Full Text of HB5189 095th General Assembly
HB5189eng 95TH GENERAL ASSEMBLY
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HB5189 Engrossed |
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LRB095 18627 AJO 44713 b |
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| AN ACT concerning property.
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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 18 and 18.4 as follows:
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| (765 ILCS 605/18) (from Ch. 30, par. 318)
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| (Text of Section before amendment by P.A. 95-624 )
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| Sec. 18. Contents of bylaws. The bylaws shall provide for | 9 |
| at least
the following:
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| (a) (1) The election from among the unit owners of a board | 11 |
| of managers,
the number of persons constituting such board, | 12 |
| and that the terms of at
least one-third of the members of | 13 |
| the board shall expire annually and that
all members of the | 14 |
| board shall be elected at large.
If there are multiple | 15 |
| owners of a single unit, only one of the multiple
owners | 16 |
| shall be eligible to serve as a member of the board at any | 17 |
| 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 | 20 |
| board;
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| (4) the method of removal from office of members of the | 22 |
| board;
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| (5) that the board may engage the services of a manager |
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| or managing agent;
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| (6) that each unit owner shall receive, at least 30 | 3 |
| days prior to the
adoption thereof by the board of | 4 |
| managers, a copy of the proposed annual
budget together | 5 |
| with an indication of which portions are intended for
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| reserves, capital expenditures or repairs or payment of | 7 |
| real estate taxes;
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| (7) that the board of managers shall annually supply to
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| all unit owners an itemized accounting of the common | 10 |
| expenses
for the preceding year actually incurred or paid, | 11 |
| together
with an indication of which portions were for | 12 |
| reserves, capital
expenditures or repairs or payment of | 13 |
| real estate taxes and
with a tabulation of the amounts | 14 |
| collected pursuant to the
budget or assessment, and showing | 15 |
| the net excess or
deficit of income over expenditures plus | 16 |
| reserves;
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| (8) (i) that each unit owner shall receive notice, in | 18 |
| the same manner
as is provided in this Act for membership | 19 |
| meetings, of any meeting of the
board of managers | 20 |
| concerning the adoption of the proposed annual budget and
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| regular assessments pursuant thereto or to adopt a separate | 22 |
| (special)
assessment, (ii) that except as provided in | 23 |
| subsection (iv) below, if an
adopted
budget or any separate | 24 |
| assessment adopted by the board would result in the
sum of | 25 |
| all regular and separate assessments payable in the current | 26 |
| fiscal year
exceeding 115% of the sum of all regular and |
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| separate
assessments payable during the
preceding fiscal | 2 |
| year, the
board of managers, upon written petition by unit | 3 |
| owners with 20 percent of
the votes of the association | 4 |
| delivered to the board within 14
days of the board action,
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| shall call a meeting of the unit owners within 30 days of | 6 |
| the date of
delivery of the petition to consider the budget | 7 |
| or separate
assessment; unless a
majority of
the total | 8 |
| votes of the unit owners are cast at the meeting to reject | 9 |
| the
budget or separate assessment,
it is ratified, (iii) | 10 |
| that any common expense not set forth in the budget or
any | 11 |
| increase in assessments over the amount adopted in the | 12 |
| budget shall be
separately assessed against all unit | 13 |
| owners, (iv) that separate assessments for
expenditures | 14 |
| relating to emergencies or mandated by law may be adopted | 15 |
| by the
board of managers without being subject to unit | 16 |
| owner approval or the
provisions of item (ii) above or item | 17 |
| (v) below. As used
herein, "emergency" means an immediate | 18 |
| danger to the structural integrity of
the
common elements | 19 |
| or to the life, health, safety or property of the unit | 20 |
| owners,
(v) that assessments
for additions and alterations | 21 |
| to the common elements or to association-owned
property not | 22 |
| included in the adopted annual budget, shall be separately
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| assessed and are subject to approval of two-thirds of the | 24 |
| total votes of all
unit owners, (vi) that the board of | 25 |
| managers may adopt separate assessments
payable over more | 26 |
| than one fiscal year. With respect to multi-year |
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| assessments
not governed by items (iv) and (v), the entire | 2 |
| amount of the multi-year
assessment shall be deemed | 3 |
| considered and authorized in the first fiscal year
in which | 4 |
| the assessment is approved;
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| (9) that meetings of the board of managers shall be | 6 |
| open to any unit
owner, except for the portion of any | 7 |
| meeting held (i) to discuss litigation
when an action | 8 |
| against or on behalf of the particular association has been
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| filed and is pending in a court or administrative tribunal,
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| or when the board of managers finds that such an action is | 11 |
| probable
or imminent, (ii) to consider information | 12 |
| regarding appointment, employment
or dismissal of an | 13 |
| employee, or (iii) to discuss violations of rules and
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| regulations of the association or a unit owner's unpaid | 15 |
| share of common
expenses; that any vote on these matters | 16 |
| shall be taken at a meeting or
portion thereof open to any | 17 |
| unit owner; that any unit owner may record the
proceedings | 18 |
| at meetings or portions thereof required to be open by this
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| Act by tape, film or other means; that the board may | 20 |
| prescribe reasonable
rules and regulations to govern the | 21 |
| right to make such recordings, that
notice of such meetings | 22 |
| shall be mailed or delivered at least 48 hours
prior | 23 |
| thereto, unless a written waiver of such notice is signed | 24 |
| by the
person or persons entitled to such notice pursuant | 25 |
| to the declaration,
bylaws, other condominium instrument, | 26 |
| or provision of law other than this
subsection before the |
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| meeting is convened, and that copies of notices of
meetings | 2 |
| of the board of managers shall be posted in entranceways,
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| elevators, or other conspicuous places in the condominium | 4 |
| at least 48 hours
prior to the meeting of the board of | 5 |
| managers except where there is no
common entranceway for 7 | 6 |
| or more units, the board of managers may designate
one or | 7 |
| more locations in the proximity of these units where the | 8 |
| notices of
meetings shall be posted;
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| (10) that the board shall meet at least 4 times | 10 |
| annually;
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| (11) that no member of the board or officer shall be | 12 |
| elected for a term
of more than 2 years, but that officers | 13 |
| and board members may succeed
themselves;
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| (12) the designation of an officer to mail and receive | 15 |
| all notices and
execute amendments to condominium | 16 |
| instruments as provided for in this Act
and in the | 17 |
| condominium instruments;
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| (13) the method of filling vacancies on the board
which | 19 |
| shall include authority for the remaining members of the | 20 |
| board to
fill the vacancy by two-thirds vote until the next | 21 |
| annual meeting of unit
owners or for a period terminating | 22 |
| no later than 30 days following the
filing of a petition | 23 |
| signed by unit owners holding 20% of the votes of the
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| association requesting a meeting of the unit owners to fill | 25 |
| the vacancy for
the balance of the term, and that a meeting | 26 |
| of the unit owners shall be
called for purposes of filling |
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| a vacancy on the board no later than 30 days
following the | 2 |
| filing of a petition signed by unit owners holding 20% of | 3 |
| the
votes of the association requesting such a meeting, and | 4 |
| the method of filling
vacancies among the officers that | 5 |
| shall include the authority for the members
of the board to | 6 |
| fill the vacancy for the unexpired portion of the term;
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| (14) what percentage of the board of managers, if other | 8 |
| than a majority,
shall constitute a quorum;
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| (15) provisions concerning notice of board meetings to | 10 |
| members of the
board;
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| (16) the board of managers may not enter into a | 12 |
| contract with a
current board member
or with a corporation | 13 |
| or partnership in which a board
member or a member of the | 14 |
| board member's immediate family has 25% or
more interest, | 15 |
| unless notice of intent to enter the
contract is given to | 16 |
| unit owners within 20 days after a decision is made
to | 17 |
| enter into the contract and the unit owners are
afforded an | 18 |
| opportunity by filing a petition, signed by 20% of the unit
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| owners, for an election to approve or disapprove the | 20 |
| contract;
such petition shall be filed within 20 days after | 21 |
| such notice and such
election shall be held within 30 days | 22 |
| after filing the petition; for purposes
of this subsection, | 23 |
| a board member's immediate family means the board member's
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| spouse, parents, and children;
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| (17) that the board of managers may disseminate
to unit | 26 |
| owners biographical and background information about |
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| candidates for
election to the board if (i) reasonable | 2 |
| efforts to identify all candidates are
made and all | 3 |
| candidates are given an opportunity to include | 4 |
| biographical and
background information in the information | 5 |
| to be disseminated; and (ii) the
board does not express a | 6 |
| preference in favor of any candidate;
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| (18) any proxy distributed for board elections
by the | 8 |
| board of managers gives unit owners the
opportunity to | 9 |
| designate any person as the proxy holder, and gives the | 10 |
| unit
owner the opportunity to express a preference for any | 11 |
| of the known
candidates for the board or to write in a | 12 |
| name;
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| (19) that special meetings of the board of managers can | 14 |
| be called by
the president or 25% of the members of the | 15 |
| board; and
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| (20) that the board of managers may establish
and | 17 |
| maintain a system of master metering of public utility | 18 |
| services and
collect payments in connection therewith, | 19 |
| subject to the requirements of the
Tenant Utility Payment | 20 |
| Disclosure Act.
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| (b) (1) What percentage of the unit owners, if other than | 22 |
| 20%, shall
constitute a quorum provided that, for | 23 |
| condominiums with 20 or more units,
the percentage of unit | 24 |
| owners constituting a quorum shall be 20% unless the
unit | 25 |
| owners holding a majority of the percentage interest in the
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| association provide for a higher percentage;
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| (2) that the association shall have one class of | 2 |
| membership;
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| (3) that the members shall hold an annual meeting, one | 4 |
| of the purposes
of which shall be to elect members of the | 5 |
| board of managers;
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| (4) the method of calling meetings of the unit owners;
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| (5) that special meetings of the members can be called | 8 |
| by the president,
board of managers, or by 20% of unit | 9 |
| owners;
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| (6) that written notice of any membership meeting shall | 11 |
| be mailed
or delivered giving members no less than 10 and | 12 |
| no more than 30 days
notice of the time, place and purpose | 13 |
| of such meeting;
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| (7) that voting shall be on a percentage basis, and | 15 |
| that the percentage
vote to which each unit is entitled is | 16 |
| the percentage interest of the
undivided ownership of the | 17 |
| common elements appurtenant thereto, provided
that the | 18 |
| bylaws may provide for approval by unit owners in | 19 |
| connection with
matters where the requisite approval on a | 20 |
| percentage basis is not specified
in this Act, on the basis | 21 |
| of one vote per unit;
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| (8) that, where there is more than one owner of a unit, | 23 |
| if only one
of the multiple owners is present at a meeting | 24 |
| of the association, he is
entitled to cast all the votes | 25 |
| allocated to that unit, if more than one of
the multiple | 26 |
| owners are present, the votes allocated to that unit may be
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| cast only in accordance with the agreement of a majority in | 2 |
| interest of the
multiple owners, unless the declaration | 3 |
| expressly provides otherwise, that
there is majority | 4 |
| agreement if any one of the multiple owners cast the
votes | 5 |
| allocated to that unit without protest being made promptly | 6 |
| to the
person presiding over the meeting by any of the | 7 |
| other owners of the unit;
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| (9)(A) that unless the Articles of Incorporation or the | 9 |
| bylaws
otherwise
provide, and except as provided in | 10 |
| subparagraph (B) of this paragraph (9) in
connection with | 11 |
| board elections,
a unit owner may vote by proxy executed in | 12 |
| writing by the unit
owner or by his duly authorized | 13 |
| attorney in fact; that the proxy must bear the date of
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| execution
and, unless the condominium instruments or the | 15 |
| written proxy itself provide
otherwise, is
invalid after 11 | 16 |
| months from the date of its execution;
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| (B) that if a rule adopted at least 120 days before a | 18 |
| board election
or the
declaration or bylaws provide for | 19 |
| balloting as set forth in this subsection,
unit
owners may | 20 |
| not vote by proxy in board elections, but may vote only (i) | 21 |
| by
submitting an association-issued ballot in person at the | 22 |
| election meeting or
(ii) by
submitting an | 23 |
| association-issued ballot to the association or its | 24 |
| designated
agent
by mail or other means of delivery | 25 |
| specified in the declaration, bylaws, or
rule; that
the | 26 |
| ballots shall be mailed or otherwise distributed to unit |
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| owners not less
than 10
and not more than 30 days before | 2 |
| the election meeting, and the board shall give
unit owners | 3 |
| not less than 21 days' prior written notice of the deadline | 4 |
| for
inclusion of a candidate's name on the ballots; that | 5 |
| the deadline shall be no
more
than 7 days before the | 6 |
| ballots are mailed or otherwise distributed to unit
owners; | 7 |
| that
every such ballot must include the names of all | 8 |
| candidates who have given the
board or its authorized agent | 9 |
| timely written notice of their candidacy and must
give the | 10 |
| person casting the ballot the opportunity to cast votes for | 11 |
| candidates
whose names do not appear on the ballot; that a | 12 |
| ballot received by the
association
or
its designated agent | 13 |
| after the close of voting shall not be counted; that a
unit
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| owner
who submits a ballot by mail or other means of | 15 |
| delivery specified in the
declaration, bylaws, or rule may | 16 |
| request and cast a ballot in person at the
election
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| meeting, and thereby void any ballot previously submitted | 18 |
| by that unit owner;
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| (C) that if a written petition by unit owners with at | 20 |
| least 20% of the
votes of
the association is delivered to | 21 |
| the board within 14 days after the board's
approval
of a | 22 |
| rule adopted pursuant to subparagraph (B) of this paragraph | 23 |
| (9), the board
shall call a meeting of the unit owners | 24 |
| within 30 days after the date of
delivery of
the petition; | 25 |
| that unless a majority of the total votes of the unit | 26 |
| owners are
cast
at the
meeting to reject the rule, the rule |
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| is ratified;
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| (10) that the association may, upon adoption of the | 3 |
| appropriate rules by
the board of managers, conduct | 4 |
| elections by secret ballot whereby the voting
ballot is | 5 |
| marked only with the percentage interest for the unit and | 6 |
| the vote
itself, provided that the board further adopt | 7 |
| rules to verify the status of the
unit owner issuing a | 8 |
| proxy or casting a ballot; and further, that a candidate
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| for election to the board of managers or such
candidate's | 10 |
| representative shall have the right to be present at the
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| counting of ballots at such election;
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| (11) that in the event of a resale of a condominium | 13 |
| unit the purchaser
of a unit from a seller other than the | 14 |
| developer pursuant to an installment
contract for purchase | 15 |
| shall during such times as he or she resides in the
unit be | 16 |
| counted toward a quorum for purposes of election of members | 17 |
| of the
board of managers at any meeting of the unit owners | 18 |
| called for purposes of
electing members of the board, shall | 19 |
| have the right to vote for the
election of members of the | 20 |
| board of managers and to be elected to and serve
on the | 21 |
| board of managers unless the seller expressly retains in | 22 |
| writing any
or all of such rights. In no event may the | 23 |
| seller and purchaser both be
counted toward a quorum, be | 24 |
| permitted to vote for a particular office or be
elected and | 25 |
| serve on the board. Satisfactory evidence of the | 26 |
| installment
contact shall be made available to the |
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| association or its agents. For
purposes of this subsection, | 2 |
| "installment contact" shall have the same
meaning as set | 3 |
| forth in Section 1 (e) of "An Act relating to installment
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| contracts to sell dwelling structures", approved August | 5 |
| 11, 1967, as amended;
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| (12) the method by which matters subject to the | 7 |
| approval of unit owners
set forth in this Act, or in the | 8 |
| condominium instruments, will be
submitted to the unit | 9 |
| owners at special membership meetings called for such
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| purposes; and
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| (13) that matters subject to the affirmative vote of | 12 |
| not less than 2/3
of the votes of unit owners at a meeting | 13 |
| duly called for that purpose,
shall include, but not be | 14 |
| limited to:
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| (i) merger or consolidation of the association;
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| (ii) sale, lease, exchange, or other disposition | 17 |
| (excluding the mortgage
or pledge) of all, or | 18 |
| substantially all of the property and assets of the
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| association; and
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| (iii) the purchase or sale of land or of units on | 21 |
| behalf of all unit owners.
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| (c) Election of a president from among the board of | 23 |
| managers, who shall
preside over the meetings of the board of | 24 |
| managers and of the unit owners.
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| (d) Election of a secretary from among the board of | 26 |
| managers, who shall
keep the minutes of all meetings
of the |
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| board of managers and of the unit owners and who shall, in | 2 |
| general,
perform all the duties incident to the office of | 3 |
| secretary.
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| (e) Election of a treasurer from among the board of | 5 |
| managers, who shall
keep the financial records and
books of | 6 |
| account.
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| (f) Maintenance, repair and replacement of the common | 8 |
| elements and
payments therefor, including the method of | 9 |
| approving payment vouchers.
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| (g) An association with 30 or more units shall obtain and | 11 |
| maintain
fidelity insurance covering persons who control or | 12 |
| disburse funds of the
association for the maximum amount of | 13 |
| coverage available to protect funds
in the custody or control | 14 |
| of the association plus the association reserve
fund. All | 15 |
| management companies which are responsible for the funds held | 16 |
| or
administered by the association shall maintain and furnish | 17 |
| to the
association a fidelity bond for the maximum amount of | 18 |
| coverage available to
protect funds in the custody of the | 19 |
| management company at any time. The
association shall bear the | 20 |
| cost of the fidelity insurance and fidelity
bond, unless | 21 |
| otherwise provided by contract between the association and a
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| management company. The association shall be the direct obligee | 23 |
| of any
such fidelity bond. A management company holding reserve | 24 |
| funds of an
association shall at all times maintain a separate | 25 |
| account for each
association, provided, however, that for | 26 |
| investment purposes, the Board of
Managers of an association |
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| may authorize a management company to maintain
the | 2 |
| association's reserve funds in a single interest bearing | 3 |
| account with
similar funds of other associations. The | 4 |
| management company shall at all
times maintain records | 5 |
| identifying all moneys of each association in such
investment | 6 |
| account. The management company may hold all operating funds of
| 7 |
| associations which it manages in a single operating account but | 8 |
| shall at
all times maintain records identifying all moneys of | 9 |
| each association in
such operating account. Such operating and | 10 |
| reserve funds held by the
management company for the | 11 |
| association shall not be subject to attachment
by any creditor | 12 |
| of the management company.
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| For the purpose of this subsection a management company | 14 |
| shall be
defined as a person, partnership, corporation, or | 15 |
| other legal entity
entitled to transact business on behalf of | 16 |
| others, acting on behalf of or
as an agent for a unit owner, | 17 |
| unit owners or association of unit owners for
the purpose of | 18 |
| carrying out the duties, responsibilities, and other
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| obligations necessary for the day to day operation and | 20 |
| management of any
property subject to this Act. For purposes of | 21 |
| this subsection, the term
"fiduciary insurance coverage" shall | 22 |
| be defined as both a fidelity bond and
directors and officers | 23 |
| liability coverage, the fidelity bond in the full
amount of | 24 |
| association funds and association reserves that will be in the
| 25 |
| custody of the association, and the directors and officers | 26 |
| liability
coverage at a level as shall be determined to be |
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LRB095 18627 AJO 44713 b |
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| reasonable by the board of
managers, if not otherwise | 2 |
| established by the declaration or by laws.
| 3 |
| Until one year after the effective date of this amendatory | 4 |
| Act of 1985,
if a condominium association has reserves plus | 5 |
| assessments in excess of
$250,000 and cannot reasonably obtain | 6 |
| 100% fidelity bond coverage for such
amount, then it must | 7 |
| obtain a fidelity bond coverage of $250,000.
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| (h) Method of estimating the amount of the annual budget, | 9 |
| and the manner
of assessing and collecting from the unit owners | 10 |
| their respective shares of
such estimated expenses, and of any | 11 |
| other expenses lawfully agreed upon.
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| (i) That upon 10 days notice to the manager or board of | 13 |
| managers and
payment of a reasonable fee, any unit owner shall | 14 |
| be furnished a statement
of his account setting forth the | 15 |
| amount of any unpaid assessments or other
charges due and owing | 16 |
| from such owner.
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| (j) Designation and removal of personnel necessary for the | 18 |
| maintenance,
repair and replacement of the common elements.
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| (k) Such restrictions on and requirements respecting the | 20 |
| use and
maintenance of the units and the use of the common | 21 |
| elements, not set forth
in the declaration, as are designed to | 22 |
| prevent unreasonable interference
with the use of their | 23 |
| respective units and of the common elements by the
several unit | 24 |
| owners.
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| (l) Method of adopting and of amending administrative rules | 26 |
| and
regulations governing the operation and use of the common |
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LRB095 18627 AJO 44713 b |
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| elements.
| 2 |
| (m) The percentage of votes required to modify or amend the | 3 |
| bylaws, but
each one of the particulars set forth in this | 4 |
| section shall always be
embodied in the bylaws.
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| (n) (i) The provisions of this Act, the declaration, | 6 |
| bylaws, other
condominium instruments, and rules and | 7 |
| regulations that relate to the use
of the individual unit or | 8 |
| the common elements shall be applicable to
any person leasing a | 9 |
| unit and shall be deemed to be incorporated in any
lease | 10 |
| executed or renewed on or after the effective date of this | 11 |
| amendatory
Act of 1984. (ii) With regard to any lease entered | 12 |
| into subsequent to the
effective date of this amendatory Act of | 13 |
| 1989, the unit owner leasing the
unit shall deliver a copy of | 14 |
| the signed lease to the board or if the
lease is oral, a | 15 |
| memorandum of the lease, not later than the date of
occupancy | 16 |
| or 10 days after the lease is signed, whichever occurs first. | 17 |
| In
addition to any other remedies, by filing an action jointly | 18 |
| against the
tenant and the unit owner, an association may seek | 19 |
| to enjoin a tenant from
occupying a unit or seek to evict a | 20 |
| tenant under the provisions of Article
IX of the Code of Civil | 21 |
| Procedure for failure of the lessor-owner to
comply with the | 22 |
| leasing requirements prescribed by
this Section or by the | 23 |
| declaration, bylaws, and
rules and regulations. The board of | 24 |
| managers may proceed directly against a
tenant, at law or in | 25 |
| equity, or under the provisions of Article IX of the
Code of | 26 |
| Civil Procedure, for any other breach by tenant of any
|
|
|
|
HB5189 Engrossed |
- 17 - |
LRB095 18627 AJO 44713 b |
|
| 1 |
| covenants, rules, regulations or bylaws.
| 2 |
| (o) The association shall have no authority to forbear the | 3 |
| payment
of assessments by any unit owner.
| 4 |
| (p) That when 30% or fewer of the units, by number,
possess | 5 |
| over 50% in the aggregate of the votes in the association,
any | 6 |
| percentage vote of members specified herein or in the | 7 |
| condominium
instruments shall require the specified percentage | 8 |
| by number of units
rather than by percentage of interest in the | 9 |
| common elements allocated
to units that would otherwise be | 10 |
| applicable.
| 11 |
| (q) That a unit owner may not assign, delegate, transfer, | 12 |
| surrender, or
avoid the duties, responsibilities, and | 13 |
| liabilities of a unit owner under this
Act, the condominium | 14 |
| instruments, or the rules and regulations of the
Association; | 15 |
| and that such an attempted assignment, delegation, transfer,
| 16 |
| surrender, or avoidance shall be deemed void.
| 17 |
| The provisions of this Section are applicable to all | 18 |
| condominium
instruments recorded under this Act. Any portion of | 19 |
| a condominium
instrument which contains provisions contrary to | 20 |
| these provisions shall be
void as against public policy and | 21 |
| ineffective. Any such instrument which
fails to contain the | 22 |
| provisions required by this Section shall be deemed to
| 23 |
| incorporate such provisions by operation of law.
| 24 |
| (Source: P.A. 93-243, eff. 1-1-04.)
| 25 |
| (Text of Section after amendment by P.A. 95-624 )
|
|
|
|
HB5189 Engrossed |
- 18 - |
LRB095 18627 AJO 44713 b |
|
| 1 |
| Sec. 18. Contents of bylaws. The bylaws shall provide for | 2 |
| at least
the following:
| 3 |
| (a) (1) The election from among the unit owners of a board | 4 |
| of managers,
the number of persons constituting such board, | 5 |
| and that the terms of at
least one-third of the members of | 6 |
| the board shall expire annually and that
all members of the | 7 |
| board shall be elected at large.
If there are multiple | 8 |
| owners of a single unit, only one of the multiple
owners | 9 |
| shall be eligible to serve as a member of the board at any | 10 |
| one time.
| 11 |
| (2) the powers and duties of the board;
| 12 |
| (3) the compensation, if any, of the members of the | 13 |
| board;
| 14 |
| (4) the method of removal from office of members of the | 15 |
| board;
| 16 |
| (5) that the board may engage the services of a manager | 17 |
| or managing agent;
| 18 |
| (6) that each unit owner shall receive, at least 30 | 19 |
| days prior to the
adoption thereof by the board of | 20 |
| managers, a copy of the proposed annual
budget together | 21 |
| with an indication of which portions are intended for
| 22 |
| reserves, capital expenditures or repairs or payment of | 23 |
| real estate taxes;
| 24 |
| (7) that the board of managers shall annually supply to
| 25 |
| all unit owners an itemized accounting of the common | 26 |
| expenses
for the preceding year actually incurred or paid, |
|
|
|
HB5189 Engrossed |
- 19 - |
LRB095 18627 AJO 44713 b |
|
| 1 |
| together
with an indication of which portions were for | 2 |
| reserves, capital
expenditures or repairs or payment of | 3 |
| real estate taxes and
with a tabulation of the amounts | 4 |
| collected pursuant to the
budget or assessment, and showing | 5 |
| the net excess or
deficit of income over expenditures plus | 6 |
| reserves;
| 7 |
| (8) (i) that each unit owner shall receive notice, in | 8 |
| the same manner
as is provided in this Act for membership | 9 |
| meetings, of any meeting of the
board of managers | 10 |
| concerning the adoption of the proposed annual budget and
| 11 |
| regular assessments pursuant thereto or to adopt a separate | 12 |
| (special)
assessment, (ii) that except as provided in | 13 |
| subsection (iv) below, if an
adopted
budget or any separate | 14 |
| assessment adopted by the board would result in the
sum of | 15 |
| all regular and separate assessments payable in the current | 16 |
| fiscal year
exceeding 115% of the sum of all regular and | 17 |
| separate
assessments payable during the
preceding fiscal | 18 |
| year, the
board of managers, upon written petition by unit | 19 |
| owners with 20 percent of
the votes of the association | 20 |
| delivered to the board within 14
days of the board action,
| 21 |
| shall call a meeting of the unit owners within 30 days of | 22 |
| the date of
delivery of the petition to consider the budget | 23 |
| or separate
assessment; unless a
majority of
the total | 24 |
| votes of the unit owners are cast at the meeting to reject | 25 |
| the
budget or separate assessment,
it is ratified, (iii) | 26 |
| that any common expense not set forth in the budget or
any |
|
|
|
HB5189 Engrossed |
- 20 - |
LRB095 18627 AJO 44713 b |
|
| 1 |
| increase in assessments over the amount adopted in the | 2 |
| budget shall be
separately assessed against all unit | 3 |
| owners, (iv) that separate assessments for
expenditures | 4 |
| relating to emergencies or mandated by law may be adopted | 5 |
| by the
board of managers without being subject to unit | 6 |
| owner approval or the
provisions of item (ii) above or item | 7 |
| (v) below. As used
herein, "emergency" means an immediate | 8 |
| danger to the structural integrity of
the
common elements | 9 |
| or to the life, health, safety or property of the unit | 10 |
| owners,
(v) that assessments
for additions and alterations | 11 |
| to the common elements or to association-owned
property not | 12 |
| included in the adopted annual budget, shall be separately
| 13 |
| assessed and are subject to approval of two-thirds of the | 14 |
| total votes of all
unit owners, (vi) that the board of | 15 |
| managers may adopt separate assessments
payable over more | 16 |
| than one fiscal year. With respect to multi-year | 17 |
| assessments
not governed by items (iv) and (v), the entire | 18 |
| amount of the multi-year
assessment shall be deemed | 19 |
| considered and authorized in the first fiscal year
in which | 20 |
| the assessment is approved;
| 21 |
| (9) that meetings of the board of managers shall be | 22 |
| open to any unit
owner, except for the portion of any | 23 |
| meeting held (i) to discuss litigation
when an action | 24 |
| against or on behalf of the particular association has been
| 25 |
| filed and is pending in a court or administrative tribunal,
| 26 |
| or when the board of managers finds that such an action is |
|
|
|
HB5189 Engrossed |
- 21 - |
LRB095 18627 AJO 44713 b |
|
| 1 |
| probable
or imminent, (ii) to consider information | 2 |
| regarding appointment, employment
or dismissal of an | 3 |
| employee, or (iii) to discuss violations of rules and
| 4 |
| regulations of the association or a unit owner's unpaid | 5 |
| share of common
expenses; that any vote on these matters | 6 |
| shall be taken at a meeting or
portion thereof open to any | 7 |
| unit owner; that any unit owner may record the
proceedings | 8 |
| at meetings or portions thereof required to be open by this
| 9 |
| Act by tape, film or other means; that the board may | 10 |
| prescribe reasonable
rules and regulations to govern the | 11 |
| right to make such recordings, that
notice of such meetings | 12 |
| shall be mailed or delivered at least 48 hours
prior | 13 |
| thereto, unless a written waiver of such notice is signed | 14 |
| by the
person or persons entitled to such notice pursuant | 15 |
| to the declaration,
bylaws, other condominium instrument, | 16 |
| or provision of law other than this
subsection before the | 17 |
| meeting is convened, and that copies of notices of
meetings | 18 |
| of the board of managers shall be posted in entranceways,
| 19 |
| elevators, or other conspicuous places in the condominium | 20 |
| at least 48 hours
prior to the meeting of the board of | 21 |
| managers except where there is no
common entranceway for 7 | 22 |
| or more units, the board of managers may designate
one or | 23 |
| more locations in the proximity of these units where the | 24 |
| notices of
meetings shall be posted;
| 25 |
| (10) that the board shall meet at least 4 times | 26 |
| annually;
|
|
|
|
HB5189 Engrossed |
- 22 - |
LRB095 18627 AJO 44713 b |
|
| 1 |
| (11) that no member of the board or officer shall be | 2 |
| elected for a term
of more than 2 years, but that officers | 3 |
| and board members may succeed
themselves;
| 4 |
| (12) the designation of an officer to mail and receive | 5 |
| all notices and
execute amendments to condominium | 6 |
| instruments as provided for in this Act
and in the | 7 |
| condominium instruments;
| 8 |
| (13) the method of filling vacancies on the board
which | 9 |
| shall include authority for the remaining members of the | 10 |
| board to
fill the vacancy by two-thirds vote until the next | 11 |
| annual meeting of unit
owners or for a period terminating | 12 |
| no later than 30 days following the
filing of a petition | 13 |
| signed by unit owners holding 20% of the votes of the
| 14 |
| association requesting a meeting of the unit owners to fill | 15 |
| the vacancy for
the balance of the term, and that a meeting | 16 |
| of the unit owners shall be
called for purposes of filling | 17 |
| a vacancy on the board no later than 30 days
following the | 18 |
| filing of a petition signed by unit owners holding 20% of | 19 |
| the
votes of the association requesting such a meeting, and | 20 |
| the method of filling
vacancies among the officers that | 21 |
| shall include the authority for the members
of the board to | 22 |
| fill the vacancy for the unexpired portion of the term;
| 23 |
| (14) what percentage of the board of managers, if other | 24 |
| than a majority,
shall constitute a quorum;
| 25 |
| (15) provisions concerning notice of board meetings to | 26 |
| members of the
board;
|
|
|
|
HB5189 Engrossed |
- 23 - |
LRB095 18627 AJO 44713 b |
|
| 1 |
| (16) the board of managers may not enter into a | 2 |
| contract with a
current board member
or with a corporation | 3 |
| or partnership in which a board
member or a member of the | 4 |
| board member's immediate family has 25% or
more interest, | 5 |
| unless notice of intent to enter the
contract is given to | 6 |
| unit owners within 20 days after a decision is made
to | 7 |
| enter into the contract and the unit owners are
afforded an | 8 |
| opportunity by filing a petition, signed by 20% of the unit
| 9 |
| owners, for an election to approve or disapprove the | 10 |
| contract;
such petition shall be filed within 20 days after | 11 |
| such notice and such
election shall be held within 30 days | 12 |
| after filing the petition; for purposes
of this subsection, | 13 |
| a board member's immediate family means the board member's
| 14 |
| spouse, parents, and children;
| 15 |
| (17) that the board of managers may disseminate
to unit | 16 |
| owners biographical and background information about | 17 |
| candidates for
election to the board if (i) reasonable | 18 |
| efforts to identify all candidates are
made and all | 19 |
| candidates are given an opportunity to include | 20 |
| biographical and
background information in the information | 21 |
| to be disseminated; and (ii) the
board does not express a | 22 |
| preference in favor of any candidate;
| 23 |
| (18) any proxy distributed for board elections
by the | 24 |
| board of managers gives unit owners the
opportunity to | 25 |
| designate any person as the proxy holder, and gives the | 26 |
| unit
owner the opportunity to express a preference for any |
|
|
|
HB5189 Engrossed |
- 24 - |
LRB095 18627 AJO 44713 b |
|
| 1 |
| of the known
candidates for the board or to write in a | 2 |
| name;
| 3 |
| (19) that special meetings of the board of managers can | 4 |
| be called by
the president or 25% of the members of the | 5 |
| board; and
| 6 |
| (20) that the board of managers may establish
and | 7 |
| maintain a system of master metering of public utility | 8 |
| services and
collect payments in connection therewith, | 9 |
| subject to the requirements of the
Tenant Utility Payment | 10 |
| Disclosure Act.
| 11 |
| (b) (1) What percentage of the unit owners, if other than | 12 |
| 20%, shall
constitute a quorum provided that, for | 13 |
| condominiums with 20 or more units,
the percentage of unit | 14 |
| owners constituting a quorum shall be 20% unless the
unit | 15 |
| owners holding a majority of the percentage interest in the
| 16 |
| association provide for a higher percentage;
| 17 |
| (2) that the association shall have one class of | 18 |
| membership;
| 19 |
| (3) that the members shall hold an annual meeting, one | 20 |
| of the purposes
of which shall be to elect members of the | 21 |
| board of managers;
| 22 |
| (4) the method of calling meetings of the unit owners;
| 23 |
| (5) that special meetings of the members can be called | 24 |
| by the president,
board of managers, or by 20% of unit | 25 |
| owners;
| 26 |
| (6) that written notice of any membership meeting shall |
|
|
|
HB5189 Engrossed |
- 25 - |
LRB095 18627 AJO 44713 b |
|
| 1 |
| be mailed
or delivered giving members no less than 10 and | 2 |
| no more than 30 days
notice of the time, place and purpose | 3 |
| of such meeting;
| 4 |
| (7) that voting shall be on a percentage basis, and | 5 |
| that the percentage
vote to which each unit is entitled is | 6 |
| the percentage interest of the
undivided ownership of the | 7 |
| common elements appurtenant thereto, provided
that the | 8 |
| bylaws may provide for approval by unit owners in | 9 |
| connection with
matters where the requisite approval on a | 10 |
| percentage basis is not specified
in this Act, on the basis | 11 |
| of one vote per unit;
| 12 |
| (8) that, where there is more than one owner of a unit, | 13 |
| if only one
of the multiple owners is present at a meeting | 14 |
| of the association, he is
entitled to cast all the votes | 15 |
| allocated to that unit, if more than one of
the multiple | 16 |
| owners are present, the votes allocated to that unit may be
| 17 |
| cast only in accordance with the agreement of a majority in | 18 |
| interest of the
multiple owners, unless the declaration | 19 |
| expressly provides otherwise, that
there is majority | 20 |
| agreement if any one of the multiple owners cast the
votes | 21 |
| allocated to that unit without protest being made promptly | 22 |
| to the
person presiding over the meeting by any of the | 23 |
| other owners of the unit;
| 24 |
| (9)(A) that unless the Articles of Incorporation or the | 25 |
| bylaws
otherwise
provide, and except as provided in | 26 |
| subparagraph (B) of this paragraph (9) in
connection with |
|
|
|
HB5189 Engrossed |
- 26 - |
LRB095 18627 AJO 44713 b |
|
| 1 |
| board elections,
a unit owner may vote by proxy executed in | 2 |
| writing by the unit
owner or by his duly authorized | 3 |
| attorney in fact; that the proxy must bear the date of
| 4 |
| execution
and, unless the condominium instruments or the | 5 |
| written proxy itself provide
otherwise, is
invalid after 11 | 6 |
| months from the date of its execution;
| 7 |
| (B) that if a rule adopted at least 120 days before a | 8 |
| board election
or the
declaration or bylaws provide for | 9 |
| balloting as set forth in this subsection,
unit
owners may | 10 |
| not vote by proxy in board elections, but may vote only (i) | 11 |
| by
submitting an association-issued ballot in person at the | 12 |
| election meeting or
(ii) by
submitting an | 13 |
| association-issued ballot to the association or its | 14 |
| designated
agent
by mail or other means of delivery | 15 |
| specified in the declaration, bylaws, or
rule; that
the | 16 |
| ballots shall be mailed or otherwise distributed to unit | 17 |
| owners not less
than 10
and not more than 30 days before | 18 |
| the election meeting, and the board shall give
unit owners | 19 |
| not less than 21 days' prior written notice of the deadline | 20 |
| for
inclusion of a candidate's name on the ballots; that | 21 |
| the deadline shall be no
more
than 7 days before the | 22 |
| ballots are mailed or otherwise distributed to unit
owners; | 23 |
| that
every such ballot must include the names of all | 24 |
| candidates who have given the
board or its authorized agent | 25 |
| timely written notice of their candidacy and must
give the | 26 |
| person casting the ballot the opportunity to cast votes for |
|
|
|
HB5189 Engrossed |
- 27 - |
LRB095 18627 AJO 44713 b |
|
| 1 |
| candidates
whose names do not appear on the ballot; that a | 2 |
| ballot received by the
association
or
its designated agent | 3 |
| after the close of voting shall not be counted; that a
unit
| 4 |
| owner
who submits a ballot by mail or other means of | 5 |
| delivery specified in the
declaration, bylaws, or rule may | 6 |
| request and cast a ballot in person at the
election
| 7 |
| meeting, and thereby void any ballot previously submitted | 8 |
| by that unit owner;
| 9 |
| (C) that if a written petition by unit owners with at | 10 |
| least 20% of the
votes of
the association is delivered to | 11 |
| the board within 14 days after the board's
approval
of a | 12 |
| rule adopted pursuant to subparagraph (B) of this paragraph | 13 |
| (9), the board
shall call a meeting of the unit owners | 14 |
| within 30 days after the date of
delivery of
the petition; | 15 |
| that unless a majority of the total votes of the unit | 16 |
| owners are
cast
at the
meeting to reject the rule, the rule | 17 |
| is ratified;
| 18 |
| (10) that the association may, upon adoption of the | 19 |
| appropriate rules by
the board of managers, conduct | 20 |
| elections by secret ballot whereby the voting
ballot is | 21 |
| marked only with the percentage interest for the unit and | 22 |
| the vote
itself, provided that the board further adopt | 23 |
| rules to verify the status of the
unit owner issuing a | 24 |
| proxy or casting a ballot; and further, that a candidate
| 25 |
| for election to the board of managers or such
candidate's | 26 |
| representative shall have the right to be present at the
|
|
|
|
HB5189 Engrossed |
- 28 - |
LRB095 18627 AJO 44713 b |
|
| 1 |
| counting of ballots at such election;
| 2 |
| (11) that in the event of a resale of a condominium | 3 |
| unit the purchaser
of a unit from a seller other than the | 4 |
| developer pursuant to an installment
contract for purchase | 5 |
| shall during such times as he or she resides in the
unit be | 6 |
| counted toward a quorum for purposes of election of members | 7 |
| of the
board of managers at any meeting of the unit owners | 8 |
| called for purposes of
electing members of the board, shall | 9 |
| have the right to vote for the
election of members of the | 10 |
| board of managers and to be elected to and serve
on the | 11 |
| board of managers unless the seller expressly retains in | 12 |
| writing any
or all of such rights. In no event may the | 13 |
| seller and purchaser both be
counted toward a quorum, be | 14 |
| permitted to vote for a particular office or be
elected and | 15 |
| serve on the board. Satisfactory evidence of the | 16 |
| installment
contact shall be made available to the | 17 |
| association or its agents. For
purposes of this subsection, | 18 |
| "installment contact" shall have the same
meaning as set | 19 |
| forth in Section 1 (e) of "An Act relating to installment
| 20 |
| contracts to sell dwelling structures", approved August | 21 |
| 11, 1967, as amended;
| 22 |
| (12) the method by which matters subject to the | 23 |
| approval of unit owners
set forth in this Act, or in the | 24 |
| condominium instruments, will be
submitted to the unit | 25 |
| owners at special membership meetings called for such
| 26 |
| purposes; and
|
|
|
|
HB5189 Engrossed |
- 29 - |
LRB095 18627 AJO 44713 b |
|
| 1 |
| (13) that matters subject to the affirmative vote of | 2 |
| not less than 2/3
of the votes of unit owners at a meeting | 3 |
| duly called for that purpose,
shall include, but not be | 4 |
| limited to:
| 5 |
| (i) merger or consolidation of the association;
| 6 |
| (ii) sale, lease, exchange, or other disposition | 7 |
| (excluding the mortgage
or pledge) of all, or | 8 |
| substantially all of the property and assets of the
| 9 |
| association; and
| 10 |
| (iii) the purchase or sale of land or of units on | 11 |
| behalf of all unit owners.
| 12 |
| (c) Election of a president from among the board of | 13 |
| managers, who shall
preside over the meetings of the board of | 14 |
| managers and of the unit owners.
| 15 |
| (d) Election of a secretary from among the board of | 16 |
| managers, who shall
keep the minutes of all meetings
of the | 17 |
| board of managers and of the unit owners and who shall, in | 18 |
| general,
perform all the duties incident to the office of | 19 |
| secretary.
| 20 |
| (e) Election of a treasurer from among the board of | 21 |
| managers, who shall
keep the financial records and
books of | 22 |
| account.
| 23 |
| (f) Maintenance, repair and replacement of the common | 24 |
| elements and
payments therefor, including the method of | 25 |
| approving payment vouchers.
| 26 |
| (g) An association with 30 or more units shall obtain and |
|
|
|
HB5189 Engrossed |
- 30 - |
LRB095 18627 AJO 44713 b |
|
| 1 |
| maintain
fidelity insurance covering persons who control or | 2 |
| disburse funds of the
association for the maximum amount of | 3 |
| coverage available to protect funds
in the custody or control | 4 |
| of the association plus the association reserve
fund. All | 5 |
| management companies which are responsible for the funds held | 6 |
| or
administered by the association shall maintain and furnish | 7 |
| to the
association a fidelity bond for the maximum amount of | 8 |
| coverage available to
protect funds in the custody of the | 9 |
| management company at any time. The
association shall bear the | 10 |
| cost of the fidelity insurance and fidelity
bond, unless | 11 |
| otherwise provided by contract between the association and a
| 12 |
| management company. The association shall be the direct obligee | 13 |
| of any
such fidelity bond. A management company holding reserve | 14 |
| funds of an
association shall at all times maintain a separate | 15 |
| account for each
association, provided, however, that for | 16 |
| investment purposes, the Board of
Managers of an association | 17 |
| may authorize a management company to maintain
the | 18 |
| association's reserve funds in a single interest bearing | 19 |
| account with
similar funds of other associations. The | 20 |
| management company shall at all
times maintain records | 21 |
| identifying all moneys of each association in such
investment | 22 |
| account. The management company may hold all operating funds of
| 23 |
| associations which it manages in a single operating account but | 24 |
| shall at
all times maintain records identifying all moneys of | 25 |
| each association in
such operating account. Such operating and | 26 |
| reserve funds held by the
management company for the |
|
|
|
HB5189 Engrossed |
- 31 - |
LRB095 18627 AJO 44713 b |
|
| 1 |
| association shall not be subject to attachment
by any creditor | 2 |
| of the management company.
| 3 |
| For the purpose of this subsection a management company | 4 |
| shall be
defined as a person, partnership, corporation, or | 5 |
| other legal entity
entitled to transact business on behalf of | 6 |
| others, acting on behalf of or
as an agent for a unit owner, | 7 |
| unit owners or association of unit owners for
the purpose of | 8 |
| carrying out the duties, responsibilities, and other
| 9 |
| obligations necessary for the day to day operation and | 10 |
| management of any
property subject to this Act. For purposes of | 11 |
| this subsection, the term
"fiduciary insurance coverage" shall | 12 |
| be defined as both a fidelity bond and
directors and officers | 13 |
| liability coverage, the fidelity bond in the full
amount of | 14 |
| association funds and association reserves that will be in the
| 15 |
| custody of the association, and the directors and officers | 16 |
| liability
coverage at a level as shall be determined to be | 17 |
| reasonable by the board of
managers, if not otherwise | 18 |
| established by the declaration or by laws.
| 19 |
| Until one year after the effective date of this amendatory | 20 |
| Act of 1985,
if a condominium association has reserves plus | 21 |
| assessments in excess of
$250,000 and cannot reasonably obtain | 22 |
| 100% fidelity bond coverage for such
amount, then it must | 23 |
| obtain a fidelity bond coverage of $250,000.
| 24 |
| (h) Method of estimating the amount of the annual budget, | 25 |
| and the manner
of assessing and collecting from the unit owners | 26 |
| their respective shares of
such estimated expenses, and of any |
|
|
|
HB5189 Engrossed |
- 32 - |
LRB095 18627 AJO 44713 b |
|
| 1 |
| other expenses lawfully agreed upon.
| 2 |
| (i) That upon 10 days notice to the manager or board of | 3 |
| managers and
payment of a reasonable fee, any unit owner shall | 4 |
| be furnished a statement
of his account setting forth the | 5 |
| amount of any unpaid assessments or other
charges due and owing | 6 |
| from such owner.
| 7 |
| (j) Designation and removal of personnel necessary for the | 8 |
| maintenance,
repair and replacement of the common elements.
| 9 |
| (k) Such restrictions on and requirements respecting the | 10 |
| use and
maintenance of the units and the use of the common | 11 |
| elements, not set forth
in the declaration, as are designed to | 12 |
| prevent unreasonable interference
with the use of their | 13 |
| respective units and of the common elements by the
several unit | 14 |
| owners.
| 15 |
| (l) Method of adopting and of amending administrative rules | 16 |
| and
regulations governing the operation and use of the common | 17 |
| elements.
| 18 |
| (m) The percentage of votes required to modify or amend the | 19 |
| bylaws, but
each one of the particulars set forth in this | 20 |
| section shall always be
embodied in the bylaws.
| 21 |
| (n) (i) The provisions of this Act, the declaration, | 22 |
| bylaws, other
condominium instruments, and rules and | 23 |
| regulations that relate to the use
of the individual unit or | 24 |
| the common elements shall be applicable to
any person leasing a | 25 |
| unit and shall be deemed to be incorporated in any
lease | 26 |
| executed or renewed on or after the effective date of this |
|
|
|
HB5189 Engrossed |
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LRB095 18627 AJO 44713 b |
|
| 1 |
| amendatory
Act of 1984. (ii) With regard to any lease entered | 2 |
| into subsequent to the
effective date of this amendatory Act of | 3 |
| 1989, the unit owner leasing the
unit shall deliver a copy of | 4 |
| the signed lease to the board or if the
lease is oral, a | 5 |
| memorandum of the lease, not later than the date of
occupancy | 6 |
| or 10 days after the lease is signed, whichever occurs first. | 7 |
| In
addition to any other remedies, by filing an action jointly | 8 |
| against the
tenant and the unit owner, an association may seek | 9 |
| to enjoin a tenant from
occupying a unit or seek to evict a | 10 |
| tenant under the provisions of Article
IX of the Code of Civil | 11 |
| Procedure for failure of the lessor-owner to
comply with the | 12 |
| leasing requirements prescribed by
this Section or by the | 13 |
| declaration, bylaws, and
rules and regulations. However, if an | 14 |
| association that currently permits leasing amends its | 15 |
| declaration, bylaws, or rules and regulations, to prohibit | 16 |
| leasing, nothing in this Act or the declarations, bylaws, rules | 17 |
| and regulations of an association, shall prohibit a unit owner | 18 |
| who is leasing his or her unit or units at the time of the | 19 |
| prohibition from continuing to do so, until such time that the | 20 |
| unit owner voluntarily sells the unit or units; and no special | 21 |
| fines, fees, dues, or penalties shall be assessed against the | 22 |
| unit owner for leasing his or her unit or units. The board of | 23 |
| managers may proceed directly against a
tenant, at law or in | 24 |
| equity, or under the provisions of Article IX of the
Code of | 25 |
| Civil Procedure, for any other breach by tenant of any
| 26 |
| covenants, rules, regulations or bylaws.
|
|
|
|
HB5189 Engrossed |
- 34 - |
LRB095 18627 AJO 44713 b |
|
| 1 |
| (o) The association shall have no authority to forbear the | 2 |
| payment
of assessments by any unit owner.
| 3 |
| (p) That when 30% or fewer of the units, by number,
possess | 4 |
| over 50% in the aggregate of the votes in the association,
any | 5 |
| percentage vote of members specified herein or in the | 6 |
| condominium
instruments shall require the specified percentage | 7 |
| by number of units
rather than by percentage of interest in the | 8 |
| common elements allocated
to units that would otherwise be | 9 |
| applicable. For purposes of this subsection (p), when making a | 10 |
| determination of whether 30% or fewer of the units, by number, | 11 |
| possess over 50% in the aggregate of the votes in the | 12 |
| association, a unit shall not include a garage unit or a | 13 |
| storage unit.
| 14 |
| (q) That a unit owner may not assign, delegate, transfer, | 15 |
| surrender, or
avoid the duties, responsibilities, and | 16 |
| liabilities of a unit owner under this
Act, the condominium | 17 |
| instruments, or the rules and regulations of the
Association; | 18 |
| and that such an attempted assignment, delegation, transfer,
| 19 |
| surrender, or avoidance shall be deemed void.
| 20 |
| The provisions of this Section are applicable to all | 21 |
| condominium
instruments recorded under this Act. Any portion of | 22 |
| a condominium
instrument which contains provisions contrary to | 23 |
| these provisions shall be
void as against public policy and | 24 |
| ineffective. Any such instrument which
fails to contain the | 25 |
| provisions required by this Section shall be deemed to
| 26 |
| incorporate such provisions by operation of law.
|
|
|
|
HB5189 Engrossed |
- 35 - |
LRB095 18627 AJO 44713 b |
|
| 1 |
| (Source: P.A. 95-624, eff. 6-1-08.)
| 2 |
| (765 ILCS 605/18.4) (from Ch. 30, par. 318.4)
| 3 |
| Sec. 18.4. Powers and Duties of Board of Managers. The | 4 |
| board of
managers shall exercise for the association all | 5 |
| powers, duties and
authority vested in the association by law | 6 |
| or the condominium instruments
except for such powers, duties | 7 |
| and authority reserved by law to the members
of the | 8 |
| association. The powers and duties of the board of managers | 9 |
| shall
include, but shall not be limited to, the following:
| 10 |
| (a) To provide for the operation, care, upkeep, | 11 |
| maintenance,
replacement and improvement of the common | 12 |
| elements. Nothing
in
this subsection (a) shall be deemed to | 13 |
| invalidate any provision in a
condominium instrument | 14 |
| placing limits on expenditures for the common elements, | 15 |
| provided, that such
limits shall not be applicable to | 16 |
| expenditures for repair, replacement, or
restoration of | 17 |
| existing portions of the common elements. The
term "repair, | 18 |
| replacement or restoration" means expenditures to | 19 |
| deteriorated or
damaged portions of the property related to | 20 |
| the existing decorating,
facilities, or structural or | 21 |
| mechanical components, interior or exterior
surfaces, or | 22 |
| energy systems and equipment with the functional | 23 |
| equivalent of the
original portions of such areas. | 24 |
| Replacement of the common elements may
result in an | 25 |
| improvement over the original quality of such elements or
|
|
|
|
HB5189 Engrossed |
- 36 - |
LRB095 18627 AJO 44713 b |
|
| 1 |
| facilities; provided that, unless the improvement is | 2 |
| mandated by law or is an
emergency as defined in item (iv) | 3 |
| of subparagraph (8) of paragraph (a) of
Section 18, if the | 4 |
| improvement results in a proposed expenditure
exceeding 5% | 5 |
| of the annual budget, the board of managers, upon written | 6 |
| petition
by unit owners with 20% of the votes of the | 7 |
| association delivered to the board
within 14 days of the | 8 |
| board action to approve the expenditure, shall call a
| 9 |
| meeting of the unit owners within 30 days of the date of | 10 |
| delivery of the
petition to consider the expenditure. | 11 |
| Unless a majority of the total votes of
the unit owners are | 12 |
| cast at the meeting to reject the expenditure, it is
| 13 |
| ratified.
| 14 |
| (b) To prepare, adopt and distribute the annual budget | 15 |
| for the property.
| 16 |
| (c) To levy and expend assessments.
| 17 |
| (d) To collect assessments from unit
owners.
| 18 |
| (e) To provide for the employment and dismissal of the | 19 |
| personnel
necessary or advisable for the maintenance and | 20 |
| operation of the common
elements.
| 21 |
| (f) To obtain adequate and appropriate kinds of
| 22 |
| insurance.
| 23 |
| (g) To own, convey, encumber, lease, and otherwise deal | 24 |
| with units
conveyed to or purchased by it.
| 25 |
| (h) To adopt and amend rules and regulations covering | 26 |
| the details of
the operation and use of the property, after |
|
|
|
HB5189 Engrossed |
- 37 - |
LRB095 18627 AJO 44713 b |
|
| 1 |
| a meeting of the unit owners
called for the specific | 2 |
| purpose of discussing the proposed rules and
regulations. | 3 |
| Notice of the meeting shall contain the full text of the
| 4 |
| proposed rules and regulations, and the meeting shall | 5 |
| conform to the
requirements of Section 18(b) of this Act, | 6 |
| except that no quorum is
required at the meeting of the | 7 |
| unit owners unless the declaration, bylaws
or other | 8 |
| condominium instrument expressly provides to the contrary.
| 9 |
| However, no rule or regulation may impair any rights | 10 |
| guaranteed by the
First Amendment to the Constitution of | 11 |
| the United States or Section 4 of
Article I of the Illinois | 12 |
| Constitution including, but not limited to, the free | 13 |
| exercise of religion, nor may any rules or regulations
| 14 |
| conflict with the provisions of this Act or the condominium | 15 |
| instruments. No rule or regulation shall prohibit any | 16 |
| reasonable accommodation for religious practices, | 17 |
| including the attachment of religiously mandated objects | 18 |
| to the front-door area of a condominium unit.
However, if | 19 |
| an association that currently permits leasing amends its | 20 |
| declaration, bylaws, or rules and regulations, to prohibit | 21 |
| leasing, nothing in this Act or the declarations, bylaws, | 22 |
| rules and regulations of an association, shall prohibit a | 23 |
| unit owner who is leasing his or her unit or units at the | 24 |
| time of the prohibition from continuing to do so, until | 25 |
| such time that the unit owner voluntarily sells the unit or | 26 |
| units; and no special fines, fees, dues, or penalties shall |
|
|
|
HB5189 Engrossed |
- 38 - |
LRB095 18627 AJO 44713 b |
|
| 1 |
| be assessed against the unit owner for leasing his or her | 2 |
| unit or units.
| 3 |
| (i) To keep detailed, accurate records of the receipts | 4 |
| and
expenditures affecting the use and operation of the | 5 |
| property.
| 6 |
| (j) To have access to each unit from time to time as | 7 |
| may be necessary
for the maintenance, repair or replacement | 8 |
| of any common elements or for
making emergency repairs | 9 |
| necessary to prevent damage to the common elements
or to | 10 |
| other units.
| 11 |
| (k) To pay real property taxes, special assessments, | 12 |
| and any other
special taxes or charges of the State of | 13 |
| Illinois or of any political
subdivision thereof, or other | 14 |
| lawful taxing or assessing body, which are
authorized by | 15 |
| law to be assessed and levied upon the real property of the
| 16 |
| condominium.
| 17 |
| (l) To impose charges for late payment of a unit | 18 |
| owner's proportionate
share of the common expenses, or any | 19 |
| other expenses lawfully agreed upon,
and after notice and | 20 |
| an opportunity to be heard, to levy reasonable fines
for | 21 |
| violation of the declaration, by-laws, and rules and | 22 |
| regulations of
the association.
| 23 |
| (m) Unless the condominium instruments expressly | 24 |
| provide to the
contrary, by a majority vote of the entire | 25 |
| board of managers, to assign the
right of the association | 26 |
| to future income from common expenses or other
sources, and |
|
|
|
HB5189 Engrossed |
- 39 - |
LRB095 18627 AJO 44713 b |
|
| 1 |
| to mortgage or pledge substantially all of the remaining
| 2 |
| assets of the association.
| 3 |
| (n) To record the dedication of a portion of the common | 4 |
| elements
to a public body for use as, or in connection | 5 |
| with, a street or utility
where authorized by the unit | 6 |
| owners under the provisions of Section 14.2.
| 7 |
| (o) To record the granting of an easement for the | 8 |
| laying of cable
television cable where authorized by the | 9 |
| unit owners under the provisions
of Section 14.3; to | 10 |
| obtain, if available and determined by the board to be in
| 11 |
| the best interests of the association, cable television
| 12 |
| service for all of the units of the condominium on a bulk
| 13 |
| identical service and equal cost per unit basis; and to | 14 |
| assess and recover the
expense as a common expense and, if | 15 |
| so determined by the board, to assess each
and every unit | 16 |
| on the same equal cost per unit basis.
| 17 |
| (p) To seek relief on behalf of all unit owners when | 18 |
| authorized
pursuant to subsection (c) of Section 10 from or | 19 |
| in connection with the
assessment or levying of real | 20 |
| property taxes, special assessments, and any
other special | 21 |
| taxes or changes of the State of Illinois or of any | 22 |
| political
subdivision thereof or of any lawful taxing or | 23 |
| assessing body.
| 24 |
| (q) To reasonably accommodate the needs of a | 25 |
| handicapped unit owner
as required by the federal Civil | 26 |
| Rights Act of 1968, the Human Rights Act
and any applicable |
|
|
|
HB5189 Engrossed |
- 40 - |
LRB095 18627 AJO 44713 b |
|
| 1 |
| local ordinances in the exercise of its powers with
respect | 2 |
| to the use of common elements or approval of modifications | 3 |
| in an
individual unit.
| 4 |
| (r) To accept service of a notice of claim for purposes | 5 |
| of the Mechanics Lien Act on behalf of each respective | 6 |
| member of the Unit Owners' Association with respect to | 7 |
| improvements performed pursuant to any contract entered | 8 |
| into by the Board of Managers or any contract entered into | 9 |
| prior to the recording of the condominium declaration | 10 |
| pursuant to this Act, for a property containing more than 8 | 11 |
| units, and to distribute the notice to the unit owners | 12 |
| within 7 days of the acceptance of the service by the Board | 13 |
| of Managers. The service shall be effective as if each | 14 |
| individual unit owner had been served individually with | 15 |
| notice.
| 16 |
| In the performance of their duties, the officers and | 17 |
| members of the board,
whether appointed by the developer or | 18 |
| elected by the unit owners, shall
exercise the care required of | 19 |
| a fiduciary of the unit owners.
| 20 |
| The collection of assessments from unit owners by an | 21 |
| association, board
of managers or their duly authorized agents | 22 |
| shall not be considered acts
constituting a collection agency | 23 |
| for purposes of the Collection Agency Act.
| 24 |
| The provisions of this Section are
applicable to all | 25 |
| condominium instruments recorded under this Act. Any
portion of | 26 |
| a condominium instrument which contains provisions contrary to
|
|
|
|
HB5189 Engrossed |
- 41 - |
LRB095 18627 AJO 44713 b |
|
| 1 |
| these provisions shall be void as against public policy and | 2 |
| ineffective.
Any such instrument that fails to contain the | 3 |
| provisions required by this
Section shall be deemed to | 4 |
| incorporate such provisions by operation of law.
| 5 |
| (Source: P.A. 94-384, eff. 1-1-06; 94-729, eff. 1-1-07.)
| 6 |
| Section 10. The General Not For Profit Corporation Act of | 7 |
| 1986 is amended by adding Section 103.35 as follows: | 8 |
| (805 ILCS 105/103.35 new)
| 9 |
| Sec. 103.35. Leasing units. | 10 |
| (a) If a common interest community or homeowners' | 11 |
| association that currently permits leasing amends its | 12 |
| declaration, covenants, bylaws, rules, regulations, or any | 13 |
| other instruments, to prohibit leasing, nothing in this Act, or | 14 |
| a common interest community or homeowners' association's | 15 |
| declaration, covenants, bylaws, rules, regulations, or any | 16 |
| other instruments, shall prohibit a unit owner who is leasing | 17 |
| his or her unit or units at the time of the prohibition from | 18 |
| continuing to do so, until such time that the unit owner | 19 |
| voluntarily sells the unit or units; and no special fines, | 20 |
| fees, dues, or penalties shall be assessed against the unit | 21 |
| owner for leasing his or her unit or units. | 22 |
| (b) As used in this Section: | 23 |
| "Homeowners' association" includes a property owners' | 24 |
| association, townhome association, and any similar entity, |
|
|
|
HB5189 Engrossed |
- 42 - |
LRB095 18627 AJO 44713 b |
|
| 1 |
| and "homeowner" includes a townhome owner. | 2 |
| "Common interest community" means the definition | 3 |
| provided in subsection (c) of Section 9-102 of the Code of | 4 |
| Civil Procedure. | 5 |
| Section 95. No acceleration or delay. Where this Act makes | 6 |
| changes in a statute that is represented in this Act by text | 7 |
| that is not yet or no longer in effect (for example, a Section | 8 |
| represented by multiple versions), the use of that text does | 9 |
| not accelerate or delay the taking effect of (i) the changes | 10 |
| made by this Act or (ii) provisions derived from any other | 11 |
| Public Act.
| 12 |
| Section 99. Effective date. This Act takes effect upon | 13 |
| becoming law.
|
|