(765 ILCS 605/9) (from Ch. 30, par. 309)
Sec. 9. Sharing of expenses - Lien for nonpayment.
(a) All common expenses incurred or accrued prior to the first conveyance
of a unit shall be paid by the developer, and during this period no common
expense assessment shall be payable to the association. It shall be the duty
of each unit owner including the developer to pay his proportionate share of
the common expenses commencing with the first conveyance. The proportionate
share shall be in the same ratio as his percentage of ownership in the common
elements set forth in the declaration.
(b) The condominium instruments may provide that common expenses for
insurance premiums be assessed on a basis reflecting increased charges for
coverage on certain units.
(c) Budget and reserves.
(1) The board of managers shall prepare and |
| distribute to all unit owners a detailed proposed annual budget, setting forth with particularity all anticipated common expenses by category as well as all anticipated assessments and other income. The initial budget and common expense assessment based thereon shall be adopted prior to the conveyance of any unit. The budget shall also set forth each unit owner's proposed common expense assessment.
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(2) All budgets adopted by a board of managers on or
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| after July 1, 1990 shall provide for reasonable reserves for capital expenditures and deferred maintenance for repair or replacement of the common elements. To determine the amount of reserves appropriate for an association, the board of managers shall take into consideration the following: (i) the repair and replacement cost, and the estimated useful life, of the property which the association is obligated to maintain, including but not limited to structural and mechanical components, surfaces of the buildings and common elements, and energy systems and equipment; (ii) the current and anticipated return on investment of association funds; (iii) any independent professional reserve study which the association may obtain; (iv) the financial impact on unit owners, and the market value of the condominium units, of any assessment increase needed to fund reserves; and (v) the ability of the association to obtain financing or refinancing.
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(3) Notwithstanding the provisions of this subsection
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| (c), an association without a reserve requirement in its condominium instruments may elect to waive in whole or in part the reserve requirements of this Section by a vote of 2/3 of the total votes of the association. Any association having elected under this paragraph (3) to waive the provisions of subsection (c) may by a vote of 2/3 of the total votes of the association elect to again be governed by the requirements of subsection (c).
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(4) In the event that an association elects to waive
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| all or part of the reserve requirements of this Section, that fact must be disclosed after the meeting at which the waiver occurs by the association in the financial statements of the association and, highlighted in bold print, in the response to any request of a prospective purchaser for the information prescribed under Section 22.1; and no member of the board of managers or the managing agent of the association shall be liable, and no cause of action may be brought for damages against these parties, for the lack or inadequacy of reserve funds in the association budget.
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(5) At the end of an association's fiscal year and
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| after the association has approved any end-of-year fiscal audit, if applicable, if the fiscal year ended with a surplus of funds over actual expenses, including budgeted reserve fund contributions, then, to the extent that there are not any contrary provisions in the association's declaration and bylaws, the board of managers has the authority, in its discretion, to dispose of the surplus in one or more of the following ways: (i) contribute the surplus to the association's reserve fund; (ii) return the surplus to the unit owners as a credit against the remaining monthly assessments for the current fiscal year; (iii) return the surplus to the unit owners in the form of a direct payment to the unit owners; or (iv) maintain the funds in the operating account, in which case the funds shall be applied as a credit when calculating the following year's annual budget. If the fiscal year ends in a deficit, then, to the extent that there are not any contrary provisions in the association's declaration and bylaws, the board of managers has the authority, in its discretion, to address the deficit by incorporating it into the following year's annual budget. If 20% of the unit owners of the association deliver a petition objecting to the action under this paragraph (5) within 30 days after notice to the unit owners of the action, the board of managers shall call a meeting of the unit owners within 30 days of the date of delivery of the petition. At the meeting, the unit owners may vote to select a different option than the option selected by the board of managers. Unless a majority of the total votes of the unit owners are cast at the meeting to reject the board's selection and select a different option, the board's decision is ratified.
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(d) (Blank).
(e) The condominium instruments may provide for the assessment,
in connection with expenditures for the limited common elements, of only those
units to which the limited common elements are assigned.
(f) Payment of any assessment shall be in amounts and at times
determined by the board of managers.
(g) Lien.
(1) If any unit owner shall fail or refuse to make
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| any payment of the common expenses or the amount of any unpaid fine when due, the amount thereof together with any interest, late charges, reasonable attorney fees incurred enforcing the covenants of the condominium instruments, rules and regulations of the board of managers, or any applicable statute or ordinance, and costs of collections shall constitute a lien on the interest of the unit owner in the property prior to all other liens and encumbrances, recorded or unrecorded, except only (a) taxes, special assessments and special taxes theretofore or thereafter levied by any political subdivision or municipal corporation of this State and other State or federal taxes which by law are a lien on the interest of the unit owner prior to preexisting recorded encumbrances thereon and (b) encumbrances on the interest of the unit owner recorded prior to the date of such failure or refusal which by law would be a lien thereon prior to subsequently recorded encumbrances. Any action brought to extinguish the lien of the association shall include the association as a party.
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(2) With respect to encumbrances executed prior to
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| August 30, 1984 or encumbrances executed subsequent to August 30, 1984 which are neither bonafide first mortgages nor trust deeds and which encumbrances contain a statement of a mailing address in the State of Illinois where notice may be mailed to the encumbrancer thereunder, if and whenever and as often as the manager or board of managers shall send, by United States certified or registered mail, return receipt requested, to any such encumbrancer at the mailing address set forth in the recorded encumbrance a statement of the amounts and due dates of the unpaid common expenses with respect to the encumbered unit, then, unless otherwise provided in the declaration or bylaws, the prior recorded encumbrance shall be subject to the lien of all unpaid common expenses with respect to the unit which become due and payable within a period of 90 days after the 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 unit by deed in lieu of foreclosure or judgment by common law strict foreclosure or otherwise takes possession pursuant to court order under the Illinois Mortgage Foreclosure Law, shall have the duty to pay the unit's proportionate share of the common expenses for the unit assessed from and after the first day of the month after the date of the judicial foreclosure sale, delivery of the deed in lieu of foreclosure, entry of a judgment in common law strict foreclosure, or taking of possession pursuant to such court order. Such payment confirms the extinguishment of any lien created pursuant to paragraph (1) or (2) of this subsection (g) by virtue of the failure or refusal of a prior unit owner to make payment of common expenses, where the judicial foreclosure sale has been confirmed by order of the court, a deed in lieu thereof has been accepted by the lender, or a consent judgment has been entered by the court.
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(4) The purchaser of a condominium unit at a judicial
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| foreclosure sale, other than a mortgagee, who takes possession of a condominium unit pursuant to a court order or a purchaser who acquires title from a mortgagee shall have the duty to pay the proportionate share, if any, of the common expenses for the unit which would have become due in the absence of any assessment acceleration during the 6 months immediately preceding institution of an action to enforce the collection of assessments, and which remain unpaid by the owner during whose possession the assessments accrued. If the outstanding assessments are paid at any time during any action to enforce the collection of assessments, the purchaser shall have no obligation to pay any assessments which accrued before he or she acquired title.
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(5) The notice of sale of a condominium unit under
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| subsection (c) of Section 15-1507 of the Code of Civil Procedure shall state that the purchaser of the unit other than a mortgagee shall pay the assessments and the legal fees required by subdivisions (g)(1) and (g)(4) of Section 9 of this Act. The statement of assessment account issued by the association to a unit owner under subsection (i) of Section 18 of this Act, and the disclosure statement issued to a prospective purchaser under Section 22.1 of this Act, shall state the amount of the assessments and the legal fees, if any, required by subdivisions (g)(1) and (g)(4) of Section 9 of this Act.
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(h) A lien for common expenses shall be in favor of the members of the
board of managers and their successors in office and shall be for the
benefit of all other unit owners. Notice of the lien may be recorded by
the board of managers, or if the developer is the manager or has a majority
of seats on the board of managers and the manager or board of managers
fails to do so, any unit owner may record notice of the lien. Upon the
recording of such notice the lien may be foreclosed by an action brought in
the name of the board of managers in the same manner as a mortgage of real
property.
(i) Unless otherwise provided in the declaration, the members
of the board of managers and their successors in office, acting on behalf
of the other unit owners, shall have the power to bid on the
interest so foreclosed at the foreclosure sale, and to acquire and
hold, lease, mortgage and convey it.
(j) Any encumbrancer may from time to time request in writing a written
statement from the manager or board of managers setting forth the unpaid
common expenses with respect to the unit covered by his encumbrance.
Unless the request is complied with within 20 days, all unpaid common
expenses which become due prior to the date of the making of such request
shall be subordinate to the lien of the encumbrance. Any encumbrancer
holding a lien on a unit may pay any unpaid common expenses payable with
respect to the unit, and upon payment the encumbrancer shall have a lien on
the unit for the amounts paid at the same rank as the lien of his encumbrance.
(k) Nothing in Public Act 83-1271 is intended to change the lien
priorities of any encumbrance created prior to August 30, 1984.
(Source: P.A. 100-292, eff. 1-1-18.)
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(765 ILCS 605/12) (from Ch. 30, par. 312)
Sec. 12. Insurance.
(a) Required coverage. No policy of insurance shall be issued or
delivered to a condominium association, and no policy of insurance issued to a
condominium association shall be renewed, unless the insurance coverage under
the policy includes the following:
(1) Property insurance. Property insurance (i) on the |
| common elements and the units, including the limited common elements and except as otherwise determined by the board of managers, the bare walls, floors, and ceilings of the unit, (ii) providing coverage for special form causes of loss, and (iii) providing coverage, at the time the insurance is purchased and at each renewal date, in a total amount of not less than the full insurable replacement cost of the insured property, less deductibles, but including coverage sufficient to rebuild the insured property in compliance with building code requirements subsequent to an insured loss, including: Coverage B, demolition costs; and Coverage C, increased cost of construction coverage. The combined total of Coverage B and Coverage C shall be no less than 10% of each insured building value, or $500,000, whichever is less.
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(2) General liability insurance. Commercial general
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| liability insurance against claims and liabilities arising in connection with the ownership, existence, use, or management of the property in a minimum amount of $1,000,000, or a greater amount deemed sufficient in the judgment of the board, insuring the board, the association, the management agent, and their respective employees and agents and all persons acting as agents. The developer must be included as an additional insured in its capacity as a unit owner, manager, board member, or officer. The unit owners must be included as additional insured parties but only for claims and liabilities arising in connection with the ownership, existence, use, or management of the common elements. The insurance must cover claims of one or more insured parties against other insured parties.
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(3) Fidelity bond; directors and officers coverage.
(A) An association with 6 or more dwelling units
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| must obtain and maintain a fidelity bond covering persons, including the managing agent and its employees who control or disburse funds of the association, for the maximum amount of coverage available to protect funds in the custody or control of the association, plus the association reserve fund.
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(B) All management companies that are responsible
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| for the funds held or administered by the association must be covered by a fidelity bond for the maximum amount of coverage available to protect those funds. The association has standing to make a loss claim against the bond of the managing agent as a party covered under the bond.
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(C) For purposes of paragraphs (A) and (B), the
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| fidelity bond must be in the full amount of association funds and reserves in the custody of the association or the management company.
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(D) The board of directors must obtain directors
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| and officers liability coverage at a level deemed reasonable by the board, if not otherwise established by the declaration or bylaws. Directors and officers liability coverage must extend to all contracts and other actions taken by the board in their official capacity as directors and officers, but this coverage shall exclude actions for which the directors are not entitled to indemnification under the General Not For Profit Corporation Act of 1986 or the declaration and bylaws of the association. The coverage required by this subparagraph (D) shall include, but not be limited to, coverage of: defense of non-monetary actions; defense of breach of contract; and defense of decisions related to the placement or adequacy of insurance. The coverage required by this subparagraph (D) shall include as an insured: past, present, and future board members while acting in their capacity as members of the board of directors; the managing agent; and employees of the board of directors and the managing agent.
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(b) Contiguous units; improvements and betterments. The insurance
maintained under subdivision (a)(1) must include the units, the limited
common elements except as otherwise determined by the board of managers,
and the common elements. The insurance need not cover improvements and
betterments to the units installed by unit owners, but if improvements
and betterments are covered, any increased cost may be assessed by the
association against the units affected.
Common elements include fixtures located within the unfinished
interior surfaces of the perimeter walls, floors, and ceilings of the
individual units initially installed by the developer. Common elements
exclude floor, wall, and ceiling coverings. "Improvements and
betterments" means all decorating, fixtures, and furnishings installed
or added to and located within the boundaries of the unit, including
electrical fixtures, appliances, air conditioning and heating
equipment, water heaters, built-in cabinets installed by unit owners, or any other additions, alterations, or upgrades installed or purchased by any unit owner.
(c) Deductibles. The board of directors of the association may,
in the case of a claim for damage to a unit or the common elements, (i)
pay the deductible amount as a common expense, (ii) after notice and an
opportunity for a hearing, assess the deductible amount against the
owners who caused the damage or from whose units the damage or cause of
loss originated, or (iii) require the unit owners of the units affected
to pay the deductible amount.
(d) Other coverages. The declaration may require the association
to carry any other insurance, including workers compensation,
employment practices, environmental hazards, and equipment breakdown,
the board of directors considers appropriate to protect the
association, the unit owners, or officers, directors, or agents of the
association.
(e) Insured parties; waiver of subrogation. Insurance policies
carried pursuant to subsections (a) and (b) must include each of the
following provisions:
(1) Each unit owner and secured party is an insured
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| person under the policy with respect to liability arising out of the unit owner's interest in the common elements or membership in the association.
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(2) The insurer waives its right to subrogation under
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| the policy against any unit owner of the condominium or members of the unit owner's household and against the association and members of the board of directors.
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(3) The unit owner waives his or her right to
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| subrogation under the association policy against the association and the board of directors.
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(f) Primary insurance. If at the time of a loss under the policy
there is other insurance in the name of a unit owner covering the same
property covered by the policy, the association's policy is primary
insurance.
(g) Adjustment of losses; distribution of proceeds. Any loss
covered by the property policy under subdivision (a)(1) must be
adjusted by and with the association. The insurance proceeds for that
loss must be payable to the association, or to an insurance trustee
designated by the association for that purpose. The insurance trustee
or the association must hold any insurance proceeds in trust for unit
owners and secured parties as their interests may appear. The proceeds
must be disbursed first for the repair or restoration of the damaged
common elements, the bare walls, ceilings, and floors of the units, and
then to any improvements and betterments the association may insure.
Unit owners are not entitled to receive any portion of the proceeds
unless there is a surplus of proceeds after the common elements and
units have been completely repaired or restored or the association has
been terminated as trustee.
(h) Mandatory unit owner coverage. The board of directors may,
under the declaration and bylaws or by rule, require condominium unit
owners to obtain insurance covering their personal liability and
compensatory (but not consequential) damages to another unit caused by
the negligence of the owner or his or her guests, residents, or invitees,
or regardless of any negligence originating from the unit. The personal
liability of a unit owner or association member must include the
deductible of the owner whose unit was damaged, any damage not covered
by insurance required by this subsection, as well as the decorating,
painting, wall and floor coverings, trim, appliances, equipment, and
other furnishings.
(i) Certificates of insurance. Contractors and vendors (except public
utilities) doing business
with a condominium association under contracts exceeding $10,000 per
year must provide certificates of insurance naming the association, its
board of directors, and its managing agent as additional insured parties.
(j) Non-residential condominiums. The provisions of this Section
may be varied or waived in the case of a condominium community in which
all units are restricted to nonresidential use.
(k) Settlement of claims. Any insurer defending a liability claim
against a condominium association must notify the association of the
terms of the settlement no less than 10 days before settling the claim.
The association may not veto the settlement unless otherwise provided
by contract or statute.
(l) The changes to this Section made by this amendatory Act of the 98th General Assembly apply only to insurance policies issued or renewed on or after June 1, 2015.
(Source: P.A. 98-762, eff. 6-1-15.)
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(765 ILCS 605/14.5) Sec. 14.5. Distressed condominium property. (a) As used in this Section: (1) "Distressed condominium property" means a parcel |
| containing condominium units which are operated in a manner or have conditions which may constitute a danger, blight, or nuisance to the surrounding community or to the general public, including but not limited to 2 or more of the following conditions:
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(A) 50% or more of the condominium units are not
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| occupied by persons with a legal right to reside in the units;
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(B) the building has serious violations of any
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| applicable local building code or zoning ordinance;
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(C) 60% or more of the condominium units are in
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| foreclosure or are units against which a judgment of foreclosure was entered within the last 18 months;
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(D) there has been a recording of more
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| condominium units on the parcel than physically exist;
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(E) any of the essential utilities to the parcel
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| or to 40% or more of the condominium units is either terminated or threatened with termination; or
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(F) there is a delinquency on the property taxes
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| for at least 60% of the condominium units.
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(2) "Owner" means any unit owner or owner of record
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| of the condominium property.
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(3) "Other party in interest" means any mortgagee of
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| record, lien holder of record, judgment creditor, tax purchaser, or other party of record, other than the owner, having legal or equitable title or other interest in the distressed condominium property or in a unit of the property.
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(4) "Municipality" means a city, village, or
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| incorporated town in which the distressed condominium property is located.
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(b) A proceeding under this Section shall be commenced by a municipality filing a verified petition or verified complaint in the circuit court in the county in which the property is located. The petition or complaint shall allege conditions specified in paragraph (1) of subsection (a) of this Section and shall request the relief available under this Section. All owners shall be named as defendants in the petition or complaint and summons shall be issued and service shall be had as in other civil cases. All known other parties in interest shall be provided written notice and a copy of the petition or complaint either by United States certified mail, return receipt requested, within 30 days of the issuance of the summons or by personal service of the complaint. The hearing upon the suit shall be expedited by the court and shall be given precedence over other actions.
(c) If a court finds that the property is a distressed condominium property:
(1) the court may order the appointment of a receiver
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| for the property with the powers specified in this Section; or
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(2) the court, after a hearing held upon giving
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| notice to all interested parties as provided in subsection (b), may appoint a receiver for the property and if the court further finds that the property is not viable as a condominium, then the court may declare:
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(A) that the property is no longer a condominium;
(B) that the property shall be deemed to be owned
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| in common by the unit owners;
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(C) that the undivided interest in the property
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| which shall appertain to each unit owner shall be the percentage of undivided interest previously owned by the owner in the common elements; and
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(D) that any liens affecting any unit shall be
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| deemed to be attached to the undivided interest of the unit owner in the property as provided herein.
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A copy of the court's declaration under paragraph (2) of this subsection (c) shall be recorded by the municipality in the office of the recorder of deeds in the county where the property is located against both the individual units and owners and the general property. The court's declaration shall be forwarded to the county assessor's office in the county where the property is located.
(d) If a court finds that property is subject to paragraph (2) of subsection (c) of this Section, the court may upon a motion filed, notice given to all owners and other parties in interest as provided in subsection (b) and those parties having an opportunity to be heard, authorize the receiver to enter into a sales contract and transfer the title of the property on behalf of the owners of the property. In the event of such a sale, the net proceeds of the sale, after payment of all the receiver's costs, time, expenses, and fees as approved by the court, shall be deposited into an escrow account. Proceeds in the escrow account shall be segregated into the respective shares of each unit owner as determined under subparagraph (C) of paragraph (2) of subsection (c) of this Section and shall be distributed from each respective share as follows: (1) to pay taxes attributable to the unit owner; then (2) to pay other liens attributable to the unit owner; and then (3) to pay each unit owner any remaining sums from his or her respective share.
(e) A receiver appointed under this Section shall have possession of the property and shall have full power and authority to operate, manage, and conserve the property. A receiver appointed pursuant to this Section must manage the property as would a prudent person. A receiver may, without an order of the court, delegate managerial functions to a person in the business of managing real estate of the kind involved who is financially responsible and prudently selected.
Without limiting the foregoing, a receiver during such time shall have the power and authority to:
(1) secure, clean, board and enclose, and keep
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| secure, clean, boarded and enclosed, the property or any portion of the property;
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(2) secure tenants and execute leases for the
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| property, the duration and terms of which are reasonable and customary for the type of use involved, and the leases shall have the same priority as if made by the owner of the property;
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(3) collect the rents, issues, and profits, including
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| assessments which have been or may be levied;
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(4) insure the property against loss by fire or other
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(5) employ counsel, custodians, janitors, and other
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(6) pay taxes which may have been or may be levied
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(7) maintain or disconnect, as appropriate, any
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| essential utility to the property;
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(8) make repairs and improvements necessary to comply
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| with building, housing, and other similar codes;
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(9) hold receipts as reserves as reasonably required
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| for the foregoing purposes; and
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(10) exercise the other powers as are granted to the
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| receiver by the appointing court.
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(f) If the court orders the appointment of a receiver, the receiver may use the rents and issues of the property toward maintenance, repair, and rehabilitation of the property prior to and despite any assignment of rents; and the court may further authorize the receiver to recover the cost of any feasibility study, sale, management, maintenance, repair, and rehabilitation by the issuance and sale of notes or receiver's certificates bearing such interest as the court may fix, and the notes or certificates, after their initial issuance and transfer by the receiver, shall be freely transferable and when sold or transferred by the receiver in return for a valuable consideration in money, material, labor, or services shall be a first lien upon the real estate and the rents and issues thereof and shall be superior to all prior assignments of rents and all prior existing liens and encumbrances, except taxes; provided, that within 90 days of the sale or transfer for value by the receiver of a note or certificate, the holder thereof shall file notice of the lien in the office of the recorder in the county in which the real estate is located. The notice of the lien filed shall set forth (i) a description of the real estate affected sufficient for the identification thereof, (ii) the face amount of the receiver's note or certificate, together with the interest payable thereon, and (iii) the date when the receiver's note or certificate was sold or transferred for value by the receiver. Upon payment to the holder of the receiver's note or certificate of the face amount thereof together with any interest thereon to the date of payment, and upon the filing of record of a sworn statement of such payment, the lien of such certificate shall be released. The lien may be enforced by proceedings to foreclose as in the case of a mortgage or a mechanics lien, and the action to foreclose the lien may be commenced at any time after the date of default. For the purposes of this subsection, the date of default shall be deemed to occur 30 days from the date of issuance of the receiver's certificate if at that time the certificate remains unpaid in whole or in part. The receiver's lien shall be paid upon the sale of the property as set forth in subsection (d) of this Section.
(g) The court may remove a receiver upon a showing of good cause, in which case a new receiver may be appointed in accordance with this Section.
(Source: P.A. 96-174, eff. 1-1-10.)
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(765 ILCS 605/18) (from Ch. 30, par. 318)
Sec. 18. Contents of bylaws. The bylaws shall provide for at least
the following:
(a)(1) The election from among the unit owners of a |
| board of managers, the number of persons constituting such board, and that the terms of at least one-third of the members of the board shall expire annually and that all members of the board shall be elected at large; if there are multiple owners of a single unit, only one of the multiple owners shall be eligible to serve as a member of the board at any one time. A declaration first submitting property to the provisions of this Act, in accordance with Section 3 after the effective date of this amendatory Act of the 102nd General Assembly, or an amendment to the condominium instruments adopted in accordance with Section 27 after the effective date of this amendatory Act of the 102nd General Assembly, may provide that a majority of the board of managers, or such lesser number as may be specified in the declaration, must be comprised of unit owners occupying their unit as their primary residence; provided that the condominium instruments may not require that more than a majority of the board shall be comprised of unit owners who occupy their unit as their principal residence;
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(2) the powers and duties of the board;
(3) the compensation, if any, of the members of the
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(4) the method of removal from office of members of
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(5) that the board may engage the services of a
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| manager or managing agent;
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(6) that each unit owner shall receive, at least 25
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| days prior to the adoption thereof by the board of managers, a copy of the proposed annual budget together with an indication of which portions are intended for reserves, capital expenditures or repairs or payment of real estate taxes;
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(7) that the board of managers shall annually supply
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| to all unit owners an itemized accounting of the common expenses for the preceding year actually incurred or paid, together with an indication of which portions were for reserves, capital expenditures or repairs or payment of real estate taxes and with a tabulation of the amounts collected pursuant to the budget or assessment, and showing the net excess or deficit of income over expenditures plus reserves;
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(8)(i) that each unit owner shall receive notice, in
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| the same manner as is provided in this Act for membership meetings, of any meeting of the board of managers concerning the adoption of the proposed annual budget and regular assessments pursuant thereto or to adopt a separate (special) assessment, (ii) that except as provided in subsection (iv) below, if an adopted budget or any separate assessment adopted by the board would result in the sum of all regular and separate assessments payable in the current fiscal year exceeding 115% of the sum of all regular and separate assessments payable during the preceding fiscal year, the board of managers, upon written petition by unit owners with 20 percent of the votes of the association delivered to the board within 21 days of the board action, shall call a meeting of the unit owners within 30 days of the date of delivery of the petition to consider the budget or separate assessment; unless a majority of the total votes of the unit owners are cast at the meeting to reject the budget or separate assessment, it is ratified, (iii) that any common expense not set forth in the budget or any increase in assessments over the amount adopted in the budget shall be separately assessed against all unit owners, (iv) that separate assessments for expenditures relating to emergencies or mandated by law may be adopted by the board of managers without being subject to unit owner approval or the provisions of item (ii) above or item (v) below. As used herein, "emergency" means an immediate danger to the structural integrity of the common elements or to the life, health, safety or property of the unit owners, (v) that assessments for additions and alterations to the common elements or to association-owned property not included in the adopted annual budget, shall be separately assessed and are subject to approval of two-thirds of the total votes of all unit owners, (vi) that the board of managers may adopt separate assessments payable over more than one fiscal year. With respect to multi-year assessments not governed by items (iv) and (v), the entire amount of the multi-year assessment shall be deemed considered and authorized in the first fiscal year in which the assessment is approved;
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(9)(A) that every meeting of the board of managers
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| shall be open to any unit owner, except that the board may close any portion of a noticed meeting or meet separately from a noticed meeting to: (i) discuss litigation when an action against or on behalf of the particular association has been filed and is pending in a court or administrative tribunal, or when the board of managers finds that such an action is probable or imminent, (ii) discuss the appointment, employment, engagement, or dismissal of an employee, independent contractor, agent, or other provider of goods and services, (iii) interview a potential employee, independent contractor, agent, or other provider of goods and services, (iv) discuss violations of rules and regulations of the association, (v) discuss a unit owner's unpaid share of common expenses, or (vi) consult with the association's legal counsel; that any vote on these matters shall take place at a meeting of the board of managers or portion thereof open to any unit owner;
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|
(B) that board members may participate in and act at
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| any meeting of the board of managers in person, by telephonic means, or by use of any acceptable technological means whereby all persons participating in the meeting can communicate with each other; that participation constitutes attendance and presence in person at the meeting;
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|
(C) that any unit owner may record the proceedings at
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| meetings of the board of managers or portions thereof required to be open by this Act by tape, film or other means, and that the board may prescribe reasonable rules and regulations to govern the right to make such recordings;
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|
(D) that notice of every meeting of the board of
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| managers shall be given to every board member at least 48 hours prior thereto, unless the board member waives notice of the meeting pursuant to subsection (a) of Section 18.8; and
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|
(E) that notice of every meeting of the board of
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| managers shall be posted in entranceways, elevators, or other conspicuous places in the condominium at least 48 hours prior to the meeting of the board of managers except where there is no common entranceway for 7 or more units, the board of managers may designate one or more locations in the proximity of these units where the notices of meetings shall be posted; that notice of every meeting of the board of managers shall also be given at least 48 hours prior to the meeting, or such longer notice as this Act may separately require, to: (i) each unit owner who has provided the association with written authorization to conduct business by acceptable technological means, and (ii) to the extent that the condominium instruments of an association require, to each other unit owner, as required by subsection (f) of Section 18.8, by mail or delivery, and that no other notice of a meeting of the board of managers need be given to any unit owner;
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(10) that the board shall meet at least 4 times
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(11) that no member of the board or officer shall be
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| elected for a term of more than 2 years, but that officers and board members may succeed themselves;
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|
(12) the designation of an officer to mail and
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| receive all notices and execute amendments to condominium instruments as provided for in this Act and in the condominium instruments;
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|
(13) the method of filling vacancies on the board
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| which shall include authority for the remaining members of the board to fill the vacancy by two-thirds vote until the next annual meeting of unit owners or for a period terminating no later than 30 days following the filing of a petition signed by unit owners holding 20% of the votes of the association requesting a meeting of the unit owners to fill the vacancy for the balance of the term, and that a meeting of the unit owners shall be called for purposes of filling a vacancy on the board no later than 30 days following the filing of a petition signed by unit owners holding 20% of the votes of the association requesting such a meeting, and the method of filling vacancies among the officers that shall include the authority for the members of the board to fill the vacancy for the unexpired portion of the term;
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|
(14) what percentage of the board of managers, if
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| other than a majority, shall constitute a quorum;
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|
(15) provisions concerning notice of board meetings
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|
(16) the board of managers may not enter into a
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| contract with a current board member or with a corporation or partnership in which a board member or a member of the board member's immediate family has 25% or more interest, unless notice of intent to enter the contract is given to unit owners within 20 days after a decision is made to enter into the contract and the unit owners are afforded an opportunity by filing a petition, signed by 20% of the unit owners, for an election to approve or disapprove the contract; such petition shall be filed within 30 days after such notice and such election shall be held within 30 days after filing the petition; for purposes of this subsection, a board member's immediate family means the board member's spouse, parents, and children;
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|
(17) that the board of managers may disseminate to
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| unit owners biographical and background information about candidates for election to the board if (i) reasonable efforts to identify all candidates are made and all candidates are given an opportunity to include biographical and background information in the information to be disseminated; and (ii) the board does not express a preference in favor of any candidate;
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|
(18) any proxy distributed for board elections by the
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| board of managers gives unit owners the opportunity to designate any person as the proxy holder, and gives the unit owner the opportunity to express a preference for any of the known candidates for the board or to write in a name;
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|
(19) that special meetings of the board of managers
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| can be called by the president or 25% of the members of the board;
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|
(20) that the board of managers may establish and
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| maintain a system of master metering of public utility services and collect payments in connection therewith, subject to the requirements of the Tenant Utility Payment Disclosure Act; and
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(21) that the board may ratify and confirm actions of
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| the members of the board taken in response to an emergency, as that term is defined in subdivision (a)(8)(iv) of this Section; that the board shall give notice to the unit owners of: (i) the occurrence of the emergency event within 7 business days after the emergency event, and (ii) the general description of the actions taken to address the event within 7 days after the emergency event.
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|
The intent of the provisions of Public Act 99-472
|
| adding this paragraph (21) is to empower and support boards to act in emergencies.
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|
(b)(1) What percentage of the unit owners, if other
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| than 20%, shall constitute a quorum provided that, for condominiums with 20 or more units, the percentage of unit owners constituting a quorum shall be 20% unless the unit owners holding a majority of the percentage interest in the association provide for a higher percentage, provided that in voting on amendments to the association's bylaws, a unit owner who is in arrears on the unit owner's regular or separate assessments for 60 days or more, shall not be counted for purposes of determining if a quorum is present, but that unit owner retains the right to vote on amendments to the association's bylaws;
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|
(2) that the association shall have one class of
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|
(3) that the members shall hold an annual meeting,
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| one of the purposes of which shall be to elect members of the board of managers;
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|
(4) the method of calling meetings of the unit owners;
(5) that special meetings of the members can be
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| called by the president, board of managers, or by 20% of unit owners;
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|
(6) that written notice of any membership meeting
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| shall be mailed or delivered giving members no less than 10 and no more than 30 days notice of the time, place and purpose of such meeting except that notice may be sent, to the extent the condominium instruments or rules adopted thereunder expressly so provide, by electronic transmission consented to by the unit owner to whom the notice is given, provided the director and officer or his agent certifies in writing to the delivery by electronic transmission;
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|
(7) that voting shall be on a percentage basis, and
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| that the percentage vote to which each unit is entitled is the percentage interest of the undivided ownership of the common elements appurtenant thereto, provided that the bylaws may provide for approval by unit owners in connection with matters where the requisite approval on a percentage basis is not specified in this Act, on the basis of one vote per unit;
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|
(8) that, where there is more than one owner of a
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| unit, if only one of the multiple owners is present at a meeting of the association, he is entitled to cast all the votes allocated to that unit, if more than one of the multiple owners are present, the votes allocated to that unit may be cast only in accordance with the agreement of a majority in interest of the multiple owners, unless the declaration expressly provides otherwise, that there is majority agreement if any one of the multiple owners cast the votes allocated to that unit without protest being made promptly to the person presiding over the meeting by any of the other owners of the unit;
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|
(9)(A) except as provided in subparagraph (B) of this
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| paragraph (9) in connection with board elections, that a unit owner may vote by proxy executed in writing by the unit owner or by his duly authorized attorney in fact; that the proxy must bear the date of execution and, unless the condominium instruments or the written proxy itself provide otherwise, is invalid after 11 months from the date of its execution; to the extent the condominium instruments or rules adopted thereunder expressly so provide, a vote or proxy may be submitted by electronic transmission, provided that any such electronic transmission shall either set forth or be submitted with information from which it can be determined that the electronic transmission was authorized by the unit owner or the unit owner's proxy;
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|
(B) that if a rule adopted at least 120 days before a
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| board election or the declaration or bylaws provide for balloting as set forth in this subsection, unit owners may not vote by proxy in board elections, but may vote only (i) by submitting an association-issued ballot in person at the election meeting or (ii) by submitting an association-issued ballot to the association or its designated agent by mail or other means of delivery specified in the declaration, bylaws, or rule; that the ballots shall be mailed or otherwise distributed to unit owners not less than 10 and not more than 30 days before the election meeting, and the board shall give unit owners not less than 21 days' prior written notice of the deadline for inclusion of a candidate's name on the ballots; that the deadline shall be no more than 7 days before the ballots are mailed or otherwise distributed to unit owners; that every such ballot must include the names of all candidates who have given the board or its authorized agent timely written notice of their candidacy and must give the person casting the ballot the opportunity to cast votes for candidates whose names do not appear on the ballot; that a ballot received by the association or its designated agent after the close of voting shall not be counted; that a unit owner who submits a ballot by mail or other means of delivery specified in the declaration, bylaws, or rule may request and cast a ballot in person at the election meeting, and thereby void any ballot previously submitted by that unit owner;
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|
(B-5) that if a rule adopted at least 120 days before
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| a board election or the declaration or bylaws provide for balloting as set forth in this subparagraph, unit owners may not vote by proxy in board elections, but may vote only (i) by submitting an association-issued ballot in person at the election meeting; or (ii) by any acceptable technological means as defined in Section 2 of this Act; instructions regarding the use of electronic means for voting shall be distributed to all unit owners not less than 10 and not more than 30 days before the election meeting, and the board shall give unit owners not less than 21 days' prior written notice of the deadline for inclusion of a candidate's name on the ballots; the deadline shall be no more than 7 days before the instructions for voting using electronic or acceptable technological means is distributed to unit owners; every instruction notice must include the names of all candidates who have given the board or its authorized agent timely written notice of their candidacy and must give the person voting through electronic or acceptable technological means the opportunity to cast votes for candidates whose names do not appear on the ballot; a unit owner who submits a vote using electronic or acceptable technological means may request and cast a ballot in person at the election meeting, thereby voiding any vote previously submitted by that unit owner;
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|
(C) that if a written petition by unit owners with at
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| least 20% of the votes of the association is delivered to the board within 30 days after the board's approval of a rule adopted pursuant to subparagraph (B) or subparagraph (B-5) of this paragraph (9), the board shall call a meeting of the unit owners within 30 days after the date of delivery of the petition; that unless a majority of the total votes of the unit owners are cast at the meeting to reject the rule, the rule is ratified;
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|
(D) that votes cast by ballot under subparagraph (B)
|
| or electronic or acceptable technological means under subparagraph (B-5) of this paragraph (9) are valid for the purpose of establishing a quorum;
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|
(10) that the association may, upon adoption of the
|
| appropriate rules by the board of managers, conduct elections by secret ballot whereby the voting ballot is marked only with the percentage interest for the unit and the vote itself, provided that the board further adopt rules to verify the status of the unit owner issuing a proxy or casting a ballot; and further, that a candidate for election to the board of managers or such candidate's representative shall have the right to be present at the counting of ballots at such election;
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|
(11) that in the event of a resale of a condominium
|
| unit the purchaser of a unit from a seller other than the developer pursuant to an installment sales contract for purchase shall during such times as he or she resides in the unit be counted toward a quorum for purposes of election of members of the board of managers at any meeting of the unit owners called for purposes of electing members of the board, shall have the right to vote for the election of members of the board of managers and to be elected to and serve on the board of managers unless the seller expressly retains in writing any or all of such rights. In no event may the seller and purchaser both be counted toward a quorum, be permitted to vote for a particular office or be elected and serve on the board. Satisfactory evidence of the installment sales contract shall be made available to the association or its agents. For purposes of this subsection, "installment sales contract" shall have the same meaning as set forth in Section 5 of the Installment Sales Contract Act and Section 1(e) of the Dwelling Unit Installment Contract Act;
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|
(12) the method by which matters subject to the
|
| approval of unit owners set forth in this Act, or in the condominium instruments, will be submitted to the unit owners at special membership meetings called for such purposes; and
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|
(13) that matters subject to the affirmative vote of
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| not less than 2/3 of the votes of unit owners at a meeting duly called for that purpose, shall include, but not be limited to:
|
|
(i) merger or consolidation of the association;
(ii) sale, lease, exchange, or other disposition
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| (excluding the mortgage or pledge) of all, or substantially all of the property and assets of the association; and
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|
(iii) the purchase or sale of land or of units on
|
| behalf of all unit owners.
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|
(c) Election of a president from among the board of
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| managers, who shall preside over the meetings of the board of managers and of the unit owners.
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|
(d) Election of a secretary from among the board of
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| managers, who shall keep the minutes of all meetings of the board of managers and of the unit owners and who shall, in general, perform all the duties incident to the office of secretary.
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|
(e) Election of a treasurer from among the board of
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| managers, who shall keep the financial records and books of account.
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|
(f) Maintenance, repair and replacement of the common
|
| elements and payments therefor, including the method of approving payment vouchers.
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|
(g) An association with 30 or more units shall obtain
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| and maintain fidelity insurance covering persons who control or disburse funds of the association for the maximum amount of coverage available to protect funds in the custody or control of the association plus the association reserve fund. All management companies which are responsible for the funds held or administered by the association shall maintain and furnish to the association a fidelity bond for the maximum amount of coverage available to protect funds in the custody of the management company at any time. The association shall bear the cost of the fidelity insurance and fidelity bond, unless otherwise provided by contract between the association and a management company. The association shall be the direct obligee of any such fidelity bond. A management company holding reserve funds of an association shall at all times maintain a separate account for each association, provided, however, that for investment purposes, the Board of Managers of an association may authorize a management company to maintain the association's reserve funds in a single interest bearing account with similar funds of other associations. The management company shall at all times maintain records identifying all moneys of each association in such investment account. The management company may hold all operating funds of associations which it manages in a single operating account but shall at all times maintain records identifying all moneys of each association in such operating account. Such operating and reserve funds held by the management company for the association shall not be subject to attachment by any creditor of the management company.
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|
For the purpose of this subsection, a management
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| company shall be defined as a person, partnership, corporation, or other legal entity entitled to transact business on behalf of others, acting on behalf of or as an agent for a unit owner, unit owners or association of unit owners for the purpose of carrying out the duties, responsibilities, and other obligations necessary for the day to day operation and management of any property subject to this Act. For purposes of this subsection, the term "fiduciary insurance coverage" shall be defined as both a fidelity bond and directors and officers liability coverage, the fidelity bond in the full amount of association funds and association reserves that will be in the custody of the association, and the directors and officers liability coverage at a level as shall be determined to be reasonable by the board of managers, if not otherwise established by the declaration or by laws.
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|
Until one year after September 21, 1985 (the
|
| effective date of Public Act 84-722), if a condominium association has reserves plus assessments in excess of $250,000 and cannot reasonably obtain 100% fidelity bond coverage for such amount, then it must obtain a fidelity bond coverage of $250,000.
|
|
(h) Method of estimating the amount of the annual
|
| budget, and the manner of assessing and collecting from the unit owners their respective shares of such estimated expenses, and of any other expenses lawfully agreed upon.
|
|
(i) That upon 10 days notice to the manager or board
|
| of managers and payment of a reasonable fee, any unit owner shall be furnished a statement of his account setting forth the amount of any unpaid assessments or other charges due and owing from such owner.
|
|
(j) Designation and removal of personnel necessary
|
| for the maintenance, repair and replacement of the common elements.
|
|
(k) Such restrictions on and requirements respecting
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| the use and maintenance of the units and the use of the common elements, not set forth in the declaration, as are designed to prevent unreasonable interference with the use of their respective units and of the common elements by the several unit owners.
|
|
(l) Method of adopting and of amending administrative
|
| rules and regulations governing the operation and use of the common elements.
|
|
(m) The percentage of votes required to modify or
|
| amend the bylaws, but each one of the particulars set forth in this section shall always be embodied in the bylaws.
|
|
(n)(i) The provisions of this Act, the declaration,
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| bylaws, other condominium instruments, and rules and regulations that relate to the use of the individual unit or the common elements shall be applicable to any person leasing a unit and shall be deemed to be incorporated in any lease executed or renewed on or after August 30, 1984 (the effective date of Public Act 83-1271).
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|
(ii) With regard to any lease entered into subsequent
|
| to July 1, 1990 (the effective date of Public Act 86-991), the unit owner leasing the unit shall deliver a copy of the signed lease to the board or if the lease is oral, a memorandum of the lease, not later than the date of occupancy or 10 days after the lease is signed, whichever occurs first. In addition to any other remedies, by filing an action jointly against the tenant and the unit owner, an association may seek to enjoin a tenant from occupying a unit or seek to evict a tenant under the provisions of Article IX of the Code of Civil Procedure for failure of the lessor-owner to comply with the leasing requirements prescribed by this Section or by the declaration, bylaws, and rules and regulations. The board of managers may proceed directly against a tenant, at law or in equity, or under the provisions of Article IX of the Code of Civil Procedure, for any other breach by tenant of any covenants, rules, regulations or bylaws.
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|
(o) The association shall have no authority to
|
| forbear the payment of assessments by any unit owner.
|
|
(p) That when 30% or fewer of the units, by number,
|
| possess over 50% in the aggregate of the votes in the association, any percentage vote of members specified herein or in the condominium instruments shall require the specified percentage by number of units rather than by percentage of interest in the common elements allocated to units that would otherwise be applicable and garage units or storage units, or both, shall have, in total, no more votes than their aggregate percentage of ownership in the common elements; this shall mean that if garage units or storage units, or both, are to be given a vote, or portion of a vote, that the association must add the total number of votes cast of garage units, storage units, or both, and divide the total by the number of garage units, storage units, or both, and multiply by the aggregate percentage of ownership of garage units and storage units to determine the vote, or portion of a vote, that garage units or storage units, or both, have. For purposes of this subsection (p), when making a determination of whether 30% or fewer of the units, by number, possess over 50% in the aggregate of the votes in the association, a unit shall not include a garage unit or a storage unit.
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|
(q) That a unit owner may not assign, delegate,
|
| transfer, surrender, or avoid the duties, responsibilities, and liabilities of a unit owner under this Act, the condominium instruments, or the rules and regulations of the Association; and that such an attempted assignment, delegation, transfer, surrender, or avoidance shall be deemed void.
|
|
The provisions of this Section are applicable to all condominium
instruments recorded under this Act. Any portion of a condominium
instrument which contains provisions contrary to these provisions shall be
void as against public policy and ineffective. Any such instrument which
fails to contain the provisions required by this Section shall be deemed to
incorporate such provisions by operation of law.
(Source: P.A. 102-162, eff. 1-1-22.)
|
(765 ILCS 605/18.2) (from Ch. 30, par. 318.2)
Sec. 18.2.
Administration of property prior to election of initial board of
managers.
(a) Until election of the initial board of managers that is comprised of a
majority of unit owners other than the developer (first unit owner board of
managers), the same rights, titles, powers, privileges, trusts, duties and
obligations vested in or imposed upon the board of managers by this Act and in
the declaration and bylaws shall be held and performed by the developer.
(b) (i) The election of the first unit owner board of |
| managers shall be held not later than 60 days after the conveyance by the developer of 75% of the units, or 3 years after the recording of the declaration, whichever is earlier. The developer shall give at least 21 days notice of such meeting to elect the first unit owner board of managers and shall provide to any unit owner within 3 working days of the request, the names, addresses, and weighted vote of each unit owner entitled to vote at such meeting. Any unit owner shall be provided with the same information within 10 days of receipt of the request, with respect to each subsequent meeting to elect members of the Board of Managers.
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|
(ii) In the event the developer does not call a
|
| meeting for the purpose of election of the board of managers within the time provided in this subsection (b), unit owners holding 20% of the interest in the association may call a meeting by filing a petition for such meeting with the developer, after which said unit owners shall have authority to send notice of said meeting to the unit owners and to hold such meeting.
|
|
(c) If the first unit board of managers
is not elected at the time so established, the developer
shall continue in office for a period of
30 days whereupon written notice of his resignation shall be sent
to all of the unit owners entitled to vote at such election.
(d) Within 60 days following the election of the first unit owner
board of managers, the developer shall deliver to the board of managers:
(1) All original documents as recorded or filed
|
| pertaining to the property, its administration, and the association, such as the declaration, by-laws, articles of incorporation, other condominium instruments, annual reports, minutes and rules and regulations, contracts, leases, or other agreements entered into by the Association. If any original documents are unavailable, a copy may be provided if certified by affidavit of the developer, or an officer or agent of the developer, as being a complete copy of the actual document recorded as filed.
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|
(2) A detailed accounting by the developer, setting
|
| forth the source and nature of receipts and expenditures in connection with the management, maintenance and operation of the property and copies of all insurance policies and a list of any loans or advances to the association which are outstanding.
|
|
(3) Association funds, which shall have been at all
|
| times segregated from any other moneys of the developer.
|
|
(4) A schedule of all real or personal property,
|
| equipment and fixtures belonging to the association, including documents transferring the property, warranties, if any, for all real and personal property and equipment, deeds, title insurance policies, and all tax bills.
|
|
(5) A list of all litigation, administrative action
|
| and arbitrations involving the association, any notices of governmental bodies involving actions taken or which may be taken concerning the association, engineering and architectural drawings and specifications as approved by any governmental authority, all other documents filed with any other governmental authority, all governmental certificates, correspondence involving enforcement of any association requirements, copies of any documents relating to disputes involving unit owners, originals of all documents relating to everything listed in this subparagraph.
|
|
(e) Upon election of the first unit owner board of managers, any contract,
lease, or other agreement made prior to the date of election of the first unit
owner board by or on behalf of unit owners, individually or collectively, the
unit owners' association, the board of managers, or the developer or its
affiliates which extends for a period of more than 2 years from the date of the
election, shall be subject to cancellation by a majority of the votes of the
unit owners other than the developer cast at a special meeting of members
called for that purpose during the 180 day period beginning on the date of the
election of the first unit owner board. At least 60 days prior to the
expiration of the 180 day cancellation period, the board of
managers shall send notice to every unit owner, notifying them of
this provision, what contracts, leases and other agreements are affected,
and the procedure for calling a meeting of the unit owners for the purpose
of voting on termination of such contracts, leases or other agreements.
During the 180 day cancellation period the other party to the
contract, lease, or other agreement shall also have the right of cancellation.
The cancellation shall be effective 30 days after mailing notice by certified
mail, return receipt requested, to the last known address of the other parties
to the contract, lease, or other agreement.
(f) The statute of limitations for any actions in law or equity which
the condominium association may bring shall not begin to run until the unit
owners have elected a majority of the members of the board of managers.
(g) If the developer fails to fully comply with subsection (d) within the
60 days provided
and fails to fully comply within 10 days of written demand mailed by registered
or
certified mail to his or her last known address, the board may bring an action
to compel
compliance with subsection (d). If the court finds that any of the required
deliveries were
not made
within the required period, the board shall be entitled to recover its
reasonable attorneys'
fees and costs incurred from and after the date of expiration of the 10 day
demand.
(Source: P.A. 91-616, eff. 8-19-99.)
|
(765 ILCS 605/18.4) (from Ch. 30, par. 318.4)
Sec. 18.4. Powers and duties of board of managers. The board of
managers shall exercise for the association all powers, duties and
authority vested in the association by law or the condominium instruments
except for such powers, duties and authority reserved by law to the members
of the association. The powers and duties of the board of managers shall
include, but shall not be limited to, the following:
(a) To provide for the operation, care, upkeep, |
| maintenance, replacement and improvement of the common elements. Nothing in this subsection (a) shall be deemed to invalidate any provision in a condominium instrument placing limits on expenditures for the common elements, provided, that such limits shall not be applicable to expenditures for repair, replacement, or restoration of existing portions of the common elements. The term "repair, replacement or restoration" means expenditures to deteriorated or damaged portions of the property related to the existing decorating, facilities, or structural or mechanical components, interior or exterior surfaces, or energy systems and equipment with the functional equivalent of the original portions of such areas. Replacement of the common elements may result in an improvement over the original quality of such elements or facilities; provided that, unless the improvement is mandated by law or is an emergency as defined in item (iv) of subparagraph (8) of paragraph (a) of Section 18, if the improvement results in a proposed expenditure exceeding 5% of the annual budget, the board of managers, upon written petition by unit owners with 20% of the votes of the association delivered to the board within 21 days of the board action to approve the expenditure, shall call a meeting of the unit owners within 30 days of the date of delivery of the petition to consider the expenditure. Unless a majority of the total votes of the unit owners are cast at the meeting to reject the expenditure, it is ratified.
|
|
(b) To prepare, adopt and distribute the annual
|
|
(c) To levy and expend assessments.
(d) To collect assessments from unit
owners.
(e) To provide for the employment and dismissal of
|
| the personnel necessary or advisable for the maintenance and operation of the common elements.
|
|
(f) To obtain adequate and appropriate kinds of
|
|
(g) To own, convey, encumber, lease, and otherwise
|
| deal with units conveyed to or purchased by it.
|
|
(h) To adopt and amend rules and regulations covering
|
| the details of the operation and use of the property, after a meeting of the unit owners called for the specific purpose of discussing the proposed rules and regulations. Notice of the meeting shall contain the full text of the proposed rules and regulations, and the meeting shall conform to the requirements of Section 18(b) of this Act, except that no quorum is required at the meeting of the unit owners unless the declaration, bylaws or other condominium instrument expressly provides to the contrary. However, no rule or regulation may impair any rights guaranteed by the First Amendment to the Constitution of the United States or Section 4 of Article I of the Illinois Constitution including, but not limited to, the free exercise of religion, nor may any rules or regulations conflict with the provisions of this Act or the condominium instruments. No rule or regulation shall prohibit any reasonable accommodation for religious practices, including the attachment of religiously mandated objects to the front-door area of a condominium unit.
|
|
(i) To keep detailed, accurate records of the
|
| receipts and expenditures affecting the use and operation of the property.
|
|
(j) To have access to each unit from time to time as
|
| may be necessary for the maintenance, repair or replacement of any common elements or for making emergency repairs necessary to prevent damage to the common elements or to other units.
|
|
(k) To pay real property taxes, special assessments,
|
| and any other special taxes or charges of the State of Illinois or of any political subdivision thereof, or other lawful taxing or assessing body, which are authorized by law to be assessed and levied upon the real property of the condominium.
|
|
(l) To impose charges for late payment of a unit
|
| owner's proportionate share of the common expenses, or any other expenses lawfully agreed upon, and after notice and an opportunity to be heard, to levy reasonable fines for violation of the declaration, by-laws, and rules and regulations of the association.
|
|
(m) By a majority vote of the entire board of
|
| managers, to assign the right of the association to future income from common expenses or other sources, and to mortgage or pledge substantially all of the remaining assets of the association.
|
|
(n) To record the dedication of a portion of the
|
| common elements to a public body for use as, or in connection with, a street or utility where authorized by the unit owners under the provisions of Section 14.2.
|
|
(o) To record the granting of an easement for the
|
| laying of cable television or high speed Internet cable where authorized by the unit owners under the provisions of Section 14.3; to obtain, if available and determined by the board to be in the best interests of the association, cable television or bulk high speed Internet service for all of the units of the condominium on a bulk identical service and equal cost per unit basis; and to assess and recover the expense as a common expense and, if so determined by the board, to assess each and every unit on the same equal cost per unit basis.
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|
(p) To seek relief on behalf of all unit owners when
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| authorized pursuant to subsection (c) of Section 10 from or in connection with the assessment or levying of real property taxes, special assessments, and any other special taxes or charges of the State of Illinois or of any political subdivision thereof or of any lawful taxing or assessing body.
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|
(q) To reasonably accommodate the needs of a unit
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| owner who is a person with a disability as required by the federal Civil Rights Act of 1968, the Human Rights Act and any applicable local ordinances in the exercise of its powers with respect to the use of common elements or approval of modifications in an individual unit.
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(r) To accept service of a notice of claim for
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| purposes of the Mechanics Lien Act on behalf of each respective member of the Unit Owners' Association with respect to improvements performed pursuant to any contract entered into by the Board of Managers or any contract entered into prior to the recording of the condominium declaration pursuant to this Act, for a property containing more than 8 units, and to distribute the notice to the unit owners within 7 days of the acceptance of the service by the Board of Managers. The service shall be effective as if each individual unit owner had been served individually with notice.
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(s) To adopt and amend rules and regulations (l)
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| authorizing electronic delivery of notices and other communications required or contemplated by this Act to each unit owner who provides the association with written authorization for electronic delivery and an electronic address to which such communications are to be electronically transmitted; and (2) authorizing each unit owner to designate an electronic address or a U.S. Postal Service address, or both, as the unit owner's address on any list of members or unit owners which an association is required to provide upon request pursuant to any provision of this Act or any condominium instrument.
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|
In the performance of their duties, the officers and members of the board,
whether appointed by the developer or elected by the unit owners, shall
exercise the care required of a fiduciary of the unit owners.
The collection of assessments from unit owners by an association, board
of managers or their duly authorized agents shall not be considered acts
constituting a collection agency for purposes of the Collection Agency Act.
The provisions of this Section are
applicable to all condominium instruments recorded under this Act. Any
portion of a condominium instrument which contains provisions contrary to
these provisions shall be void as against public policy and ineffective.
Any such instrument that fails to contain the provisions required by this
Section shall be deemed to incorporate such provisions by operation of law.
(Source: P.A. 99-143, eff. 7-27-15; 99-849, eff. 1-1-17; 100-292, eff. 1-1-18.)
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(765 ILCS 605/18.5) (from Ch. 30, par. 318.5)
Sec. 18.5. Master Associations.
(a) If the declaration, other condominium instrument, or other duly
recorded covenants provide that any of the powers of the unit owners
associations are to be exercised by or may be delegated to a nonprofit
corporation or unincorporated association that exercises
those or other powers on behalf of one or more condominiums, or for the
benefit of the unit owners of one or more condominiums, such
corporation or association shall be a master association.
(b) There shall be included in the declaration, other
condominium instruments, or other duly recorded covenants establishing
the powers and duties of the master association the provisions set forth in
subsections (c) through (h).
In interpreting subsections (c) through (h), the courts should
interpret these provisions so that they are interpreted consistently with
the similar parallel provisions found in other parts of this Act.
(c) Meetings and finances.
(1) Each unit owner of a condominium subject to the |
| authority of the board of the master association shall receive, at least 30 days prior to the adoption thereof by the board of the master association, a copy of the proposed annual budget.
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|
(2) The board of the master association shall
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| annually supply to all unit owners of condominiums subject to the authority of the board of the master association an itemized accounting of the common expenses for the preceding year actually incurred or paid, together with a tabulation of the amounts collected pursuant to the budget or assessment, and showing the net excess or deficit of income over expenditures plus reserves.
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(3) Each unit owner of a condominium subject to the
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| authority of the board of the master association shall receive written notice mailed or delivered no less than 10 and no more than 30 days prior to any meeting of the board of the master association concerning the adoption of the proposed annual budget or any increase in the budget, or establishment of an assessment.
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(4) Meetings of the board of the master association
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| shall be open to any unit owner in a condominium subject to the authority of the board of the master association, except for the portion of any meeting held:
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(A) to discuss litigation when an action against
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| or on behalf of the particular master association has been filed and is pending in a court or administrative tribunal, or when the board of the master association finds that such an action is probable or imminent,
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(B) to consider information regarding
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| appointment, employment or dismissal of an employee, or
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(C) to discuss violations of rules and
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| regulations of the master association or unpaid common expenses owed to the master association.
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Any vote on these matters shall be taken at a meeting or
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| portion thereof open to any unit owner of a condominium subject to the authority of the master association.
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Any unit owner may record the proceedings at meetings
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| required to be open by this Act by tape, film or other means; the board may prescribe reasonable rules and regulations to govern the right to make such recordings. Notice of meetings shall be mailed or delivered at least 48 hours prior thereto, unless a written waiver of such notice is signed by the persons entitled to notice before the meeting is convened. Copies of notices of meetings of the board of the master association shall be posted in entranceways, elevators, or other conspicuous places in the condominium at least 48 hours prior to the meeting of the board of the master association. Where there is no common entranceway for 7 or more units, the board of the master association may designate one or more locations in the proximity of these units where the notices of meetings shall be posted.
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|
(5) If the declaration provides for election by unit
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| owners of members of the board of directors in the event of a resale of a unit in the master association, the purchaser of a unit from a seller other than the developer pursuant to an installment sales contract for purchase shall, during such times as he or she resides in the unit, be counted toward a quorum for purposes of election of members of the board of directors at any meeting of the unit owners called for purposes of electing members of the board, and shall have the right to vote for the election of members of the board of directors and to be elected to and serve on the board of directors unless the seller expressly retains in writing any or all of those rights. In no event may the seller and purchaser both be counted toward a quorum, be permitted to vote for a particular office, or be elected and serve on the board. Satisfactory evidence of the installment sales contract shall be made available to the association or its agents. For purposes of this subsection, "installment sales contract" shall have the same meaning as set forth in Section 5 of the Installment Sales Contract Act and subsection (e) of Section 1 of the Dwelling Unit Installment Contract Act.
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(6) The board of the master association shall have
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| the authority to establish and maintain a system of master metering of public utility services and to collect payments in connection therewith, subject to the requirements of the Tenant Utility Payment Disclosure Act.
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(7) The board of the master association or a common
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| interest community association shall have the power, after notice and an opportunity to be heard, to levy and collect reasonable fines from members for violations of the declaration, bylaws, and rules and regulations of the master association or the common interest community association. Nothing contained in this subdivision (7) shall give rise to a statutory lien for unpaid fines.
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(8) Other than attorney's fees, no fees pertaining to
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| the collection of a unit owner's financial obligation to the Association, including fees charged by a manager or managing agent, shall be added to and deemed a part of an owner's respective share of the common expenses unless: (i) the managing agent fees relate to the costs to collect common expenses for the Association; (ii) the fees are set forth in a contract between the managing agent and the Association; and (iii) the authority to add the management fees to an owner's respective share of the common expenses is specifically stated in the declaration or bylaws of the Association.
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(d) Records.
(1) The board of the master association shall
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| maintain the following records of the association and make them available for examination and copying at convenient hours of weekdays by any unit owners in a condominium subject to the authority of the board or their mortgagees and their duly authorized agents or attorneys:
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(i) Copies of the recorded declaration, other
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| condominium instruments, other duly recorded covenants and bylaws and any amendments, articles of incorporation of the master association, annual reports and any rules and regulations adopted by the master association or its board shall be available. Prior to the organization of the master association, the developer shall maintain and make available the records set forth in this subdivision (d)(1) for examination and copying.
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(ii) Detailed and accurate records in
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| chronological order of the receipts and expenditures affecting the common areas, specifying and itemizing the maintenance and repair expenses of the common areas and any other expenses incurred, and copies of all contracts, leases, or other agreements entered into by the master association, shall be maintained.
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(iii) The minutes of all meetings of the master
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| association and the board of the master association shall be maintained for not less than 7 years.
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(iv) Ballots and proxies related thereto, if any,
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| for any election held for the board of the master association and for any other matters voted on by the unit owners shall be maintained for not less than one year.
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(v) Such other records of the master association
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| as are available for inspection by members of a not-for-profit corporation pursuant to Section 107.75 of the General Not For Profit Corporation Act of 1986 shall be maintained.
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(vi) With respect to units owned by a land trust,
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| if a trustee designates in writing a person to cast votes on behalf of the unit owner, the designation shall remain in effect until a subsequent document is filed with the association.
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|
(2) Where a request for records under this subsection
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| is made in writing to the board of managers or its agent, failure to provide the requested record or to respond within 30 days shall be deemed a denial by the board of directors.
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(3) A reasonable fee may be charged by the master
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| association or its board for the cost of copying.
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|
(4) If the board of directors fails to provide
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| records properly requested under subdivision (d)(1) within the time period provided in subdivision (d)(2), the unit owner may seek appropriate relief, including an award of attorney's fees and costs.
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|
(e) The board of directors shall have standing and capacity to act in
a representative capacity in relation to matters involving the common areas
of the master association or more than one unit, on behalf of the unit
owners as their interests may appear.
(f) Administration of property prior to election of the initial board
of directors.
(1) Until the election, by the unit owners or the
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| boards of managers of the underlying condominium associations, of the initial board of directors of a master association whose declaration is recorded on or after August 10, 1990, the same rights, titles, powers, privileges, trusts, duties and obligations that are vested in or imposed upon the board of directors by this Act or in the declaration or other duly recorded covenant shall be held and performed by the developer.
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|
(2) The election of the initial board of directors of
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| a master association whose declaration is recorded on or after August 10, 1990, by the unit owners or the boards of managers of the underlying condominium associations, shall be held not later than 60 days after the conveyance by the developer of 75% of the units, or 3 years after the recording of the declaration, whichever is earlier. The developer shall give at least 21 days notice of the meeting to elect the initial board of directors and shall upon request provide to any unit owner, within 3 working days of the request, the names, addresses, and weighted vote of each unit owner entitled to vote at the meeting. Any unit owner shall upon receipt of the request be provided with the same information, within 10 days of the request, with respect to each subsequent meeting to elect members of the board of directors.
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|
(3) If the initial board of directors of a master
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| association whose declaration is recorded on or after August 10, 1990 is not elected by the unit owners or the members of the underlying condominium association board of managers at the time established in subdivision (f)(2), the developer shall continue in office for a period of 30 days, whereupon written notice of his resignation shall be sent to all of the unit owners or members of the underlying condominium board of managers entitled to vote at an election for members of the board of directors.
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|
(4) Within 60 days following the election of a
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| majority of the board of directors, other than the developer, by unit owners, the developer shall deliver to the board of directors:
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|
(i) All original documents as recorded or filed
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| pertaining to the property, its administration, and the association, such as the declaration, articles of incorporation, other instruments, annual reports, minutes, rules and regulations, and contracts, leases, or other agreements entered into by the association. If any original documents are unavailable, a copy may be provided if certified by affidavit of the developer, or an officer or agent of the developer, as being a complete copy of the actual document recorded or filed.
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(ii) A detailed accounting by the developer,
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| setting forth the source and nature of receipts and expenditures in connection with the management, maintenance and operation of the property, copies of all insurance policies, and a list of any loans or advances to the association which are outstanding.
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(iii) Association funds, which shall have been at
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| all times segregated from any other moneys of the developer.
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(iv) A schedule of all real or personal property,
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| equipment and fixtures belonging to the association, including documents transferring the property, warranties, if any, for all real and personal property and equipment, deeds, title insurance policies, and all tax bills.
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(v) A list of all litigation, administrative
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| action and arbitrations involving the association, any notices of governmental bodies involving actions taken or which may be taken concerning the association, engineering and architectural drawings and specifications as approved by any governmental authority, all other documents filed with any other governmental authority, all governmental certificates, correspondence involving enforcement of any association requirements, copies of any documents relating to disputes involving unit owners, and originals of all documents relating to everything listed in this subparagraph.
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(vi) If the developer fails to fully comply with
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| this paragraph (4) within the 60 days provided and fails to fully comply within 10 days of written demand mailed by registered or certified mail to his or her last known address, the board may bring an action to compel compliance with this paragraph (4). If the court finds that any of the required deliveries were not made within the required period, the board shall be entitled to recover its reasonable attorneys' fees and costs incurred from and after the date of expiration of the 10 day demand.
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|
(5) With respect to any master association whose
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| declaration is recorded on or after August 10, 1990, any contract, lease, or other agreement made prior to the election of a majority of the board of directors other than the developer by or on behalf of unit owners or underlying condominium associations, the association or the board of directors, which extends for a period of more than 2 years from the recording of the declaration, shall be subject to cancellation by more than 1/2 of the votes of the unit owners, other than the developer, cast at a special meeting of members called for that purpose during a period of 90 days prior to the expiration of the 2 year period if the board of managers is elected by the unit owners, otherwise by more than 1/2 of the underlying condominium board of managers. At least 60 days prior to the expiration of the 2 year period, the board of directors, or, if the board is still under developer control, then the board of managers or the developer shall send notice to every unit owner or underlying condominium board of managers, notifying them of this provision, of what contracts, leases and other agreements are affected, and of the procedure for calling a meeting of the unit owners or for action by the underlying condominium board of managers for the purpose of acting to terminate such contracts, leases or other agreements. During the 90 day period the other party to the contract, lease, or other agreement shall also have the right of cancellation.
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|
(6) The statute of limitations for any actions in law
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| or equity which the master association may bring shall not begin to run until the unit owners or underlying condominium board of managers have elected a majority of the members of the board of directors.
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|
(g) In the event of any resale of a unit in a master association by a unit
owner other than the developer, the owner shall obtain from
the board of directors and shall make available for inspection to the
prospective purchaser, upon demand, the following:
(1) A copy of the declaration, other instruments and
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| any rules and regulations.
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|
(2) A statement of any liens, including a statement
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| of the account of the unit setting forth the amounts of unpaid assessments and other charges due and owing.
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|
(3) A statement of any capital expenditures
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| anticipated by the association within the current or succeeding 2 fiscal years.
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|
(4) A statement of the status and amount of any
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| reserve for replacement fund and any portion of such fund earmarked for any specified project by the board of directors.
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|
(5) A copy of the statement of financial condition of
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| the association for the last fiscal year for which such a statement is available.
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(6) A statement of the status of any pending suits or
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| judgments in which the association is a party.
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|
(7) A statement setting forth what insurance coverage
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| is provided for all unit owners by the association.
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|
(8) A statement that any improvements or alterations
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| made to the unit, or any part of the common areas assigned thereto, by the prior unit owner are in good faith believed to be in compliance with the declaration of the master association.
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|
The principal officer of the unit owner's association or such
other officer as is specifically designated shall furnish the above
information when requested to do so in writing, within
30 days of receiving the request.
A reasonable fee covering the direct out-of-pocket cost of copying
and providing such information may be charged
by the association or its board of directors to the unit
seller for providing the information.
(g-1) The purchaser of a unit of a common interest community at a judicial foreclosure sale, other than a mortgagee, who takes possession of a unit of a common interest community pursuant to a court order or a purchaser who acquires title from a mortgagee shall have the duty to pay the proportionate share, if any, of the common expenses for the unit that would have become due in the absence of any assessment acceleration during the 6 months immediately preceding institution of an action to enforce the collection of assessments and the court costs incurred by the association in an action to enforce the collection that remain unpaid by the owner during whose possession the assessments accrued. If the outstanding assessments and the court costs incurred by the association in an action to enforce the collection are paid at any time during any action to enforce the collection of assessments, the purchaser shall have no obligation to pay any assessments that accrued before he or she acquired title. The notice of sale of a unit of a common interest community under subsection (c) of Section 15-1507 of the Code of Civil Procedure shall state that the purchaser of the unit other than a mortgagee shall pay the assessments and court costs required by this subsection (g-1).
(h) Errors and omissions.
(1) If there is an omission or error in the
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| declaration or other instrument of the master association, the master association may correct the error or omission by an amendment to the declaration or other instrument, as may be required to conform it to this Act, to any other applicable statute, or to the declaration. The amendment shall be adopted by vote of two-thirds of the members of the board of directors or by a majority vote of the unit owners at a meeting called for that purpose, unless the Act or the declaration of the master association specifically provides for greater percentages or different procedures.
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|
(2) If, through a scrivener's error, a unit has not
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| been designated as owning an appropriate undivided share of the common areas or does not bear an appropriate share of the common expenses, or if all of the common expenses or all of the common elements in the condominium have not been distributed in the declaration, so that the sum total of the shares of common areas which have been distributed or the sum total of the shares of the common expenses fail to equal 100%, or if it appears that more than 100% of the common elements or common expenses have been distributed, the error may be corrected by operation of law by filing an amendment to the declaration, approved by vote of two-thirds of the members of the board of directors or a majority vote of the unit owners at a meeting called for that purpose, which proportionately adjusts all percentage interests so that the total is equal to 100%, unless the declaration specifically provides for a different procedure or different percentage vote by the owners of the units and the owners of mortgages thereon affected by modification being made in the undivided interest in the common areas, the number of votes in the unit owners association or the liability for common expenses appertaining to the unit.
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(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 two-thirds of the members of the board of directors pursuant to the authority established in subdivisions (h)(1) or (h)(2) of this Section, the board, upon written petition by unit owners with 20% of the votes of the association or resolutions adopted by the board of managers or board of directors of the condominium and common interest community associations which select 20% of the members of the board of directors of the master association, whichever is applicable, received within 30 days of the board action, shall call a meeting of the unit owners or the boards of the condominium and common interest community associations which select members of the board of directors of the master association within 30 days of the filing of the petition or receipt of the condominium and common interest community association resolution to consider the board action. Unless a majority of the votes of the unit owners of the association are cast at the meeting to reject the action, or board of managers or board of directors of condominium and common interest community associations which select over 50% of the members of the board of the master association adopt resolutions prior to the meeting rejecting the action of the board of directors of the master association, it is ratified whether or not a quorum is present.
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(4) The procedures for amendments set forth in this
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| subsection (h) cannot be used if such an amendment would materially or adversely affect property rights of the unit owners unless the affected unit owners consent in writing. This Section does not restrict the powers of the association to otherwise amend the declaration, bylaws, or other condominium instruments, but authorizes a simple process of amendment requiring a lesser vote for the purpose of correcting defects, errors, or omissions when the property rights of the unit owners are not materially or adversely affected.
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(5) If there is an omission or error in the
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| declaration or other instruments that may not be corrected by an amendment procedure set forth in subdivision (h)(1) or (h)(2) of this Section, then the circuit court in the county in which the master association is located shall have jurisdiction to hear a petition of one or more of the unit owners thereon or of the association, to correct the error or omission, and the action may be a class action. The court may require that one or more methods of correcting the error or omission be submitted to the unit owners to determine the most acceptable correction. All unit owners in the association must be joined as parties to the action. Service of process on owners may be by publication, but the plaintiff shall furnish all unit owners not personally served with process with copies of the petition and final judgment of the court by certified mail, return receipt requested, at their last known address.
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(6) Nothing contained in this Section shall be
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| construed to invalidate any provision of a declaration authorizing the developer to amend an instrument prior to the latest date on which the initial membership meeting of the unit owners must be held, whether or not it has actually been held, to bring the instrument into compliance with the legal requirements of the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Federal Housing Administration, the United States Veterans Administration or their respective successors and assigns.
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(i) The provisions of subsections (c) through (h) are applicable
to all declarations, other condominium instruments, and other
duly recorded covenants establishing the powers and duties of the master
association recorded under this Act. Any portion of a declaration,
other condominium instrument, or other duly recorded covenant establishing
the powers and duties of a master association which contains provisions
contrary to the provisions of subsection (c) through (h) shall be void as
against public policy and ineffective. Any declaration, other condominium
instrument, or other duly recorded covenant establishing the powers and
duties of the master association which fails to contain the provisions
required by subsections (c) through (h) shall be deemed to incorporate such
provisions by operation of law.
(j) (Blank).
(Source: P.A. 100-416, eff. 1-1-18.)
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(765 ILCS 605/19) (from Ch. 30, par. 319)
Sec. 19. Records of the association; availability for examination.
(a) The board of managers of every association shall keep and maintain the
following records, or true and complete copies of these records, at the
association's principal office:
(1) the association's declaration, bylaws, and plats |
| of survey, and all amendments of these;
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|
(2) the rules and regulations of the association, if
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|
(3) if the association is incorporated as a
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| corporation, the articles of incorporation of the association and all amendments to the articles of incorporation;
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|
(4) minutes of all meetings of the association and
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| its board of managers for the immediately preceding 7 years;
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|
(5) all current policies of insurance of the
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|
(6) all contracts, leases, and other agreements then
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| in effect to which the association is a party or under which the association or the unit owners have obligations or liabilities;
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|
(7) a current listing of the names, addresses, email
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| addresses, telephone numbers, and weighted vote of all members entitled to vote;
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|
(8) ballots and proxies related to ballots for all
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| matters voted on by the members of the association during the immediately preceding 12 months, including, but not limited to, the election of members of the board of managers;
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|
(9) the books and records for the association's
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| current and 10 immediately preceding fiscal years, including, but not limited to, itemized and detailed records of all receipts, expenditures, and accounts; and
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|
(10) any reserve study.
(b) Any member of an association shall have the right to inspect, examine,
and make copies of the records described in subdivisions (1), (2), (3), (4),
(5), (6), (9), and (10) of subsection (a) of this Section, in person or by agent, at any
reasonable time or times, at the association's principal office. In order
to exercise this right, a member must submit a written request to the
association's board of managers or its authorized agent, stating with
particularity the records sought to be examined. Failure of an association's
board of managers to make available all records so requested within 10 business days of
receipt of the member's written request shall be deemed a denial.
Any member who prevails in an enforcement action to compel examination of
records described in subdivisions (1), (2), (3), (4), (5), (6), (9), and (10) of subsection (a)
of this Section shall be entitled to recover reasonable attorney's fees and
costs from the association.
(c) (Blank).
(d) (Blank).
(d-5) As used in this Section, "commercial purpose" means the use of any part of a record or records described in subdivisions (7) and (8) of subsection (a) of this Section, or information derived from such records, in any form for sale, resale, or solicitation or advertisement for sales or services.
(e) Except as otherwise provided in subsection (g) of this
Section, any member of an association shall have the right to inspect, examine,
and make copies of the records described in subdivisions (7) and (8) of subsection (a) of this Section, in person or by agent, at any reasonable
time or times but only for a purpose that relates to the association, at the association's principal
office. In order to exercise this right, a member must submit a written
request, to the association's board of managers or its authorized agent,
stating with particularity the records sought to be examined. As a condition for exercising this right, the board of managers or authorized agent of the association may require the member to certify in writing that the information contained in the records obtained by the member will not be used by the member for any commercial purpose or for any purpose that does not relate to the association. The board of managers of the association may impose a fine in accordance with item (l) of Section 18.4 upon any person who makes a false certification. Subject to the provisions of subsection (g) of this Section, failure of an association's board of managers to make
available all records so requested within 10 business days of receipt of the
member's written request shall be deemed a denial; provided, however, that the
board of managers of an association that has adopted a secret ballot election
process as provided in Section 18 of this Act shall not be deemed to have
denied a member's request for records described in subdivision (8) of
subsection (a) of this Section if voting ballots, without identifying unit
numbers, are made available to the requesting member within 10 business days of receipt
of the member's written request.
Any member who prevails in an enforcement action to compel
examination of records described in subdivision (7) or (8) of
subsection (a) of this Section shall be entitled to recover reasonable
attorney's fees and costs from the association only if the court finds that
the board of directors acted in bad faith in denying the member's request.
(f) The actual cost to the association of retrieving and making requested
records available for inspection and examination under this Section may be
charged by the association to the requesting member. If a member requests
copies of records requested under this Section, the actual costs to the
association of reproducing the records may also be charged by the association
to the requesting member.
(g) Notwithstanding the provisions of subsection (e) of this Section, unless
otherwise directed by court order, an association need not make the following
records available for inspection, examination, or copying by its members:
(1) documents relating to appointment, employment,
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| discipline, or dismissal of association employees;
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|
(2) documents relating to actions pending against or
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| on behalf of the association or its board of managers in a court or administrative tribunal;
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|
(3) documents relating to actions threatened against,
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| or likely to be asserted on behalf of, the association or its board of managers in a court or administrative tribunal;
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|
(4) documents relating to common expenses or other
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| charges owed by a member other than the requesting member; and
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|
(5) documents provided to an association in
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| connection with the lease, sale, or other transfer of a unit by a member other than the requesting member.
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|
(h) The provisions of this Section are applicable to all condominium
instruments recorded under this Act. Any portion of a condominium instrument
that contains provisions contrary to these provisions shall be void as against
public policy and ineffective. Any condominium instrument that fails to
contain the provisions required by this Section shall be deemed to incorporate
the provisions by operation of law.
(Source: P.A. 102-921, eff. 5-27-22.)
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