Full Text of HB2932 100th General Assembly
HB2932 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 HB2932 Introduced , by Rep. Robyn Gabel SYNOPSIS AS INTRODUCED: |
| 765 ILCS 605/9 | from Ch. 30, par. 309 | 765 ILCS 605/9.1 | from Ch. 30, par. 309.1 | 765 ILCS 605/14.1 | from Ch. 30, par. 314.1 | 765 ILCS 605/18 | from Ch. 30, par. 318 | 765 ILCS 605/18.5 | from Ch. 30, par. 318.5 | 765 ILCS 605/18.6 | | 765 ILCS 605/18.7 | | 765 ILCS 605/22.1 | from Ch. 30, par. 322.1 |
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Amends the Condominium Property Act. Makes numerous changes in provisions concerning: common expenses; liens for nonpayment of common expenses; other liens; standing and capacity of the board of managers; disposition or removal of any portion of the
property; the contents of bylaws; powers and duties of board of managers; master associations; display of the American flag or a military flag; standards for community association managers; and resale of a condominium unit.
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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 Condominium Property Act is amended by | 5 | | changing Sections 9, 9.1, 14.1, 18, 18.5, 18.6, 18.7, and 22.1 | 6 | | as follows:
| 7 | | (765 ILCS 605/9) (from Ch. 30, par. 309)
| 8 | | Sec. 9. Sharing of expenses - Lien for nonpayment.
| 9 | | (a) All common expenses incurred or accrued prior to the | 10 | | first conveyance
of a unit shall be paid by the developer, and | 11 | | during this period no common
expense assessment shall be | 12 | | payable to the association. It shall be the duty
of each unit | 13 | | owner including the developer to pay his proportionate share of
| 14 | | the common expenses commencing with the first conveyance. The | 15 | | proportionate
share shall be in the same ratio as his | 16 | | percentage of ownership in the common
elements set forth in the | 17 | | declaration.
| 18 | | (b) The condominium instruments may provide that common | 19 | | expenses for
insurance premiums be assessed on a basis | 20 | | reflecting increased charges for
coverage on certain units.
| 21 | | (c) Budget and reserves.
| 22 | | (1) The board of managers shall prepare and distribute | 23 | | to
all unit owners a detailed proposed annual budget, |
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| 1 | | setting forth with
particularity all anticipated common | 2 | | expenses by category as well as all
anticipated assessments | 3 | | and other income. The initial budget and common
expense | 4 | | assessment based thereon shall be adopted prior to the
| 5 | | conveyance of any unit. The budget shall also set forth | 6 | | each unit owner's
proposed common expense assessment.
| 7 | | (2) All budgets adopted by a board of managers on or | 8 | | after July 1, 1990
shall provide for reasonable reserves | 9 | | for capital expenditures and deferred
maintenance for | 10 | | repair or replacement of the common elements. To determine
| 11 | | the amount of reserves appropriate for an association, the | 12 | | board of
managers shall take into consideration the | 13 | | following: (i) the repair and
replacement cost, and the | 14 | | estimated useful life, of the property which the
| 15 | | association is obligated to maintain, including but not | 16 | | limited to
structural and mechanical components, surfaces | 17 | | of the buildings and common
elements, and energy systems | 18 | | and equipment; (ii) the current and
anticipated return on | 19 | | investment of association funds; (iii) any
independent | 20 | | professional reserve study which the association may | 21 | | obtain;
(iv) the financial impact on unit owners, and the | 22 | | market value of the
condominium units, of any assessment | 23 | | increase needed to fund reserves; and
(v) the ability of | 24 | | the association to obtain financing or refinancing.
| 25 | | (3) Notwithstanding the provisions of this subsection | 26 | | (c), an
association without a reserve requirement in its |
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| 1 | | condominium
instruments may elect to waive in whole or in | 2 | | part the reserve requirements
of this Section by a vote of | 3 | | 2/3 of the total votes of the association.
Any association | 4 | | having elected under this paragraph (3) to waive the
| 5 | | provisions of subsection (c) may by a vote of 2/3 of the | 6 | | total votes of the
association elect to again be governed | 7 | | by the requirements of subsection (c).
| 8 | | (4) In the event that an association elects to waive | 9 | | all or part of
the reserve requirements of this Section, | 10 | | that fact must be
disclosed after the meeting at which the | 11 | | waiver occurs by the
association in the financial | 12 | | statements of the association and, highlighted
in bold | 13 | | print, in the response to any request of a prospective | 14 | | purchaser
for the information prescribed under Section | 15 | | 22.1; and no member of the
board of managers or the | 16 | | managing agent of the association shall be liable,
and no | 17 | | cause of action may be brought for damages against these | 18 | | parties,
for the lack or inadequacy of reserve funds in the | 19 | | association budget. | 20 | | (5) A management company holding reserve funds of an | 21 | | association shall at all times maintain a separate account | 22 | | for each association; however, for investment purposes, | 23 | | the board of managers of an association may authorize a | 24 | | management company to maintain the association's reserve | 25 | | funds in a single interest bearing account with similar | 26 | | funds of other associations. The management company shall |
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| 1 | | at all times maintain records identifying all moneys of | 2 | | each association in the investment account. The management | 3 | | company may hold all operating funds of associations it | 4 | | manages in a single operating account but shall at all | 5 | | times maintain records identifying all moneys of each | 6 | | association in the operating account. The operating and | 7 | | reserve funds held by the management company for the | 8 | | association shall not be subject to attachment by any | 9 | | creditor of the management company. | 10 | | As used in this subsection, "management company" means | 11 | | a person, partnership, corporation, or other legal entity | 12 | | entitled to transact business on behalf of others, acting | 13 | | on behalf of or as an agent for a unit owner, unit owners, | 14 | | or association of unit owners for the purpose of carrying | 15 | | out the duties, responsibilities, and other obligations | 16 | | necessary for the day to day operation and management of | 17 | | any property subject to this Act.
| 18 | | (d) (Blank).
| 19 | | (e) The condominium instruments may provide for the | 20 | | assessment,
in connection with expenditures for the limited | 21 | | common elements, of only those
units to which the limited | 22 | | common elements are assigned.
| 23 | | (f) Payment of any assessment shall be in amounts and at | 24 | | times
determined by the board of managers.
| 25 | | (g) Lien.
| 26 | | (1) If any unit owner shall fail or refuse to make any |
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| 1 | | payment of
the common expenses or the amount of any unpaid | 2 | | fine when due, the
amount thereof together with any | 3 | | interest, late charges, reasonable
attorney fees incurred | 4 | | enforcing the covenants of the condominium
instruments, | 5 | | rules and regulations of the board of managers, or any | 6 | | applicable
statute or ordinance, and costs of collections | 7 | | shall constitute a lien on the
interest of the unit owner | 8 | | in the property prior to all other
liens and encumbrances, | 9 | | recorded or unrecorded, except only (a) taxes,
special | 10 | | assessments and special taxes theretofore or thereafter | 11 | | levied by
any political subdivision or municipal | 12 | | corporation of this State and other
State or federal taxes | 13 | | which by law are a lien on the interest of the
unit owner | 14 | | prior to preexisting recorded encumbrances thereon and
(b) | 15 | | encumbrances on the interest of the unit owner recorded
| 16 | | prior to the date of such failure or refusal which by law | 17 | | would be a lien
thereon prior to subsequently recorded | 18 | | encumbrances. Any action
brought to extinguish the lien of | 19 | | the association shall include the
association as a party.
| 20 | | (2) With respect to encumbrances executed prior to | 21 | | August 30, 1984 or
encumbrances executed subsequent to | 22 | | August 30, 1984 which are neither
bonafide first mortgages | 23 | | nor trust deeds and which encumbrances contain a
statement | 24 | | of a mailing address in the State of Illinois where notice | 25 | | may be
mailed to the encumbrancer thereunder, if and | 26 | | whenever and as often as the
manager or board of managers |
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| 1 | | shall send, by United States certified or
registered mail, | 2 | | return receipt requested, to any such encumbrancer at the
| 3 | | mailing address set forth in the recorded encumbrance a | 4 | | statement of the
amounts and due dates of the unpaid common | 5 | | expenses with respect to the
encumbered unit, then, unless | 6 | | otherwise provided in the declaration or bylaws,
the prior | 7 | | recorded encumbrance shall be subject to the lien of all | 8 | | unpaid
common expenses with respect to the unit which | 9 | | become due and payable within a
period of 90 days after the | 10 | | date of mailing of each such notice.
| 11 | | (3) The purchaser of a condominium unit at a judicial
| 12 | | foreclosure sale, or a mortgagee who receives title to a | 13 | | unit by deed in
lieu of foreclosure or judgment by common | 14 | | law strict foreclosure or
otherwise takes possession | 15 | | pursuant to court order under the Illinois
Mortgage | 16 | | Foreclosure Law, shall have the duty to pay the unit's
| 17 | | proportionate share of the common expenses for the unit | 18 | | assessed from and
after the first day of the month after | 19 | | the date of the judicial foreclosure
sale, delivery of the | 20 | | deed in lieu of foreclosure, entry of a judgment in
common | 21 | | law strict foreclosure, or taking of possession pursuant to | 22 | | such
court order. Such payment confirms the extinguishment | 23 | | of any lien created
pursuant to paragraph (1) or (2) of | 24 | | this subsection (g) by virtue of the
failure or refusal of | 25 | | a prior unit owner to make payment of common
expenses, | 26 | | where the judicial foreclosure sale has been confirmed by |
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| 1 | | order
of the court, a deed in lieu thereof has been | 2 | | accepted by the lender, or a
consent judgment has been | 3 | | entered by the court.
| 4 | | (4) The purchaser of a condominium unit at a judicial | 5 | | foreclosure sale, other than a mortgagee, who takes | 6 | | possession of a condominium unit pursuant to a court order | 7 | | or a purchaser who acquires title from a mortgagee shall | 8 | | have the duty to pay the proportionate share, if any, of | 9 | | the common expenses for the unit which would have become | 10 | | due in the absence of any assessment acceleration during | 11 | | the 6 months immediately preceding institution of an action | 12 | | to enforce the collection of assessments, and which remain | 13 | | unpaid by the owner during whose possession the assessments | 14 | | accrued. If the outstanding assessments are paid at any | 15 | | time during any action to enforce the collection of | 16 | | assessments, the purchaser shall have no obligation to pay | 17 | | any assessments which accrued before he or she acquired | 18 | | title.
| 19 | | (5) The notice of sale of a condominium unit under | 20 | | subsection (c) of Section 15-1507 of the Code of Civil | 21 | | Procedure shall state that the purchaser of the unit other | 22 | | than a mortgagee shall pay the assessments and the legal | 23 | | fees required by subdivisions (g)(1) and (g)(4) of Section | 24 | | 9 of this Act. The statement of assessment account issued | 25 | | by the association to a unit owner under subsection (i) of | 26 | | Section 18 of this Act, and the disclosure statement issued |
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| 1 | | to a prospective purchaser under Section 22.1 of this Act, | 2 | | shall state the amount of the assessments and the legal | 3 | | fees, if any, required by subdivisions (g)(1) and (g)(4) of | 4 | | Section 9 of this Act.
| 5 | | (h) A lien for common expenses shall be in favor of the | 6 | | members of the
board of managers and their successors in office | 7 | | and shall be for the
benefit of all other unit owners. Notice | 8 | | of the lien may be recorded by
the board of managers, or if the | 9 | | developer is the manager or has a majority
of seats on the | 10 | | board of managers and the manager or board of managers
fails to | 11 | | do so, any unit owner may record notice of the lien. Upon the
| 12 | | recording of such notice the lien may be foreclosed by an | 13 | | action brought in
the name of the board of managers in the same | 14 | | manner as a mortgage of real
property.
| 15 | | (i) Unless otherwise provided in the declaration, the | 16 | | members
of the board of managers and their successors in | 17 | | office, acting on behalf
of the other unit owners, shall have | 18 | | the power to bid on the
interest so foreclosed at the | 19 | | foreclosure sale, and to acquire and
hold, lease, mortgage and | 20 | | convey it.
| 21 | | (j) Any encumbrancer may from time to time request in | 22 | | writing a written
statement from the manager or board of | 23 | | managers setting forth the unpaid
common expenses with respect | 24 | | to the unit covered by his encumbrance.
Unless the request is | 25 | | complied with within 20 days, all unpaid common
expenses which | 26 | | become due prior to the date of the making of such request
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| 1 | | shall be subordinate to the lien of the encumbrance. Any | 2 | | encumbrancer
holding a lien on a unit may pay any unpaid common | 3 | | expenses payable with
respect to the unit, and upon payment the | 4 | | encumbrancer shall have a lien on
the unit for the amounts paid | 5 | | at the same rank as the lien of his encumbrance.
| 6 | | (k) Nothing in Public Act 83-1271 is intended to change the | 7 | | lien
priorities of any encumbrance created prior to August 30, | 8 | | 1984.
| 9 | | (Source: P.A. 94-1049, eff. 1-1-07.)
| 10 | | (765 ILCS 605/9.1) (from Ch. 30, par. 309.1)
| 11 | | Sec. 9.1. (a) Other liens ; attachment and satisfaction . | 12 | | (a) Subsequent to the recording of the declaration, no | 13 | | liens of any nature shall
be created or arise against any | 14 | | portion of the property except against an
individual unit or | 15 | | units. No labor performed or materials furnished with
the | 16 | | consent or at the request of a particular unit owner shall be | 17 | | the basis
for the filing of a mechanics' lien claim against any | 18 | | other unit. If the
performance of the labor or furnishing of | 19 | | the materials is expressly authorized
by the
board of managers, | 20 | | each unit owner shall be deemed to have expressly authorized
it | 21 | | and consented thereto, and shall be liable for the payment of | 22 | | his unit's
proportionate share of any due and payable | 23 | | indebtedness as set forth in this
Section.
| 24 | | Each mortgage and other lien, including mechanics liens, | 25 | | securing a debt
incurred in the development of the land |
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| 1 | | submitted to the provisions of this
Act for the sale of units | 2 | | shall be subject to the provisions of this Act,
subsequent to | 3 | | the conveyance of a unit to the purchaser.
| 4 | | In the event any lien exists against 2 or more units and | 5 | | the indebtedness
secured by such lien is due and payable, the | 6 | | unit owner of any such unit
so affected may remove such unit | 7 | | and the undivided interest in the common
elements appertaining | 8 | | thereto from such lien by payment of the proportional
amount of | 9 | | such indebtedness attributable to such unit. In the event such
| 10 | | lien exists against the units or against the property, the | 11 | | amount of such
proportional payment shall be computed on the | 12 | | basis of the percentages set
forth in the declaration. Upon | 13 | | payment as herein provided, it is the duty
of the encumbrancer | 14 | | to execute and deliver to the unit owner a release of
such unit | 15 | | and the undivided interest in the common elements appertaining
| 16 | | thereto from such lien, except that such proportional payment | 17 | | and release
shall not prevent the encumbrancer from proceeding | 18 | | to enforce his rights
against any unit or interest with respect | 19 | | to which such lien has not been
so paid or released.
| 20 | | The owner of a unit shall not be liable for any claims, | 21 | | damages, or
judgments, including but not limited to State or | 22 | | local government fees or
fines, entered as a result of any | 23 | | action or inaction of the board of managers
of the association | 24 | | other than for mechanics' liens as set forth in this
Section.
| 25 | | Unit owners other than the developer, members of the board of | 26 | | managers other
than the developer or developer |
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| 1 | | representatives, and the association of unit
owners shall not | 2 | | be liable for any claims,
damages, or judgments, including but | 3 | | not limited to State or local government
fees or fines, entered | 4 | | as result of any action or inaction of the developer
other than | 5 | | for mechanics' liens as set forth in this Section.
Each unit | 6 | | owner's liability for any judgment entered against the
board of | 7 | | managers or the association, if any, shall be limited to his
| 8 | | proportionate share of the indebtedness as set forth in this | 9 | | Section, whether
collection is sought through assessment or | 10 | | otherwise. A unit owner shall be
liable for any claim, damage | 11 | | or judgment entered as a result of the use or
operation
of his | 12 | | unit, or caused by his own conduct. Before conveying a unit, a | 13 | | developer
shall record and furnish purchaser releases of all | 14 | | liens affecting
that unit
and its common element interest which | 15 | | the purchaser does not expressly agree
to take subject to or | 16 | | assume, and the developer shall provide a
surety bond
or | 17 | | substitute collateral for or insurance against liens for which | 18 | | a
release is not provided. After conveyance
of such unit, no | 19 | | mechanics lien shall be created against such unit or its
common | 20 | | element interest by reason of any subsequent contract by the | 21 | | developer
to improve or make additions to the property.
| 22 | | Each mortgagee or other lienholder of the unit of a common | 23 | | interest
community or of a unit subject to the Condominium | 24 | | Property Act shall
provide an address to the unit owners' | 25 | | association at the time the lien or
mortgage is recorded at | 26 | | which address such unit owners' association shall send
notice
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| 1 | | to such mortgagee or lienholder of any eminent domain
| 2 | | proceeding to which the association thereafter becomes a party. | 3 | | If the
mortgagee or lienholder has not provided an address for | 4 | | notice purposes to
the association, then such notice shall be | 5 | | sent to all
mortgagees or lienholders which are named insureds | 6 | | on the master policy of
insurance which exists or may exist on | 7 | | the common interest community or
unit subject to the | 8 | | Condominium Property Act.
| 9 | | (b) Board of Managers' standing and capacity. The board of | 10 | | managers shall have standing and capacity to act in a
| 11 | | representative
capacity in relation to matters involving the | 12 | | common elements or more than
one unit, on behalf of the unit | 13 | | owners, as their interests may appear.
| 14 | | (Source: P.A. 91-616, eff. 8-19-99.)
| 15 | | (765 ILCS 605/14.1) (from Ch. 30, par. 314.1)
| 16 | | Sec. 14.1. Disposition or removal of any portion of the
| 17 | | property. | 18 | | (a) The condominium instruments may provide for
the | 19 | | withdrawal of any portion of the property in connection
with | 20 | | eminent domain proceedings in compliance with the
provisions of | 21 | | this Act. Upon the withdrawal of any unit
or portion thereof, | 22 | | the percentage of interest in the
common elements appurtenant | 23 | | to such unit or portion thereof
shall be reallocated among the | 24 | | remaining units on the basis
of the percentage of interest of | 25 | | each remaining unit. If
only a portion of a unit is withdrawn, |
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| 1 | | the percentage of
interest appurtenant to that unit shall be | 2 | | reduced accordingly,
upon the basis of diminution in market | 3 | | value of the unit, as
determined by the board of managers. The | 4 | | allocation of any
condemnation award or other proceeds to any | 5 | | withdrawing or
remaining unit owner shall be on an equitable | 6 | | basis, which
need not be a unit's percentage interest. Any | 7 | | condemnation
award or other proceeds available in connection | 8 | | with the
withdrawal of any portion of the common elements, not | 9 | | necessarily
including the limited common elements, shall be | 10 | | allocated on the
basis of each unit owner's percentage interest | 11 | | therein. The
declaration may provide that proceeds available | 12 | | from the withdrawal
of any limited common element will be | 13 | | distributed in accordance
with the interests of those entitled | 14 | | to their use. The
condominium instruments shall provide for the | 15 | | cessation of
responsibility for the payment of assessments for | 16 | | any unit
or portion thereof withdrawn from the condominium.
In | 17 | | the event that the unit owners' association is named as | 18 | | defendant in
an eminent domain proceeding on behalf of all unit | 19 | | owners, then the payment
of the proceeds of the eminent domain | 20 | | proceeding attributable to the taking
or damaging of the common | 21 | | element shall be according to this Section unless
the | 22 | | condominium instrument or declaration of a common interest | 23 | | community
expressly provides for different procedures. This | 24 | | Section shall also apply
to eminent domain proceedings in which | 25 | | the unit owners' association of a
common interest community is | 26 | | named as a defendant on behalf of all unit
owners.
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| 1 | | (b) Notwithstanding anything to the contrary contained in | 2 | | this Section,
in a leasehold condominium, any allocation of any | 3 | | condemnation award or other
proceeds available in connection | 4 | | with the withdrawal of any portion of the
property shall | 5 | | include an equitable allocation to the lessor. The allocation
| 6 | | shall take into account any provisions of the lease described | 7 | | in item (x) of
Section 2 of this Act concerning such | 8 | | allocations.
| 9 | | (Source: P.A. 89-89, eff. 6-30-95.)
| 10 | | (765 ILCS 605/18) (from Ch. 30, par. 318)
| 11 | | Sec. 18. Contents of bylaws. The bylaws shall provide for | 12 | | at least
the following:
| 13 | | (a)(1) The election from among the unit owners of a | 14 | | board of managers,
the number of persons constituting such | 15 | | board, and that the terms of at
least one-third of the | 16 | | members of the board shall expire annually and that
all | 17 | | members of the board shall be elected at large; if there | 18 | | are multiple owners of a single unit, only one of the | 19 | | multiple
owners shall be eligible to serve as a member of | 20 | | the board at any one time;
| 21 | | (2) the powers and duties of the board;
| 22 | | (3) the compensation, if any, of the members of the | 23 | | board;
| 24 | | (4) the method of removal from office of members of the | 25 | | board;
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| 1 | | (5) that the board may engage the services of a manager | 2 | | or managing agent;
| 3 | | (6) that each unit owner shall receive, at least 25 | 4 | | days prior to the
adoption thereof by the board of | 5 | | managers, a copy of the proposed annual
budget together | 6 | | with an indication of which portions are intended for
| 7 | | reserves, capital expenditures or repairs or payment of | 8 | | real estate taxes;
| 9 | | (7) that the board of managers shall annually supply to
| 10 | | all unit owners an itemized accounting of the common | 11 | | expenses
for the preceding year actually incurred or paid, | 12 | | together
with an indication of which portions were for | 13 | | reserves, capital
expenditures or repairs or payment of | 14 | | real estate taxes and
with a tabulation of the amounts | 15 | | collected pursuant to the
budget or assessment, and showing | 16 | | the net excess or
deficit of income over expenditures plus | 17 | | reserves;
| 18 | | (8)(i) that each unit owner shall receive notice, in | 19 | | the same manner
as is provided in this Act for membership | 20 | | meetings, of any meeting of the
board of managers | 21 | | concerning the adoption of the proposed annual budget and
| 22 | | regular assessments pursuant thereto or to adopt a separate | 23 | | (special)
assessment, (ii) that except as provided in | 24 | | subsection (iv) below, if an
adopted
budget or any separate | 25 | | assessment adopted by the board would result in the
sum of | 26 | | all regular and separate assessments payable in the current |
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| 1 | | fiscal year
exceeding 115% of the sum of all regular and | 2 | | separate
assessments payable during the
preceding fiscal | 3 | | year, the
board of managers, upon written petition by unit | 4 | | owners with 20 percent of
the votes of the association | 5 | | delivered to the board within 14
days of the board action,
| 6 | | shall call a meeting of the unit owners within 30 days of | 7 | | the date of
delivery of the petition to consider the budget | 8 | | or separate
assessment; unless a
majority of
the total | 9 | | votes of the unit owners are cast at the meeting to reject | 10 | | the
budget or separate assessment,
it is ratified, (iii) | 11 | | that any common expense not set forth in the budget or
any | 12 | | increase in assessments over the amount adopted in the | 13 | | budget shall be
separately assessed against all unit | 14 | | owners, (iv) that separate assessments for
expenditures | 15 | | relating to emergencies or mandated by law may be adopted | 16 | | by the
board of managers without being subject to unit | 17 | | owner approval or the
provisions of item (ii) above or item | 18 | | (v) below. As used
herein, "emergency" means an immediate | 19 | | danger to the structural integrity of
the
common elements | 20 | | or to the life, health, safety or property of the unit | 21 | | owners,
(v) that assessments
for additions and alterations | 22 | | to the common elements or to association-owned
property not | 23 | | included in the adopted annual budget, shall be separately
| 24 | | assessed and are subject to approval of two-thirds of the | 25 | | total votes of all
unit owners, (vi) that the board of | 26 | | managers may adopt separate assessments
payable over more |
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| 1 | | than one fiscal year. With respect to multi-year | 2 | | assessments
not governed by items (iv) and (v), the entire | 3 | | amount of the multi-year
assessment shall be deemed | 4 | | considered and authorized in the first fiscal year
in which | 5 | | the assessment is approved;
| 6 | | (9)(A) that every meeting of the board of managers | 7 | | shall be open to any unit
owner, except that the board may | 8 | | close any portion of a noticed meeting or meet separately | 9 | | from a noticed meeting to: (i) discuss litigation
when an | 10 | | action against or on behalf of the particular association | 11 | | has been
filed and is pending in a court or administrative | 12 | | tribunal,
or when the board of managers finds that such an | 13 | | action is probable
or imminent, (ii) discuss the | 14 | | appointment, employment, engagement,
or dismissal of an | 15 | | employee, independent contractor, agent, or other provider | 16 | | of goods and services, (iii) interview a potential | 17 | | employee, independent contractor, agent, or other provider | 18 | | of goods and services, (iv) discuss violations of rules and
| 19 | | regulations of the association, (v) discuss a unit owner's | 20 | | unpaid share of common
expenses, or (vi) consult with the | 21 | | association's legal counsel; that any vote on these matters | 22 | | shall take place at a meeting of the board of managers or
| 23 | | portion thereof open to any unit owner; | 24 | | (B) that board members may participate in and act at | 25 | | any meeting of the board of managers in person, by | 26 | | telephonic means, or by use of any acceptable technological |
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| 1 | | means whereby all persons participating in the meeting can | 2 | | communicate with each other; that participation | 3 | | constitutes attendance and presence in person at the | 4 | | meeting; | 5 | | (C) that any unit owner may record the
proceedings at | 6 | | meetings of the board of managers or portions thereof | 7 | | required to be open by this
Act by tape, film or other | 8 | | means, and that the board may prescribe reasonable
rules | 9 | | and regulations to govern the right to make such | 10 | | recordings; | 11 | | (D) that
notice of every meeting of the board of | 12 | | managers shall be given to every board member at least 48 | 13 | | hours
prior thereto, unless the board member waives notice | 14 | | of the meeting pursuant to subsection (a) of Section 18.8; | 15 | | and | 16 | | (E) that notice of every meeting
of the board of | 17 | | managers shall be posted in entranceways,
elevators, or | 18 | | other conspicuous places in the condominium at least 48 | 19 | | hours
prior to the meeting of the board of managers except | 20 | | where there is no
common entranceway for 7 or more units, | 21 | | the board of managers may designate
one or more locations | 22 | | in the proximity of these units where the notices of
| 23 | | meetings shall be posted; that notice of every meeting of | 24 | | the board of managers shall also be given at least 48 hours | 25 | | prior to the meeting, or such longer notice as this Act may | 26 | | separately require, to: (i) each unit owner who has |
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| 1 | | provided the association with written authorization to | 2 | | conduct business by acceptable technological means, and | 3 | | (ii) to the extent that the condominium instruments of an | 4 | | association require, to each other unit owner, as required | 5 | | by subsection (f) of Section 18.8, by mail or delivery, and | 6 | | that no other notice of a meeting of the board of managers | 7 | | need be given to any unit owner;
| 8 | | (10) that the board shall meet at least 4 times | 9 | | annually;
| 10 | | (11) that no member of the board or officer shall be | 11 | | elected for a term
of more than 2 years, but that officers | 12 | | and board members may succeed
themselves;
| 13 | | (12) the designation of an officer to mail and receive | 14 | | all notices and
execute amendments to condominium | 15 | | instruments as provided for in this Act
and in the | 16 | | condominium instruments;
| 17 | | (13) the method of filling vacancies on the board
which | 18 | | shall include authority for the remaining members of the | 19 | | board to
fill the vacancy by two-thirds vote until the next | 20 | | annual meeting of unit
owners or for a period terminating | 21 | | no later than 30 days following the
filing of a petition | 22 | | signed by unit owners holding 20% of the votes of the
| 23 | | association requesting a meeting of the unit owners to fill | 24 | | the vacancy for
the balance of the term, and that a meeting | 25 | | of the unit owners shall be
called for purposes of filling | 26 | | a vacancy on the board no later than 30 days
following the |
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| 1 | | filing of a petition signed by unit owners holding 20% of | 2 | | the
votes of the association requesting such a meeting, and | 3 | | the method of filling
vacancies among the officers that | 4 | | shall include the authority for the members
of the board to | 5 | | fill the vacancy for the unexpired portion of the term;
| 6 | | (14) what percentage of the board of managers, if other | 7 | | than a majority,
shall constitute a quorum;
| 8 | | (15) provisions concerning notice of board meetings to | 9 | | members of the
board;
| 10 | | (16) the board of managers may not enter into a | 11 | | contract with a
current board member
or with a corporation | 12 | | or partnership in which a board
member or a member of the | 13 | | board member's immediate family has 25% or
more interest, | 14 | | unless notice of intent to enter the
contract is given to | 15 | | unit owners within 20 days after a decision is made
to | 16 | | enter into the contract and the unit owners are
afforded an | 17 | | opportunity by filing a petition, signed by 20% of the unit
| 18 | | owners, for an election to approve or disapprove the | 19 | | contract;
such petition shall be filed within 20 days after | 20 | | such notice and such
election shall be held within 30 days | 21 | | after filing the petition; for purposes
of this subsection, | 22 | | a board member's immediate family means the board member's
| 23 | | spouse, parents, and children;
| 24 | | (17) that the board of managers may disseminate
to unit | 25 | | owners biographical and background information about | 26 | | candidates for
election to the board if (i) reasonable |
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| 1 | | efforts to identify all candidates are
made and all | 2 | | candidates are given an opportunity to include | 3 | | biographical and
background information in the information | 4 | | to be disseminated; and (ii) the
board does not express a | 5 | | preference in favor of any candidate;
| 6 | | (18) any proxy distributed for board elections
by the | 7 | | board of managers gives unit owners the
opportunity to | 8 | | designate any person as the proxy holder, and gives the | 9 | | unit
owner the opportunity to express a preference for any | 10 | | of the known
candidates for the board or to write in a | 11 | | name;
| 12 | | (19) that special meetings of the board of managers can | 13 | | be called by
the president or 25% of the members of the | 14 | | board;
| 15 | | (20) that the board of managers may establish
and | 16 | | maintain a system of master metering of public utility | 17 | | services and
collect payments in connection therewith, | 18 | | subject to the requirements of the
Tenant Utility Payment | 19 | | Disclosure Act; and
| 20 | | (21) that the board may ratify and confirm actions of | 21 | | the
members of the board taken in response to an emergency, | 22 | | as that
term is defined in subdivision (a)(8)(iv) of this | 23 | | Section; that
the board shall give notice to the unit | 24 | | owners of: (i) the
occurrence of the emergency event within | 25 | | 7 business days after
the emergency event, and (ii) the | 26 | | general description of the
actions taken to address the |
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| 1 | | event within 7 days after the
emergency event. | 2 | | The intent of the provisions of Public Act 99-472 | 3 | | adding this paragraph (21) is to empower and support boards | 4 | | to act in
emergencies. | 5 | | (b)(1) What percentage of the unit owners, if other | 6 | | than 20%, shall
constitute a quorum provided that, for | 7 | | condominiums with 20 or more units,
the percentage of unit | 8 | | owners constituting a quorum shall be 20% unless the
unit | 9 | | owners holding a majority of the percentage interest in the
| 10 | | association provide for a higher percentage, provided that | 11 | | in voting on amendments to the association's bylaws, a unit | 12 | | owner who is in arrears on the unit owner's regular or | 13 | | separate assessments for 60 days or more, shall not be | 14 | | counted for purposes of determining if a quorum is present, | 15 | | but that unit owner retains the right to vote on amendments | 16 | | to the association's bylaws;
| 17 | | (2) that the association shall have one class of | 18 | | membership;
| 19 | | (3) that the members shall hold an annual meeting, one | 20 | | of the purposes
of which shall be to elect members of the | 21 | | board of managers;
| 22 | | (4) the method of calling meetings of the unit owners;
| 23 | | (5) that special meetings of the members can be called | 24 | | by the president,
board of managers, or by 20% of unit | 25 | | owners;
| 26 | | (6) that written notice of any membership meeting shall |
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| 1 | | be mailed
or delivered giving members no less than 10 and | 2 | | no more than 30 days
notice of the time, place and purpose | 3 | | of such meeting except that notice may be sent, to the | 4 | | extent the condominium instruments or rules adopted | 5 | | thereunder expressly so provide, by electronic | 6 | | transmission consented to by the unit owner to whom the | 7 | | notice is given, provided the director and officer or his | 8 | | agent certifies in writing to the delivery by electronic | 9 | | transmission;
| 10 | | (7) that voting shall be on a percentage basis, and | 11 | | that the percentage
vote to which each unit is entitled is | 12 | | the percentage interest of the
undivided ownership of the | 13 | | common elements appurtenant thereto, provided
that the | 14 | | bylaws may provide for approval by unit owners in | 15 | | connection with
matters where the requisite approval on a | 16 | | percentage basis is not specified
in this Act, on the basis | 17 | | of one vote per unit;
| 18 | | (8) that, where there is more than one owner of a unit, | 19 | | if only one
of the multiple owners is present at a meeting | 20 | | of the association, he is
entitled to cast all the votes | 21 | | allocated to that unit, if more than one of
the multiple | 22 | | owners are present, the votes allocated to that unit may be
| 23 | | cast only in accordance with the agreement of a majority in | 24 | | interest of the
multiple owners, unless the declaration | 25 | | expressly provides otherwise, that
there is majority | 26 | | agreement if any one of the multiple owners cast the
votes |
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| 1 | | allocated to that unit without protest being made promptly | 2 | | to the
person presiding over the meeting by any of the | 3 | | other owners of the unit;
| 4 | | (9)(A) except as provided in subparagraph (B) of this | 5 | | paragraph (9) in
connection with board elections, that
a | 6 | | unit owner may vote by proxy executed in writing by the | 7 | | unit
owner or by his duly authorized attorney in fact; that | 8 | | the proxy must bear the date of
execution
and, unless the | 9 | | condominium instruments or the written proxy itself | 10 | | provide
otherwise, is
invalid after 11 months from the date | 11 | | of its execution; to the extent the condominium instruments | 12 | | or rules adopted thereunder expressly so provide, a vote or | 13 | | proxy may be submitted by electronic transmission, | 14 | | provided that any such electronic transmission shall | 15 | | either set forth or be submitted with information from | 16 | | which it can be determined that the electronic transmission | 17 | | was authorized by the unit owner or the unit owner's proxy;
| 18 | | (B) that if a rule adopted at least 120 days before a | 19 | | board election
or the
declaration or bylaws provide for | 20 | | balloting as set forth in this subsection,
unit
owners may | 21 | | not vote by proxy in board elections, but may vote only (i) | 22 | | by
submitting an association-issued ballot in person at the | 23 | | election meeting or
(ii) by
submitting an | 24 | | association-issued ballot to the association or its | 25 | | designated
agent
by mail or other means of delivery | 26 | | specified in the declaration, bylaws, or
rule; that
the |
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| 1 | | ballots shall be mailed or otherwise distributed to unit | 2 | | owners not less
than 10
and not more than 30 days before | 3 | | the election meeting, and the board shall give
unit owners | 4 | | not less than 21 days' prior written notice of the deadline | 5 | | for
inclusion of a candidate's name on the ballots; that | 6 | | the deadline shall be no
more
than 7 days before the | 7 | | ballots are mailed or otherwise distributed to unit
owners; | 8 | | that
every such ballot must include the names of all | 9 | | candidates who have given the
board or its authorized agent | 10 | | timely written notice of their candidacy and must
give the | 11 | | person casting the ballot the opportunity to cast votes for | 12 | | candidates
whose names do not appear on the ballot; that a | 13 | | ballot received by the
association
or
its designated agent | 14 | | after the close of voting shall not be counted; that a
unit
| 15 | | owner
who submits a ballot by mail or other means of | 16 | | delivery specified in the
declaration, bylaws, or rule may | 17 | | request and cast a ballot in person at the
election
| 18 | | meeting, and thereby void any ballot previously submitted | 19 | | by that unit owner; | 20 | | (B-5) that if a rule adopted at least 120 days before a | 21 | | board election or the declaration or bylaws provide for | 22 | | balloting as set forth in this subparagraph, unit owners | 23 | | may not vote by proxy in board elections, but may vote only | 24 | | (i) by submitting an association-issued ballot in person at | 25 | | the election meeting; or (ii) by any acceptable | 26 | | technological means as defined in Section 2 of this Act; |
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| 1 | | instructions regarding the use of electronic means for | 2 | | voting shall be distributed to all unit owners not less | 3 | | than 10 and not more than 30 days before the election | 4 | | meeting, and the board shall give unit owners not less than | 5 | | 21 days' prior written notice of the deadline for inclusion | 6 | | of a candidate's name on the ballots; the deadline shall be | 7 | | no more than 7 days before the instructions for voting | 8 | | using electronic or acceptable technological means is | 9 | | distributed to unit owners; every instruction notice must | 10 | | include the names of all candidates who have given the | 11 | | board or its authorized agent timely written notice of | 12 | | their candidacy and must give the person voting through | 13 | | electronic or acceptable technological means the | 14 | | opportunity to cast votes for candidates whose names do not | 15 | | appear on the ballot; a unit owner who submits a vote using | 16 | | electronic or acceptable technological means may request | 17 | | and cast a ballot in person at the election meeting, | 18 | | thereby voiding any vote previously submitted by that unit | 19 | | owner;
| 20 | | (C) that if a written petition by unit owners with at | 21 | | least 20% of the
votes of
the association is delivered to | 22 | | the board within 14 days after the board's
approval
of a | 23 | | rule adopted pursuant to subparagraph (B) or subparagraph | 24 | | (B-5) of this paragraph (9), the board
shall call a meeting | 25 | | of the unit owners within 30 days after the date of
| 26 | | delivery of
the petition; that unless a majority of the |
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| 1 | | total votes of the unit owners are
cast
at the
meeting to | 2 | | reject the rule, the rule is ratified;
| 3 | | (D) that votes cast by ballot under subparagraph (B) or | 4 | | electronic or acceptable technological means under | 5 | | subparagraph (B-5) of this paragraph (9) are valid for the | 6 | | purpose of establishing a quorum; | 7 | | (10) that the association may, upon adoption of the | 8 | | appropriate rules by
the board of managers, conduct | 9 | | elections by secret ballot whereby the voting
ballot is | 10 | | marked only with the percentage interest for the unit and | 11 | | the vote
itself, provided that the board further adopt | 12 | | rules to verify the status of the
unit owner issuing a | 13 | | proxy or casting a ballot; and further, that a candidate
| 14 | | for election to the board of managers or such
candidate's | 15 | | representative shall have the right to be present at the
| 16 | | counting of ballots at such election;
| 17 | | (11) that in the event of a resale of a condominium | 18 | | unit the purchaser
of a unit from a seller other than the | 19 | | developer pursuant to an installment
contract for purchase | 20 | | shall during such times as he or she resides in the
unit be | 21 | | counted toward a quorum for purposes of election of members | 22 | | of the
board of managers at any meeting of the unit owners | 23 | | called for purposes of
electing members of the board, shall | 24 | | have the right to vote for the
election of members of the | 25 | | board of managers and to be elected to and serve
on the | 26 | | board of managers unless the seller expressly retains in |
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| 1 | | writing any
or all of such rights. In no event may the | 2 | | seller and purchaser both be
counted toward a quorum, be | 3 | | permitted to vote for a particular office or be
elected and | 4 | | serve on the board. Satisfactory evidence of the | 5 | | installment contract
shall be made available to the | 6 | | association or its agents. For
purposes of this subsection, | 7 | | "installment contract" shall have the same
meaning as set | 8 | | forth in Section 1(e) of the Dwelling Unit Installment | 9 | | Contract Act;
| 10 | | (12) the method by which matters subject to the | 11 | | approval of unit owners
set forth in this Act, or in the | 12 | | condominium instruments, will be
submitted to the unit | 13 | | owners at special membership meetings called for such
| 14 | | purposes; and
| 15 | | (13) that matters subject to the affirmative vote of | 16 | | not less than 2/3
of the votes of unit owners at a meeting | 17 | | duly called for that purpose,
shall include, but not be | 18 | | limited to:
| 19 | | (i) merger or consolidation of the association;
| 20 | | (ii) sale, lease, exchange, or other disposition | 21 | | (excluding the mortgage
or pledge) of all, or | 22 | | substantially all of the property and assets of the
| 23 | | association; and
| 24 | | (iii) the purchase or sale of land or of units on | 25 | | behalf of all unit owners.
| 26 | | (c) Election of a president from among the board of |
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| 1 | | managers, who shall
preside over the meetings of the board | 2 | | of managers and of the unit owners.
| 3 | | (d) Election of a secretary from among the board of | 4 | | managers, who shall
keep the minutes of all meetings
of the | 5 | | board of managers and of the unit owners and who shall, in | 6 | | general,
perform all the duties incident to the office of | 7 | | secretary.
| 8 | | (e) Election of a treasurer from among the board of | 9 | | managers, who shall
keep the financial records and
books of | 10 | | account.
| 11 | | (f) Maintenance, repair and replacement of the common | 12 | | elements and
payments therefor, including the method of | 13 | | approving payment vouchers.
| 14 | | (g) (Blank). An association with 30 or more units shall | 15 | | obtain and maintain
fidelity insurance covering persons | 16 | | who control or disburse funds of the
association for the | 17 | | maximum amount of coverage available to protect funds
in | 18 | | the custody or control of the association plus the | 19 | | association reserve
fund. All management companies which | 20 | | are responsible for the funds held or
administered by the | 21 | | association shall maintain and furnish to the
association a | 22 | | fidelity bond for the maximum amount of coverage available | 23 | | to
protect funds in the custody of the management company | 24 | | at any time. The
association shall bear the cost of the | 25 | | fidelity insurance and fidelity
bond, unless otherwise | 26 | | provided by contract between the association and a
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| 1 | | management company. The association shall be the direct | 2 | | obligee of any
such fidelity bond. A management company | 3 | | holding reserve funds of an
association shall at all times | 4 | | maintain a separate account for each
association, | 5 | | provided, however, that for investment purposes, the Board | 6 | | of
Managers of an association may authorize a management | 7 | | company to maintain
the association's reserve funds in a | 8 | | single interest bearing account with
similar funds of other | 9 | | associations. The management company shall at all
times | 10 | | maintain records identifying all moneys of each | 11 | | association in such
investment account. The management | 12 | | company may hold all operating funds of
associations which | 13 | | it manages in a single operating account but shall at
all | 14 | | times maintain records identifying all moneys of each | 15 | | association in
such operating account. Such operating and | 16 | | reserve funds held by the
management company for the | 17 | | association shall not be subject to attachment
by any | 18 | | creditor of the management company.
| 19 | | For the purpose of this subsection, a management | 20 | | company shall be
defined as a person, partnership, | 21 | | corporation, or other legal entity
entitled to transact | 22 | | business on behalf of others, acting on behalf of or
as an | 23 | | agent for a unit owner, unit owners or association of unit | 24 | | owners for
the purpose of carrying out the duties, | 25 | | responsibilities, and other
obligations necessary for the | 26 | | day to day operation and management of any
property subject |
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| 1 | | to this Act. For purposes of this subsection, the term
| 2 | | "fiduciary insurance coverage" shall be defined as both a | 3 | | fidelity bond and
directors and officers liability | 4 | | coverage, the fidelity bond in the full
amount of | 5 | | association funds and association reserves that will be in | 6 | | the
custody of the association, and the directors and | 7 | | officers liability
coverage at a level as shall be | 8 | | determined to be reasonable by the board of
managers, if | 9 | | not otherwise established by the declaration or by laws.
| 10 | | Until one year after September 21, 1985 (the effective | 11 | | date of Public Act 84-722),
if a condominium association | 12 | | has reserves plus assessments in excess of
$250,000 and | 13 | | cannot reasonably obtain 100% fidelity bond coverage for | 14 | | such
amount, then it must obtain a fidelity bond coverage | 15 | | of $250,000.
| 16 | | (h) Method of estimating the amount of the annual | 17 | | budget, and the manner
of assessing and collecting from the | 18 | | unit owners their respective shares of
such estimated | 19 | | expenses, and of any other expenses lawfully agreed upon.
| 20 | | (i) That upon 10 days notice to the manager or board of | 21 | | managers and
payment of a reasonable fee, any unit owner | 22 | | shall be furnished a statement
of his account setting forth | 23 | | the amount of any unpaid assessments or other
charges due | 24 | | and owing from such owner.
| 25 | | (j) Designation and removal of personnel necessary for | 26 | | the maintenance,
repair and replacement of the common |
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| 1 | | elements.
| 2 | | (k) Such restrictions on and requirements respecting | 3 | | the use and
maintenance of the units and the use of the | 4 | | common elements, not set forth
in the declaration, as are | 5 | | designed to prevent unreasonable interference
with the use | 6 | | of their respective units and of the common elements by the
| 7 | | several unit owners.
| 8 | | (l) Method of adopting and of amending administrative | 9 | | rules and
regulations governing the operation and use of | 10 | | the common elements.
| 11 | | (m) The percentage of votes required to modify or amend | 12 | | the bylaws, but
each one of the particulars set forth in | 13 | | this section shall always be
embodied in the bylaws.
| 14 | | (n)(i) The provisions of this Act, the declaration, | 15 | | bylaws, other
condominium instruments, and rules and | 16 | | regulations that relate to the use
of the individual unit | 17 | | or the common elements shall be applicable to
any person | 18 | | leasing a unit and shall be deemed to be incorporated in | 19 | | any
lease executed or renewed on or after August 30, 1984 | 20 | | (the effective date of Public Act 83-1271). | 21 | | (ii) With regard to any lease entered into subsequent | 22 | | to July 1, 1990 (the
effective date of Public Act 86-991), | 23 | | the unit owner leasing the
unit shall deliver a copy of the | 24 | | signed lease to the board or if the
lease is oral, a | 25 | | memorandum of the lease, not later than the date of
| 26 | | occupancy or 10 days after the lease is signed, whichever |
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| 1 | | occurs first. In
addition to any other remedies, by filing | 2 | | an action jointly against the
tenant and the unit owner, an | 3 | | association may seek to enjoin a tenant from
occupying a | 4 | | unit or seek to evict a tenant under the provisions of | 5 | | Article
IX of the Code of Civil Procedure for failure of | 6 | | the lessor-owner to
comply with the leasing requirements | 7 | | prescribed by
this Section or by the declaration, bylaws, | 8 | | and
rules and regulations. The board of managers may | 9 | | proceed directly against a
tenant, at law or in equity, or | 10 | | under the provisions of Article IX of the
Code of Civil | 11 | | Procedure, for any other breach by tenant of any
covenants, | 12 | | rules, regulations or bylaws.
| 13 | | (o) The association shall have no authority to forbear | 14 | | the payment
of assessments by any unit owner.
| 15 | | (p) That when 30% or fewer of the units, by number,
| 16 | | possess over 50% in the aggregate of the votes in the | 17 | | association,
any percentage vote of members specified | 18 | | herein or in the condominium
instruments shall require the | 19 | | specified percentage by number of units
rather than by | 20 | | percentage of interest in the common elements allocated
to | 21 | | units that would otherwise be applicable and garage units | 22 | | or storage units, or both, shall have, in total, no more | 23 | | votes than their aggregate percentage of ownership in the | 24 | | common elements; this shall mean that if garage units or | 25 | | storage units, or both, are to be given a vote, or portion | 26 | | of a vote, that the association must add the total number |
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| 1 | | of votes cast of garage units, storage units, or both, and | 2 | | divide the total by the number of garage units, storage | 3 | | units, or both, and multiply by the aggregate percentage of | 4 | | ownership of garage units and storage units to determine | 5 | | the vote, or portion of a vote, that garage units or | 6 | | storage units, or both, have. For purposes of this | 7 | | subsection (p), when making a determination of whether 30% | 8 | | or fewer of the units, by number, possess over 50% in the | 9 | | aggregate of the votes in the association, a unit shall not | 10 | | include a garage unit or a storage unit.
| 11 | | (q) That a unit owner may not assign, delegate, | 12 | | transfer, surrender, or
avoid the duties, | 13 | | responsibilities, and liabilities of a unit owner under | 14 | | this
Act, the condominium instruments, or the rules and | 15 | | regulations of the
Association; and that such an attempted | 16 | | assignment, delegation, transfer,
surrender, or avoidance | 17 | | shall be deemed void.
| 18 | | The provisions of this Section are applicable to all | 19 | | condominium
instruments recorded under this Act. Any portion of | 20 | | a condominium
instrument which contains provisions contrary to | 21 | | these provisions shall be
void as against public policy and | 22 | | ineffective. Any such instrument which
fails to contain the | 23 | | provisions required by this Section shall be deemed to
| 24 | | incorporate such provisions by operation of law.
| 25 | | (Source: P.A. 98-1042, eff. 1-1-15; 99-472, eff. 6-1-16; | 26 | | 99-567, eff. 1-1-17; 99-642, eff. 7-28-16 .)
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| 1 | | (765 ILCS 605/18.5) (from Ch. 30, par. 318.5)
| 2 | | Sec. 18.5. Master Associations.
| 3 | | (a) If the declaration, other condominium instrument, or | 4 | | other duly
recorded covenants provide that any of the powers of | 5 | | the unit owners
associations are to be exercised by or may be | 6 | | delegated to a nonprofit
corporation or unincorporated | 7 | | association that exercises
those or other powers on behalf of | 8 | | one or more condominiums, or for the
benefit of the unit owners | 9 | | of one or more condominiums, such
corporation or association | 10 | | shall be a master association.
| 11 | | (b) There shall be included in the declaration, other
| 12 | | condominium instruments, or other duly recorded covenants | 13 | | establishing
the powers and duties of the master association | 14 | | the provisions set forth in
subsections (c) through (h).
| 15 | | In interpreting subsections (c) through (h), the courts | 16 | | should
interpret these provisions so that they are interpreted | 17 | | consistently with
the similar parallel provisions found in | 18 | | other parts of this Act.
| 19 | | (c) Meetings and finances.
| 20 | | (1) Each unit owner of a condominium subject to the | 21 | | authority of
the board of the master association shall | 22 | | receive, at least 30 days prior
to the adoption thereof by | 23 | | the board of the master association, a copy of
the proposed | 24 | | annual budget.
| 25 | | (2) The board of the master association shall annually |
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| 1 | | supply to
all unit owners of condominiums subject to the | 2 | | authority of the board
of the master association an | 3 | | itemized accounting of the common
expenses for the | 4 | | preceding year actually incurred or paid, together with a
| 5 | | tabulation of the amounts collected pursuant to the budget | 6 | | or assessment,
and showing the net excess or deficit of | 7 | | income over expenditures plus
reserves.
| 8 | | (3) Each unit owner of a condominium subject to the | 9 | | authority of
the board of the master association shall | 10 | | receive written notice mailed
or delivered no less than 10 | 11 | | and no more than 30 days prior to any meeting
of the board | 12 | | of the master association concerning the adoption of the | 13 | | proposed
annual budget or any increase in the budget, or | 14 | | establishment of an
assessment.
| 15 | | (4) Meetings of the board of the master association | 16 | | shall be open
to any unit owner in a condominium subject to | 17 | | the authority of the board
of the master association, | 18 | | except for the portion of any meeting held:
| 19 | | (A) to discuss litigation when an action against or | 20 | | on behalf of the
particular master association has been | 21 | | filed and is pending in a court or
administrative | 22 | | tribunal, or when the board of the master association | 23 | | finds
that such an action is probable or imminent,
| 24 | | (B) to consider information regarding appointment, | 25 | | employment or
dismissal of an employee, or
| 26 | | (C) to discuss violations of rules and regulations |
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| 1 | | of the master
association or unpaid common expenses | 2 | | owed to the master association.
| 3 | | Any vote on these matters shall be taken at a meeting or | 4 | | portion thereof
open to any unit owner of a condominium | 5 | | subject to the authority of the
master association.
| 6 | | Any unit owner may record the proceedings at meetings | 7 | | required
to be open by this Act by tape, film or other | 8 | | means; the board may
prescribe reasonable rules and | 9 | | regulations to govern the right to make such
recordings. | 10 | | Notice of meetings shall be mailed or delivered at least 48
| 11 | | hours prior thereto, unless a written waiver of such notice | 12 | | is signed by
the persons entitled to notice before the | 13 | | meeting is convened. Copies of
notices of meetings of the | 14 | | board of the master association shall be posted
in | 15 | | entranceways, elevators, or other conspicuous places in | 16 | | the condominium
at least 48 hours prior to the meeting of | 17 | | the board of the master
association. Where there is no | 18 | | common entranceway for 7 or more units, the
board of the | 19 | | master association may designate one or more locations in | 20 | | the
proximity of these units where the notices of meetings | 21 | | shall be posted.
| 22 | | (5) If the declaration provides for election by unit | 23 | | owners of members
of the board of directors in the event of | 24 | | a resale of a unit in the master
association, the purchaser | 25 | | of a unit from a seller other than the developer
pursuant | 26 | | to an installment contract for purchase shall, during such
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| 1 | | 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 | | directors at any
meeting of the unit owners called for | 4 | | purposes of electing members of the
board, and shall have | 5 | | the right to vote for the election of members of
the board | 6 | | of directors and to be elected to and serve on the board of
| 7 | | directors unless the seller expressly retains in writing
| 8 | | any or all of those rights. In no event may the seller and
| 9 | | purchaser both be counted toward a quorum, be permitted to | 10 | | vote for a
particular office, or be elected and serve on | 11 | | the board. Satisfactory
evidence of the installment | 12 | | contract shall be made available to the
association or its | 13 | | agents. For purposes of this subsection, "installment
| 14 | | contract" shall have the same meaning as set forth in | 15 | | subsection (e) of
Section 1 of the Dwelling Unit | 16 | | Installment Contract Act.
| 17 | | (6) The board of the master association shall have the | 18 | | authority to
establish and maintain a system of master | 19 | | metering of public utility
services and to collect payments | 20 | | in connection therewith, subject to the
requirements of the | 21 | | Tenant Utility Payment Disclosure Act.
| 22 | | (7) The board of the master association or a common | 23 | | interest community
association shall have the power, after | 24 | | notice and an opportunity to be heard,
to levy and collect | 25 | | reasonable fines from members for violations of the
| 26 | | declaration, bylaws, and rules and regulations of the |
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| 1 | | master association or
the common interest community | 2 | | association . Nothing contained in this
subdivision (7) | 3 | | shall give rise to a statutory lien for unpaid fines.
| 4 | | (8) Other than attorney's fees, no fees pertaining to | 5 | | the collection of a unit owner's financial obligation to | 6 | | the Association, including fees charged by a manager or | 7 | | managing agent, shall be added to and deemed a part of an | 8 | | owner's respective share of the common expenses unless: (i) | 9 | | the managing agent fees relate to the costs to collect | 10 | | common expenses for the Association; (ii) the fees are set | 11 | | forth in a contract between the managing agent and the | 12 | | Association; and (iii) the authority to add the management | 13 | | fees to an owner's respective share of the common expenses | 14 | | is specifically stated in the declaration or bylaws of the | 15 | | Association. | 16 | | (d) Records.
| 17 | | (1) The board of the master association shall keep and | 18 | | maintain the following
records , or true and complete copies | 19 | | of the records, at the association's principal office of | 20 | | the association and make them available for examination and
| 21 | | copying at convenient hours of weekdays by any unit owners | 22 | | in a condominium
subject to the authority of the board or | 23 | | their mortgagees and their duly
authorized agents or | 24 | | attorneys :
| 25 | | (i) the association's declaration, bylaws, and | 26 | | plats of survey, and all amendments of the |
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| 1 | | association's declaration, bylaws, and plats of | 2 | | survey; | 3 | | (ii) the rules and regulations of the association, | 4 | | if any; | 5 | | (iii) if the association is incorporated as a | 6 | | corporation, the articles of incorporation of the | 7 | | association and all amendments to the articles of | 8 | | incorporation; | 9 | | (iv) minutes of all meetings of the association and | 10 | | its board of managers for the immediately preceding 7 | 11 | | years; | 12 | | (v) all current policies of insurance of the | 13 | | association; | 14 | | (vi) all contracts, leases, and other agreements | 15 | | then in effect to which the association is a party or | 16 | | under which the association or the unit owners have | 17 | | obligations or liabilities; | 18 | | (vii) a current listing of the names, addresses, | 19 | | and weighted vote of all members entitled to vote; | 20 | | (viii) ballots and proxies related to ballots for | 21 | | all matters voted on by the members of the association | 22 | | during the immediately preceding 12 months, including, | 23 | | but not limited to, the election of members of the | 24 | | board of managers; and | 25 | | (ix) the books and records of account for the | 26 | | association's current and 10 immediately preceding |
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| 1 | | fiscal years, including, but not limited to, itemized | 2 | | and detailed records of all receipts and expenditures. | 3 | | With respect to units owned by a land trust, if a | 4 | | trustee
designates in writing a person to cast votes on | 5 | | behalf of the unit
owner, the designation shall remain in | 6 | | effect until a subsequent document
is filed with the | 7 | | association. | 8 | | (2) Any member of an association has the right to | 9 | | inspect, examine, and make copies of the records described | 10 | | in subdivisions (i), (ii), (iii), (iv), and (v) of | 11 | | paragraph (1) of this subsection, in person or by agent, at | 12 | | any reasonable time or times, at the association's | 13 | | principal office. In order to exercise this right, a member | 14 | | must submit a written request to the association's board of | 15 | | directors or its authorized agent, stating with | 16 | | particularity the records sought. Failure of an | 17 | | association's board of directors to make available all | 18 | | requested records within 30 days of receipt of the member's | 19 | | written request shall be deemed a denial. | 20 | | Any member who prevails in an enforcement action to | 21 | | compel examination of records described in subdivisions | 22 | | (i), (ii), (iii), (iv), and (v) of paragraph (1) of this | 23 | | subsection is entitled to recover reasonable attorney's | 24 | | fees and costs from the association. | 25 | | (3) Except as otherwise provided in this subsection, | 26 | | any member of an association has the right to inspect, |
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| 1 | | examine, and make copies of the records described in | 2 | | subdivisions (vi), (vii), (viii), and (ix) of paragraph (1) | 3 | | of this subsection, in person or by agent, at any | 4 | | reasonable time or times, but only for a proper purpose, at | 5 | | the association's principal office. In order to exercise | 6 | | this right, a member must submit a written request to the | 7 | | association's board of directors or its authorized agent, | 8 | | stating with particularity the records sought and a proper | 9 | | purpose for the request. Subject to the provisions of | 10 | | paragraph (5) of this subsection, failure of an | 11 | | association's board of directors to make available all | 12 | | requested records within 30 business days of receipt of the | 13 | | member's written request shall be deemed a denial; however, | 14 | | the board of directors of an association that has adopted a | 15 | | secret ballot election process shall not be deemed to have | 16 | | denied a member's request for records described in | 17 | | subdivision (viii) of paragraph (1) of this subsection if | 18 | | voting ballots, without identifying unit numbers, are made | 19 | | available to the requesting member within 30 days of | 20 | | receipt of the member's written request. | 21 | | In an action to compel examination of records described | 22 | | in subdivisions (vi), (vii), (viii), and (ix) of paragraph | 23 | | (1) of this subsection, the burden of proof is upon the | 24 | | member to establish that the member's request is based on a | 25 | | proper purpose. Any member who prevails in an enforcement | 26 | | action to compel examination of records described in |
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| 1 | | subdivisions (vi), (vii), (viii), and (ix) of paragraph (1) | 2 | | of this subsection is entitled to recover reasonable | 3 | | attorney's fees and costs from the association only if the | 4 | | court finds that the board of directors acted in bad faith | 5 | | in denying the member's request. | 6 | | (4) The actual cost to the association of retrieving | 7 | | and making requested records available for inspection and | 8 | | examination under this Section shall be charged by the | 9 | | association to the requesting member. If a member requests | 10 | | copies of records under this Section, the actual costs to | 11 | | the association of reproducing the records shall also be | 12 | | charged by the association to the requesting member. | 13 | | (5) Notwithstanding the other provisions of this | 14 | | subsection, unless otherwise directed by court order, an | 15 | | association need not make the following records available | 16 | | for inspection, examination, or copying by its members: | 17 | | (i) documents relating to appointment, employment, | 18 | | discipline, or dismissal of association employees; | 19 | | (ii) documents relating to actions pending against | 20 | | or on behalf of the association or its board of | 21 | | managers in a court or administrative tribunal; | 22 | | (iii) documents relating to actions threatened | 23 | | against, or likely to be asserted on behalf of, the | 24 | | association or its board of directors in a court or | 25 | | administrative tribunal; | 26 | | (iv) documents relating to common expenses or |
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| 1 | | other charges owed by a member other than the | 2 | | requesting member; and | 3 | | (v) documents provided to an association in | 4 | | connection with the lease, sale, or other transfer of a | 5 | | unit by a member other than the requesting member.
| 6 | | (i) Copies of the recorded declaration, other | 7 | | condominium instruments,
other duly recorded covenants | 8 | | and bylaws and any amendments, articles of
| 9 | | incorporation of the master association, annual | 10 | | reports and any rules and
regulations adopted by the | 11 | | master association or its board shall
be available. | 12 | | Prior to the organization of the master association, | 13 | | the
developer shall maintain and make available the | 14 | | records set forth in this
subdivision (d)(1) for | 15 | | examination and copying.
| 16 | | (ii) Detailed and accurate records in | 17 | | chronological order of the
receipts and expenditures | 18 | | affecting the common areas, specifying and
itemizing | 19 | | the maintenance and repair expenses of the common areas | 20 | | and any
other expenses incurred, and copies of all | 21 | | contracts, leases, or other
agreements entered into by | 22 | | the master association, shall be maintained.
| 23 | | (iii) The minutes of all meetings of the master | 24 | | association and the
board of the master association | 25 | | shall be maintained for not less than 7 years.
| 26 | | (iv) Ballots and proxies related thereto, if any, |
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| 1 | | for any election
held for the board of the master | 2 | | association and for any other matters
voted on by the | 3 | | unit owners shall be maintained for
not less than one | 4 | | year.
| 5 | | (v) Such other records of the master association as | 6 | | are available
for inspection by members of a | 7 | | not-for-profit corporation pursuant to
Section 107.75 | 8 | | of the General Not For Profit Corporation Act of 1986 | 9 | | shall
be maintained.
| 10 | | (vi) With respect to units owned by a land trust, | 11 | | if a trustee
designates in writing a person to cast | 12 | | votes on behalf of the unit
owner, the designation | 13 | | shall remain in effect until a subsequent document
is | 14 | | filed with the association.
| 15 | | (2) Where a request for records under this subsection | 16 | | is made in writing
to the board of managers or its agent, | 17 | | failure to provide the requested
record or to respond | 18 | | within 30 days shall be deemed a denial by the board
of | 19 | | directors.
| 20 | | (3) A reasonable fee may be charged by the master | 21 | | association or its
board for the cost of copying.
| 22 | | (4) If the board of directors fails to provide records | 23 | | properly
requested under subdivision (d)(1) within the
| 24 | | time period provided in subdivision (d)(2), the
unit owner | 25 | | may seek appropriate relief, including an award of
| 26 | | attorney's fees and costs.
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| 1 | | (e) The board of directors shall have standing and capacity | 2 | | to act in
a representative capacity in relation to matters | 3 | | involving the common areas
of the master association or more | 4 | | than one unit, on behalf of the unit
owners as their interests | 5 | | may appear.
| 6 | | (f) Administration of property prior to election of the | 7 | | initial board
of directors.
| 8 | | (1) Until the election, by the unit owners or the | 9 | | boards of
managers of the underlying condominium | 10 | | associations, of the initial board
of directors of a master | 11 | | association whose declaration is recorded on
or after | 12 | | August 10, 1990, the same rights, titles, powers, | 13 | | privileges,
trusts, duties and obligations that are vested | 14 | | in or imposed upon the board
of directors by this Act or in | 15 | | the declaration or other duly recorded
covenant shall be | 16 | | held and performed by the developer.
| 17 | | (2) The election of the initial board of directors of a | 18 | | master
association whose declaration is recorded on or | 19 | | after August 10, 1990, by
the unit owners or the boards of | 20 | | managers of the underlying condominium
associations, shall | 21 | | be held not later than 60 days after the conveyance by
the | 22 | | developer of 75% of the units, or 3 years after the | 23 | | recording of the
declaration, whichever is earlier. The | 24 | | developer shall give at least 21
days notice of the meeting | 25 | | to elect the initial board of directors and
shall upon | 26 | | request provide to any unit owner, within 3 working days of |
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| 1 | | the
request, the names, addresses, and weighted vote of | 2 | | each unit owner entitled to vote at the
meeting. Any unit | 3 | | owner shall upon receipt of the request be provided with
| 4 | | the same
information, within 10 days of the request, with | 5 | | respect to
each
subsequent meeting to elect members of the | 6 | | board of directors.
| 7 | | (3) If the initial board of directors of a master | 8 | | association
whose declaration is recorded on or after | 9 | | August 10, 1990 is not elected by
the unit owners or the | 10 | | members of the underlying condominium association
board of | 11 | | managers at the time established in subdivision (f)(2), the
| 12 | | developer shall continue in office for a period of 30 days, | 13 | | whereupon
written notice of his resignation shall be sent | 14 | | to all of the unit owners
or members of the underlying | 15 | | condominium board of managers entitled to vote
at an | 16 | | election for members of the board of directors.
| 17 | | (4) Within 60 days following the election of a majority | 18 | | of the board
of directors, other than the developer, by | 19 | | unit owners, the developer shall
deliver to the board of | 20 | | directors:
| 21 | | (i) All original documents as recorded or filed | 22 | | pertaining to the
property, its administration, and | 23 | | the association, such as the declaration,
articles of | 24 | | incorporation, other instruments, annual reports, | 25 | | minutes,
rules and regulations, and contracts, leases, | 26 | | or other
agreements entered into by the association. If |
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| 1 | | any original documents are
unavailable, a copy may be | 2 | | provided if certified by affidavit of the
developer, or | 3 | | an officer or agent of the developer, as being a | 4 | | complete
copy of the actual document recorded or filed.
| 5 | | (ii) A detailed accounting by the developer, | 6 | | setting forth the
source and nature of receipts and | 7 | | expenditures in connection with the
management, | 8 | | maintenance and operation of the property, copies
of | 9 | | all insurance policies, and a list of any loans or | 10 | | advances to the
association which are outstanding.
| 11 | | (iii) Association funds, which shall have been at | 12 | | all times
segregated from any other moneys of the | 13 | | developer.
| 14 | | (iv) A schedule of all real or personal property, | 15 | | equipment and
fixtures belonging to the association, | 16 | | including documents transferring the
property, | 17 | | warranties, if any, for all real and personal property | 18 | | and
equipment, deeds, title insurance policies, and | 19 | | all tax bills.
| 20 | | (v) A list of all litigation, administrative | 21 | | action and arbitrations
involving the association, any | 22 | | notices of governmental bodies involving
actions taken | 23 | | or which may be taken concerning the association, | 24 | | engineering and
architectural drawings and | 25 | | specifications as approved by any governmental
| 26 | | authority, all other documents filed with any other |
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| 1 | | governmental authority,
all governmental certificates, | 2 | | correspondence involving enforcement of any
| 3 | | association requirements, copies of any documents | 4 | | relating to disputes
involving unit owners, and | 5 | | originals of all documents relating to
everything | 6 | | listed in this subparagraph.
| 7 | | (vi) If the developer fails to fully comply with | 8 | | this paragraph (4)
within
the 60 days
provided and | 9 | | fails to fully comply within 10 days of written demand | 10 | | mailed by
registered
or certified mail to his or her | 11 | | last known address, the board may bring an
action to
| 12 | | compel compliance with this paragraph (4).
If the court | 13 | | finds that any of the
required
deliveries were not made | 14 | | within the required period, the board shall be
entitled | 15 | | to recover
its reasonable attorneys' fees and costs | 16 | | incurred from and after the date of
expiration of
the | 17 | | 10 day demand.
| 18 | | (5) With respect to any master association whose | 19 | | declaration is
recorded on or after August 10, 1990, any | 20 | | contract, lease, or other
agreement made prior to the | 21 | | election of a majority of the board of
directors other than | 22 | | the developer by or on behalf of unit owners or
underlying | 23 | | condominium associations, the association or the board of
| 24 | | directors, which extends for a period of more than 2 years | 25 | | from the
recording of the declaration, shall be subject to | 26 | | cancellation by more than
1/2 of the votes of the unit |
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| 1 | | owners, other than the developer, cast at a
special meeting | 2 | | of members called for that purpose during a period of 90
| 3 | | days prior to the expiration of the 2 year period if the | 4 | | board of managers
is elected by the unit owners, otherwise | 5 | | by more than 1/2 of the underlying
condominium board of | 6 | | managers. At least 60 days prior to the expiration of
the 2 | 7 | | year period, the board of directors, or, if the board is | 8 | | still under
developer control, then the board of managers | 9 | | or the developer shall send
notice to every unit owner or | 10 | | underlying condominium board of managers,
notifying them | 11 | | of this provision, of what contracts, leases and other
| 12 | | agreements are affected, and of the procedure for calling a | 13 | | meeting of the
unit owners or for action by the underlying | 14 | | condominium board of managers
for the purpose of acting to | 15 | | terminate such contracts, leases or other
agreements. | 16 | | During the 90 day period the other party to the contract,
| 17 | | lease, or other agreement shall also have the right of | 18 | | cancellation.
| 19 | | (6) The statute of limitations for any actions in law | 20 | | or equity which
the master association may bring shall not | 21 | | begin to run until the unit
owners or underlying | 22 | | condominium board of managers have elected a majority
of | 23 | | the members of the board of directors.
| 24 | | (g) In the event of any resale of a unit in a master | 25 | | association by a unit
owner other than the developer, the owner | 26 | | shall obtain from
the board of directors and shall make |
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| 1 | | available for inspection to the
prospective purchaser, upon | 2 | | demand, the following:
| 3 | | (1) A copy of the declaration, other instruments and | 4 | | any rules and
regulations.
| 5 | | (2) A statement of any liens, including a statement of | 6 | | the account of
the unit setting forth the amounts of unpaid | 7 | | assessments and other charges
due and owing.
| 8 | | (3) A statement of any capital expenditures | 9 | | anticipated by the
association within the current or | 10 | | succeeding 2 fiscal years.
| 11 | | (4) A statement of the status and amount of any reserve | 12 | | for
replacement fund and any portion of such fund earmarked | 13 | | for any specified
project by the board of directors.
| 14 | | (5) A copy of the statement of financial condition of | 15 | | the association
for the last fiscal year for which such a | 16 | | statement is available.
| 17 | | (6) A statement of the status of any pending suits or | 18 | | judgments in which
the association is a party that may have | 19 | | a material adverse impact on the association's financial | 20 | | condition .
| 21 | | (7) A statement setting forth what insurance coverage | 22 | | is provided for
all unit owners by the association.
| 23 | | (8) A statement that any known improvements or | 24 | | alterations made to the unit,
or any part of the common | 25 | | areas assigned thereto, by the prior unit owner
are in good | 26 | | faith believed to be in compliance with the declaration of |
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| 1 | | the
master association.
| 2 | | The principal officer of the unit owner's association or | 3 | | such
other officer , manager, or agent as is specifically | 4 | | designated shall furnish the above
information when requested | 5 | | to do so in writing, within
30 days of receiving the request.
| 6 | | A reasonable fee covering the direct out-of-pocket cost of | 7 | | copying
and providing such information may be charged
by the | 8 | | association or its board of directors to the unit
seller for | 9 | | providing the information.
| 10 | | Within 15 days of the recording of a mortgage or trust deed | 11 | | against a unit ownership given by the owner of that unit to | 12 | | secure a debt, the owner shall inform the board of the master | 13 | | association of the identity of the lender, together with a | 14 | | mailing address at which the lender can receive notices from | 15 | | the association. If a unit owner fails or refuses to inform the | 16 | | board as required under this subsection, then that unit owner | 17 | | is liable to the association for all costs, expenses, and | 18 | | reasonable attorney's fees and other damages, if any, incurred | 19 | | by the association as a result of the failure or refusal. | 20 | | (g-1) The purchaser of a unit of a common interest | 21 | | community at a judicial foreclosure sale, other than a | 22 | | mortgagee, who takes possession of a unit of a common interest | 23 | | community pursuant to a court order or a purchaser who acquires | 24 | | title from a mortgagee shall have the duty to pay the | 25 | | proportionate share, if any, of the common expenses for the | 26 | | unit that would have become due in the absence of any |
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| 1 | | assessment acceleration during the 6 months immediately | 2 | | preceding institution of an action to enforce the collection of | 3 | | assessments and the court costs incurred by the association in | 4 | | an action to enforce the collection that remain unpaid by the | 5 | | owner during whose possession the assessments accrued. If the | 6 | | outstanding assessments and the court costs incurred by the | 7 | | association in an action to enforce the collection are paid at | 8 | | any time during any action to enforce the collection of | 9 | | assessments, the purchaser shall have no obligation to pay any | 10 | | assessments that accrued before he or she acquired title. The | 11 | | notice of sale of a unit of a common interest community under | 12 | | subsection (c) of Section 15-1507 of the Code of Civil | 13 | | Procedure shall state that the purchaser of the unit other than | 14 | | a mortgagee shall pay the assessments and court costs required | 15 | | by this subsection (g-1).
| 16 | | (h) Errors and omissions.
| 17 | | (1) If there is an omission or error in the declaration | 18 | | or other
instrument of the master association, the master | 19 | | association may correct
the error or omission by an | 20 | | amendment to the declaration or other
instrument, as may be | 21 | | required to conform it to this Act, to any other
applicable | 22 | | statute, or to the declaration. The amendment shall be | 23 | | adopted
by vote of two-thirds of the members of the board | 24 | | of directors or by a
majority vote of the unit owners at a | 25 | | meeting called for that purpose,
unless the Act or the | 26 | | declaration of the master association specifically
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| 1 | | provides for greater percentages or different procedures.
| 2 | | (2) If, through a scrivener's error, a unit has not | 3 | | been
designated as owning an appropriate undivided share of | 4 | | the common areas
or does not bear an appropriate share of | 5 | | the common expenses, or if
all of the common expenses or | 6 | | all of the common elements in
the condominium have not been | 7 | | distributed in the declaration, so that the
sum total of | 8 | | the shares of common areas which have been distributed or | 9 | | the
sum total of the shares of the common expenses fail to | 10 | | equal 100%, or if it
appears that more than 100% of the | 11 | | common elements or common expenses have
been distributed, | 12 | | the error may be corrected by operation of law by filing
an | 13 | | amendment to the declaration, approved by vote of | 14 | | two-thirds of the
members of the board of directors or a | 15 | | majority vote of the unit owners at
a meeting called for | 16 | | that purpose, which proportionately
adjusts all percentage | 17 | | interests so that the total is equal to 100%,
unless the | 18 | | declaration specifically provides for a different | 19 | | procedure or
different percentage vote by the owners of the | 20 | | units and the owners of
mortgages thereon affected by | 21 | | modification being made in the undivided
interest in the | 22 | | common areas, the number of votes in the unit owners
| 23 | | association or the liability for common expenses | 24 | | appertaining to the unit.
| 25 | | (3) If an omission or error or a scrivener's error in | 26 | | the
declaration or other instrument is corrected by vote of |
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| 1 | | two-thirds of
the members of the board of directors | 2 | | pursuant to the authority established
in subdivisions | 3 | | (h)(1) or (h)(2) of this Section, the board, upon
written | 4 | | petition by unit owners with 20% of the votes of the | 5 | | association or
resolutions adopted by the board of managers | 6 | | or board of directors of the
condominium and common | 7 | | interest community associations which select 20% of
the | 8 | | members of the board of directors of the master | 9 | | association, whichever
is applicable, received within 30 | 10 | | days of the board action, shall call a
meeting of the unit | 11 | | owners or the boards of the condominium and common
interest | 12 | | community associations which select members of the board of
| 13 | | directors of the master association within 30 days of the | 14 | | filing of the
petition or receipt of the condominium and | 15 | | common interest community
association resolution to | 16 | | consider the board action. Unless a majority of
the votes | 17 | | of the unit owners of the association are cast at the | 18 | | meeting to
reject the action, or board of managers or board | 19 | | of directors of
condominium and common interest community | 20 | | associations which select over
50% of the members of the | 21 | | board of the master association adopt resolutions
prior to | 22 | | the meeting rejecting the action of the board of directors | 23 | | of the
master association, it is ratified whether or not a | 24 | | quorum is present.
| 25 | | (4) The procedures for amendments set forth in this | 26 | | subsection (h)
cannot be used if such an amendment would |
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| 1 | | materially or adversely affect
property rights of the unit | 2 | | owners unless the affected unit owners consent
in writing. | 3 | | This Section does not restrict the powers of the | 4 | | association
to otherwise amend the declaration, bylaws, or | 5 | | other condominium
instruments, but authorizes a simple | 6 | | process of amendment requiring a
lesser vote for the | 7 | | purpose of correcting defects, errors, or omissions
when | 8 | | the property rights of the unit owners are not materially | 9 | | or adversely
affected.
| 10 | | (5) If there is an omission or error in the declaration | 11 | | or other
instruments that may not be corrected by an | 12 | | amendment procedure
set forth in subdivision (h)(1) or | 13 | | (h)(2) of this Section, then
the circuit court in the | 14 | | county in which the master
association is located shall | 15 | | have jurisdiction to hear a petition of one or
more of the | 16 | | unit owners thereon or of the association, to correct the | 17 | | error
or omission, and the action may be a class action. | 18 | | The court may require
that one or more methods of | 19 | | correcting the error or omission be submitted
to the unit | 20 | | owners to determine the most acceptable correction. All | 21 | | unit
owners in the association must be joined as parties to | 22 | | the action. Service
of process on owners may be by | 23 | | publication, but the plaintiff shall furnish
all unit | 24 | | owners not personally served with process with copies of | 25 | | the
petition and final judgment of the court by certified | 26 | | mail, return receipt
requested, at their last known |
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| 1 | | address.
| 2 | | (6) Nothing contained in this Section shall be | 3 | | construed to invalidate
any provision of a declaration | 4 | | authorizing the developer to amend
an instrument prior to | 5 | | the latest date on which the initial
membership meeting of | 6 | | the unit owners must be held, whether or not it has
| 7 | | actually been held, to bring the instrument into compliance | 8 | | with the legal
requirements of the Federal National | 9 | | Mortgage Association, the Federal Home
Loan Mortgage | 10 | | Corporation, the Federal Housing Administration, the | 11 | | United
States Veterans Administration or their respective | 12 | | successors and assigns.
| 13 | | (i) The provisions of subsections (c) through (h) are | 14 | | applicable
to all declarations, other condominium instruments, | 15 | | and other
duly recorded covenants establishing the powers and | 16 | | duties of the master
association recorded under this Act. Any | 17 | | portion of a declaration,
other condominium instrument, or | 18 | | other duly recorded covenant establishing
the powers and duties | 19 | | of a master association which contains provisions
contrary to | 20 | | the provisions of subsection (c) through (h) shall be void as
| 21 | | against public policy and ineffective. Any declaration, other | 22 | | condominium
instrument, or other duly recorded covenant | 23 | | establishing the powers and
duties of the master association | 24 | | which fails to contain the provisions
required by subsections | 25 | | (c) through (h) shall be deemed to incorporate such
provisions | 26 | | by operation of law.
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| 1 | | (j) (Blank).
| 2 | | (Source: P.A. 96-1045, eff. 7-14-10; 97-535, eff. 1-1-12; | 3 | | 97-605, eff. 8-26-11; 97-813, eff. 7-13-12.)
| 4 | | (765 ILCS 605/18.6)
| 5 | | Sec. 18.6. Display of American flag or military flag.
| 6 | | (a) Notwithstanding any provision in the declaration, | 7 | | bylaws, rules,
regulations, or
agreements or other instruments | 8 | | of a condominium association or a master
association or
a | 9 | | common interest community association or a board's | 10 | | construction of any of
those
instruments,
a board may not | 11 | | prohibit the display of the American flag or a military flag,
| 12 | | or both, on or within the
limited common areas and facilities | 13 | | of a unit owner or on the immediately
adjacent
exterior of the | 14 | | building in which the unit of a unit owner is located. A board
| 15 | | may adopt
reasonable rules and regulations, consistent with | 16 | | Sections 4 through 10 of
Chapter 1 of
Title 4 of the United | 17 | | States Code, regarding the placement and manner of
display of | 18 | | the
American flag and a board may adopt reasonable rules and | 19 | | regulations
regarding the placement and manner of display of a | 20 | | military flag. A board may
not prohibit the installation of a | 21 | | flagpole for the display of
the American flag or a military | 22 | | flag, or both, on or within the limited common
areas and | 23 | | facilities of a
unit owner or
on the immediately adjacent | 24 | | exterior of the building in which the unit of a
unit owner is
| 25 | | located, but a board may adopt reasonable rules and regulations |
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| 1 | | regarding the
location
and size of flagpoles.
| 2 | | (b) As used in this Section:
| 3 | | "American flag" means the flag of the United States (as | 4 | | defined in Section 1
of
Chapter 1 of Title 4 of the United | 5 | | States Code and the Executive Orders entered
in
connection with | 6 | | that Section) made of fabric, cloth, or paper displayed from a
| 7 | | staff or
flagpole or in a window, but "American flag" does not | 8 | | include a depiction or
emblem of
the American flag made of | 9 | | lights, paint, roofing, siding, paving materials,
flora, or
| 10 | | balloons, or any other similar building, landscaping, or | 11 | | decorative component.
| 12 | | "Board" includes a board of managers of a condominium | 13 | | association or a board of a master association or a
common | 14 | | interest community association .
| 15 | | "Military flag" means a flag of any branch of the United | 16 | | States armed
forces
or
the Illinois National Guard made of | 17 | | fabric, cloth, or paper displayed from a
staff or
flagpole or | 18 | | in a window, but "military flag" does not include a depiction | 19 | | or
emblem of a
military flag made of lights, paint, roofing, | 20 | | siding, paving materials, flora,
or balloons, or
any other | 21 | | similar building, landscaping, or decorative component.
| 22 | | (Source: P.A. 93-481, eff. 1-1-04.)
| 23 | | (765 ILCS 605/18.7) | 24 | | Sec. 18.7. Standards for community association managers. | 25 | | (a) "Community association" has the meaning provided in |
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| 1 | | Section 10 of the Community Association Manager Licensing and | 2 | | Disciplinary Act means an association in which membership is a | 3 | | condition of ownership or shareholder interest of a unit in a | 4 | | condominium, cooperative, townhouse, villa, or other | 5 | | residential unit that is part of a residential development plan | 6 | | as a master association or common interest community and that | 7 | | is authorized to impose an assessment and other costs that may | 8 | | become a lien on the unit or lot . | 9 | | (b) "Community association manager" has the meaning | 10 | | provided in Section 10 of the Community Association Manager | 11 | | Licensing and Disciplinary Act means an individual who | 12 | | administers for compensation the coordination of financial, | 13 | | administrative, maintenance, or other duties called for in the | 14 | | management contract, including individuals who are direct | 15 | | employees of a community association. A manager does not | 16 | | include support staff, such as bookkeepers, administrative | 17 | | assistants, secretaries, property inspectors, or customer | 18 | | service representatives . | 19 | | (c) (Blank). Requirements. To perform services as a | 20 | | community association manager, an individual must meet these | 21 | | requirements: | 22 | | (1) shall have attained the age of 21 and be a citizen | 23 | | or legal permanent resident of the United States; | 24 | | (2) shall not have been convicted of forgery, | 25 | | embezzlement, obtaining money under false pretenses, | 26 | | larceny, extortion, conspiracy to defraud or other similar |
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| 1 | | offense or offenses; | 2 | | (3) shall have a working knowledge of the fundamentals | 3 | | of community association management, including the | 4 | | Condominium Property Act, the Illinois Not-for-Profit | 5 | | Corporation Act, and any other laws pertaining to community | 6 | | association management; and | 7 | | (4) shall not have engaged in the following activities: | 8 | | failure to cooperate with any law enforcement agency in the | 9 | | investigation of a complaint; or failure to produce any | 10 | | document, book, or record in the possession or control of | 11 | | the community association manager after a request for | 12 | | production of that document, book, or record in the course | 13 | | of an investigation of a complaint. | 14 | | (d) (Blank). Access to community association funds. For | 15 | | community associations of 6 or more units, apartments, | 16 | | townhomes, villas or other residential units, a community | 17 | | association manager or the firm with whom the manager is | 18 | | employed shall not solely and exclusively have access to and | 19 | | disburse funds of a community association unless: | 20 | | (1) There is a fidelity bond in place. | 21 | | (2) The fidelity bond is in an amount not less than all | 22 | | monies of that association in the custody or control of the | 23 | | community association manager. | 24 | | (3) The fidelity bond covers the community association | 25 | | manager and all partners, officers, and employees of the | 26 | | firm with whom the community association manager is |
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| 1 | | employed during the term of the bond, as well as the | 2 | | community association officers, directors, and employees | 3 | | of the community association who control or disburse funds. | 4 | | (4) The insurance company issuing the bond may not | 5 | | cancel or refuse to renew the bond without giving not less | 6 | | than 10 days' prior written notice to the community | 7 | | association. | 8 | | (5) The community association shall secure and pay for | 9 | | the bond. | 10 | | (e) A community association manager who provides community | 11 | | association management services for more than one community | 12 | | association shall maintain separate, segregated accounts for | 13 | | each community association. The funds shall not, in any event, | 14 | | be commingled with funds of the community association manager, | 15 | | the firm of the community association manager, or any other | 16 | | community association , except to the extent permitted under | 17 | | paragraph (5) of subsection (c) of Section 9 of this Act . The | 18 | | maintenance of these accounts shall be custodial, and the | 19 | | accounts shall be in the name of the respective community | 20 | | association. | 21 | | (f) Exempt persons. Except as otherwise provided, this | 22 | | Section does not apply to any person acting as a receiver, | 23 | | trustee in bankruptcy, administrator, executor, or guardian | 24 | | acting under a court order or under the authority of a will or | 25 | | of a trust instrument. | 26 | | (g) Right of Action. |
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| 1 | | (1) Nothing in this Section amendatory Act of the 95th | 2 | | General Assembly shall create a cause of action by a unit | 3 | | owner , shareholder, or community association member | 4 | | against a community association manager or the firm of a | 5 | | community association management firm as defined in | 6 | | Section 10 of the Community Association Manager Licensing | 7 | | and Disciplinary Act manager . | 8 | | (2) This Section amendatory Act of the 95th General | 9 | | Assembly shall not impair any right of action by a unit | 10 | | owner or shareholder against a community association or | 11 | | master association board of directors under existing law.
| 12 | | (Source: P.A. 95-318, eff. 1-1-08.)
| 13 | | (765 ILCS 605/22.1) (from Ch. 30, par. 322.1)
| 14 | | Sec. 22.1.
(a) In the event of any resale of a condominium | 15 | | unit by a
unit owner other than the developer such owner shall | 16 | | obtain from the Board
of Managers and shall make available for | 17 | | inspection to the prospective
purchaser, upon demand, the | 18 | | following:
| 19 | | (1) A copy of the Declaration, by-laws, other | 20 | | condominium
instruments and any rules and regulations.
| 21 | | (2) A statement of any liens, including a statement of
| 22 | | the account of the unit setting forth the amounts of unpaid | 23 | | assessments and
other charges due and owing as authorized | 24 | | and limited by the provisions
of Section 9 of this Act or | 25 | | the condominium instruments.
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| 1 | | (3) A statement of any capital expenditures | 2 | | anticipated by the unit
owner's association within the | 3 | | current or succeeding two fiscal years.
| 4 | | (4) A statement of the status and amount of any reserve
| 5 | | for replacement fund and any portion of such fund earmarked | 6 | | for any
specified project by the Board of Managers.
| 7 | | (5) A copy of the statement of financial condition of | 8 | | the unit owner's
association for the last fiscal year for | 9 | | which such statement is available.
| 10 | | (6) A statement of the status of any pending suits or
| 11 | | judgments in which the unit owner's association is a party | 12 | | that may have a material adverse impact on the financial | 13 | | condition of the association .
| 14 | | (7) A statement setting forth what insurance coverage | 15 | | is
provided for all unit owners by the unit owner's | 16 | | association.
| 17 | | (8) A statement that any known improvements or | 18 | | alterations made
to the unit, or the limited common | 19 | | elements assigned thereto, by the prior
unit owner are in | 20 | | good faith believed to be in compliance with the
| 21 | | condominium instruments.
| 22 | | (9) The identity and mailing address of the principal | 23 | | officer of the
unit owner's association or of the other | 24 | | officer or agent as is
specifically designated to receive | 25 | | notices.
| 26 | | (b) The principal officer of the unit owner's association |
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| 1 | | or such other
officer , manager, or agent as is specifically | 2 | | designated shall furnish the above information
when requested | 3 | | to do so in writing and within 30 days of the request.
| 4 | | (c) Within 15 days of the recording of a mortgage or trust | 5 | | deed
against a unit ownership given by the owner of that unit | 6 | | to secure a debt,
the owner shall inform the Board of Managers | 7 | | of the unit owner's
association of the identity of the lender | 8 | | together with a mailing address
at which the lender can receive | 9 | | notices from the association.
If a unit owner fails or refuses | 10 | | to inform the Board as required under
subsection (c) then that | 11 | | unit owner shall be liable to the association for
all costs, | 12 | | expenses and reasonable attorneys fees and such other damages,
| 13 | | if any, incurred by the association as a result of such failure | 14 | | or refusal.
| 15 | | A reasonable fee covering the direct out-of-pocket cost of | 16 | | providing
such information and copying may be charged by the | 17 | | association or its Board
of Managers to the unit seller for | 18 | | providing such information.
| 19 | | (Source: P.A. 87-692.)
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