Full Text of HB3955 096th General Assembly
HB3955 96TH GENERAL ASSEMBLY
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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010 HB3955
Introduced 2/26/2009, by Rep. Harry Osterman SYNOPSIS AS INTRODUCED: |
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765 ILCS 605/2 |
from Ch. 30, par. 302 |
765 ILCS 605/9 |
from Ch. 30, par. 309 |
765 ILCS 605/18 |
from Ch. 30, par. 318 |
765 ILCS 605/18.4 |
from Ch. 30, par. 318.4 |
765 ILCS 605/18.5 |
from Ch. 30, par. 318.5 |
765 ILCS 605/22 |
from Ch. 30, par. 322 |
765 ILCS 605/22.1 |
from Ch. 30, par. 322.1 |
765 ILCS 605/33 new |
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Amends the Condominium Property Act. Provides that Board of Managers meeting is a gathering of a quorum of Board Members to conduct business means acting or voting, not simple discussion (instead of to conduct business). Provides that upon filing any action to foreclose a lien on a condominium unit, the mortgagee shall be responsible for all assessments accruing beginning with the month after the month in which the action was filed. Provides that a unit owner who prevails in a Civil action brought to enforce the Act or the condominium instruments may recover damages of at least $1000, which shall be trebled by the court, if there is a showing by clear and convincing evidence that the wrongful actions complained of were willful and wanton and without legal justification, provided that the unit owner obtained a written opinion from an Illinois attorney that the owner had a colorable claim and the owner gave notice of the intent to file the action at least 60 days before filing. Provides a form of financial questions that a unit owner may pose to an association. Provides for a developer to place in escrow an amount equal to 20% of the aggregate initial sale prices of all units to address common element deficiencies. Makes other changes. Effective immediately.
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A BILL FOR
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HB3955 |
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| AN ACT concerning civil law.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Condominium Property Act is amended by | 5 |
| changing Sections 2, 9, 18, 18.4, 18.5, 22, and 22.1 and by | 6 |
| adding Section 33 as follows:
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| (765 ILCS 605/2) (from Ch. 30, par. 302)
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| Sec. 2. Definitions. As used in this Act, unless the | 9 |
| context otherwise
requires:
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| (a) "Declaration" means the instrument by which the | 11 |
| property is
submitted to the provisions of this Act, as | 12 |
| hereinafter provided, and such
declaration as from time to time | 13 |
| amended.
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| (b) "Parcel" means the lot or lots, tract or tracts of | 15 |
| land, described
in the declaration, submitted to the provisions | 16 |
| of this Act.
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| (c) "Property" means all the land, property and space | 18 |
| comprising the
parcel, all improvements and structures | 19 |
| erected, constructed or contained
therein or thereon, | 20 |
| including the building and all easements, rights and
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| appurtenances belonging thereto, and all fixtures and | 22 |
| equipment intended
for the mutual use, benefit or enjoyment of | 23 |
| the unit owners, submitted to
the provisions of this Act.
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| (d) "Unit" means a part of the property designed and | 2 |
| intended for any type
of independent use.
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| (e) "Common Elements" means all portions of the property | 4 |
| except the
units, including limited common elements unless | 5 |
| otherwise specified.
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| (f) "Person" means a natural individual, corporation, | 7 |
| partnership,
trustee or other legal entity capable of holding | 8 |
| title to real property.
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| (g) "Unit Owner" means the person or persons whose estates | 10 |
| or interests,
individually or collectively, aggregate fee | 11 |
| simple absolute ownership of a
unit, or, in the case of a | 12 |
| leasehold condominium, the lessee or lessees of a
unit whose | 13 |
| leasehold ownership of the unit expires simultaneously with the
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| lease described in item (x) of this Section.
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| (h) "Majority" or "majority of the unit owners" means the | 16 |
| owners of more
than 50% in the aggregate in interest of the | 17 |
| undivided ownership of the
common elements. Any specified | 18 |
| percentage of the unit owners means such
percentage in the | 19 |
| aggregate in interest of such undivided ownership.
"Majority" | 20 |
| or "majority of the members of the board of managers" means
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| more than 50% of the total number of persons constituting such | 22 |
| board
pursuant to the bylaws. Any specified percentage of the | 23 |
| members of the
board of managers means that percentage of the | 24 |
| total number of persons
constituting such board pursuant to the | 25 |
| bylaws.
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| (i) "Plat" means a plat or plats of survey of the parcel |
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| and of all
units in the property submitted to the provisions of | 2 |
| this Act, which may
consist of a three-dimensional horizontal | 3 |
| and vertical delineation of all
such units.
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| (j) "Record" means to record in the office of the recorder | 5 |
| or,
whenever required, to file in the office of the Registrar | 6 |
| of Titles of the
county wherein the property is located.
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| (k) "Conversion Condominium" means a property which | 8 |
| contains structures,
excepting those newly constructed and | 9 |
| intended for condominium ownership, which
are, or have | 10 |
| previously been, wholly or partially occupied before recording | 11 |
| of
condominium instruments by persons other than those who have | 12 |
| contracted for the
purchase of condominiums.
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| (l) "Condominium Instruments" means all documents and | 14 |
| authorized
amendments thereto recorded pursuant to the | 15 |
| provisions of the Act,
including the declaration, bylaws and | 16 |
| plat.
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| (m) "Common Expenses" means the proposed or actual expenses | 18 |
| affecting
the property, including reserves, if any, lawfully | 19 |
| assessed by the Board
of Managers of the Unit Owner's | 20 |
| Association.
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| (n) "Reserves" means those sums paid by unit owners which | 22 |
| are separately
maintained by the board of managers for purposes | 23 |
| specified by the board
of managers or the condominium | 24 |
| instruments.
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| (o) "Unit Owners' Association" or "Association" means the | 26 |
| association
of all the unit owners, acting pursuant to bylaws |
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| through its duly elected
board of managers.
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| (p) "Purchaser" means any person or persons other than the | 3 |
| Developer who
purchase a unit in a bona fide transaction for | 4 |
| value.
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| (q) "Developer" means any person who submits property | 6 |
| legally or equitably
owned in fee simple by the developer, or | 7 |
| leased to the developer
under a lease described in item (x) of | 8 |
| this Section, to the
provisions of this
Act, or any person who | 9 |
| offers units
legally or equitably owned in fee simple by the | 10 |
| developer, or leased to the
developer under a lease described | 11 |
| in item (x) of this Section, for
sale
in the ordinary course of
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| such person's business, including any successor or successors | 13 |
| to
such developers' entire
interest in the property other than | 14 |
| the purchaser of an individual unit.
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| (r) "Add-on Condominium" means a property to which | 16 |
| additional property
may be added in accordance with condominium | 17 |
| instruments and this Act.
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| (s) "Limited Common Elements" means a portion of the common | 19 |
| elements so
designated in the declaration as being reserved for | 20 |
| the use of a certain
unit or units to the exclusion of other | 21 |
| units, including but not limited
to balconies, terraces, patios | 22 |
| and parking spaces or facilities.
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| (t) "Building" means all structures, attached or | 24 |
| unattached, containing
one or more units.
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| (u) "Master Association" means an organization described | 26 |
| in Section 18.5
whether or not it is also an association |
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| described in Section 18.3.
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| (v) "Developer Control" means such control at a time prior | 3 |
| to the
election
of the Board of Managers provided for in | 4 |
| Section 18.2(b) of this Act.
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| (w) "Meeting of Board of Managers or Board of Master | 6 |
| Association"
means any gathering of a quorum of the members of | 7 |
| the Board
of Managers or Board of the Master Association held | 8 |
| for the purpose of
conducting board business , provided that | 9 |
| "conducting board business" means proposing, making or taking | 10 |
| action or voting on matters, but not simply or exclusively | 11 |
| discussing matters .
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| (x) "Leasehold Condominium" means a property submitted to | 13 |
| the provisions
of this Act which is subject to a lease, the | 14 |
| expiration or termination of which
would terminate the | 15 |
| condominium and the lessor of which is (i) exempt from
taxation
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| under Section 501(c)(3) of the Internal Revenue Code of 1986, | 17 |
| as amended,
(ii) a
limited liability company whose sole member | 18 |
| is exempt from taxation under
Section 501
(c)(3) of the | 19 |
| Internal Revenue Code of 1986, as amended, or (iii)
a Public | 20 |
| Housing Authority created pursuant to the
Housing Authorities | 21 |
| Act that is located in a municipality having a population
in
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| excess of 1,000,000 inhabitants.
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| (Source: P.A. 93-474, eff. 8-8-03.)
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| (765 ILCS 605/9) (from Ch. 30, par. 309)
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| Sec. 9. Sharing of expenses - Lien for nonpayment.
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| (a) All common expenses incurred or accrued prior to the | 2 |
| first conveyance
of a unit shall be paid by the developer, and | 3 |
| during this period no common
expense assessment shall be | 4 |
| payable to the association. It shall be the duty
of each unit | 5 |
| owner including the developer to pay his proportionate share of
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| the common expenses commencing with the first conveyance. The | 7 |
| proportionate
share shall be in the same ratio as his | 8 |
| percentage of ownership in the common
elements set forth in the | 9 |
| declaration.
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| (b) The condominium instruments may provide that common | 11 |
| expenses for
insurance premiums be assessed on a basis | 12 |
| reflecting increased charges for
coverage on certain units.
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| (c) Budget and reserves.
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| (1) The board of managers shall prepare and distribute | 15 |
| to
all unit owners a detailed proposed annual budget, | 16 |
| setting forth with
particularity all anticipated common | 17 |
| expenses by category as well as all
anticipated assessments | 18 |
| and other income. The initial budget and common
expense | 19 |
| assessment based thereon shall be adopted prior to the
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| conveyance of any unit. The budget shall also set forth | 21 |
| each unit owner's
proposed common expense assessment.
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| (2) All budgets adopted by a board of managers on or | 23 |
| after July 1, 1990
shall provide for reasonable reserves | 24 |
| for capital expenditures and deferred
maintenance for | 25 |
| repair or replacement of the common elements. To determine
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| the amount of reserves appropriate for an association, the |
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| board of
managers shall take into consideration the | 2 |
| following: (i) the repair and
replacement cost, and the | 3 |
| estimated useful life, of the property which the
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| association is obligated to maintain, including but not | 5 |
| limited to
structural and mechanical components, surfaces | 6 |
| of the buildings and common
elements, and energy systems | 7 |
| and equipment; (ii) the current and
anticipated return on | 8 |
| investment of association funds; (iii) any
independent | 9 |
| professional reserve study which the association may | 10 |
| obtain;
(iv) the financial impact on unit owners, and the | 11 |
| market value of the
condominium units, of any assessment | 12 |
| increase needed to fund reserves; and
(v) the ability of | 13 |
| the association to obtain financing or refinancing.
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| (3) Notwithstanding the provisions of this subsection | 15 |
| (c), an
association without a reserve requirement in its | 16 |
| condominium
instruments may elect to waive in whole or in | 17 |
| part the reserve requirements
of this Section by a vote of | 18 |
| 2/3 of the total votes of the association.
Any association | 19 |
| having elected under this paragraph (3) to waive the
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| provisions of subsection (c) may by a vote of 2/3 of the | 21 |
| total votes of the
association elect to again be governed | 22 |
| by the requirements of subsection (c).
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| (4) In the event that an association elects to waive | 24 |
| all or part of
the reserve requirements of this Section, | 25 |
| that fact must be
disclosed after the meeting at which the | 26 |
| waiver occurs by the
association in the financial |
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| statements of the association and, highlighted
in bold | 2 |
| print, in the response to any request of a prospective | 3 |
| purchaser
for the information prescribed under Section | 4 |
| 22.1; and no member of the
board of managers or the | 5 |
| managing agent of the association shall be liable,
and no | 6 |
| cause of action may be brought for damages against these | 7 |
| parties,
for the lack or inadequacy of reserve funds in the | 8 |
| association budget.
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| (d) (Blank).
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| (e) The condominium instruments may provide for the | 11 |
| assessment,
in connection with expenditures for the limited | 12 |
| common elements, of only those
units to which the limited | 13 |
| common elements are assigned.
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| (f) Payment of any assessment shall be in amounts and at | 15 |
| times
determined by the board of managers.
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| (g) Lien.
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| (1) If any unit owner shall fail or refuse to make any | 18 |
| payment of
the common expenses or the amount of any unpaid | 19 |
| fine when due, the
amount thereof together with any | 20 |
| interest, late charges, reasonable
attorney fees incurred | 21 |
| enforcing the covenants of the condominium
instruments, | 22 |
| rules and regulations of the board of managers, or any | 23 |
| applicable
statute or ordinance, and costs of collections | 24 |
| shall constitute a lien on the
interest of the unit owner | 25 |
| in the property prior to all other
liens and encumbrances, | 26 |
| recorded or unrecorded, except only (a) taxes,
special |
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| assessments and special taxes theretofore or thereafter | 2 |
| levied by
any political subdivision or municipal | 3 |
| corporation of this State and other
State or federal taxes | 4 |
| which by law are a lien on the interest of the
unit owner | 5 |
| prior to preexisting recorded encumbrances thereon and
(b) | 6 |
| encumbrances on the interest of the unit owner recorded
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| prior to the date of such failure or refusal which by law | 8 |
| would be a lien
thereon prior to subsequently recorded | 9 |
| encumbrances. Any action
brought to extinguish the lien of | 10 |
| the association shall include the
association as a party.
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| (2) With respect to encumbrances executed prior to | 12 |
| August 30, 1984 or
encumbrances executed subsequent to | 13 |
| August 30, 1984 which are neither
bonafide first mortgages | 14 |
| nor trust deeds and which encumbrances contain a
statement | 15 |
| of a mailing address in the State of Illinois where notice | 16 |
| may be
mailed to the encumbrancer thereunder, if and | 17 |
| whenever and as often as the
manager or board of managers | 18 |
| shall send, by United States certified or
registered mail, | 19 |
| return receipt requested, to any such encumbrancer at the
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| mailing address set forth in the recorded encumbrance a | 21 |
| statement of the
amounts and due dates of the unpaid common | 22 |
| expenses with respect to the
encumbered unit, then, unless | 23 |
| otherwise provided in the declaration or bylaws,
the prior | 24 |
| recorded encumbrance shall be subject to the lien of all | 25 |
| unpaid
common expenses with respect to the unit which | 26 |
| become due and payable within a
period of 90 days after the |
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| date of mailing of each such notice.
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| (3) The purchaser of a condominium unit at a judicial
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| foreclosure sale, or a mortgagee who receives title to a | 4 |
| unit by deed in
lieu of foreclosure or judgment by common | 5 |
| law strict foreclosure or
otherwise takes possession | 6 |
| pursuant to court order under the Illinois
Mortgage | 7 |
| Foreclosure Law, shall have the duty to pay the unit's
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| proportionate share of the common expenses for the unit | 9 |
| assessed from and
after the first day of the month after | 10 |
| the date of the judicial foreclosure
sale, delivery of the | 11 |
| deed in lieu of foreclosure, entry of a judgment in
common | 12 |
| law strict foreclosure, or taking of possession pursuant to | 13 |
| such
court order. Such payment confirms the extinguishment | 14 |
| of any lien created
pursuant to paragraph (1) or (2) of | 15 |
| this subsection (g) by virtue of the
failure or refusal of | 16 |
| a prior unit owner to make payment of common
expenses, | 17 |
| where the judicial foreclosure sale has been confirmed by | 18 |
| order
of the court, a deed in lieu thereof has been | 19 |
| accepted by the lender, or a
consent judgment has been | 20 |
| entered by the court.
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| (4) After filing an action to foreclose its lien on a | 22 |
| condominium unit, the mortgagee shall be responsible for | 23 |
| all assessments accruing from and after the first day of | 24 |
| the month after the filing of the action up to the date of | 25 |
| the judicial foreclosure sale, and unless the purchaser at | 26 |
| the judicial foreclosure sale is a person other than the |
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| mortgagee, the mortgagee's responsibility for assessments | 2 |
| shall continue until title to the unit is transferred. The | 3 |
| purchaser of a condominium unit at a judicial foreclosure | 4 |
| sale, other than a mortgagee, who takes possession of a | 5 |
| condominium unit pursuant to a court order or a purchaser | 6 |
| who acquires title from a mortgagee shall have the duty to | 7 |
| pay the proportionate share, if any, of the common expenses | 8 |
| for the unit which would have become due in the absence of | 9 |
| any assessment acceleration during the 6 months | 10 |
| immediately preceding institution of an action to enforce | 11 |
| the collection of assessments, and which remain unpaid by | 12 |
| the owner during whose possession the assessments accrued. | 13 |
| If the outstanding assessments are paid at any time during | 14 |
| any action to enforce the collection of assessments, the | 15 |
| purchaser shall have no obligation to pay any assessments | 16 |
| which accrued before he or she acquired title.
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| (5) The notice of sale of a condominium unit under | 18 |
| subsection (c) of Section 15-1507 of the Code of Civil | 19 |
| Procedure shall state that the purchaser of the unit other | 20 |
| than a mortgagee shall pay the assessments and the legal | 21 |
| fees required by subdivisions (g)(1) and (g)(4) of Section | 22 |
| 9 of this Act. The statement of assessment account issued | 23 |
| by the association to a unit owner under subsection (i) of | 24 |
| Section 18 of this Act, and the disclosure statement issued | 25 |
| to a prospective purchaser under Section 22.1 of this Act, | 26 |
| shall state the amount of the assessments and the legal |
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| fees, if any, required by subdivisions (g)(1) and (g)(4) of | 2 |
| Section 9 of this Act.
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| (h) A lien for common expenses shall be in favor of the | 4 |
| members of the
board of managers and their successors in office | 5 |
| and shall be for the
benefit of all other unit owners. Notice | 6 |
| of the lien may be recorded by
the board of managers, or if the | 7 |
| developer is the manager or has a majority
of seats on the | 8 |
| board of managers and the manager or board of managers
fails to | 9 |
| do so, any unit owner may record notice of the lien. Upon the
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| recording of such notice the lien may be foreclosed by an | 11 |
| action brought in
the name of the board of managers in the same | 12 |
| manner as a mortgage of real
property.
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| (i) Unless otherwise provided in the declaration, the | 14 |
| members
of the board of managers and their successors in | 15 |
| office, acting on behalf
of the other unit owners, shall have | 16 |
| the power to bid on the
interest so foreclosed at the | 17 |
| foreclosure sale, and to acquire and
hold, lease, mortgage and | 18 |
| convey it.
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| (j) Any encumbrancer may from time to time request in | 20 |
| writing a written
statement from the manager or board of | 21 |
| managers setting forth the unpaid
common expenses with respect | 22 |
| to the unit covered by his encumbrance.
Unless the request is | 23 |
| complied with within 20 days, all unpaid common
expenses which | 24 |
| become due prior to the date of the making of such request
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| shall be subordinate to the lien of the encumbrance. Any | 26 |
| encumbrancer
holding a lien on a unit may pay any unpaid common |
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| expenses payable with
respect to the unit, and upon payment the | 2 |
| encumbrancer shall have a lien on
the unit for the amounts paid | 3 |
| at the same rank as the lien of his encumbrance.
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| (k) Nothing in Public Act 83-1271 is intended to change the | 5 |
| lien
priorities of any encumbrance created prior to August 30, | 6 |
| 1984.
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| (Source: P.A. 94-1049, eff. 1-1-07.)
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| (765 ILCS 605/18) (from Ch. 30, par. 318)
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| Sec. 18. Contents of bylaws. The bylaws shall provide for | 10 |
| at least
the following:
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| (a) (1) The election from among the unit owners of a board | 12 |
| of managers,
the number of persons constituting such board, | 13 |
| and that the terms of at
least one-third of the members of | 14 |
| the board , shall expire annually and that
all members of | 15 |
| the board shall be elected at large.
If there are multiple | 16 |
| owners of a single unit, only one of the multiple
owners | 17 |
| shall be eligible to serve as a member of the board at any | 18 |
| one time.
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| (2) the powers and duties of the board;
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| (3) the compensation, if any, of the members of the | 21 |
| board;
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| (4) the method of removal from office of members of the | 23 |
| board;
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| (5) that the board may engage the services of a manager | 25 |
| or managing agent;
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| (6) that each unit owner shall receive, at least 30 | 2 |
| days prior to the
adoption thereof by the board of | 3 |
| managers, a copy of the proposed annual
budget together | 4 |
| with an indication of which portions are intended for
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| reserves, capital expenditures or repairs or payment of | 6 |
| real estate taxes;
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| (7) that the board of managers shall annually make | 8 |
| available within 120 days of close of the fiscal year | 9 |
| supply to
all unit owners an itemized accounting (for | 10 |
| associations with 30 or more units, the accounting shall | 11 |
| include a balance sheet and income statement) of the common | 12 |
| expenses
for the preceding year actually incurred or paid, | 13 |
| together
with an indication of which portions were for | 14 |
| reserves, capital
expenditures or repairs or payment of | 15 |
| real estate taxes and
with a tabulation of the amounts | 16 |
| collected pursuant to the
budget or assessment, and showing | 17 |
| the net excess or
deficit of income over expenditures plus | 18 |
| reserves;
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| (8) (i) that each unit owner shall receive notice, in | 20 |
| the same manner
as is provided in this Act for membership | 21 |
| meetings, of any meeting of the
board of managers | 22 |
| concerning the adoption of the proposed annual budget and
| 23 |
| regular assessments pursuant thereto or to adopt a separate | 24 |
| (special)
assessment, (ii) that except as provided in | 25 |
| subsection (iv) below, if an
adopted
budget or any separate | 26 |
| assessment adopted by the board would result in the
sum of |
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| all regular and separate assessments payable in the current | 2 |
| fiscal year
exceeding 115% of the sum of all regular and | 3 |
| separate
assessments payable during the
preceding fiscal | 4 |
| year, the
board of managers, upon written petition by unit | 5 |
| owners with 20 percent of
the votes of the association | 6 |
| delivered to the board within 14
days of the board action,
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| shall call a meeting of the unit owners within 30 days of | 8 |
| the date of
delivery of the petition to consider the budget | 9 |
| or separate
assessment; unless a
majority of
the total | 10 |
| votes of the unit owners are cast at the meeting to reject | 11 |
| the
budget or separate assessment,
it is ratified, (iii) | 12 |
| that any common expense not set forth in the budget or
any | 13 |
| increase in assessments over the amount adopted in the | 14 |
| budget shall be
separately assessed against all unit | 15 |
| owners, (iv) that separate assessments for
expenditures | 16 |
| relating to emergencies or mandated by law may be adopted | 17 |
| by the
board of managers without being subject to unit | 18 |
| owner approval or the
provisions of item (ii) above or item | 19 |
| (v) below. As used
herein, "emergency" means an immediate | 20 |
| danger to the structural integrity of
the
common elements | 21 |
| or to the life, health, safety or property of the unit | 22 |
| owners,
(v) that assessments
for additions and alterations | 23 |
| to the common elements or to association-owned
property not | 24 |
| included in the adopted annual budget, shall be separately
| 25 |
| assessed and are subject to approval of two-thirds of the | 26 |
| total votes of all
unit owners, (vi) that the board of |
|
|
|
HB3955 |
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LRB096 06280 AJO 16363 b |
|
| 1 |
| managers may adopt separate assessments
payable over more | 2 |
| than one fiscal year. With respect to multi-year | 3 |
| assessments
not governed by items (iv) and (v), the entire | 4 |
| amount of the multi-year
assessment shall be deemed | 5 |
| considered and authorized in the first fiscal year
in which | 6 |
| the assessment is approved;
| 7 |
| (9) that meetings of the board of managers shall be | 8 |
| open to any unit
owner, except for the portion of any | 9 |
| meeting held (i) to discuss litigation
when an action | 10 |
| against or on behalf of the particular association has been
| 11 |
| filed and is pending in a court or administrative tribunal,
| 12 |
| or when the board of managers finds that such an action is | 13 |
| probable
or imminent, (ii) to consider information | 14 |
| regarding appointment, employment
or dismissal of an | 15 |
| employee, or (iii) to discuss violations of rules and
| 16 |
| regulations of the association or a unit owner's unpaid | 17 |
| share of common
expenses; that any vote on these matters | 18 |
| shall be taken at a meeting or
portion thereof open to any | 19 |
| unit owner; that any unit owner may record the
proceedings | 20 |
| at meetings or portions thereof required to be open by this
| 21 |
| Act by tape, film or other means; that the board may | 22 |
| prescribe reasonable
rules and regulations to govern the | 23 |
| right to make such recordings, that
notice of such meetings | 24 |
| shall be mailed or delivered at least 48 hours
prior | 25 |
| thereto, unless a written waiver of such notice is signed | 26 |
| by the
person or persons entitled to such notice pursuant |
|
|
|
HB3955 |
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LRB096 06280 AJO 16363 b |
|
| 1 |
| to the declaration,
bylaws, other condominium instrument, | 2 |
| or provision of law other than this
subsection before the | 3 |
| meeting is convened, and that copies of notices of
meetings | 4 |
| of the board of managers shall be posted in entranceways,
| 5 |
| elevators, or other conspicuous places in the condominium | 6 |
| at least 48 hours
prior to the meeting of the board of | 7 |
| managers except where there is no
common entranceway for 7 | 8 |
| or more units, the board of managers may designate
one or | 9 |
| more locations in the proximity of these units where the | 10 |
| notices of
meetings shall be posted;
| 11 |
| (10) that the board shall meet at least 4 times | 12 |
| annually;
| 13 |
| (11) that no member of the board or officer shall be | 14 |
| elected for a term
of more than 2 years, but that officers | 15 |
| and board members may succeed
themselves;
| 16 |
| (12) the designation of an officer to mail and receive | 17 |
| all notices and
execute amendments to condominium | 18 |
| instruments as provided for in this Act
and in the | 19 |
| condominium instruments;
| 20 |
| (13) the method of filling vacancies on the board
which | 21 |
| shall include authority for the remaining members of the | 22 |
| board to
fill the vacancy by two-thirds vote until the next | 23 |
| annual meeting of unit
owners or for a period terminating | 24 |
| no later than 30 days following the
filing of a petition | 25 |
| signed by unit owners holding 20% of the votes of the
| 26 |
| association requesting a meeting of the unit owners to fill |
|
|
|
HB3955 |
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LRB096 06280 AJO 16363 b |
|
| 1 |
| the vacancy for
the balance of the term, and that a meeting | 2 |
| of the unit owners shall be
called for purposes of filling | 3 |
| a vacancy on the board no later than 30 days
following the | 4 |
| filing of a petition signed by unit owners holding 20% of | 5 |
| the
votes of the association requesting such a meeting, and | 6 |
| the method of filling
vacancies among the officers that | 7 |
| shall include the authority for the members
of the board to | 8 |
| fill the vacancy for the unexpired portion of the term;
| 9 |
| (14) what percentage of the board of managers, if other | 10 |
| than a majority,
shall constitute a quorum;
| 11 |
| (15) provisions concerning notice of board meetings to | 12 |
| members of the
board;
| 13 |
| (16) the board of managers may not enter into a | 14 |
| contract with a
current board member
or with a corporation | 15 |
| or partnership in which a board
member or a member of the | 16 |
| board member's immediate family has 25% or
more interest, | 17 |
| unless notice of intent to enter the
contract is given to | 18 |
| unit owners within 20 days after a decision is made
to | 19 |
| enter into the contract and the unit owners are
afforded an | 20 |
| opportunity by filing a petition, signed by 20% of the unit
| 21 |
| owners, for an election to approve or disapprove the | 22 |
| contract;
such petition shall be filed within 20 days after | 23 |
| such notice and such
election shall be held within 30 days | 24 |
| after filing the petition; for purposes
of this subsection, | 25 |
| a board member's immediate family means the board member's
| 26 |
| spouse, parents, and children;
|
|
|
|
HB3955 |
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LRB096 06280 AJO 16363 b |
|
| 1 |
| (17) that the board of managers may disseminate
to unit | 2 |
| owners biographical and background information about | 3 |
| candidates for
election to the board if (i) reasonable | 4 |
| efforts to identify all candidates are
made and all | 5 |
| candidates are given an opportunity to include | 6 |
| biographical and
background information in the information | 7 |
| to be disseminated; and (ii) the
board does not express a | 8 |
| preference in favor of any candidate;
| 9 |
| (18) any proxy distributed for board elections
by the | 10 |
| board of managers gives unit owners the
opportunity to | 11 |
| designate any person as the proxy holder, and gives the | 12 |
| unit
owner the opportunity to express a preference for any | 13 |
| of the known
candidates for the board or to write in a | 14 |
| name;
| 15 |
| (19) that special meetings of the board of managers can | 16 |
| be called by
the president or 25% of the members of the | 17 |
| board; and
| 18 |
| (20) that the board of managers may establish
and | 19 |
| maintain a system of master metering of public utility | 20 |
| services and
collect payments in connection therewith, | 21 |
| subject to the requirements of the
Tenant Utility Payment | 22 |
| Disclosure Act.
| 23 |
| (b) (1) What percentage of the unit owners, if other than | 24 |
| 20%, shall
constitute a quorum provided that, for | 25 |
| condominiums with 20 or more units,
the percentage of unit | 26 |
| owners constituting a quorum shall be 20% unless the
unit |
|
|
|
HB3955 |
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LRB096 06280 AJO 16363 b |
|
| 1 |
| owners holding a majority of the percentage interest in the
| 2 |
| association provide for a higher percentage;
| 3 |
| (2) that the association shall have one class of | 4 |
| membership;
| 5 |
| (3) that the members shall hold an annual meeting, one | 6 |
| of the purposes
of which shall be to elect members of the | 7 |
| board of managers;
| 8 |
| (4) the method of calling meetings of the unit owners;
| 9 |
| (5) that special meetings of the members can be called | 10 |
| by the president,
board of managers, or by 20% of unit | 11 |
| owners;
| 12 |
| (6) that written notice of any membership meeting shall | 13 |
| be mailed
or delivered giving members no less than 10 and | 14 |
| no more than 30 days
notice of the time, place and purpose | 15 |
| of such meeting;
| 16 |
| (7) that voting shall be on a percentage basis, and | 17 |
| that the percentage
vote to which each unit is entitled is | 18 |
| the percentage interest of the
undivided ownership of the | 19 |
| common elements appurtenant thereto, provided
that the | 20 |
| bylaws may provide for approval by unit owners in | 21 |
| connection with
matters where the requisite approval on a | 22 |
| percentage basis is not specified
in this Act, on the basis | 23 |
| of one vote per unit;
| 24 |
| (8) that, where there is more than one owner of a unit, | 25 |
| if only one
of the multiple owners is present at a meeting | 26 |
| of the association, he is
entitled to cast all the votes |
|
|
|
HB3955 |
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LRB096 06280 AJO 16363 b |
|
| 1 |
| allocated to that unit, if more than one of
the multiple | 2 |
| owners are present, the votes allocated to that unit may be
| 3 |
| cast only in accordance with the agreement of a majority in | 4 |
| interest of the
multiple owners, unless the declaration | 5 |
| expressly provides otherwise, that
there is majority | 6 |
| agreement if any one of the multiple owners cast the
votes | 7 |
| allocated to that unit without protest being made promptly | 8 |
| to the
person presiding over the meeting by any of the | 9 |
| other owners of the unit;
| 10 |
| (9)(A) that unless the Articles of Incorporation or the | 11 |
| bylaws
otherwise
provide, and except as provided in | 12 |
| subparagraph (B) of this paragraph (9) in
connection with | 13 |
| board elections,
a unit owner may vote by proxy executed in | 14 |
| writing by the unit
owner or by his duly authorized | 15 |
| attorney in fact; that the proxy must bear the date of
| 16 |
| execution
and, unless the condominium instruments or the | 17 |
| written proxy itself provide
otherwise, is
invalid after 11 | 18 |
| months from the date of its execution;
| 19 |
| (B) that if a rule adopted at least 120 days before a | 20 |
| board election
or the
declaration or bylaws provide for | 21 |
| balloting as set forth in this subsection,
unit
owners may | 22 |
| not vote by proxy in board elections, but may vote only (i) | 23 |
| by
submitting an association-issued ballot in person at the | 24 |
| election meeting or
(ii) by
submitting an | 25 |
| association-issued ballot to the association or its | 26 |
| designated
agent
by mail or other means of delivery |
|
|
|
HB3955 |
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LRB096 06280 AJO 16363 b |
|
| 1 |
| specified in the declaration, bylaws, or
rule; that
the | 2 |
| ballots shall be mailed or otherwise distributed to unit | 3 |
| owners not less
than 10
and not more than 30 days before | 4 |
| the election meeting, and the board shall give
unit owners | 5 |
| not less than 21 days' prior written notice of the deadline | 6 |
| for
inclusion of a candidate's name on the ballots; that | 7 |
| the deadline shall be no
more
than 7 days before the | 8 |
| ballots are mailed or otherwise distributed to unit
owners; | 9 |
| that
every such ballot must include the names of all | 10 |
| candidates who have given the
board or its authorized agent | 11 |
| timely written notice of their candidacy and must
give the | 12 |
| person casting the ballot the opportunity to cast votes for | 13 |
| candidates
whose names do not appear on the ballot; that a | 14 |
| ballot received by the
association
or
its designated agent | 15 |
| after the close of voting shall not be counted; that a
unit
| 16 |
| owner
who submits a ballot by mail or other means of | 17 |
| delivery specified in the
declaration, bylaws, or rule may | 18 |
| request and cast a ballot in person at the
election
| 19 |
| meeting, and thereby void any ballot previously submitted | 20 |
| by that unit owner;
| 21 |
| (C) that if a written petition by unit owners with at | 22 |
| least 20% of the
votes of
the association is delivered to | 23 |
| the board within 14 days after the board's
approval
of a | 24 |
| rule adopted pursuant to subparagraph (B) of this paragraph | 25 |
| (9), the board
shall call a meeting of the unit owners | 26 |
| within 30 days after the date of
delivery of
the petition; |
|
|
|
HB3955 |
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LRB096 06280 AJO 16363 b |
|
| 1 |
| that unless a majority of the total votes of the unit | 2 |
| owners are
cast
at the
meeting to reject the rule, the rule | 3 |
| is ratified;
| 4 |
| (10) that the association may, upon adoption of the | 5 |
| appropriate rules by
the board of managers, conduct | 6 |
| elections by secret ballot whereby the voting
ballot is | 7 |
| marked only with the percentage interest for the unit and | 8 |
| the vote
itself, provided that the board further adopt | 9 |
| rules to verify the status of the
unit owner issuing a | 10 |
| proxy or casting a ballot; and further, that a candidate
| 11 |
| for election to the board of managers or such
candidate's | 12 |
| representative shall have the right to be present at the
| 13 |
| counting of ballots at such election;
| 14 |
| (11) that in the event of a resale of a condominium | 15 |
| unit the purchaser
of a unit from a seller other than the | 16 |
| developer pursuant to an installment
contract for purchase | 17 |
| shall during such times as he or she resides in the
unit be | 18 |
| counted toward a quorum for purposes of election of members | 19 |
| of the
board of managers at any meeting of the unit owners | 20 |
| called for purposes of
electing members of the board, shall | 21 |
| have the right to vote for the
election of members of the | 22 |
| board of managers and to be elected to and serve
on the | 23 |
| board of managers unless the seller expressly retains in | 24 |
| writing any
or all of such rights. In no event may the | 25 |
| seller and purchaser both be
counted toward a quorum, be | 26 |
| permitted to vote for a particular office or be
elected and |
|
|
|
HB3955 |
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LRB096 06280 AJO 16363 b |
|
| 1 |
| serve on the board. Satisfactory evidence of the | 2 |
| installment
contact shall be made available to the | 3 |
| association or its agents. For
purposes of this subsection, | 4 |
| "installment contact" shall have the same
meaning as set | 5 |
| forth in Section 1 (e) of "An Act relating to installment
| 6 |
| contracts to sell dwelling structures", approved August | 7 |
| 11, 1967, as amended;
| 8 |
| (12) the method by which matters subject to the | 9 |
| approval of unit owners
set forth in this Act, or in the | 10 |
| condominium instruments, will be
submitted to the unit | 11 |
| owners at special membership meetings called for such
| 12 |
| purposes; and
| 13 |
| (13) that matters subject to the affirmative vote of | 14 |
| not less than 2/3
of the votes of unit owners at a meeting | 15 |
| duly called for that purpose,
shall include, but not be | 16 |
| limited to:
| 17 |
| (i) merger or consolidation of the association;
| 18 |
| (ii) sale, lease, exchange, or other disposition | 19 |
| (excluding the mortgage
or pledge) of all, or | 20 |
| substantially all of the property and assets of the
| 21 |
| association; and
| 22 |
| (iii) the purchase or sale of land or of units on | 23 |
| behalf of all unit owners.
| 24 |
| (c) Election of a president from among the board of | 25 |
| managers, who shall
preside over the meetings of the board of | 26 |
| managers and of the unit owners.
|
|
|
|
HB3955 |
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LRB096 06280 AJO 16363 b |
|
| 1 |
| (d) Election of a secretary from among the board of | 2 |
| managers, who shall
keep the minutes of all meetings
of the | 3 |
| board of managers and of the unit owners and who shall, in | 4 |
| general,
perform all the duties incident to the office of | 5 |
| secretary.
| 6 |
| (e) Election of a treasurer from among the board of | 7 |
| managers, who shall
keep the financial records and
books of | 8 |
| account.
| 9 |
| (f) Maintenance, repair and replacement of the common | 10 |
| elements and
payments therefor, including the method of | 11 |
| approving payment vouchers.
| 12 |
| (g) An association with 30 or more units shall obtain and | 13 |
| maintain
fidelity insurance covering persons who control or | 14 |
| disburse funds of the
association for the maximum amount of | 15 |
| coverage available to protect funds
in the custody or control | 16 |
| of the association plus the association reserve
fund. All | 17 |
| management companies which are responsible for the funds held | 18 |
| or
administered by the association shall maintain and furnish | 19 |
| to the
association a fidelity bond for the maximum amount of | 20 |
| coverage available to
protect funds in the custody of the | 21 |
| management company at any time. The
association shall bear the | 22 |
| cost of the fidelity insurance and fidelity
bond, unless | 23 |
| otherwise provided by contract between the association and a
| 24 |
| management company. The association shall be the direct obligee | 25 |
| of any
such fidelity bond. A management company holding reserve | 26 |
| funds of an
association shall at all times maintain a separate |
|
|
|
HB3955 |
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LRB096 06280 AJO 16363 b |
|
| 1 |
| account for each
association, provided, however, that for | 2 |
| investment purposes, the Board of
Managers of an association | 3 |
| may authorize a management company to maintain
the | 4 |
| association's reserve funds in a single interest bearing | 5 |
| account with
similar funds of other associations. The | 6 |
| management company shall at all
times maintain records | 7 |
| identifying all moneys of each association in such
investment | 8 |
| account. The management company may hold all operating funds of
| 9 |
| associations which it manages in a single operating account but | 10 |
| shall at
all times maintain records identifying all moneys of | 11 |
| each association in
such operating account. Such operating and | 12 |
| reserve funds held by the
management company for the | 13 |
| association shall not be subject to attachment
by any creditor | 14 |
| of the management company.
| 15 |
| For the purpose of this subsection a management company | 16 |
| shall be
defined as a person, partnership, corporation, or | 17 |
| other legal entity
entitled to transact business on behalf of | 18 |
| others, acting on behalf of or
as an agent for a unit owner, | 19 |
| unit owners or association of unit owners for
the purpose of | 20 |
| carrying out the duties, responsibilities, and other
| 21 |
| obligations necessary for the day to day operation and | 22 |
| management of any
property subject to this Act. For purposes of | 23 |
| this subsection, the term
"fiduciary insurance coverage" shall | 24 |
| be defined as both a fidelity bond and
directors and officers | 25 |
| liability coverage, the fidelity bond in the full
amount of | 26 |
| association funds and association reserves that will be in the
|
|
|
|
HB3955 |
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LRB096 06280 AJO 16363 b |
|
| 1 |
| custody of the association, and the directors and officers | 2 |
| liability
coverage at a level as shall be determined to be | 3 |
| reasonable by the board of
managers, if not otherwise | 4 |
| established by the declaration or by laws.
| 5 |
| Until one year after the effective date of this amendatory | 6 |
| Act of 1985,
if a condominium association has reserves plus | 7 |
| assessments in excess of
$250,000 and cannot reasonably obtain | 8 |
| 100% fidelity bond coverage for such
amount, then it must | 9 |
| obtain a fidelity bond coverage of $250,000.
| 10 |
| (h) Method of estimating the amount of the annual budget, | 11 |
| and the manner
of assessing and collecting from the unit owners | 12 |
| their respective shares of
such estimated expenses, and of any | 13 |
| other expenses lawfully agreed upon.
| 14 |
| (i) That upon 10 days notice to the manager or board of | 15 |
| managers and
payment of a reasonable fee, any unit owner shall | 16 |
| be furnished a statement
of his account setting forth the | 17 |
| amount of any unpaid assessments or other
charges due and owing | 18 |
| from such owner.
| 19 |
| (j) Designation and removal of personnel necessary for the | 20 |
| maintenance,
repair and replacement of the common elements.
| 21 |
| (k) Such restrictions on and requirements respecting the | 22 |
| use and
maintenance of the units and the use of the common | 23 |
| elements, not set forth
in the declaration, as are designed to | 24 |
| prevent unreasonable interference
with the use of their | 25 |
| respective units and of the common elements by the
several unit | 26 |
| owners.
|
|
|
|
HB3955 |
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LRB096 06280 AJO 16363 b |
|
| 1 |
| (l) Method of adopting and of amending administrative rules | 2 |
| and
regulations governing the operation and use of the common | 3 |
| elements.
| 4 |
| (m) The percentage of votes required to modify or amend the | 5 |
| bylaws, but
each one of the particulars set forth in this | 6 |
| section shall always be
embodied in the bylaws.
| 7 |
| (n) (i) The provisions of this Act, the declaration, | 8 |
| bylaws, other
condominium instruments, and rules and | 9 |
| regulations that relate to the use
of the individual unit or | 10 |
| the common elements shall be applicable to
any person leasing a | 11 |
| unit and shall be deemed to be incorporated in any
lease | 12 |
| executed or renewed on or after the effective date of this | 13 |
| amendatory
Act of 1984. (ii) With regard to any lease entered | 14 |
| into subsequent to the
effective date of this amendatory Act of | 15 |
| 1989, the unit owner leasing the
unit shall deliver a copy of | 16 |
| the signed lease to the board or if the
lease is oral, a | 17 |
| memorandum of the lease, not later than the date of
occupancy | 18 |
| or 10 days after the lease is signed, whichever occurs first. | 19 |
| In
addition to any other remedies, by filing an action jointly | 20 |
| against the
tenant and the unit owner, an association may seek | 21 |
| to enjoin a tenant from
occupying a unit or seek to evict a | 22 |
| tenant under the provisions of Article
IX of the Code of Civil | 23 |
| Procedure for failure of the lessor-owner to
comply with the | 24 |
| leasing requirements prescribed by
this Section or by the | 25 |
| declaration, bylaws, and
rules and regulations. The board of | 26 |
| managers may proceed directly against a
tenant, at law or in |
|
|
|
HB3955 |
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LRB096 06280 AJO 16363 b |
|
| 1 |
| equity, or under the provisions of Article IX of the
Code of | 2 |
| Civil Procedure, for any other breach by tenant of any
| 3 |
| covenants, rules, regulations or bylaws.
| 4 |
| (o) The association shall have no authority to forbear the | 5 |
| payment
of assessments by any unit owner.
| 6 |
| (p) That when 30% or fewer of the units, by number,
possess | 7 |
| over 50% in the aggregate of the votes in the association,
any | 8 |
| percentage vote of members specified herein or in the | 9 |
| condominium
instruments shall require the specified percentage | 10 |
| by number of units
rather than by percentage of interest in the | 11 |
| common elements allocated
to units that would otherwise be | 12 |
| applicable. For purposes of this subsection (p), when making a | 13 |
| determination of whether 30% or fewer of the units, by number, | 14 |
| possess over 50% in the aggregate of the votes in the | 15 |
| association, a unit shall not include a garage unit or a | 16 |
| storage unit.
| 17 |
| (q) That a unit owner may not assign, delegate, transfer, | 18 |
| surrender, or
avoid the duties, responsibilities, and | 19 |
| liabilities of a unit owner under this
Act, the condominium | 20 |
| instruments, or the rules and regulations of the
Association; | 21 |
| and that such an attempted assignment, delegation, transfer,
| 22 |
| surrender, or avoidance shall be deemed void.
| 23 |
| The provisions of this Section are applicable to all | 24 |
| condominium
instruments recorded under this Act. Any portion of | 25 |
| a condominium
instrument which contains provisions contrary to | 26 |
| these provisions shall be
void as against public policy and |
|
|
|
HB3955 |
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LRB096 06280 AJO 16363 b |
|
| 1 |
| ineffective. Any such instrument which
fails to contain the | 2 |
| provisions required by this Section shall be deemed to
| 3 |
| incorporate such provisions by operation of law.
| 4 |
| (Source: P.A. 95-624, eff. 6-1-08 .)
| 5 |
| (765 ILCS 605/18.4) (from Ch. 30, par. 318.4)
| 6 |
| Sec. 18.4. Powers and Duties of Board of Managers. The | 7 |
| board of
managers shall exercise for the association all | 8 |
| powers, duties and
authority vested in the association by law | 9 |
| or the condominium instruments
except for such powers, duties | 10 |
| and authority reserved by law to the members
of the | 11 |
| association. The powers and duties of the board of managers | 12 |
| shall
include, but shall not be limited to, the following:
| 13 |
| (a) To provide for the operation, care, upkeep, | 14 |
| maintenance,
replacement and improvement of the common | 15 |
| elements. Nothing
in
this subsection (a) shall be deemed to | 16 |
| invalidate any provision in a
condominium instrument | 17 |
| placing limits on expenditures for the common elements, | 18 |
| provided, that such
limits shall not be applicable to | 19 |
| expenditures for repair, replacement, or
restoration of | 20 |
| existing portions of the common elements. The
term "repair, | 21 |
| replacement or restoration" means expenditures to | 22 |
| deteriorated or
damaged portions of the property related to | 23 |
| the existing decorating,
facilities, or structural or | 24 |
| mechanical components, interior or exterior
surfaces, or | 25 |
| energy systems and equipment with the functional |
|
|
|
HB3955 |
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LRB096 06280 AJO 16363 b |
|
| 1 |
| equivalent of the
original portions of such areas. | 2 |
| Replacement of the common elements may
result in an | 3 |
| improvement over the original quality of such elements or
| 4 |
| facilities; provided that, unless the improvement is | 5 |
| mandated by law or is an
emergency as defined in item (iv) | 6 |
| of subparagraph (8) of paragraph (a) of
Section 18, if the | 7 |
| improvement results in a proposed expenditure
exceeding 5% | 8 |
| of the annual budget, the board of managers, upon written | 9 |
| petition
by unit owners with 20% of the votes of the | 10 |
| association delivered to the board
within 14 days of the | 11 |
| board action to approve the expenditure, shall call a
| 12 |
| meeting of the unit owners within 30 days of the date of | 13 |
| delivery of the
petition to consider the expenditure. | 14 |
| Unless a majority of the total votes of
the unit owners are | 15 |
| cast at the meeting to reject the expenditure, it is
| 16 |
| ratified.
| 17 |
| (b) To prepare, adopt and distribute the annual budget | 18 |
| for the property.
| 19 |
| (c) To levy and expend assessments.
| 20 |
| (d) To collect assessments from unit
owners.
| 21 |
| (e) To provide for the employment and dismissal of the | 22 |
| personnel
necessary or advisable for the maintenance and | 23 |
| operation of the common
elements.
| 24 |
| (f) To obtain adequate and appropriate kinds of
| 25 |
| insurance.
| 26 |
| (g) To own, convey, encumber, lease, and otherwise deal |
|
|
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| 1 |
| with units
conveyed to or purchased by it.
| 2 |
| (h) To adopt and amend rules and regulations covering | 3 |
| the details of
the operation and use of the property, after | 4 |
| a meeting of the unit owners
called for the specific | 5 |
| purpose of discussing the proposed rules and
regulations. | 6 |
| Notice of the meeting shall contain the full text of the
| 7 |
| proposed rules and regulations, and the meeting shall | 8 |
| conform to the
requirements of Section 18(b) of this Act, | 9 |
| except that no quorum is
required at the meeting of the | 10 |
| unit owners unless the declaration, bylaws
or other | 11 |
| condominium instrument expressly provides to the contrary.
| 12 |
| However, no rule or regulation may impair any rights | 13 |
| guaranteed by the
First Amendment to the Constitution of | 14 |
| the United States or Section 4 of
Article I of the Illinois | 15 |
| Constitution including, but not limited to, the free | 16 |
| exercise of religion, nor may any rules or regulations
| 17 |
| conflict with the provisions of this Act or the condominium | 18 |
| instruments. No rule or regulation shall prohibit any | 19 |
| reasonable accommodation for religious practices, | 20 |
| including the attachment of religiously mandated objects | 21 |
| to the front-door area of a condominium unit.
| 22 |
| (i) To keep detailed, accurate records of the receipts | 23 |
| and
expenditures affecting the use and operation of the | 24 |
| property.
| 25 |
| (j) To have access to each unit from time to time as | 26 |
| may be necessary
for the maintenance, repair or replacement |
|
|
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| 1 |
| of any common elements or for
making emergency repairs | 2 |
| necessary to prevent damage to the common elements
or to | 3 |
| other units.
| 4 |
| (k) To pay real property taxes, special assessments, | 5 |
| and any other
special taxes or charges of the State of | 6 |
| Illinois or of any political
subdivision thereof, or other | 7 |
| lawful taxing or assessing body, which are
authorized by | 8 |
| law to be assessed and levied upon the real property of the
| 9 |
| condominium.
| 10 |
| (l) To impose charges for late payment of a unit | 11 |
| owner's proportionate
share of the common expenses, or any | 12 |
| other expenses lawfully agreed upon,
and after notice and | 13 |
| an opportunity to be heard, to levy reasonable fines
for | 14 |
| violation of the declaration, by-laws, and rules and | 15 |
| regulations of
the association.
| 16 |
| (m) Unless the condominium instruments expressly | 17 |
| provide to the
contrary, by a majority vote of the entire | 18 |
| board of managers, to assign the
right of the association | 19 |
| to future income from common expenses or other
sources, and | 20 |
| to mortgage or pledge substantially all of the remaining
| 21 |
| assets of the association.
| 22 |
| (n) To record the dedication of a portion of the common | 23 |
| elements
to a public body for use as, or in connection | 24 |
| with, a street or utility
where authorized by the unit | 25 |
| owners under the provisions of Section 14.2.
| 26 |
| (o) To record the granting of an easement for the |
|
|
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| 1 |
| laying of cable
television cable where authorized by the | 2 |
| unit owners under the provisions
of Section 14.3; to | 3 |
| obtain, if available and determined by the board to be in
| 4 |
| the best interests of the association, cable television
| 5 |
| service for all of the units of the condominium on a bulk
| 6 |
| identical service and equal cost per unit basis; and to | 7 |
| assess and recover the
expense as a common expense and, if | 8 |
| so determined by the board, to assess each
and every unit | 9 |
| on the same equal cost per unit basis.
| 10 |
| (p) To seek relief on behalf of all unit owners when | 11 |
| authorized
pursuant to subsection (c) of Section 10 from or | 12 |
| in connection with the
assessment or levying of real | 13 |
| property taxes, special assessments, and any
other special | 14 |
| taxes or changes of the State of Illinois or of any | 15 |
| political
subdivision thereof or of any lawful taxing or | 16 |
| assessing body.
| 17 |
| (q) To reasonably accommodate the needs of a | 18 |
| handicapped unit owner
as required by the federal Civil | 19 |
| Rights Act of 1968, the Human Rights Act
and any applicable | 20 |
| local ordinances in the exercise of its powers with
respect | 21 |
| to the use of common elements or approval of modifications | 22 |
| in an
individual unit.
| 23 |
| (r) To accept service of a notice of claim for purposes | 24 |
| of the Mechanics Lien Act on behalf of each respective | 25 |
| member of the Unit Owners' Association with respect to | 26 |
| improvements performed pursuant to any contract entered |
|
|
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| into by the Board of Managers or any contract entered into | 2 |
| prior to the recording of the condominium declaration | 3 |
| pursuant to this Act, for a property containing more than 8 | 4 |
| units, and to distribute the notice to the unit owners | 5 |
| within 7 days of the acceptance of the service by the Board | 6 |
| of Managers. The service shall be effective as if each | 7 |
| individual unit owner had been served individually with | 8 |
| notice.
| 9 |
| (s) In the event that a unit owner prevails in an | 10 |
| action brought to enforce the Act or the condominium | 11 |
| instruments, rules, or regulations against the board of | 12 |
| managers, by clear and convincing evidence, that the | 13 |
| wrongful act or omission by the board or members of the | 14 |
| board which formed the basis of the action was wrongful, | 15 |
| willful and wanton, and without any legal justification | 16 |
| either in law or fact, then the unit owner is entitled to | 17 |
| recover damages against the board or members of the board | 18 |
| thereof personally, and those damages shall not be less | 19 |
| than $1,000 per defendant and those damages shall be | 20 |
| trebled by the court, plus the unit owner's reasonable | 21 |
| attorney's fees and court costs; provided that at least 60 | 22 |
| days prior to filing the action, the unit owner gave | 23 |
| written notice to the board or members of the board | 24 |
| specifying the nature and factual basis of the claim; and | 25 |
| provided further that the unit owner shall have obtained a | 26 |
| written opinion from an attorney licensed to practice in |
|
|
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| 1 |
| Illinois that the unit owner has a colorable claim based on | 2 |
| the facts alleged in the unit owner's notice to the board | 3 |
| or members of the board. | 4 |
| In the performance of their duties, the officers and | 5 |
| members of the board,
whether appointed by the developer or | 6 |
| elected by the unit owners, shall
exercise the care required of | 7 |
| a fiduciary of the unit owners.
| 8 |
| The collection of assessments from unit owners by an | 9 |
| association, board
of managers or their duly authorized agents | 10 |
| shall not be considered acts
constituting a collection agency | 11 |
| for purposes of the Collection Agency Act.
| 12 |
| The provisions of this Section are
applicable to all | 13 |
| condominium instruments recorded under this Act. Any
portion of | 14 |
| a condominium instrument which contains provisions contrary to
| 15 |
| these provisions shall be void as against public policy and | 16 |
| ineffective.
Any such instrument that fails to contain the | 17 |
| provisions required by this
Section shall be deemed to | 18 |
| incorporate such provisions by operation of law.
| 19 |
| (Source: P.A. 94-384, eff. 1-1-06; 94-729, eff. 1-1-07.)
| 20 |
| (765 ILCS 605/18.5) (from Ch. 30, par. 318.5)
| 21 |
| Sec. 18.5. Master Associations.
| 22 |
| (a) If the declaration, other condominium instrument, or | 23 |
| other duly
recorded covenants provide that any of the powers of | 24 |
| the unit owners
associations are to be exercised by or may be | 25 |
| delegated to a nonprofit
corporation or unincorporated |
|
|
|
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| 1 |
| association that exercises
those or other powers on behalf of | 2 |
| one or more condominiums, or for the
benefit of the unit owners | 3 |
| of one or more condominiums, such
corporation or association | 4 |
| shall be a master association.
| 5 |
| (b) There shall be included in the declaration, other
| 6 |
| condominium instruments, or other duly recorded covenants | 7 |
| establishing
the powers and duties of the master association | 8 |
| the provisions set forth in
subsections (c) through (h).
| 9 |
| In interpreting subsections (c) through (h), the courts | 10 |
| should
interpret these provisions so that they are interpreted | 11 |
| consistently with
the similar parallel provisions found in | 12 |
| other parts of this Act.
| 13 |
| (c) Meetings and finances.
| 14 |
| (1) Each unit owner of a condominium subject to the | 15 |
| authority of
the board of the master association shall | 16 |
| receive, at least 30 days prior
to the adoption thereof by | 17 |
| the board of the master association, a copy of
the proposed | 18 |
| annual budget.
| 19 |
| (2) The board of the master association shall annually | 20 |
| supply to
all unit owners of condominiums subject to the | 21 |
| authority of the board
of the master association an | 22 |
| itemized accounting of the common
expenses for the | 23 |
| preceding year actually incurred or paid, together with a
| 24 |
| tabulation of the amounts collected pursuant to the budget | 25 |
| or assessment,
and showing the net excess or deficit of | 26 |
| income over expenditures plus
reserves.
|
|
|
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| 1 |
| (3) Each unit owner of a condominium subject to the | 2 |
| authority of
the board of the master association shall | 3 |
| receive written notice mailed
or delivered no less than 10 | 4 |
| and no more than 30 days prior to any meeting
of the board | 5 |
| of the master association concerning the adoption of the | 6 |
| proposed
annual budget or any increase in the budget, or | 7 |
| establishment of an
assessment.
| 8 |
| (4) Meetings of the board of the master association | 9 |
| shall be open
to any unit owner in a condominium subject to | 10 |
| the authority of the board
of the master association, | 11 |
| except for the portion of any meeting held:
| 12 |
| (A) to discuss litigation when an action against or | 13 |
| on behalf of the
particular master association has been | 14 |
| filed and is pending in a court or
administrative | 15 |
| tribunal, or when the board of the master association | 16 |
| finds
that such an action is probable or imminent,
| 17 |
| (B) to consider information regarding appointment, | 18 |
| employment or
dismissal of an employee, or
| 19 |
| (C) to discuss violations of rules and regulations | 20 |
| of the master
association or unpaid common expenses | 21 |
| owed to the master association.
| 22 |
| Any vote on these matters shall be taken at a meeting or | 23 |
| portion thereof
open to any unit owner of a condominium subject | 24 |
| to the authority of the
master association.
| 25 |
| Any unit owner may record the proceedings at meetings | 26 |
| required
to be open by this Act by tape, film or other means; |
|
|
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| 1 |
| the board may
prescribe reasonable rules and regulations to | 2 |
| govern the right to make such
recordings. Notice of meetings | 3 |
| shall be mailed or delivered at least 48
hours prior thereto, | 4 |
| unless a written waiver of such notice is signed by
the persons | 5 |
| entitled to notice before the meeting is convened. Copies of
| 6 |
| notices of meetings of the board of the master association | 7 |
| shall be posted
in entranceways, elevators, or other | 8 |
| conspicuous places in the condominium
at least 48 hours prior | 9 |
| to the meeting of the board of the master
association. Where | 10 |
| there is no common entranceway for 7 or more units, the
board | 11 |
| of the master association may designate one or more locations | 12 |
| in the
proximity of these units where the notices of meetings | 13 |
| shall be posted.
| 14 |
| (5) If the declaration provides for election by unit | 15 |
| owners of members
of the board of directors in the event of | 16 |
| a resale of a unit in the master
association, the purchaser | 17 |
| of a unit from a seller other than the developer
pursuant | 18 |
| to an installment contract for purchase shall, during such
| 19 |
| times as he or she resides in the unit, be counted toward a | 20 |
| quorum for
purposes of election of members of the board of | 21 |
| directors at any
meeting of the unit owners called for | 22 |
| purposes of electing members of the
board, and shall have | 23 |
| the right to vote for the election of members of
the board | 24 |
| of directors and to be elected to and serve on the board of
| 25 |
| directors unless the seller expressly retains in writing
| 26 |
| any or all of those rights. In no event may the seller and
|
|
|
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|
| 1 |
| purchaser both be counted toward a quorum, be permitted to | 2 |
| vote for a
particular office, or be elected and serve on | 3 |
| the board. Satisfactory
evidence of the installment | 4 |
| contract shall be made available to the
association or its | 5 |
| agents. For purposes of this subsection, "installment
| 6 |
| contract" shall have the same meaning as set forth in | 7 |
| subsection (e) of
Section 1 of the Dwelling Unit | 8 |
| Installment Contract Act.
| 9 |
| (6) The board of the master association shall have the | 10 |
| authority to
establish and maintain a system of master | 11 |
| metering of public utility
services and to collect payments | 12 |
| in connection therewith, subject to the
requirements of the | 13 |
| Tenant Utility Payment Disclosure Act.
| 14 |
| (7) The board of the master association or a common | 15 |
| interest community
association shall have the power, after | 16 |
| notice and an opportunity to be heard,
to levy and collect | 17 |
| reasonable fines from members for violations of the
| 18 |
| declaration, bylaws, and rules and regulations of the | 19 |
| master association or
the common interest community | 20 |
| association. Nothing contained in this
subdivision (7) | 21 |
| shall give rise to a statutory lien for unpaid fines.
| 22 |
| (8) Other than attorney's fees, no fees pertaining to | 23 |
| the collection of a unit owner's financial obligation to | 24 |
| the Association, including fees charged by a manager or | 25 |
| managing agent, shall be added to and deemed a part of an | 26 |
| owner's respective share of the common expenses unless: (i) |
|
|
|
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LRB096 06280 AJO 16363 b |
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| 1 |
| the managing agent fees relate to the costs to collect | 2 |
| common expenses for the Association; (ii) the fees are set | 3 |
| forth in a contract between the managing agent and the | 4 |
| Association; and (iii) the authority to add the management | 5 |
| fees to an owner's respective share of the common expenses | 6 |
| is specifically stated in the declaration or bylaws of the | 7 |
| Association. | 8 |
| (d) Records.
| 9 |
| (1) The board of the master association shall maintain | 10 |
| the following
records of the association and make them | 11 |
| available for examination and
copying at convenient hours | 12 |
| of weekdays by any unit owners in a condominium
subject to | 13 |
| the authority of the board or their mortgagees and their | 14 |
| duly
authorized agents or attorneys:
| 15 |
| (i) Copies of the recorded declaration, other | 16 |
| condominium instruments,
other duly recorded covenants | 17 |
| and bylaws and any amendments, articles of
| 18 |
| incorporation of the master association, annual | 19 |
| reports and any rules and
regulations adopted by the | 20 |
| master association or its board shall
be available. | 21 |
| Prior to the organization of the master association, | 22 |
| the
developer shall maintain and make available the | 23 |
| records set forth in this
subdivision (d)(1) for | 24 |
| examination and copying.
| 25 |
| (ii) Detailed and accurate records in | 26 |
| chronological order of the
receipts and expenditures |
|
|
|
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LRB096 06280 AJO 16363 b |
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| 1 |
| affecting the common areas, specifying and
itemizing | 2 |
| the maintenance and repair expenses of the common areas | 3 |
| and any
other expenses incurred, and copies of all | 4 |
| contracts, leases, or other
agreements entered into by | 5 |
| the master association, shall be maintained.
| 6 |
| (iii) The minutes of all meetings of the master | 7 |
| association and the
board of the master association | 8 |
| shall be maintained for not less than 7 years.
| 9 |
| (iv) Ballots and proxies related thereto, if any, | 10 |
| for any election
held for the board of the master | 11 |
| association and for any other matters
voted on by the | 12 |
| unit owners shall be maintained for
not less than one | 13 |
| year.
| 14 |
| (v) Such other records of the master association as | 15 |
| are available
for inspection by members of a | 16 |
| not-for-profit corporation pursuant to
Section 107.75 | 17 |
| of the General Not For Profit Corporation Act of 1986 | 18 |
| shall
be maintained.
| 19 |
| (vi) With respect to units owned by a land trust, | 20 |
| if a trustee
designates in writing a person to cast | 21 |
| votes on behalf of the unit
owner, the designation | 22 |
| shall remain in effect until a subsequent document
is | 23 |
| filed with the association.
| 24 |
| (2) Where a request for records under this subsection | 25 |
| is made in writing
to the board of managers or its agent, | 26 |
| failure to provide the requested
record or to respond |
|
|
|
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| 1 |
| within 30 days shall be deemed a denial by the board
of | 2 |
| directors.
| 3 |
| (3) A reasonable fee may be charged by the master | 4 |
| association or its
board for the cost of copying.
| 5 |
| (4) If the board of directors fails to provide records | 6 |
| properly
requested under subdivision (d)(1) within the
| 7 |
| time period provided in subdivision (d)(2), the
unit owner | 8 |
| may seek appropriate relief, including an award of
| 9 |
| attorney's fees and costs.
| 10 |
| (e) The board of directors shall have standing and capacity | 11 |
| to act in
a representative capacity in relation to matters | 12 |
| involving the common areas
of the master association or more | 13 |
| than one unit, on behalf of the unit
owners as their interests | 14 |
| may appear.
| 15 |
| (f) Administration of property prior to election of the | 16 |
| initial board
of directors.
| 17 |
| (1) Until the election, by the unit owners or the | 18 |
| boards of
managers of the underlying condominium | 19 |
| associations, of the initial board
of directors of a master | 20 |
| association whose declaration is recorded on
or after | 21 |
| August 10, 1990, the same rights, titles, powers, | 22 |
| privileges,
trusts, duties and obligations that are vested | 23 |
| in or imposed upon the board
of directors by this Act or in | 24 |
| the declaration or other duly recorded
covenant shall be | 25 |
| held and performed by the developer.
| 26 |
| (2) The election of the initial board of directors of a |
|
|
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| 1 |
| master
association whose declaration is recorded on or | 2 |
| after August 10, 1990, by
the unit owners or the boards of | 3 |
| managers of the underlying condominium
associations, shall | 4 |
| be held not later than 60 days after the conveyance by
the | 5 |
| developer of 75% of the units, or 3 years after the | 6 |
| recording of the
declaration, whichever is earlier. The | 7 |
| developer shall give at least 21
days notice of the meeting | 8 |
| to elect the initial board of directors and
shall upon | 9 |
| request provide to any unit owner, within 3 working days of | 10 |
| the
request, the names, addresses, and weighted vote of | 11 |
| each unit owner entitled to vote at the
meeting. Any unit | 12 |
| owner shall upon receipt of the request be provided with
| 13 |
| the same
information, within 10 days of the request, with | 14 |
| respect to
each
subsequent meeting to elect members of the | 15 |
| board of directors.
| 16 |
| (3) If the initial board of directors of a master | 17 |
| association
whose declaration is recorded on or after | 18 |
| August 10, 1990 is not elected by
the unit owners or the | 19 |
| members of the underlying condominium association
board of | 20 |
| managers at the time established in subdivision (f)(2), the
| 21 |
| developer shall continue in office for a period of 30 days, | 22 |
| whereupon
written notice of his resignation shall be sent | 23 |
| to all of the unit owners
or members of the underlying | 24 |
| condominium board of managers entitled to vote
at an | 25 |
| election for members of the board of directors.
| 26 |
| (4) Within 60 days following the election of a majority |
|
|
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| 1 |
| of the board
of directors, other than the developer, by | 2 |
| unit owners, the developer shall
deliver to the board of | 3 |
| directors:
| 4 |
| (i) All original documents as recorded or filed | 5 |
| pertaining to the
property, its administration, and | 6 |
| the association, such as the declaration,
articles of | 7 |
| incorporation, other instruments, annual reports, | 8 |
| minutes,
rules and regulations, and contracts, leases, | 9 |
| or other
agreements entered into by the association. If | 10 |
| any original documents are
unavailable, a copy may be | 11 |
| provided if certified by affidavit of the
developer, or | 12 |
| an officer or agent of the developer, as being a | 13 |
| complete
copy of the actual document recorded or filed.
| 14 |
| (ii) A detailed accounting by the developer, | 15 |
| setting forth the
source and nature of receipts and | 16 |
| expenditures in connection with the
management, | 17 |
| maintenance and operation of the property, copies
of | 18 |
| all insurance policies, and a list of any loans or | 19 |
| advances to the
association which are outstanding.
| 20 |
| (iii) Association funds, which shall have been at | 21 |
| all times
segregated from any other moneys of the | 22 |
| developer.
| 23 |
| (iv) A schedule of all real or personal property, | 24 |
| equipment and
fixtures belonging to the association, | 25 |
| including documents transferring the
property, | 26 |
| warranties, if any, for all real and personal property |
|
|
|
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LRB096 06280 AJO 16363 b |
|
| 1 |
| and
equipment, deeds, title insurance policies, and | 2 |
| all tax bills.
| 3 |
| (v) A list of all litigation, administrative | 4 |
| action and arbitrations
involving the association, any | 5 |
| notices of governmental bodies involving
actions taken | 6 |
| or which may be taken concerning the association, | 7 |
| engineering and
architectural drawings and | 8 |
| specifications as approved by any governmental
| 9 |
| authority, all other documents filed with any other | 10 |
| governmental authority,
all governmental certificates, | 11 |
| correspondence involving enforcement of any
| 12 |
| association requirements, copies of any documents | 13 |
| relating to disputes
involving unit owners, and | 14 |
| originals of all documents relating to
everything | 15 |
| listed in this subparagraph.
| 16 |
| (vi) If the developer fails to fully comply with | 17 |
| this paragraph (4)
within
the 60 days
provided and | 18 |
| fails to fully comply within 10 days of written demand | 19 |
| mailed by
registered
or certified mail to his or her | 20 |
| last known address, the board may bring an
action to
| 21 |
| compel compliance with this paragraph (4).
If the court | 22 |
| finds that any of the
required
deliveries were not made | 23 |
| within the required period, the board shall be
entitled | 24 |
| to recover
its reasonable attorneys' fees and costs | 25 |
| incurred from and after the date of
expiration of
the | 26 |
| 10 day demand.
|
|
|
|
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|
| 1 |
| (5) With respect to any master association whose | 2 |
| declaration is
recorded on or after August 10, 1990, any | 3 |
| contract, lease, or other
agreement made prior to the | 4 |
| election of a majority of the board of
directors other than | 5 |
| the developer by or on behalf of unit owners or
underlying | 6 |
| condominium associations, the association or the board of
| 7 |
| directors, which extends for a period of more than 2 years | 8 |
| from the
recording of the declaration, shall be subject to | 9 |
| cancellation by more than
1/2 of the votes of the unit | 10 |
| owners, other than the developer, cast at a
special meeting | 11 |
| of members called for that purpose during a period of 90
| 12 |
| days prior to the expiration of the 2 year period if the | 13 |
| board of managers
is elected by the unit owners, otherwise | 14 |
| by more than 1/2 of the underlying
condominium board of | 15 |
| managers. At least 60 days prior to the expiration of
the 2 | 16 |
| year period, the board of directors, or, if the board is | 17 |
| still under
developer control, then the board of managers | 18 |
| or the developer shall send
notice to every unit owner or | 19 |
| underlying condominium board of managers,
notifying them | 20 |
| of this provision, of what contracts, leases and other
| 21 |
| agreements are affected, and of the procedure for calling a | 22 |
| meeting of the
unit owners or for action by the underlying | 23 |
| condominium board of managers
for the purpose of acting to | 24 |
| terminate such contracts, leases or other
agreements. | 25 |
| During the 90 day period the other party to the contract,
| 26 |
| lease, or other agreement shall also have the right of |
|
|
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| 1 |
| cancellation.
| 2 |
| (6) The statute of limitations for any actions in law | 3 |
| or equity which
the master association may bring shall not | 4 |
| begin to run until the unit
owners or underlying | 5 |
| condominium board of managers have elected a majority
of | 6 |
| the members of the board of directors.
| 7 |
| (g) In the event of any resale of a unit in a master | 8 |
| association by a unit
owner other than the developer, the owner | 9 |
| shall obtain from
the board of directors and shall make | 10 |
| available for inspection to the
prospective purchaser, upon | 11 |
| demand, the following:
| 12 |
| (1) A copy of the declaration, other instruments and | 13 |
| any rules and
regulations.
| 14 |
| (2) A statement of any liens, including a statement of | 15 |
| the account of
the unit setting forth the amounts of unpaid | 16 |
| assessments and other charges
due and owing.
| 17 |
| (3) A statement of any capital expenditures | 18 |
| anticipated by the
association within the current or | 19 |
| succeeding 2 fiscal years.
| 20 |
| (4) A statement of the status and amount of any reserve | 21 |
| for
replacement fund and any portion of such fund earmarked | 22 |
| for any specified
project by the board of directors.
| 23 |
| (5) A copy of the statement of financial condition of | 24 |
| the association
for the last fiscal year for which such a | 25 |
| statement is available.
| 26 |
| (6) A statement of the status of any pending suits or |
|
|
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| judgments in which
the association is a party.
| 2 |
| (7) A statement setting forth what insurance coverage | 3 |
| is provided for
all unit owners by the association.
| 4 |
| (8) A statement that any improvements or alterations | 5 |
| made to the unit,
or any part of the common areas assigned | 6 |
| thereto, by the prior unit owner
are in good faith believed | 7 |
| to be in compliance with the declaration of the
master | 8 |
| association.
| 9 |
| The principal officer of the unit owner's association or | 10 |
| such
other officer as is specifically designated shall furnish | 11 |
| the above
information when requested to do so in writing, | 12 |
| within
30 days of receiving the request.
| 13 |
| A reasonable fee covering the direct out-of-pocket cost of | 14 |
| copying
and providing such information may be charged
by the | 15 |
| association or its board of directors to the unit
seller for | 16 |
| providing the information.
| 17 |
| (h) Errors and omissions.
| 18 |
| (1) If there is an omission or error in the declaration | 19 |
| or other
instrument of the master association, the master | 20 |
| association may correct
the error or omission by an | 21 |
| amendment to the declaration or other
instrument, as may be | 22 |
| required to conform it to this Act, to any other
applicable | 23 |
| statute, or to the declaration. The amendment shall be | 24 |
| adopted
by vote of two-thirds of the members of the board | 25 |
| of directors or by a
majority vote of the unit owners at a | 26 |
| meeting called for that purpose,
unless the Act or the |
|
|
|
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LRB096 06280 AJO 16363 b |
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| 1 |
| declaration of the master association specifically
| 2 |
| provides for greater percentages or different procedures.
| 3 |
| (2) If, through a scrivener's error, a unit has not | 4 |
| been
designated as owning an appropriate undivided share of | 5 |
| the common areas
or does not bear an appropriate share of | 6 |
| the common expenses, or if
all of the common expenses or | 7 |
| all of the common elements in
the condominium have not been | 8 |
| distributed in the declaration, so that the
sum total of | 9 |
| the shares of common areas which have been distributed or | 10 |
| the
sum total of the shares of the common expenses fail to | 11 |
| equal 100%, or if it
appears that more than 100% of the | 12 |
| common elements or common expenses have
been distributed, | 13 |
| the error may be corrected by operation of law by filing
an | 14 |
| amendment to the declaration, approved by vote of | 15 |
| two-thirds of the
members of the board of directors or a | 16 |
| majority vote of the unit owners at
a meeting called for | 17 |
| that purpose, which proportionately
adjusts all percentage | 18 |
| interests so that the total is equal to 100%,
unless the | 19 |
| declaration specifically provides for a different | 20 |
| procedure or
different percentage vote by the owners of the | 21 |
| units and the owners of
mortgages thereon affected by | 22 |
| modification being made in the undivided
interest in the | 23 |
| common areas, the number of votes in the unit owners
| 24 |
| association or the liability for common expenses | 25 |
| appertaining to the unit.
| 26 |
| (3) If an omission or error or a scrivener's error in |
|
|
|
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| the
declaration or other instrument is corrected by vote of | 2 |
| two-thirds of
the members of the board of directors | 3 |
| pursuant to the authority established
in subdivisions | 4 |
| (h)(1) or (h)(2) of this Section, the board, upon
written | 5 |
| petition by unit owners with 20% of the votes of the | 6 |
| association or
resolutions adopted by the board of managers | 7 |
| or board of directors of the
condominium and common | 8 |
| interest community associations which select 20% of
the | 9 |
| members of the board of directors of the master | 10 |
| association, whichever
is applicable, received within 30 | 11 |
| days of the board action, shall call a
meeting of the unit | 12 |
| owners or the boards of the condominium and common
interest | 13 |
| community associations which select members of the board of
| 14 |
| directors of the master association within 30 days of the | 15 |
| filing of the
petition or receipt of the condominium and | 16 |
| common interest community
association resolution to | 17 |
| consider the board action. Unless a majority of
the votes | 18 |
| of the unit owners of the association are cast at the | 19 |
| meeting to
reject the action, or board of managers or board | 20 |
| of directors of
condominium and common interest community | 21 |
| associations which select over
50% of the members of the | 22 |
| board of the master association adopt resolutions
prior to | 23 |
| the meeting rejecting the action of the board of directors | 24 |
| of the
master association, it is ratified whether or not a | 25 |
| quorum is present.
| 26 |
| (4) The procedures for amendments set forth in this |
|
|
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| subsection (h)
cannot be used if such an amendment would | 2 |
| materially or adversely affect
property rights of the unit | 3 |
| owners unless the affected unit owners consent
in writing. | 4 |
| This Section does not restrict the powers of the | 5 |
| association
to otherwise amend the declaration, bylaws, or | 6 |
| other condominium
instruments, but authorizes a simple | 7 |
| process of amendment requiring a
lesser vote for the | 8 |
| purpose of correcting defects, errors, or omissions
when | 9 |
| the property rights of the unit owners are not materially | 10 |
| or adversely
affected.
| 11 |
| (5) If there is an omission or error in the declaration | 12 |
| or other
instruments that may not be corrected by an | 13 |
| amendment procedure
set forth in subdivision (h)(1) or | 14 |
| (h)(2) of this Section, then
the circuit court in the | 15 |
| county in which the master
association is located shall | 16 |
| have jurisdiction to hear a petition of one or
more of the | 17 |
| unit owners thereon or of the association, to correct the | 18 |
| error
or omission, and the action may be a class action. | 19 |
| The court may require
that one or more methods of | 20 |
| correcting the error or omission be submitted
to the unit | 21 |
| owners to determine the most acceptable correction. All | 22 |
| unit
owners in the association must be joined as parties to | 23 |
| the action. Service
of process on owners may be by | 24 |
| publication, but the plaintiff shall furnish
all unit | 25 |
| owners not personally served with process with copies of | 26 |
| the
petition and final judgment of the court by certified |
|
|
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| 1 |
| mail, return receipt
requested, at their last known | 2 |
| address.
| 3 |
| (6) Nothing contained in this Section shall be | 4 |
| construed to invalidate
any provision of a declaration | 5 |
| authorizing the developer to amend
an instrument prior to | 6 |
| the latest date on which the initial
membership meeting of | 7 |
| the unit owners must be held, whether or not it has
| 8 |
| actually been held, to bring the instrument into compliance | 9 |
| with the legal
requirements of the Federal National | 10 |
| Mortgage Association, the Federal Home
Loan Mortgage | 11 |
| Corporation, the Federal Housing Administration, the | 12 |
| United
States Veterans Administration or their respective | 13 |
| successors and assigns.
| 14 |
| (h-5) After filing an action to foreclosure its lien on a | 15 |
| unit in a common interest community, the mortgagee shall be | 16 |
| responsible for all assessments with regard to that unit | 17 |
| accruing from and after the first day of the month after the | 18 |
| filing of the action up to the date of the judicial foreclosure | 19 |
| sale and, unless the purchaser at the judicial foreclosure sale | 20 |
| is a person other than the mortgagee, the mortgagee's | 21 |
| responsibility for assessments shall continue until title to | 22 |
| the unit is transferred. | 23 |
| (i) The provisions of subsections (c) through (h) are | 24 |
| applicable
to all declarations, other condominium instruments, | 25 |
| and other
duly recorded covenants establishing the powers and | 26 |
| duties of the master
association recorded under this Act. Any |
|
|
|
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| 1 |
| portion of a declaration,
other condominium instrument, or | 2 |
| other duly recorded covenant establishing
the powers and duties | 3 |
| of a master association which contains provisions
contrary to | 4 |
| the provisions of subsection (c) through (h) shall be void as
| 5 |
| against public policy and ineffective. Any declaration, other | 6 |
| condominium
instrument, or other duly recorded covenant | 7 |
| establishing the powers and
duties of the master association | 8 |
| which fails to contain the provisions
required by subsections | 9 |
| (c) through (h) shall be deemed to incorporate such
provisions | 10 |
| by operation of law.
| 11 |
| (j) The provisions of subsections (c) through (h) and (h-5) | 12 |
| are applicable to
all common interest community associations | 13 |
| and their unit owners for common
interest community | 14 |
| associations which are subject to the provisions of Section
| 15 |
| 9-102(a)(8) of the Code of Civil Procedure. For purposes of | 16 |
| this
subsection, the terms "common interest community" and | 17 |
| "unit owners"
shall have the same meaning as set forth in | 18 |
| Section 9-102(c) of the Code of
Civil Procedure.
| 19 |
| (Source: P.A. 94-384, eff. 1-1-06.)
| 20 |
| (765 ILCS 605/22) (from Ch. 30, par. 322)
| 21 |
| Sec. 22. Full disclosure before sale. In relation to the | 22 |
| initial sale or offering for sale of any
condominium unit, the | 23 |
| seller must make full disclosure of, and provide
copies to the | 24 |
| prospective buyer of, the following information relative
to the | 25 |
| condominium project:
|
|
|
|
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LRB096 06280 AJO 16363 b |
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| 1 |
| (a) the Declaration;
| 2 |
| (b) the Bylaws of the association;
| 3 |
| (c) a projected operating budget for the condominium unit | 4 |
| to be sold
to the prospective buyer, including full details | 5 |
| concerning the
estimated monthly payments for the condominium | 6 |
| unit, estimated monthly
charges for maintenance or management | 7 |
| of the condominium property, and
monthly charges for the use of | 8 |
| recreational facilities; and
| 9 |
| (d) a floor plan of the unit apartment to be purchased by | 10 |
| the prospective
buyer and the street address of the unit, if | 11 |
| any, and if the unit has no
unique street address, the street | 12 |
| address of the project.
| 13 |
| (e) in addition, any developer of a conversion condominium | 14 |
| shall include
the following information:
| 15 |
| (1) A specific statement of the amount of any initial | 16 |
| or special
condominium
fee due from the purchaser on or | 17 |
| before settlement of the purchase contract
and the basis of | 18 |
| such fee;
| 19 |
| (2) Information, if available, on the actual | 20 |
| expenditures made on all
repairs, maintenance,
operation, | 21 |
| or upkeep of the subject building or buildings within the | 22 |
| last
2 years, set forth tabularly with the proposed budget | 23 |
| of the condominium
and cumulatively, broken down on a per | 24 |
| unit basis in proportion to the relative
voting strengths | 25 |
| allocated to the units by the bylaws. If such building
or | 26 |
| buildings have not been occupied for a period of 3 years |
|
|
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LRB096 06280 AJO 16363 b |
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| 1 |
| then the
information shall be set forth for the last 2 year | 2 |
| period such building or
buildings have been occupied;
| 3 |
| (3) A description of any provisions made in the budget for | 4 |
| reserves for
capital expenditures and an explanation of the | 5 |
| basis for such reserves,
or, if no provision is made for | 6 |
| such reserves, a statement to that effect;
| 7 |
| For developments of more than 6 units for which the | 8 |
| notice of intent
to convert is issued after the effective | 9 |
| date of this amendatory Act of
1979, an engineer's report | 10 |
| furnished by the developer as to the present
condition of | 11 |
| all structural
components and major utility installations | 12 |
| in the condominium, which statement
shall include the | 13 |
| approximate dates of construction, installation, major
| 14 |
| repairs and the expected useful life of such items, | 15 |
| together with the estimated
cost (in current dollars) of | 16 |
| replacing such items; and
| 17 |
| (5) Any release, warranty, certificate of insurance, | 18 |
| or surety required by
Section 9.1.
| 19 |
| All of the information required by this Section which is | 20 |
| available at
the time shall be furnished to the prospective | 21 |
| buyer before execution of
the contract for sale. Thereafter, no | 22 |
| changes or amendments may be made
in any of the items furnished | 23 |
| to the prospective buyer which would
materially affect the | 24 |
| rights of the buyer or the value of the unit
without obtaining | 25 |
| the approval of at least 75% of the buyers then owning
interest | 26 |
| in the condominium. If all of the information is not available
|
|
|
|
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| 1 |
| at the time of execution of the contract for sale, then the | 2 |
| contract
shall be voidable at option of the buyer at any time | 3 |
| up until 5 days
after the last item of required information is | 4 |
| furnished to the
prospective buyer, or until the closing of the | 5 |
| sale, whichever is
earlier. Failure on the part of the seller | 6 |
| to make full disclosure as
required by this Section shall | 7 |
| entitle the buyer to rescind the contract
for sale at any time | 8 |
| before the closing of the contract and to receive a
refund of | 9 |
| all deposit moneys paid with interest thereon at the rate then
| 10 |
| in effect for interest on judgments.
| 11 |
| A sale is not an initial sale for the purposes of this | 12 |
| Section if
there is not a bona fide transfer of the ownership | 13 |
| and possession of the
condominium unit for the purpose of | 14 |
| occupancy of such unit as the result
of the sale or if the sale | 15 |
| was entered into for the purpose of avoiding
the requirements | 16 |
| of this Section. The buyer in the first bona fide sale
of any | 17 |
| condominium unit has the rights granted to buyers under this
| 18 |
| Section. If the buyer in any sale of a condominium unit asserts | 19 |
| that
such sale is the first bona fide sale of that unit, the | 20 |
| seller has the
burden of proving that his interest was acquired | 21 |
| through a bona fide
sale.
| 22 |
| (Source: P.A. 91-616, eff. 8-19-99.)
| 23 |
| (765 ILCS 605/22.1) (from Ch. 30, par. 322.1)
| 24 |
| Sec. 22.1.
(a) In the event of any resale of a condominium | 25 |
| unit by a
unit owner other than the developer such owner shall |
|
|
|
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| 1 |
| obtain from the Board
of Managers and shall make available for | 2 |
| inspection to the prospective
purchaser, upon demand, the | 3 |
| following:
| 4 |
| (1) A copy of the Declaration, by-laws, other | 5 |
| condominium
instruments and any rules and regulations.
| 6 |
| (2) A statement of any liens, including a statement of
| 7 |
| the account of the unit setting forth the amounts of unpaid | 8 |
| assessments and
other charges due and owing as authorized | 9 |
| and limited by the provisions
of Section 9 of this Act or | 10 |
| the condominium instruments.
| 11 |
| (3) A statement of any capital expenditures approved by | 12 |
| the association's Board of Managers anticipated by the unit
| 13 |
| owner's association within the current or succeeding two | 14 |
| fiscal years.
| 15 |
| (4) A statement of the status and amount of any reserve
| 16 |
| for replacement fund and any portion of such fund earmarked | 17 |
| for any
specified project by the Board of Managers.
| 18 |
| (5) A copy of the statement of financial condition of | 19 |
| the unit owner's
association for the last fiscal year for | 20 |
| which such statement is available.
| 21 |
| (6) A statement of the status of any pending suits or
| 22 |
| judgments in which the unit owner's association is a party.
| 23 |
| (7) A statement setting forth what insurance coverage | 24 |
| is
provided for all unit owners by the unit owner's | 25 |
| association.
| 26 |
| (8) A statement that any improvements or alterations |
|
|
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| 1 |
| made
to the unit, or the limited common elements assigned | 2 |
| thereto, by the prior
unit owner are in good faith believed | 3 |
| to be in compliance with the
condominium instruments.
| 4 |
| (9) The identity and mailing address of the principal | 5 |
| officer of the
unit owner's association or of the other | 6 |
| officer or agent as is
specifically designated to receive | 7 |
| notices.
| 8 |
| The Board of Managers or its designated property manager | 9 |
| for the association shall only be required to respond to a | 10 |
| written inquiry from a unit owner for the information required | 11 |
| in paragraphs 1 through 9 of subsection (a) of this Section in | 12 |
| a form substantially similar to the standard form below: | 13 |
| "1. Are there any known liens against the Association? | 14 |
| If so, please provide details | 15 |
| 2. Are there any reserves which have been previously | 16 |
| approved by the Board of Managers for specific projects | 17 |
| which are over $25,000? If so, please provide details. | 18 |
| 3. Are there any capital expenditures approved by the | 19 |
| Board of Managers for the current or next 2 fiscal years | 20 |
| which will require a special assessment on the owners or an | 21 |
| increase in monthly assessments of more than 15% over the | 22 |
| prior year's monthly assessments? If so, please provide the | 23 |
| amount of the approved capital expenditure or the | 24 |
| percentage increase in monthly assessment for this unit | 25 |
| owner. | 26 |
| 4. Are there any existing special assessments or loans |
|
|
|
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LRB096 06280 AJO 16363 b |
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| 1 |
| for capital improvement projects pending against the | 2 |
| subject unit? If so, please provide details. | 3 |
| 5. Are there any pending lawsuits or unpaid judgments | 4 |
| against the Association? If so, please provide details." | 5 |
| All documents or other information required to be disclosed | 6 |
| by this Section and which are available at the time shall be | 7 |
| provided to the unit owner within 30 days after receipt of the | 8 |
| written request. | 9 |
| Information shall be disclosed to the parties, other than | 10 |
| the unit owner, only upon written authorization of the unit | 11 |
| owner. | 12 |
| (b) The principal officer of the unit owner's association , | 13 |
| through its officers or designated property manager, or such | 14 |
| other
officer as is specifically designated shall furnish the | 15 |
| above information
when requested to do so in writing and within | 16 |
| 30 days of the request.
| 17 |
| (c) Within 15 days of the recording of a mortgage or trust | 18 |
| deed
against a unit ownership given by the owner of that unit | 19 |
| to secure a debt,
the owner shall provide in writing to inform | 20 |
| the Board of Managers of the unit owner's
association , of the | 21 |
| identity of the lender together with a mailing address
at which | 22 |
| the lender can receive notices from the association.
If a unit | 23 |
| owner fails or refuses to inform the Board as required under
| 24 |
| subsection (c) then that unit owner shall be liable to the | 25 |
| association for
all costs, expenses and reasonable attorneys | 26 |
| fees and such other damages,
if any, incurred by the |
|
|
|
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|
| 1 |
| association as a result of such failure or refusal.
| 2 |
| A reasonable fee covering the costs direct out-of-pocket | 3 |
| cost of providing
such information and copying may be charged | 4 |
| by the association or its Board
of Managers to the unit seller | 5 |
| for providing such information.
| 6 |
| (Source: P.A. 87-692.)
| 7 |
| (765 ILCS 605/33 new) | 8 |
| Sec. 33. Developer escrow. To provide assurance to unit | 9 |
| owners that the developer will fulfill its obligations to the | 10 |
| association or the unit owners collectively with respect to | 11 |
| common element deficiencies for which the developer is | 12 |
| responsible, the developer shall establish an escrow in an | 13 |
| amount equal to 20% of the aggregate initial sale prices of all | 14 |
| units in the condominium, which escrow shall be kept separate | 15 |
| and apart from the developer's funds or the funds of any other | 16 |
| person and which funds shall be maintained at a federally | 17 |
| insured depository. The escrow shall be maintained for a period | 18 |
| of not less than 2 years after the election of the first unit | 19 |
| owner board as provided in subsection (b) of Section 18.2 | 20 |
| unless sooner disbursed to or at the direction of the first | 21 |
| unit owner board. | 22 |
| The escrow shall not be deemed to impose any limitation on | 23 |
| the developer's obligation under any warranty or other legal | 24 |
| obligation. This escrow requirement cannot be waived by any | 25 |
| individual unit purchaser or unit owner. A developer who |
|
|
|
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|
| 1 |
| violates this Section shall be subject to an action by the | 2 |
| association, which shall be entitled to recover treble damages | 3 |
| and attorney's fees from the developer and, if the developer is | 4 |
| a trust, corporation, or limited liability entity, the | 5 |
| beneficiaries of the trust, shareholders of the corporation, or | 6 |
| members of the limited liability entity shall be jointly and | 7 |
| severally liable for the damages and fees due to a violation of | 8 |
| this Section. | 9 |
| Nothing contained herein shall apply to any municipality | 10 |
| which enacts an ordinance establishing a bond from a developer | 11 |
| to adequately protect against damages to public property.
| 12 |
| Section 99. Effective date. This Act takes effect upon | 13 |
| becoming law.
|
|