of any meeting held (i) to discuss | 23 | | litigation when an action against or on behalf of the | 24 | | particular association has been filed and is pending in a | 25 | | court or administrative tribunal, or when the common | 26 | | interest community association finds that such an action is |
| | | SB2354 Enrolled | - 3 - | LRB099 16668 HEP 41006 b |
|
| 1 | | probable or imminent, (ii) to discuss consider third party | 2 | | contracts or information regarding appointment, | 3 | | employment, engagement, or dismissal of an employee , | 4 | | independent contractor, agent, or other provider of goods | 5 | | and services, (iii) to interview a potential employee, | 6 | | independent contractor, agent, or other provider of goods | 7 | | and services, (iv) , or (iii) to discuss violations of rules | 8 | | and regulations of the association , (v) to discuss or a | 9 | | member's or unit owner's unpaid share of common expenses , | 10 | | or (vi) to consult with the association's legal counsel . | 11 | | Any vote on these matters shall be taken at a meeting or | 12 | | portion thereof open to any member. | 13 | | (6) The board must reserve a portion of the meeting of | 14 | | the board for comments by members; provided, however, the | 15 | | duration and meeting order for the member comment period is | 16 | | within the sole discretion of the board.
| 17 | | (Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11; | 18 | | 97-1090, eff. 8-24-12.) | 19 | | Section 10. The Condominium Property Act is amended by | 20 | | changing Section 18 as follows:
| 21 | | (765 ILCS 605/18) (from Ch. 30, par. 318)
| 22 | | (Text of Section before amendment by P.A. 99-472 ) | 23 | | Sec. 18. Contents of bylaws. The bylaws shall provide for | 24 | | at least
the following:
|
| | | SB2354 Enrolled | - 4 - | LRB099 16668 HEP 41006 b |
|
| 1 | | (a)(1) The election from among the unit owners of a board | 2 | | of managers,
the number of persons constituting such board, and | 3 | | that the terms of at
least one-third of the members of the | 4 | | board shall expire annually and that
all members of the board | 5 | | shall be elected at large ; if .
If there are multiple owners of | 6 | | a single unit, only one of the multiple
owners shall be | 7 | | eligible to serve as a member of the board at any one time ; .
| 8 | | (2) the powers and duties of the board;
| 9 | | (3) the compensation, if any, of the members of the board;
| 10 | | (4) the method of removal from office of members of the | 11 | | board;
| 12 | | (5) that the board may engage the services of a manager or | 13 | | managing agent;
| 14 | | (6) that each unit owner shall receive, at least 30 days | 15 | | prior to the
adoption thereof by the board of managers, a copy | 16 | | of the proposed annual
budget together with an indication of | 17 | | which portions are intended for
reserves, capital expenditures | 18 | | or repairs or payment of real estate taxes;
| 19 | | (7) that the board of managers shall annually supply to
all | 20 | | unit owners an itemized accounting of the common expenses
for | 21 | | the preceding year actually incurred or paid, together
with an | 22 | | indication of which portions were for reserves, capital
| 23 | | expenditures or repairs or payment of real estate taxes and
| 24 | | with a tabulation of the amounts collected pursuant to the
| 25 | | budget or assessment, and showing the net excess or
deficit of | 26 | | income over expenditures plus reserves;
|
| | | SB2354 Enrolled | - 5 - | LRB099 16668 HEP 41006 b |
|
| 1 | | (8)(i) that each unit owner shall receive notice, in the | 2 | | same manner
as is provided in this Act for membership meetings, | 3 | | of any meeting of the
board of managers concerning the adoption | 4 | | of the proposed annual budget and
regular assessments pursuant | 5 | | thereto or to adopt a separate (special)
assessment, (ii) that | 6 | | except as provided in subsection (iv) below, if an
adopted
| 7 | | budget or any separate assessment adopted by the board would | 8 | | result in the
sum of all regular and separate assessments | 9 | | payable in the current fiscal year
exceeding 115% of the sum of | 10 | | all regular and separate
assessments payable during the
| 11 | | preceding fiscal year, the
board of managers, upon written | 12 | | petition by unit owners with 20 percent of
the votes of the | 13 | | association delivered to the board within 14
days of the board | 14 | | action,
shall call a meeting of the unit owners within 30 days | 15 | | of the date of
delivery of the petition to consider the budget | 16 | | or separate
assessment; unless a
majority of
the total votes of | 17 | | the unit owners are cast at the meeting to reject the
budget or | 18 | | separate assessment,
it is ratified, (iii) that any common | 19 | | expense not set forth in the budget or
any increase in | 20 | | assessments over the amount adopted in the budget shall be
| 21 | | separately assessed against all unit owners, (iv) that separate | 22 | | assessments for
expenditures relating to emergencies or | 23 | | mandated by law may be adopted by the
board of managers without | 24 | | being subject to unit owner approval or the
provisions of item | 25 | | (ii) above or item (v) below. As used
herein, "emergency" means | 26 | | an immediate danger to the structural integrity of
the
common |
| | | SB2354 Enrolled | - 6 - | LRB099 16668 HEP 41006 b |
|
| 1 | | elements or to the life, health, safety or property of the unit | 2 | | owners,
(v) that assessments
for additions and alterations to | 3 | | the common elements or to association-owned
property not | 4 | | included in the adopted annual budget, shall be separately
| 5 | | assessed and are subject to approval of two-thirds of the total | 6 | | votes of all
unit owners, (vi) that the board of managers may | 7 | | adopt separate assessments
payable over more than one fiscal | 8 | | year. With respect to multi-year assessments
not governed by | 9 | | items (iv) and (v), the entire amount of the multi-year
| 10 | | assessment shall be deemed considered and authorized in the | 11 | | first fiscal year
in which the assessment is approved;
| 12 | | (9) that meetings of the board of managers shall be open to | 13 | | any unit
owner, except for the portion of any meeting held (i) | 14 | | to discuss litigation when an action against or on behalf of | 15 | | the particular association has been
filed and is pending in a | 16 | | court or administrative tribunal,
or when the board of managers | 17 | | finds that such an action is probable
or imminent, (ii) to | 18 | | consider information regarding appointment, employment
or | 19 | | dismissal of an employee, or (iii) to discuss violations of | 20 | | rules and
regulations of the association or a unit owner's | 21 | | unpaid share of common
expenses; that any vote on these matters | 22 | | shall be taken at a meeting or
portion thereof open to any unit | 23 | | owner; that any unit owner may record the
proceedings at | 24 | | meetings or portions thereof required to be open by this
Act by | 25 | | tape, film or other means; that the board may prescribe | 26 | | reasonable
rules and regulations to govern the right to make |
| | | SB2354 Enrolled | - 7 - | LRB099 16668 HEP 41006 b |
|
| 1 | | such recordings, that
notice of such meetings shall be mailed | 2 | | or delivered at least 48 hours
prior thereto, unless a written | 3 | | waiver of such notice is signed by the
person or persons | 4 | | entitled to such notice pursuant to the declaration,
bylaws, | 5 | | other condominium instrument, or provision of law other than | 6 | | this
subsection before the meeting is convened, and that copies | 7 | | of notices of
meetings of the board of managers shall be posted | 8 | | in entranceways,
elevators, or other conspicuous places in the | 9 | | condominium at least 48 hours
prior to the meeting of the board | 10 | | of managers except where there is no
common entranceway for 7 | 11 | | or more units, the board of managers may designate
one or more | 12 | | locations in the proximity of these units where the notices of
| 13 | | meetings shall be posted;
| 14 | | (10) that the board shall meet at least 4 times annually;
| 15 | | (11) that no member of the board or officer shall be | 16 | | elected for a term
of more than 2 years, but that officers and | 17 | | board members may succeed
themselves;
| 18 | | (12) the designation of an officer to mail and receive all | 19 | | notices and
execute amendments to condominium instruments as | 20 | | provided for in this Act
and in the condominium instruments;
| 21 | | (13) the method of filling vacancies on the board
which | 22 | | shall include authority for the remaining members of the board | 23 | | to
fill the vacancy by two-thirds vote until the next annual | 24 | | meeting of unit
owners or for a period terminating no later | 25 | | than 30 days following the
filing of a petition signed by unit | 26 | | owners holding 20% of the votes of the
association requesting a |
| | | SB2354 Enrolled | - 8 - | LRB099 16668 HEP 41006 b |
|
| 1 | | meeting of the unit owners to fill the vacancy for
the balance | 2 | | of the term, and that a meeting of the unit owners shall be
| 3 | | called for purposes of filling a vacancy on the board no later | 4 | | than 30 days
following the filing of a petition signed by unit | 5 | | owners holding 20% of the
votes of the association requesting | 6 | | such a meeting, and the method of filling
vacancies among the | 7 | | officers that shall include the authority for the members
of | 8 | | the board to fill the vacancy for the unexpired portion of the | 9 | | term;
| 10 | | (14) what percentage of the board of managers, if other | 11 | | than a majority,
shall constitute a quorum;
| 12 | | (15) provisions concerning notice of board meetings to | 13 | | members of the
board;
| 14 | | (16) the board of managers may not enter into a contract | 15 | | with a
current board member
or with a corporation or | 16 | | partnership in which a board
member or a member of the board | 17 | | member's immediate family has 25% or
more interest, unless | 18 | | notice of intent to enter the
contract is given to unit owners | 19 | | within 20 days after a decision is made
to enter into the | 20 | | contract and the unit owners are
afforded an opportunity by | 21 | | filing a petition, signed by 20% of the unit
owners, for an | 22 | | election to approve or disapprove the contract;
such petition | 23 | | shall be filed within 20 days after such notice and such
| 24 | | election shall be held within 30 days after filing the | 25 | | petition; for purposes
of this subsection, a board member's | 26 | | immediate family means the board member's
spouse, parents, and |
| | | SB2354 Enrolled | - 9 - | LRB099 16668 HEP 41006 b |
|
| 1 | | children;
| 2 | | (17) that the board of managers may disseminate
to unit | 3 | | owners biographical and background information about | 4 | | candidates for
election to the board if (i) reasonable efforts | 5 | | to identify all candidates are
made and all candidates are | 6 | | given an opportunity to include biographical and
background | 7 | | information in the information to be disseminated; and (ii) the
| 8 | | board does not express a preference in favor of any candidate;
| 9 | | (18) any proxy distributed for board elections
by the board | 10 | | of managers gives unit owners the
opportunity to designate any | 11 | | person as the proxy holder, and gives the unit
owner the | 12 | | opportunity to express a preference for any of the known
| 13 | | candidates for the board or to write in a name;
| 14 | | (19) that special meetings of the board of managers can be | 15 | | called by
the president or 25% of the members of the board; and
| 16 | | (20) that the board of managers may establish
and maintain | 17 | | a system of master metering of public utility services and
| 18 | | collect payments in connection therewith, subject to the | 19 | | requirements of the
Tenant Utility Payment Disclosure Act.
| 20 | | (b)(1) What percentage of the unit owners, if other than | 21 | | 20%, shall
constitute a quorum provided that, for condominiums | 22 | | with 20 or more units,
the percentage of unit owners | 23 | | constituting a quorum shall be 20% unless the
unit owners | 24 | | holding a majority of the percentage interest in the
| 25 | | association provide for a higher percentage, provided that in | 26 | | voting on amendments to the association's bylaws, a unit owner |
| | | SB2354 Enrolled | - 10 - | LRB099 16668 HEP 41006 b |
|
| 1 | | who is in arrears on the unit owner's regular or separate | 2 | | assessments for 60 days or more, shall not be counted for | 3 | | purposes of determining if a quorum is present, but that unit | 4 | | owner retains the right to vote on amendments to the | 5 | | association's bylaws;
| 6 | | (2) that the association shall have one class of | 7 | | membership;
| 8 | | (3) that the members shall hold an annual meeting, one of | 9 | | the purposes
of which shall be to elect members of the board of | 10 | | managers;
| 11 | | (4) the method of calling meetings of the unit owners;
| 12 | | (5) that special meetings of the members can be called by | 13 | | the president,
board of managers, or by 20% of unit owners;
| 14 | | (6) that written notice of any membership meeting shall be | 15 | | mailed
or delivered giving members no less than 10 and no more | 16 | | than 30 days
notice of the time, place and purpose of such | 17 | | meeting except that notice may be sent, to the extent the | 18 | | condominium instruments or rules adopted thereunder expressly | 19 | | so provide, by electronic transmission consented to by the unit | 20 | | owner to whom the notice is given, provided the director and | 21 | | officer or his agent certifies in writing to the delivery by | 22 | | electronic transmission;
| 23 | | (7) that voting shall be on a percentage basis, and that | 24 | | the percentage
vote to which each unit is entitled is the | 25 | | percentage interest of the
undivided ownership of the common | 26 | | elements appurtenant thereto, provided
that the bylaws may |
| | | SB2354 Enrolled | - 11 - | LRB099 16668 HEP 41006 b |
|
| 1 | | provide for approval by unit owners in connection with
matters | 2 | | where the requisite approval on a percentage basis is not | 3 | | specified
in this Act, on the basis of one vote per unit;
| 4 | | (8) that, where there is more than one owner of a unit, if | 5 | | only one
of the multiple owners is present at a meeting of the | 6 | | association, he is
entitled to cast all the votes allocated to | 7 | | that unit, if more than one of
the multiple owners are present, | 8 | | the votes allocated to that unit may be
cast only in accordance | 9 | | with the agreement of a majority in interest of the
multiple | 10 | | owners, unless the declaration expressly provides otherwise, | 11 | | that
there is majority agreement if any one of the multiple | 12 | | owners cast the
votes allocated to that unit without protest | 13 | | being made promptly to the
person presiding over the meeting by | 14 | | any of the other owners of the unit;
| 15 | | (9)(A) except as provided in subparagraph (B) of this | 16 | | paragraph (9) in
connection with board elections, that
a unit | 17 | | owner may vote by proxy executed in writing by the unit
owner | 18 | | or by his duly authorized attorney in fact; that the proxy must | 19 | | bear the date of
execution
and, unless the condominium | 20 | | instruments or the written proxy itself provide
otherwise, is
| 21 | | invalid after 11 months from the date of its execution; to the | 22 | | extent the condominium instruments or rules adopted thereunder | 23 | | expressly so provide, a vote or proxy may be submitted by | 24 | | electronic transmission, provided that any such electronic | 25 | | transmission shall either set forth or be submitted with | 26 | | information from which it can be determined that the electronic |
| | | SB2354 Enrolled | - 12 - | LRB099 16668 HEP 41006 b |
|
| 1 | | transmission was authorized by the unit owner or the unit | 2 | | owner's proxy;
| 3 | | (B) that if a rule adopted at least 120 days before a board | 4 | | election
or the
declaration or bylaws provide for balloting as | 5 | | set forth in this subsection,
unit
owners may not vote by proxy | 6 | | in board elections, but may vote only (i) by
submitting an | 7 | | association-issued ballot in person at the election meeting or
| 8 | | (ii) by
submitting an association-issued ballot to the | 9 | | association or its designated
agent
by mail or other means of | 10 | | delivery specified in the declaration, bylaws, or
rule; that
| 11 | | the ballots shall be mailed or otherwise distributed to unit | 12 | | owners not less
than 10
and not more than 30 days before the | 13 | | election meeting, and the board shall give
unit owners not less | 14 | | than 21 days' prior written notice of the deadline for
| 15 | | inclusion of a candidate's name on the ballots; that the | 16 | | deadline shall be no
more
than 7 days before the ballots are | 17 | | mailed or otherwise distributed to unit
owners; that
every such | 18 | | ballot must include the names of all candidates who have given | 19 | | the
board or its authorized agent timely written notice of | 20 | | their candidacy and must
give the person casting the ballot the | 21 | | opportunity to cast votes for candidates
whose names do not | 22 | | appear on the ballot; that a ballot received by the
association
| 23 | | or
its designated agent after the close of voting shall not be | 24 | | counted; that a
unit
owner
who submits a ballot by mail or | 25 | | other means of delivery specified in the
declaration, bylaws, | 26 | | or rule may request and cast a ballot in person at the
election
|
| | | SB2354 Enrolled | - 13 - | LRB099 16668 HEP 41006 b |
|
| 1 | | meeting, and thereby void any ballot previously submitted by | 2 | | that unit owner; | 3 | | (B-5) that if a rule adopted at least 120 days before a | 4 | | board election or the declaration or bylaws provide for | 5 | | balloting as set forth in this subparagraph, unit owners may | 6 | | not vote by proxy in board elections, but may vote only (i) by | 7 | | submitting an association-issued ballot in person at the | 8 | | election meeting; or (ii) by any acceptable technological means | 9 | | as defined in Section 2 of this Act; instructions regarding the | 10 | | use of electronic means for voting shall be distributed to all | 11 | | unit owners not less than 10 and not more than 30 days before | 12 | | the election meeting, and the board shall give unit owners not | 13 | | less than 21 days' prior written notice of the deadline for | 14 | | inclusion of a candidate's name on the ballots; the deadline | 15 | | shall be no more than 7 days before the instructions for voting | 16 | | using electronic or acceptable technological means is | 17 | | distributed to unit owners; every instruction notice must | 18 | | include the names of all candidates who have given the board or | 19 | | its authorized agent timely written notice of their candidacy | 20 | | and must give the person voting through electronic or | 21 | | acceptable technological means the opportunity to cast votes | 22 | | for candidates whose names do not appear on the ballot; a unit | 23 | | owner who submits a vote using electronic or acceptable | 24 | | technological means may request and cast a ballot in person at | 25 | | the election meeting, thereby voiding any vote previously | 26 | | submitted by that unit owner;
|
| | | SB2354 Enrolled | - 14 - | LRB099 16668 HEP 41006 b |
|
| 1 | | (C) that if a written petition by unit owners with at least | 2 | | 20% of the
votes of
the association is delivered to the board | 3 | | within 14 days after the board's
approval
of a rule adopted | 4 | | pursuant to subparagraph (B) or subparagraph (B-5) of this | 5 | | paragraph (9), the board
shall call a meeting of the unit | 6 | | owners within 30 days after the date of
delivery of
the | 7 | | petition; that unless a majority of the total votes of the unit | 8 | | owners are
cast
at the
meeting to reject the rule, the rule is | 9 | | ratified;
| 10 | | (D) that votes cast by ballot under subparagraph (B) or | 11 | | electronic or acceptable technological means under | 12 | | subparagraph (B-5) of this paragraph (9) are valid for the | 13 | | purpose of establishing a quorum;
| 14 | | (10) that the association may, upon adoption of the | 15 | | appropriate rules by
the board of managers, conduct elections | 16 | | by secret ballot whereby the voting
ballot is marked only with | 17 | | the percentage interest for the unit and the vote
itself, | 18 | | provided that the board further adopt rules to verify the | 19 | | status of the
unit owner issuing a proxy or casting a ballot; | 20 | | and further, that a candidate
for election to the board of | 21 | | managers or such
candidate's representative shall have the | 22 | | right to be present at the
counting of ballots at such | 23 | | election;
| 24 | | (11) that in the event of a resale of a condominium unit | 25 | | the purchaser
of a unit from a seller other than the developer | 26 | | pursuant to an installment
contract for purchase shall during |
| | | SB2354 Enrolled | - 15 - | LRB099 16668 HEP 41006 b |
|
| 1 | | such times as he or she resides in the
unit be counted toward a | 2 | | quorum for purposes of election of members of the
board of | 3 | | managers at any meeting of the unit owners called for purposes | 4 | | of
electing members of the board, shall have the right to vote | 5 | | for the
election of members of the board of managers and to be | 6 | | elected to and serve
on the board of managers unless the seller | 7 | | expressly retains in writing any
or all of such rights. In no | 8 | | event may the seller and purchaser both be
counted toward a | 9 | | quorum, be permitted to vote for a particular office or be
| 10 | | elected and serve on the board. Satisfactory evidence of the | 11 | | installment contract
contact shall be made available to the | 12 | | association or its agents. For
purposes of this subsection, | 13 | | "installment contract" contact" shall have the same
meaning as | 14 | | set forth in Section 1 (e) of the Dwelling Unit Installment | 15 | | Contract Act "An Act relating to installment
contracts to sell | 16 | | dwelling structures", approved August 11, 1967, as amended ;
| 17 | | (12) the method by which matters subject to the approval of | 18 | | unit owners
set forth in this Act, or in the condominium | 19 | | instruments, will be
submitted to the unit owners at special | 20 | | membership meetings called for such
purposes; and
| 21 | | (13) that matters subject to the affirmative vote of not | 22 | | less than 2/3
of the votes of unit owners at a meeting duly | 23 | | called for that purpose,
shall include, but not be limited to:
| 24 | | (i) merger or consolidation of the association;
| 25 | | (ii) sale, lease, exchange, or other disposition | 26 | | (excluding the mortgage
or pledge) of all, or substantially |
| | | SB2354 Enrolled | - 16 - | LRB099 16668 HEP 41006 b |
|
| 1 | | all of the property and assets of the
association; and
| 2 | | (iii) the purchase or sale of land or of units on | 3 | | behalf of all unit owners.
| 4 | | (c) Election of a president from among the board of | 5 | | managers, who shall
preside over the meetings of the board of | 6 | | managers and of the unit owners.
| 7 | | (d) Election of a secretary from among the board of | 8 | | managers, who shall
keep the minutes of all meetings
of the | 9 | | board of managers and of the unit owners and who shall, in | 10 | | general,
perform all the duties incident to the office of | 11 | | secretary.
| 12 | | (e) Election of a treasurer from among the board of | 13 | | managers, who shall
keep the financial records and
books of | 14 | | account.
| 15 | | (f) Maintenance, repair and replacement of the common | 16 | | elements and
payments therefor, including the method of | 17 | | approving payment vouchers.
| 18 | | (g) An association with 30 or more units shall obtain and | 19 | | maintain
fidelity insurance covering persons who control or | 20 | | disburse funds of the
association for the maximum amount of | 21 | | coverage available to protect funds
in the custody or control | 22 | | of the association plus the association reserve
fund. All | 23 | | management companies which are responsible for the funds held | 24 | | or
administered by the association shall maintain and furnish | 25 | | to the
association a fidelity bond for the maximum amount of | 26 | | coverage available to
protect funds in the custody of the |
| | | SB2354 Enrolled | - 17 - | LRB099 16668 HEP 41006 b |
|
| 1 | | management company at any time. The
association shall bear the | 2 | | cost of the fidelity insurance and fidelity
bond, unless | 3 | | otherwise provided by contract between the association and a
| 4 | | management company. The association shall be the direct obligee | 5 | | of any
such fidelity bond. A management company holding reserve | 6 | | funds of an
association shall at all times maintain a separate | 7 | | account for each
association, provided, however, that for | 8 | | investment purposes, the Board of
Managers of an association | 9 | | may authorize a management company to maintain
the | 10 | | association's reserve funds in a single interest bearing | 11 | | account with
similar funds of other associations. The | 12 | | management company shall at all
times maintain records | 13 | | identifying all moneys of each association in such
investment | 14 | | account. The management company may hold all operating funds of
| 15 | | associations which it manages in a single operating account but | 16 | | shall at
all times maintain records identifying all moneys of | 17 | | each association in
such operating account. Such operating and | 18 | | reserve funds held by the
management company for the | 19 | | association shall not be subject to attachment
by any creditor | 20 | | of the management company.
| 21 | | For the purpose of this subsection , a management company | 22 | | shall be
defined as a person, partnership, corporation, or | 23 | | other legal entity
entitled to transact business on behalf of | 24 | | others, acting on behalf of or
as an agent for a unit owner, | 25 | | unit owners or association of unit owners for
the purpose of | 26 | | carrying out the duties, responsibilities, and other
|
| | | SB2354 Enrolled | - 18 - | LRB099 16668 HEP 41006 b |
|
| 1 | | obligations necessary for the day to day operation and | 2 | | management of any
property subject to this Act. For purposes of | 3 | | this subsection, the term
"fiduciary insurance coverage" shall | 4 | | be defined as both a fidelity bond and
directors and officers | 5 | | liability coverage, the fidelity bond in the full
amount of | 6 | | association funds and association reserves that will be in the
| 7 | | custody of the association, and the directors and officers | 8 | | liability
coverage at a level as shall be determined to be | 9 | | reasonable by the board of
managers, if not otherwise | 10 | | established by the declaration or by laws.
| 11 | | Until one year after September 21, 1985 ( the effective date | 12 | | of Public Act 84-722) this amendatory Act of 1985 ,
if a | 13 | | condominium association has reserves plus assessments in | 14 | | excess of
$250,000 and cannot reasonably obtain 100% fidelity | 15 | | bond coverage for such
amount, then it must obtain a fidelity | 16 | | bond coverage of $250,000.
| 17 | | (h) Method of estimating the amount of the annual budget, | 18 | | and the manner
of assessing and collecting from the unit owners | 19 | | their respective shares of
such estimated expenses, and of any | 20 | | 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 shall | 23 | | be furnished a statement
of his account setting forth the | 24 | | amount of any unpaid assessments or other
charges due and owing | 25 | | from such owner.
| 26 | | (j) Designation and removal of personnel necessary for the |
| | | SB2354 Enrolled | - 19 - | LRB099 16668 HEP 41006 b |
|
| 1 | | maintenance,
repair and replacement of the common elements.
| 2 | | (k) Such restrictions on and requirements respecting the | 3 | | use and
maintenance of the units and the use of the common | 4 | | elements, not set forth
in the declaration, as are designed to | 5 | | prevent unreasonable interference
with the use of their | 6 | | respective units and of the common elements by the
several unit | 7 | | owners.
| 8 | | (l) Method of adopting and of amending administrative rules | 9 | | and
regulations governing the operation and use of the common | 10 | | elements.
| 11 | | (m) The percentage of votes required to modify or amend the | 12 | | bylaws, but
each one of the particulars set forth in this | 13 | | section shall always be
embodied in the bylaws.
| 14 | | (n)(i) The provisions of this Act, the declaration, bylaws, | 15 | | other
condominium instruments, and rules and regulations that | 16 | | relate to the use
of the individual unit or the common elements | 17 | | shall be applicable to
any person leasing a unit and shall be | 18 | | deemed to be incorporated in any
lease executed or renewed on | 19 | | or after August 30, 1984 ( the effective date of Public Act | 20 | | 83-1271) this amendatory
Act of 1984 . | 21 | | (ii) With regard to any lease entered into subsequent to | 22 | | July 1, 1990 ( the
effective date of Public Act 86-991) this | 23 | | amendatory Act of 1989 , the unit owner leasing the
unit shall | 24 | | deliver a copy of the signed lease to the board or if the
lease | 25 | | is oral, a memorandum of the lease, not later than the date of
| 26 | | occupancy or 10 days after the lease is signed, whichever |
| | | SB2354 Enrolled | - 20 - | LRB099 16668 HEP 41006 b |
|
| 1 | | occurs first. In
addition to any other remedies, by filing an | 2 | | action jointly against the
tenant and the unit owner, an | 3 | | association may seek to enjoin a tenant from
occupying a unit | 4 | | or seek to evict a tenant under the provisions of Article
IX of | 5 | | the Code of Civil Procedure for failure of the lessor-owner to
| 6 | | comply with the leasing requirements prescribed by
this Section | 7 | | or by the declaration, bylaws, and
rules and regulations. The | 8 | | board of managers may proceed directly against a
tenant, at law | 9 | | or in equity, or under the provisions of Article IX of the
Code | 10 | | of Civil Procedure, for any other breach by tenant of any
| 11 | | covenants, rules, regulations or bylaws.
| 12 | | (o) The association shall have no authority to forbear the | 13 | | payment
of assessments by any unit owner.
| 14 | | (p) That when 30% or fewer of the units, by number,
possess | 15 | | over 50% in the aggregate of the votes in the association,
any | 16 | | percentage vote of members specified herein or in the | 17 | | condominium
instruments shall require the specified percentage | 18 | | by number of units
rather than by percentage of interest in the | 19 | | common elements allocated
to units that would otherwise be | 20 | | applicable and garage units or storage units, or both, shall | 21 | | have, in total, no more votes than their aggregate percentage | 22 | | of ownership in the common elements; this shall mean that if | 23 | | garage units or storage units, or both, are to be given a vote, | 24 | | or portion of a vote, that the association must add the total | 25 | | number of votes cast of garage units, storage units, or both, | 26 | | and divide the total by the number of garage units, storage |
| | | SB2354 Enrolled | - 21 - | LRB099 16668 HEP 41006 b |
|
| 1 | | units, or both, and multiply by the aggregate percentage of | 2 | | ownership of garage units and storage units to determine the | 3 | | vote, or portion of a vote, that garage units or storage units, | 4 | | or both, have. For purposes of this subsection (p), when making | 5 | | a determination of whether 30% or fewer of the units, by | 6 | | number, possess over 50% in the aggregate of the votes in the | 7 | | association, a unit shall not include a garage unit or a | 8 | | storage unit.
| 9 | | (q) That a unit owner may not assign, delegate, transfer, | 10 | | surrender, or
avoid the duties, responsibilities, and | 11 | | liabilities of a unit owner under this
Act, the condominium | 12 | | instruments, or the rules and regulations of the
Association; | 13 | | and that such an attempted assignment, delegation, transfer,
| 14 | | surrender, or avoidance 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; revised 10-19-15.)
| 23 | | (Text of Section after amendment by P.A. 99-472 ) | 24 | | Sec. 18. Contents of bylaws. The bylaws shall provide for | 25 | | at least
the following:
|
| | | SB2354 Enrolled | - 22 - | LRB099 16668 HEP 41006 b |
|
| 1 | | (a)(1) The election from among the unit owners of a board | 2 | | of managers,
the number of persons constituting such board, and | 3 | | that the terms of at
least one-third of the members of the | 4 | | board shall expire annually and that
all members of the board | 5 | | shall be elected at large ; if .
If there are multiple owners of | 6 | | a single unit, only one of the multiple
owners shall be | 7 | | eligible to serve as a member of the board at any one time ; .
| 8 | | (2) the powers and duties of the board;
| 9 | | (3) the compensation, if any, of the members of the board;
| 10 | | (4) the method of removal from office of members of the | 11 | | board;
| 12 | | (5) that the board may engage the services of a manager or | 13 | | managing agent;
| 14 | | (6) that each unit owner shall receive, at least 25 days | 15 | | prior to the
adoption thereof by the board of managers, a copy | 16 | | of the proposed annual
budget together with an indication of | 17 | | which portions are intended for
reserves, capital expenditures | 18 | | or repairs or payment of real estate taxes;
| 19 | | (7) that the board of managers shall annually supply to
all | 20 | | unit owners an itemized accounting of the common expenses
for | 21 | | the preceding year actually incurred or paid, together
with an | 22 | | indication of which portions were for reserves, capital
| 23 | | expenditures or repairs or payment of real estate taxes and
| 24 | | with a tabulation of the amounts collected pursuant to the
| 25 | | budget or assessment, and showing the net excess or
deficit of | 26 | | income over expenditures plus reserves;
|
| | | SB2354 Enrolled | - 23 - | LRB099 16668 HEP 41006 b |
|
| 1 | | (8)(i) that each unit owner shall receive notice, in the | 2 | | same manner
as is provided in this Act for membership meetings, | 3 | | of any meeting of the
board of managers concerning the adoption | 4 | | of the proposed annual budget and
regular assessments pursuant | 5 | | thereto or to adopt a separate (special)
assessment, (ii) that | 6 | | except as provided in subsection (iv) below, if an
adopted
| 7 | | budget or any separate assessment adopted by the board would | 8 | | result in the
sum of all regular and separate assessments | 9 | | payable in the current fiscal year
exceeding 115% of the sum of | 10 | | all regular and separate
assessments payable during the
| 11 | | preceding fiscal year, the
board of managers, upon written | 12 | | petition by unit owners with 20 percent of
the votes of the | 13 | | association delivered to the board within 14
days of the board | 14 | | action,
shall call a meeting of the unit owners within 30 days | 15 | | of the date of
delivery of the petition to consider the budget | 16 | | or separate
assessment; unless a
majority of
the total votes of | 17 | | the unit owners are cast at the meeting to reject the
budget or | 18 | | separate assessment,
it is ratified, (iii) that any common | 19 | | expense not set forth in the budget or
any increase in | 20 | | assessments over the amount adopted in the budget shall be
| 21 | | separately assessed against all unit owners, (iv) that separate | 22 | | assessments for
expenditures relating to emergencies or | 23 | | mandated by law may be adopted by the
board of managers without | 24 | | being subject to unit owner approval or the
provisions of item | 25 | | (ii) above or item (v) below. As used
herein, "emergency" means | 26 | | an immediate danger to the structural integrity of
the
common |
| | | SB2354 Enrolled | - 24 - | LRB099 16668 HEP 41006 b |
|
| 1 | | elements or to the life, health, safety or property of the unit | 2 | | owners,
(v) that assessments
for additions and alterations to | 3 | | the common elements or to association-owned
property not | 4 | | included in the adopted annual budget, shall be separately
| 5 | | assessed and are subject to approval of two-thirds of the total | 6 | | votes of all
unit owners, (vi) that the board of managers may | 7 | | adopt separate assessments
payable over more than one fiscal | 8 | | year. With respect to multi-year assessments
not governed by | 9 | | items (iv) and (v), the entire amount of the multi-year
| 10 | | assessment shall be deemed considered and authorized in the | 11 | | first fiscal year
in which the assessment is approved;
| 12 | | (9)(A) that every meeting of the board of managers shall be | 13 | | open to any unit
owner, except that the board may close any | 14 | | portion of a noticed meeting or meet separately from a noticed | 15 | | meeting for the portion of any meeting held to discuss or | 16 | | consider information relating to: (i) discuss litigation
when | 17 | | an action against or on behalf of the particular association | 18 | | has been
filed and is pending in a court or administrative | 19 | | tribunal,
or when the board of managers finds that such an | 20 | | action is probable
or imminent, (ii) discuss the appointment, | 21 | | employment , engagement,
or dismissal of an employee , | 22 | | independent contractor, agent, or other provider of goods and | 23 | | services, (iii) interview a potential employee, independent | 24 | | contractor, agent, or other provider of goods and services, | 25 | | (iv) discuss , (iii) violations of rules and
regulations of the | 26 | | association, (v) discuss or (iv) a unit owner's unpaid share of |
| | | SB2354 Enrolled | - 25 - | LRB099 16668 HEP 41006 b |
|
| 1 | | common
expenses , or (vi) consult with the association's legal | 2 | | counsel ; that any vote on these matters discussed or considered | 3 | | in closed session shall take place at a meeting of the board of | 4 | | managers or
portion thereof open to any unit owner; | 5 | | (B) that board members may participate in and act at any | 6 | | meeting of the board of managers in person, by telephonic | 7 | | means, or by use of any acceptable technological means whereby | 8 | | all persons participating in the meeting can communicate with | 9 | | each other; that participation constitutes attendance and | 10 | | presence in person at the meeting; | 11 | | (C) that any unit owner may record the
proceedings at | 12 | | meetings of the board of managers or portions thereof required | 13 | | to be open by this
Act by tape, film or other means, and that | 14 | | the board may prescribe reasonable
rules and regulations to | 15 | | govern the right to make such recordings; | 16 | | (D) that
notice of every meeting of the board of managers | 17 | | shall be given to every board member at least 48 hours
prior | 18 | | thereto, unless the board member waives notice of the meeting | 19 | | pursuant to subsection (a) of Section 18.8; and | 20 | | (E) that notice of every meeting
of the board of managers | 21 | | shall be posted in entranceways,
elevators, or other | 22 | | conspicuous places in the condominium at least 48 hours
prior | 23 | | to the meeting of the board of managers except where there is | 24 | | no
common entranceway for 7 or more units, the board of | 25 | | managers may designate
one or more locations in the proximity | 26 | | of these units where the notices of
meetings shall be posted; |
| | | SB2354 Enrolled | - 26 - | LRB099 16668 HEP 41006 b |
|
| 1 | | that notice of every meeting of the board of managers shall | 2 | | also be given at least 48 hours prior to the meeting, or such | 3 | | longer notice as this Act may separately require, to: (i) each | 4 | | unit owner who has provided the association with written | 5 | | authorization to conduct business by acceptable technological | 6 | | means, and (ii) to the extent that the condominium instruments | 7 | | of an association require, to each other unit owner, as | 8 | | required by subsection (f) of Section 18.8, by mail or | 9 | | delivery, and that no other notice of a meeting of the board of | 10 | | managers need be given to any unit owner;
| 11 | | (10) that the board shall meet at least 4 times annually;
| 12 | | (11) that no member of the board or officer shall be | 13 | | elected for a term
of more than 2 years, but that officers and | 14 | | board members may succeed
themselves;
| 15 | | (12) the designation of an officer to mail and receive all | 16 | | notices and
execute amendments to condominium instruments as | 17 | | provided for in this Act
and in the condominium instruments;
| 18 | | (13) the method of filling vacancies on the board
which | 19 | | shall include authority for the remaining members of the board | 20 | | to
fill the vacancy by two-thirds vote until the next annual | 21 | | meeting of unit
owners or for a period terminating no later | 22 | | than 30 days following the
filing of a petition signed by unit | 23 | | owners holding 20% of the votes of the
association requesting a | 24 | | meeting of the unit owners to fill the vacancy for
the balance | 25 | | of the term, and that a meeting of the unit owners shall be
| 26 | | called for purposes of filling a vacancy on the board no later |
| | | SB2354 Enrolled | - 27 - | LRB099 16668 HEP 41006 b |
|
| 1 | | than 30 days
following the filing of a petition signed by unit | 2 | | owners holding 20% of the
votes of the association requesting | 3 | | such a meeting, and the method of filling
vacancies among the | 4 | | officers that shall include the authority for the members
of | 5 | | the board to fill the vacancy for the unexpired portion of the | 6 | | term;
| 7 | | (14) what percentage of the board of managers, if other | 8 | | than a majority,
shall constitute a quorum;
| 9 | | (15) provisions concerning notice of board meetings to | 10 | | members of the
board;
| 11 | | (16) the board of managers may not enter into a contract | 12 | | with a
current board member
or with a corporation or | 13 | | partnership in which a board
member or a member of the board | 14 | | member's immediate family has 25% or
more interest, unless | 15 | | notice of intent to enter the
contract is given to unit owners | 16 | | within 20 days after a decision is made
to enter into the | 17 | | contract and the unit owners are
afforded an opportunity by | 18 | | filing a petition, signed by 20% of the unit
owners, for an | 19 | | election to approve or disapprove the contract;
such petition | 20 | | shall be filed within 20 days after such notice and such
| 21 | | election shall be held within 30 days after filing the | 22 | | petition; for purposes
of this subsection, a board member's | 23 | | immediate family means the board member's
spouse, parents, and | 24 | | children;
| 25 | | (17) that the board of managers may disseminate
to unit | 26 | | owners biographical and background information about |
| | | SB2354 Enrolled | - 28 - | LRB099 16668 HEP 41006 b |
|
| 1 | | candidates for
election to the board if (i) reasonable efforts | 2 | | to identify all candidates are
made and all candidates are | 3 | | given an opportunity to include biographical and
background | 4 | | information in the information to be disseminated; and (ii) the
| 5 | | board does not express a preference in favor of any candidate;
| 6 | | (18) any proxy distributed for board elections
by the board | 7 | | of managers gives unit owners the
opportunity to designate any | 8 | | person as the proxy holder, and gives the unit
owner the | 9 | | opportunity to express a preference for any of the known
| 10 | | candidates for the board or to write in a name;
| 11 | | (19) that special meetings of the board of managers can be | 12 | | called by
the president or 25% of the members of the board;
| 13 | | (20) that the board of managers may establish
and maintain | 14 | | a system of master metering of public utility services and
| 15 | | collect payments in connection therewith, subject to the | 16 | | requirements of the
Tenant Utility Payment Disclosure Act; and
| 17 | | (21) that the board may ratify and confirm actions of the
| 18 | | members of the board taken in response to an emergency, as that
| 19 | | term is defined in subdivision (a)(8)(iv) of this Section; that
| 20 | | the board shall give notice to the unit owners of: (i) the
| 21 | | occurrence of the emergency event within 7 business days after
| 22 | | the emergency event, and (ii) the general description of the
| 23 | | actions taken to address the event within 7 days after the
| 24 | | emergency event. | 25 | | The intent of the provisions of Public Act 99-472 this | 26 | | amendatory Act of the 99th General
Assembly adding this |
| | | SB2354 Enrolled | - 29 - | LRB099 16668 HEP 41006 b |
|
| 1 | | paragraph (21) is to empower and support boards to act in
| 2 | | emergencies.
| 3 | | (b)(1) What percentage of the unit owners, if other than | 4 | | 20%, shall
constitute a quorum provided that, for condominiums | 5 | | with 20 or more units,
the percentage of unit owners | 6 | | constituting a quorum shall be 20% unless the
unit owners | 7 | | holding a majority of the percentage interest in the
| 8 | | association provide for a higher percentage, provided that in | 9 | | voting on amendments to the association's bylaws, a unit owner | 10 | | who is in arrears on the unit owner's regular or separate | 11 | | assessments for 60 days or more, shall not be counted for | 12 | | purposes of determining if a quorum is present, but that unit | 13 | | owner retains the right to vote on amendments to the | 14 | | association's bylaws;
| 15 | | (2) that the association shall have one class of | 16 | | membership;
| 17 | | (3) that the members shall hold an annual meeting, one of | 18 | | the purposes
of which shall be to elect members of the board of | 19 | | managers;
| 20 | | (4) the method of calling meetings of the unit owners;
| 21 | | (5) that special meetings of the members can be called by | 22 | | the president,
board of managers, or by 20% of unit owners;
| 23 | | (6) that written notice of any membership meeting shall be | 24 | | mailed
or delivered giving members no less than 10 and no more | 25 | | than 30 days
notice of the time, place and purpose of such | 26 | | meeting except that notice may be sent, to the extent the |
| | | SB2354 Enrolled | - 30 - | LRB099 16668 HEP 41006 b |
|
| 1 | | condominium instruments or rules adopted thereunder expressly | 2 | | so provide, by electronic transmission consented to by the unit | 3 | | owner to whom the notice is given, provided the director and | 4 | | officer or his agent certifies in writing to the delivery by | 5 | | electronic transmission;
| 6 | | (7) that voting shall be on a percentage basis, and that | 7 | | the percentage
vote to which each unit is entitled is the | 8 | | percentage interest of the
undivided ownership of the common | 9 | | elements appurtenant thereto, provided
that the bylaws may | 10 | | provide for approval by unit owners in connection with
matters | 11 | | where the requisite approval on a percentage basis is not | 12 | | specified
in this Act, on the basis of one vote per unit;
| 13 | | (8) that, where there is more than one owner of a unit, if | 14 | | only one
of the multiple owners is present at a meeting of the | 15 | | association, he is
entitled to cast all the votes allocated to | 16 | | that unit, if more than one of
the multiple owners are present, | 17 | | the votes allocated to that unit may be
cast only in accordance | 18 | | with the agreement of a majority in interest of the
multiple | 19 | | owners, unless the declaration expressly provides otherwise, | 20 | | that
there is majority agreement if any one of the multiple | 21 | | owners cast the
votes allocated to that unit without protest | 22 | | being made promptly to the
person presiding over the meeting by | 23 | | any of the other owners of the unit;
| 24 | | (9)(A) except as provided in subparagraph (B) of this | 25 | | paragraph (9) in
connection with board elections, that
a unit | 26 | | owner may vote by proxy executed in writing by the unit
owner |
| | | SB2354 Enrolled | - 31 - | LRB099 16668 HEP 41006 b |
|
| 1 | | or by his duly authorized attorney in fact; that the proxy must | 2 | | bear the date of
execution
and, unless the condominium | 3 | | instruments or the written proxy itself provide
otherwise, is
| 4 | | invalid after 11 months from the date of its execution; to the | 5 | | extent the condominium instruments or rules adopted thereunder | 6 | | expressly so provide, a vote or proxy may be submitted by | 7 | | electronic transmission, provided that any such electronic | 8 | | transmission shall either set forth or be submitted with | 9 | | information from which it can be determined that the electronic | 10 | | transmission was authorized by the unit owner or the unit | 11 | | owner's proxy;
| 12 | | (B) that if a rule adopted at least 120 days before a board | 13 | | election
or the
declaration or bylaws provide for balloting as | 14 | | set forth in this subsection,
unit
owners may not vote by proxy | 15 | | in board elections, but may vote only (i) by
submitting an | 16 | | association-issued ballot in person at the election meeting or
| 17 | | (ii) by
submitting an association-issued ballot to the | 18 | | association or its designated
agent
by mail or other means of | 19 | | delivery specified in the declaration, bylaws, or
rule; that
| 20 | | the ballots shall be mailed or otherwise distributed to unit | 21 | | owners not less
than 10
and not more than 30 days before the | 22 | | election meeting, and the board shall give
unit owners not less | 23 | | than 21 days' prior written notice of the deadline for
| 24 | | inclusion of a candidate's name on the ballots; that the | 25 | | deadline shall be no
more
than 7 days before the ballots are | 26 | | mailed or otherwise distributed to unit
owners; that
every such |
| | | SB2354 Enrolled | - 32 - | LRB099 16668 HEP 41006 b |
|
| 1 | | ballot must include the names of all candidates who have given | 2 | | the
board or its authorized agent timely written notice of | 3 | | their candidacy and must
give the person casting the ballot the | 4 | | opportunity to cast votes for candidates
whose names do not | 5 | | appear on the ballot; that a ballot received by the
association
| 6 | | or
its designated agent after the close of voting shall not be | 7 | | counted; that a
unit
owner
who submits a ballot by mail or | 8 | | other means of delivery specified in the
declaration, bylaws, | 9 | | or rule may request and cast a ballot in person at the
election
| 10 | | meeting, and thereby void any ballot previously submitted by | 11 | | that unit owner; | 12 | | (B-5) that if a rule adopted at least 120 days before a | 13 | | board election or the declaration or bylaws provide for | 14 | | balloting as set forth in this subparagraph, unit owners may | 15 | | not vote by proxy in board elections, but may vote only (i) by | 16 | | submitting an association-issued ballot in person at the | 17 | | election meeting; or (ii) by any acceptable technological means | 18 | | as defined in Section 2 of this Act; instructions regarding the | 19 | | use of electronic means for voting shall be distributed to all | 20 | | unit owners not less than 10 and not more than 30 days before | 21 | | the election meeting, and the board shall give unit owners not | 22 | | less than 21 days' prior written notice of the deadline for | 23 | | inclusion of a candidate's name on the ballots; the deadline | 24 | | shall be no more than 7 days before the instructions for voting | 25 | | using electronic or acceptable technological means is | 26 | | distributed to unit owners; every instruction notice must |
| | | SB2354 Enrolled | - 33 - | LRB099 16668 HEP 41006 b |
|
| 1 | | include the names of all candidates who have given the board or | 2 | | its authorized agent timely written notice of their candidacy | 3 | | and must give the person voting through electronic or | 4 | | acceptable technological means the opportunity to cast votes | 5 | | for candidates whose names do not appear on the ballot; a unit | 6 | | owner who submits a vote using electronic or acceptable | 7 | | technological means may request and cast a ballot in person at | 8 | | the election meeting, thereby voiding any vote previously | 9 | | submitted by that unit owner;
| 10 | | (C) that if a written petition by unit owners with at least | 11 | | 20% of the
votes of
the association is delivered to the board | 12 | | within 14 days after the board's
approval
of a rule adopted | 13 | | pursuant to subparagraph (B) or subparagraph (B-5) of this | 14 | | paragraph (9), the board
shall call a meeting of the unit | 15 | | owners within 30 days after the date of
delivery of
the | 16 | | petition; that unless a majority of the total votes of the unit | 17 | | owners are
cast
at the
meeting to reject the rule, the rule is | 18 | | ratified;
| 19 | | (D) that votes cast by ballot under subparagraph (B) or | 20 | | electronic or acceptable technological means under | 21 | | subparagraph (B-5) of this paragraph (9) are valid for the | 22 | | purpose of establishing a quorum;
| 23 | | (10) that the association may, upon adoption of the | 24 | | appropriate rules by
the board of managers, conduct elections | 25 | | by secret ballot whereby the voting
ballot is marked only with | 26 | | the percentage interest for the unit and the vote
itself, |
| | | SB2354 Enrolled | - 34 - | LRB099 16668 HEP 41006 b |
|
| 1 | | provided that the board further adopt rules to verify the | 2 | | status of the
unit owner issuing a proxy or casting a ballot; | 3 | | and further, that a candidate
for election to the board of | 4 | | managers or such
candidate's representative shall have the | 5 | | right to be present at the
counting of ballots at such | 6 | | election;
| 7 | | (11) that in the event of a resale of a condominium unit | 8 | | the purchaser
of a unit from a seller other than the developer | 9 | | pursuant to an installment
contract for purchase shall during | 10 | | such times as he or she resides in the
unit be counted toward a | 11 | | quorum for purposes of election of members of the
board of | 12 | | managers at any meeting of the unit owners called for purposes | 13 | | of
electing members of the board, shall have the right to vote | 14 | | for the
election of members of the board of managers and to be | 15 | | elected to and serve
on the board of managers unless the seller | 16 | | expressly retains in writing any
or all of such rights. In no | 17 | | event may the seller and purchaser both be
counted toward a | 18 | | quorum, be permitted to vote for a particular office or be
| 19 | | elected and serve on the board. Satisfactory evidence of the | 20 | | installment contract
contact shall be made available to the | 21 | | association or its agents. For
purposes of this subsection, | 22 | | "installment contract" contact" shall have the same
meaning as | 23 | | set forth in Section 1 (e) of the Dwelling Unit Installment | 24 | | Contract Act "An Act relating to installment
contracts to sell | 25 | | dwelling structures", approved August 11, 1967, as amended ;
| 26 | | (12) the method by which matters subject to the approval of |
| | | SB2354 Enrolled | - 35 - | LRB099 16668 HEP 41006 b |
|
| 1 | | unit owners
set forth in this Act, or in the condominium | 2 | | instruments, will be
submitted to the unit owners at special | 3 | | membership meetings called for such
purposes; and
| 4 | | (13) that matters subject to the affirmative vote of not | 5 | | less than 2/3
of the votes of unit owners at a meeting duly | 6 | | called for that purpose,
shall include, but not be limited to:
| 7 | | (i) merger or consolidation of the association;
| 8 | | (ii) sale, lease, exchange, or other disposition | 9 | | (excluding the mortgage
or pledge) of all, or substantially | 10 | | all of the property and assets of the
association; and
| 11 | | (iii) the purchase or sale of land or of units on | 12 | | behalf of all unit owners.
| 13 | | (c) Election of a president from among the board of | 14 | | managers, who shall
preside over the meetings of the board of | 15 | | managers and of the unit owners.
| 16 | | (d) Election of a secretary from among the board of | 17 | | managers, who shall
keep the minutes of all meetings
of the | 18 | | board of managers and of the unit owners and who shall, in | 19 | | general,
perform all the duties incident to the office of | 20 | | secretary.
| 21 | | (e) Election of a treasurer from among the board of | 22 | | managers, who shall
keep the financial records and
books of | 23 | | account.
| 24 | | (f) Maintenance, repair and replacement of the common | 25 | | elements and
payments therefor, including the method of | 26 | | approving payment vouchers.
|
| | | SB2354 Enrolled | - 36 - | LRB099 16668 HEP 41006 b |
|
| 1 | | (g) An association with 30 or more units shall obtain and | 2 | | maintain
fidelity insurance covering persons who control or | 3 | | disburse funds of the
association for the maximum amount of | 4 | | coverage available to protect funds
in the custody or control | 5 | | of the association plus the association reserve
fund. All | 6 | | management companies which are responsible for the funds held | 7 | | or
administered by the association shall maintain and furnish | 8 | | to the
association a fidelity bond for the maximum amount of | 9 | | coverage available to
protect funds in the custody of the | 10 | | management company at any time. The
association shall bear the | 11 | | cost of the fidelity insurance and fidelity
bond, unless | 12 | | otherwise provided by contract between the association and a
| 13 | | management company. The association shall be the direct obligee | 14 | | of any
such fidelity bond. A management company holding reserve | 15 | | funds of an
association shall at all times maintain a separate | 16 | | account for each
association, provided, however, that for | 17 | | investment purposes, the Board of
Managers of an association | 18 | | may authorize a management company to maintain
the | 19 | | association's reserve funds in a single interest bearing | 20 | | account with
similar funds of other associations. The | 21 | | management company shall at all
times maintain records | 22 | | identifying all moneys of each association in such
investment | 23 | | account. The management company may hold all operating funds of
| 24 | | associations which it manages in a single operating account but | 25 | | shall at
all times maintain records identifying all moneys of | 26 | | each association in
such operating account. Such operating and |
| | | SB2354 Enrolled | - 37 - | LRB099 16668 HEP 41006 b |
|
| 1 | | reserve funds held by the
management company for the | 2 | | association shall not be subject to attachment
by any creditor | 3 | | of the management company.
| 4 | | For the purpose of this subsection , a management company | 5 | | shall be
defined as a person, partnership, corporation, or | 6 | | other legal entity
entitled to transact business on behalf of | 7 | | others, acting on behalf of or
as an agent for a unit owner, | 8 | | unit owners or association of unit owners for
the purpose of | 9 | | carrying out the duties, responsibilities, and other
| 10 | | obligations necessary for the day to day operation and | 11 | | management of any
property subject to this Act. For purposes of | 12 | | this subsection, the term
"fiduciary insurance coverage" shall | 13 | | be defined as both a fidelity bond and
directors and officers | 14 | | liability coverage, the fidelity bond in the full
amount of | 15 | | association funds and association reserves that will be in the
| 16 | | custody of the association, and the directors and officers | 17 | | liability
coverage at a level as shall be determined to be | 18 | | reasonable by the board of
managers, if not otherwise | 19 | | established by the declaration or by laws.
| 20 | | Until one year after September 21, 1985 ( the effective date | 21 | | of Public Act 84-722) this amendatory Act of 1985 ,
if a | 22 | | condominium association has reserves plus assessments in | 23 | | excess of
$250,000 and cannot reasonably obtain 100% fidelity | 24 | | bond coverage for such
amount, then it must obtain a fidelity | 25 | | bond coverage of $250,000.
| 26 | | (h) Method of estimating the amount of the annual budget, |
| | | SB2354 Enrolled | - 38 - | LRB099 16668 HEP 41006 b |
|
| 1 | | and the manner
of assessing and collecting from the unit owners | 2 | | their respective shares of
such estimated expenses, and of any | 3 | | other expenses lawfully agreed upon.
| 4 | | (i) That upon 10 days notice to the manager or board of | 5 | | managers and
payment of a reasonable fee, any unit owner shall | 6 | | be furnished a statement
of his account setting forth the | 7 | | amount of any unpaid assessments or other
charges due and owing | 8 | | from such owner.
| 9 | | (j) Designation and removal of personnel necessary for the | 10 | | maintenance,
repair and replacement of the common elements.
| 11 | | (k) Such restrictions on and requirements respecting the | 12 | | use and
maintenance of the units and the use of the common | 13 | | elements, not set forth
in the declaration, as are designed to | 14 | | prevent unreasonable interference
with the use of their | 15 | | respective units and of the common elements by the
several unit | 16 | | owners.
| 17 | | (l) Method of adopting and of amending administrative rules | 18 | | and
regulations governing the operation and use of the common | 19 | | elements.
| 20 | | (m) The percentage of votes required to modify or amend the | 21 | | bylaws, but
each one of the particulars set forth in this | 22 | | section shall always be
embodied in the bylaws.
| 23 | | (n)(i) The provisions of this Act, the declaration, bylaws, | 24 | | other
condominium instruments, and rules and regulations that | 25 | | relate to the use
of the individual unit or the common elements | 26 | | shall be applicable to
any person leasing a unit and shall be |
| | | SB2354 Enrolled | - 39 - | LRB099 16668 HEP 41006 b |
|
| 1 | | deemed to be incorporated in any
lease executed or renewed on | 2 | | or after August 30, 1984 ( the effective date of Public Act | 3 | | 83-1271) this amendatory
Act of 1984 . | 4 | | (ii) With regard to any lease entered into subsequent to | 5 | | July 1, 1990 ( the
effective date of Public Act 86-991) this | 6 | | amendatory Act of 1989 , the unit owner leasing the
unit shall | 7 | | deliver a copy of the signed lease to the board or if the
lease | 8 | | is oral, a memorandum of the lease, not later than the date of
| 9 | | occupancy or 10 days after the lease is signed, whichever | 10 | | occurs first. In
addition to any other remedies, by filing an | 11 | | action jointly against the
tenant and the unit owner, an | 12 | | association may seek to enjoin a tenant from
occupying a unit | 13 | | or seek to evict a tenant under the provisions of Article
IX of | 14 | | the Code of Civil Procedure for failure of the lessor-owner to
| 15 | | comply with the leasing requirements prescribed by
this Section | 16 | | or by the declaration, bylaws, and
rules and regulations. The | 17 | | board of managers may proceed directly against a
tenant, at law | 18 | | or in equity, or under the provisions of Article IX of the
Code | 19 | | of Civil Procedure, for any other breach by tenant of any
| 20 | | covenants, rules, regulations or bylaws.
| 21 | | (o) The association shall have no authority to forbear the | 22 | | payment
of assessments by any unit owner.
| 23 | | (p) That when 30% or fewer of the units, by number,
possess | 24 | | over 50% in the aggregate of the votes in the association,
any | 25 | | percentage vote of members specified herein or in the | 26 | | condominium
instruments shall require the specified percentage |
| | | SB2354 Enrolled | - 40 - | LRB099 16668 HEP 41006 b |
|
| 1 | | by number of units
rather than by percentage of interest in the | 2 | | common elements allocated
to units that would otherwise be | 3 | | applicable and garage units or storage units, or both, shall | 4 | | have, in total, no more votes than their aggregate percentage | 5 | | of ownership in the common elements; this shall mean that if | 6 | | garage units or storage units, or both, are to be given a vote, | 7 | | or portion of a vote, that the association must add the total | 8 | | number of votes cast of garage units, storage units, or both, | 9 | | and divide the total by the number of garage units, storage | 10 | | units, or both, and multiply by the aggregate percentage of | 11 | | ownership of garage units and storage units to determine the | 12 | | vote, or portion of a vote, that garage units or storage units, | 13 | | or both, have. For purposes of this subsection (p), when making | 14 | | a determination of whether 30% or fewer of the units, by | 15 | | number, possess over 50% in the aggregate of the votes in the | 16 | | association, a unit shall not include a garage unit or a | 17 | | storage unit.
| 18 | | (q) That a unit owner may not assign, delegate, transfer, | 19 | | surrender, or
avoid the duties, responsibilities, and | 20 | | liabilities of a unit owner under this
Act, the condominium | 21 | | instruments, or the rules and regulations of the
Association; | 22 | | and that such an attempted assignment, delegation, transfer,
| 23 | | surrender, or avoidance shall be deemed void.
| 24 | | The provisions of this Section are applicable to all | 25 | | condominium
instruments recorded under this Act. Any portion of | 26 | | a condominium
instrument which contains provisions contrary to |
| | | SB2354 Enrolled | - 41 - | LRB099 16668 HEP 41006 b |
|
| 1 | | these provisions shall be
void as against public policy and | 2 | | ineffective. Any such instrument which
fails to contain the | 3 | | provisions required by this Section shall be deemed to
| 4 | | incorporate such provisions by operation of law.
| 5 | | (Source: P.A. 98-1042, eff. 1-1-15; 99-472, eff. 6-1-16; | 6 | | revised 10-19-15.)
| 7 | | Section 95. No acceleration or delay. Where this Act makes | 8 | | changes in a statute that is represented in this Act by text | 9 | | that is not yet or no longer in effect (for example, a Section | 10 | | represented by multiple versions), the use of that text does | 11 | | not accelerate or delay the taking effect of (i) the changes | 12 | | made by this Act or (ii) provisions derived from any other | 13 | | Public Act. |
|