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Public Act 100-0292 | ||||
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AN ACT concerning civil law.
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Be it enacted by the People of the State of Illinois, | ||||
represented in the General Assembly:
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Section 5. The Common Interest Community Association Act is | ||||
amended by changing Sections 1-20 and 1-45 as follows: | ||||
(765 ILCS 160/1-20)
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Sec. 1-20. Amendments to the declaration, bylaws, or | ||||
operating agreement. | ||||
(a) The administration of every property shall be governed | ||||
by the declaration and bylaws or operating agreement, which may | ||||
either be embodied in the declaration or in a separate | ||||
instrument, a true copy of which shall be appended to and | ||||
recorded with the declaration. No modification or amendment of | ||||
the declaration, bylaws, or operating agreement shall be valid | ||||
unless the same is set forth in an amendment thereof and such | ||||
amendment is duly recorded. An amendment of the declaration, | ||||
bylaws, or operating agreement shall be deemed effective upon | ||||
recordation, unless the amendment sets forth a different | ||||
effective date. | ||||
(b) Unless otherwise provided by this Act, amendments to | ||||
community instruments authorized to be recorded shall be | ||||
executed and recorded by the president of the board or such | ||||
other officer authorized by the common interest community |
association or the community instruments. | ||
(c) If an association that currently permits leasing amends | ||
its declaration, bylaws, or rules and regulations to prohibit | ||
leasing, nothing in this Act or the declarations, bylaws, rules | ||
and regulations of an association shall prohibit a unit owner | ||
incorporated under 26 USC 501(c)(3) which is leasing a unit at | ||
the time of the prohibition from continuing to do so until such | ||
time that the unit owner voluntarily sells the unit; and no | ||
special fine, fee, dues, or penalty shall be assessed against | ||
the unit owner for leasing its unit.
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(d) No action to incorporate a common interest community as | ||
a municipality shall commence until an instrument agreeing to | ||
incorporation has been signed by two-thirds of the members. | ||
(e) If the community instruments require approval of any | ||
mortgagee or
lienholder of record and the mortgagee or | ||
lienholder of record receives a request to approve or consent | ||
to
the amendment to the community instruments, the mortgagee or | ||
lienholder of record is deemed to have
approved or consented to | ||
the request unless the mortgagee or lienholder of record | ||
delivers a negative
response to the requesting party within 60 | ||
days after the mailing of the request. A request to approve or | ||
consent to an amendment to the community instruments that is | ||
required to be sent to a mortgagee or lienholder of record | ||
shall be sent by certified mail. | ||
(Source: P.A. 99-41, eff. 7-14-15.) |
(765 ILCS 160/1-45)
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Sec. 1-45. Finances. | ||
(a) Each member shall receive through a prescribed delivery | ||
method, at least 30 days but not more than 60 days prior to the | ||
adoption thereof by the board, 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. | ||
(b) The board shall provide all members with a reasonably | ||
detailed summary of the receipts, common expenses, and reserves | ||
for the preceding budget year. The board shall (i) make | ||
available for review to all members 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 or | ||
(ii) provide a consolidated annual independent audit report of | ||
the financial status of all fund accounts within the | ||
association. | ||
(c) 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 |
common interest community association, upon written petition | ||
by members with 20% of the votes of the association delivered | ||
to the board within 14 days of the board action, shall call a | ||
meeting of the members 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 members are cast at | ||
the meeting to reject the budget or separate assessment, it | ||
shall be deemed ratified. | ||
(d) If total common expenses exceed the total amount of the | ||
approved and adopted budget, the common interest community | ||
association shall disclose this variance to all its members and | ||
specifically identify the subsequent assessments needed to | ||
offset this variance in future budgets. | ||
(e) Separate assessments for expenditures relating to | ||
emergencies or mandated by law may be adopted by the board | ||
without being subject to member approval or the provisions of | ||
subsection (c) or (f) of this Section. As used herein, | ||
"emergency" means a danger to or a compromise of the structural | ||
integrity of the common areas or any of the common facilities | ||
of the common interest community. "Emergency" also includes a | ||
danger to the life, health or safety of the membership. | ||
(f) Assessments for additions and alterations to the common | ||
areas or to association-owned property not included in the | ||
adopted annual budget, shall be separately assessed and are | ||
subject to approval of a simple majority of the total members | ||
at a meeting called for that purpose. |
(g) The board may adopt separate assessments payable over | ||
more than one fiscal year. With respect to multi-year | ||
assessments not governed by subsections (e) and (f) of this | ||
Section, 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. | ||
(h) The board of a common interest community association | ||
shall have the authority to establish and maintain a system of | ||
master metering of public utility services to collect payments | ||
in conjunction therewith, subject to the requirements of the | ||
Tenant Utility Payment Disclosure Act. | ||
(i) An association subject to this Act that consists of 100 | ||
or more units shall use generally accepted accounting | ||
principles in fulfilling any accounting obligations under this | ||
Act.
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(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11; | ||
97-1090, eff. 8-24-12.) | ||
Section 10. The Condominium Property Act is amended by | ||
changing Sections 9, 15, 18, 18.4, 19, 27, and 31 and by adding | ||
Section 18.10 as follows:
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(765 ILCS 605/9) (from Ch. 30, par. 309)
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Sec. 9. Sharing of expenses - Lien for nonpayment.
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(a) All common expenses incurred or accrued prior to the | ||
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
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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.
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(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.
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(c) Budget and reserves.
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(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
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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 | ||
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
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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
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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 | ||
(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
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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 | ||
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. | ||
(5) At the end of an association's fiscal year and | ||
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).
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(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.
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(f) Payment of any assessment shall be in amounts and at | ||
times
determined by the board of managers.
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(g) Lien.
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(1) If any unit owner shall fail or refuse to make any | ||
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
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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 | ||
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
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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
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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 | ||
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 | ||
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
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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.
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(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.
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(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
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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.
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(k) Nothing in Public Act 83-1271 is intended to change the | ||
lien
priorities of any encumbrance created prior to August 30, | ||
1984.
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(Source: P.A. 94-1049, eff. 1-1-07.)
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(765 ILCS 605/15) (from Ch. 30, par. 315)
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Sec. 15. Sale of property.
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(a) Unless a greater percentage is provided for in the | ||
declaration or
bylaws, and notwithstanding the provisions of | ||
Sections 13 and 14 hereof,
a majority of the unit owners where | ||
the property contains 2 units, or not
less than 66 2/3% where | ||
the property contains three units, and not less
than 75% where | ||
the property contains 4 or more units may, by affirmative
vote | ||
at a meeting of unit owners duly called for such purpose, elect | ||
to
sell the property. Such action shall be binding upon all | ||
unit owners, and
it shall thereupon become the duty of every | ||
unit owner to execute and
deliver such instruments and to | ||
perform all acts as in manner and form may
be necessary to | ||
effect such sale, provided, however, that any unit owner
who | ||
did not vote in favor of such action and who has filed written
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objection thereto with the manager or board of managers within | ||
20 days
after the date of the meeting at which such sale was | ||
approved shall be
entitled to receive from the proceeds of such | ||
sale an amount equivalent to
the greater of: (i) the value of | ||
his or her interest, as determined by a fair appraisal, less | ||
the
amount of any unpaid assessments or charges due and owing |
from such unit
owner or (ii) the outstanding balance of any | ||
bona fide debt secured by the objecting unit owner's interest | ||
which was incurred by such unit owner in connection with the | ||
acquisition or refinance of the unit owner's interest, less the | ||
amount of any unpaid assessments or charges due and owing from | ||
such unit owner. The objecting unit owner is also entitled to | ||
receive from the proceeds of a sale under this Section | ||
reimbursement for reasonable relocation costs, determined in | ||
the same manner as under the federal Uniform Relocation | ||
Assistance and Real Property Acquisition Policies Act of 1970, | ||
as amended from time to time, and as implemented by regulations | ||
promulgated under that Act .
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(b) If there is a disagreement as to the value of the
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interest of a unit owner who did not vote in favor of the sale | ||
of the
property, that unit owner shall have a right to | ||
designate an expert in
appraisal or property valuation to | ||
represent him, in which case, the
prospective purchaser of the | ||
property shall designate an expert in
appraisal or property | ||
valuation to represent him, and both of these experts
shall | ||
mutually designate a third expert in appraisal or property | ||
valuation.
The 3 experts shall constitute a panel to determine | ||
by vote of at least 2
of the members of the panel, the value of | ||
that unit owner's interest in
the property. The changes made by | ||
this amendatory Act of the 100th General Assembly apply to | ||
sales under this Section that are pending or commenced on and | ||
after the effective date of this amendatory Act of the 100th |
General Assembly.
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(Source: P.A. 86-1156.)
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(765 ILCS 605/18) (from Ch. 30, par. 318)
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Sec. 18. Contents of bylaws. The bylaws shall provide for | ||
at least
the following:
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(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;
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(2) the powers and duties of the board;
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(3) the compensation, if any, of the members of the | ||
board;
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(4) the method of removal from office of members of the | ||
board;
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(5) that the board may engage the services of a manager | ||
or managing agent;
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(6) that each unit owner shall receive, at least 25 | ||
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 to
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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 | ||
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 14
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 | ||
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; | ||
(B) that board members may participate in and act at | ||
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; | ||
(C) that any unit owner may record the
proceedings at | ||
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; | ||
(D) that
notice of every meeting of the board of | ||
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 | ||
(E) that notice of every meeting
of the board of | ||
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;
|
(10) that the board shall meet at least 4 times | ||
annually;
| ||
(11) that no member of the board or officer shall be | ||
elected for a term
of more than 2 years, but that officers | ||
and board members may succeed
themselves;
| ||
(12) the designation of an officer to mail and receive | ||
all notices and
execute amendments to condominium | ||
instruments as provided for in this Act
and in the | ||
condominium instruments;
| ||
(13) the method of filling vacancies on the board
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;
| ||
(14) what percentage of the board of managers, if other | ||
than a majority,
shall constitute a quorum;
|
(15) provisions concerning notice of board meetings to | ||
members of the
board;
| ||
(16) the board of managers may not enter into a | ||
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 20 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;
| ||
(17) that the board of managers may disseminate
to 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;
| ||
(18) any proxy distributed for board elections
by the | ||
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;
| ||
(19) that special meetings of the board of managers can | ||
be called by
the president or 25% of the members of the | ||
board;
| ||
(20) that the board of managers may establish
and | ||
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
| ||
(21) that the board may ratify and confirm actions of | ||
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. | ||
The intent of the provisions of Public Act 99-472 | ||
adding this paragraph (21) is to empower and support boards | ||
to act in
emergencies. | ||
(b)(1) What percentage of the unit owners, if other | ||
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;
| ||
(2) that the association shall have one class of | ||
membership;
| ||
(3) that the members shall hold an annual meeting, one | ||
of the purposes
of which shall be to elect members of the | ||
board of managers;
| ||
(4) the method of calling meetings of the unit owners;
| ||
(5) that special meetings of the members can be called | ||
by the president,
board of managers, or by 20% of unit | ||
owners;
| ||
(6) that written notice of any membership meeting 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;
| ||
(7) that voting shall be on a percentage basis, and | ||
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;
| ||
(8) that, where there is more than one owner of a 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;
| ||
(9)(A) except as provided in subparagraph (B) of this | ||
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;
| ||
(B) that if a rule adopted at least 120 days before a | ||
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; | ||
(B-5) that if a rule adopted at least 120 days before 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;
| ||
(C) that if a written petition by unit owners with at | ||
least 20% of the
votes of
the association is delivered to | ||
the board within 30 14 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;
| ||
(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; | ||
(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;
| ||
(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
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 contract
shall be made available to the | ||
association or its agents. For
purposes of this subsection, | ||
"installment contract" shall have the same
meaning as set |
forth in Section 1(e) of the Dwelling Unit Installment | ||
Contract Act;
| ||
(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
| ||
(13) that matters subject to the affirmative vote of | ||
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 | ||
(excluding the mortgage
or pledge) of all, or | ||
substantially all of the property and assets of the
| ||
association; and
| ||
(iii) the purchase or sale of land or of units on | ||
behalf of all unit owners.
| ||
(c) Election of a president from among the board of | ||
managers, who shall
preside over the meetings of the board | ||
of managers and of the unit owners.
| ||
(d) Election of a secretary from among the board of | ||
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.
|
(e) Election of a treasurer from among the board of | ||
managers, who shall
keep the financial records and
books of | ||
account.
| ||
(f) Maintenance, repair and replacement of the common | ||
elements and
payments therefor, including the method of | ||
approving payment vouchers.
| ||
(g) An association with 30 or more units shall obtain | ||
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.
| ||
For the purpose of this subsection, a management | ||
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.
| ||
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 | ||
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, | ||
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). | ||
(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.
| ||
(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.
| ||
(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. 98-1042, eff. 1-1-15; 99-472, eff. 6-1-16; | ||
99-567, eff. 1-1-17; 99-642, eff. 7-28-16 .)
| ||
(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 14 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 budget | ||
for the property.
| ||
(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
| ||
insurance.
| ||
(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.
| ||
(p) To seek relief on behalf of all unit owners when | ||
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.
| ||
(q) To reasonably accommodate the needs of a unit 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.
| ||
(r) To accept service of a notice of claim for 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.
| ||
(s) To adopt and amend rules and regulations (l) | ||
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. | ||
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. 98-735, eff. 1-1-15; 99-143, eff. 7-27-15; | ||
99-849, eff. 1-1-17 .)
|
(765 ILCS 605/18.10 new) | ||
Sec. 18.10. Generally accepted accounting principles. An | ||
association subject to this Act that consists of 100 or more | ||
units shall use generally accepted accounting principles in | ||
fulfilling any accounting obligations under this Act.
| ||
(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;
| ||
(2) the rules and regulations of the association, if | ||
any;
| ||
(3) if the association is incorporated as a | ||
corporation, the articles
of incorporation of the | ||
association and all amendments to the articles of
| ||
incorporation;
| ||
(4) minutes of all meetings of the association and its | ||
board of managers
for the immediately preceding 7 years;
| ||
(5) all current policies of insurance of the | ||
association;
| ||
(6) all contracts, leases, and other agreements then in |
effect to which
the association is a party or under which | ||
the association or the unit owners
have obligations or | ||
liabilities;
| ||
(7) a current listing of the names, addresses, email | ||
addresses, telephone numbers, and weighted vote of all
| ||
members entitled to vote;
| ||
(8) ballots and proxies related to ballots for all | ||
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;
and
| ||
(9) the books and records of account for the | ||
association's current and 10
immediately preceding fiscal | ||
years, including but not limited to itemized and
detailed | ||
records of all receipts , and expenditures , and accounts .
| ||
(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),
and (5) , (6), and (9) 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 30 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), and (5) , (6), and (9) 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) (6), (7), (8), and
(9) of subsection | ||
(a) of this Section, in person or by agent, at any reasonable
| ||
time or times but only for a proper 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. | ||
and a proper
purpose for the request. 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 30 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 30 days of receipt
of the member's written request.
| ||
In an action to compel examination of records described in | ||
subdivisions (6),
(7), (8), and (9) of subsection (a) of this | ||
Section, the burden of proof is
upon the member to establish | ||
that the member's request is based on a proper
purpose. Any | ||
member who prevails in an enforcement action to compel
| ||
examination of records described in subdivisions (7) or (8) | ||
(6), (7), (8), and (9) 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 shall 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 shall | ||
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, | ||
discipline, or
dismissal of association employees;
| ||
(2) documents relating to actions pending against or on | ||
behalf of the
association or its board of managers in a | ||
court or administrative tribunal;
| ||
(3) documents relating to actions threatened against, | ||
or likely to be
asserted on behalf of, the association or | ||
its board of managers in a court or
administrative | ||
tribunal;
| ||
(4) documents relating to common expenses or other | ||
charges owed by a
member other than the requesting member; | ||
and
| ||
(5) documents provided to an association in connection | ||
with the lease,
sale, or other transfer of a unit by a |
member other than the requesting member.
| ||
(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. 90-496, eff. 8-18-97; 90-655, eff. 7-30-98.)
| ||
(765 ILCS 605/27) (from Ch. 30, par. 327)
| ||
Sec. 27. Amendments. | ||
(a) If there is any unit owner other than the developer, | ||
and unless otherwise provided in this Act,
the condominium | ||
instruments shall be amended only as follows: | ||
(i) upon the
affirmative vote of 2/3 of those voting or | ||
upon the majority
specified by the condominium | ||
instruments, provided that in no event shall the | ||
condominium instruments require more than a three-quarters | ||
vote of all unit owners; and
| ||
(ii) with the
approval of, or notice to, any mortgagees | ||
or other lienholders of record, if required under the | ||
provisions of
the condominium instruments.
If the | ||
condominium instruments require approval of any mortgagee | ||
or
lienholder of record and the mortgagee or lienholder of | ||
record receives a request to approve or consent to
the |
amendment to the condominium instruments, the mortgagee or | ||
lienholder of record is deemed to have
approved or | ||
consented to the request unless the mortgagee or lienholder | ||
of record delivers a negative
response to the requesting | ||
party within 60 days after the mailing of the request. A | ||
request to approve or consent to an amendment to the | ||
condominium instruments that is required to be sent to a | ||
mortgagee or lienholder of record shall be sent by | ||
certified mail.
| ||
(b)(1) If there is an omission, error, or inconsistency in | ||
a condominium instrument, such that a provision of a | ||
condominium instrument does not conform to this Act or to | ||
another applicable statute, the association may correct the | ||
omission, error, or inconsistency to conform the condominium | ||
instrument to this Act or to another applicable statute by an | ||
amendment adopted by vote of two-thirds of the Board of | ||
Managers, without a unit owner vote. A provision in a | ||
condominium instrument requiring or allowing unit owners, | ||
mortgagees, or other lienholders of record to vote to approve | ||
an amendment to a condominium instrument, or for the mortgagees | ||
or other lienholders of record to be given notice of an | ||
amendment to a condominium instrument, is not applicable to an | ||
amendment to the extent that the amendment corrects an | ||
omission, error, or inconsistency to conform the condominium | ||
instrument to this Act or to another applicable statute.
| ||
(2) If through a scrivener's error, a unit has not been
|
designated as owning an appropriate undivided share of the | ||
common elements
or does not bear an appropriate share of the | ||
common expenses or that all
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 | ||
elements 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 | ||
Managers or a majority vote of the unit owners at a meeting | ||
called for
this purpose which proportionately adjusts all | ||
percentage interests so that
the total is equal to 100% unless | ||
the condominium instruments specifically
provide 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 | ||
elements, the number
of votes in the unit owners association or | ||
the liability for common expenses
appertaining to the unit.
| ||
(3) If an omission or error or a scrivener's error in the | ||
declaration,
bylaws or other condominium instrument is | ||
corrected by vote of
two-thirds of the members of the
Board of | ||
Managers pursuant to the authority established in paragraphs | ||
(1) or (2) of this subsection (b) subsections (b)(1)
or (b)(2) | ||
of Section 27 of this Act , the Board upon written petition by
|
unit owners with 20 percent of the votes of the association | ||
filed within
30 days of the Board action shall call a meeting | ||
of the unit owners within
30 days of the filing of the petition | ||
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, it is ratified whether or not a quorum is | ||
present.
| ||
(4) The procedures for amendments set forth in this | ||
subsection (b) 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.
| ||
(5) If there is an omission or error in the declaration, | ||
bylaws, or other
condominium instruments, which may not be | ||
corrected by an amendment procedure
set forth in paragraphs (1) | ||
and (2) of this subsection (b) of Section 27 in the
declaration | ||
then the Circuit Court in the County in which the condominium
| ||
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.
| ||
(6) Nothing contained in this Section shall be construed to | ||
invalidate
any provision of a condominium instrument | ||
authorizing the developer to amend
a condominium instrument | ||
prior to the latest date on which the initial
membership | ||
meeting of the unit owners must be held, whether or not nor 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.
| ||
(Source: P.A. 98-282, eff. 1-1-14; 99-472, eff. 6-1-16; revised | ||
9-1-16.)
| ||
(765 ILCS 605/31) (from Ch. 30, par. 331)
| ||
Sec. 31. Subdivision or combination of units. | ||
(a) As used in this Section, "combination of any units" | ||
means any 2 or more residential units to be used as a single | ||
unit as shown on the plat or amended plat, which may involve, |
without limitation, additional exclusive use of a portion of | ||
the common elements within the building adjacent to the | ||
combined unit (for example, without limitation, the use of a | ||
portion of an adjacent common hallway). | ||
(b) Unless the condominium
instruments expressly prohibit | ||
the subdivision or combination of any units,
and subject to | ||
additional limitations provided by the condominium | ||
instruments,
the owner or owners may, at their own expense, | ||
subdivide or combine and locate
or relocate common elements | ||
affected or required thereby, in accordance
with the provisions | ||
of the condominium instruments and the requirements
of this | ||
Act. The owner or owners shall make written application to the
| ||
board of managers, requesting an amendment to the condominium | ||
instruments,
setting forth in the application a proposed | ||
reallocation to the new units
of the percentage interest in the | ||
common elements, and setting forth whether
the limited common | ||
elements, if any, previously assigned to the unit to
be | ||
subdivided should be assigned to each new unit or to fewer than | ||
all of
the new units created and requesting, if desired in the | ||
event of a
combination of any units, that the new unit be | ||
granted the exclusive right to
use as a limited common element, | ||
a portion of the common elements within the
building adjacent | ||
to the new unit. If the transaction is approved by a
majority | ||
of the board of managers, it shall be effective upon (1) | ||
recording of
an amendment to condominium instruments in | ||
accordance with the provisions of
Sections 5 and 6 of this Act, |
and (2) execution by the owners of the units
involved. | ||
(c) In the event of a combination of any units, the | ||
amendment under subsection (b) may grant
the owner of the | ||
combined unit the exclusive right to use, as a limited common
| ||
element, a portion of the common elements within the building | ||
adjacent to the
new unit.
The request for the amendment shall | ||
be granted and the amendment shall grant
this exclusive right | ||
to use as a limited common element if the following
conditions | ||
are met:
| ||
(1) the common element for which the exclusive right to | ||
use as a limited
common element is sought is not necessary | ||
or practical for use by the owners of
any units other than | ||
the owner or owners of the combined unit; and
| ||
(2) the owner or owners of the combined unit are | ||
responsible for any and
all
costs associated with the | ||
renovation, modification, or other adaptation
performed
as | ||
a result of the granting of the exclusive right to use as a | ||
limited common
element.
| ||
(d) If the combined unit is divided, part of the original | ||
combined unit is
sold,
and the grant of the exclusive right to | ||
use as a limited common element is no
longer necessary, | ||
practical, or appropriate for the use and enjoyment of the
| ||
owner or owners of the original combined unit, the board may | ||
terminate the
grant of the exclusive right to use as a limited | ||
common element and require
that the owner or owners of the | ||
original combined unit restore the common area
to its condition |
prior to the grant of the exclusive right to use as a limited
| ||
common element. If the combined unit is sold without being | ||
divided, the grant
of the exclusive right to use as a limited | ||
common element shall apply to the
new owner or owners of the | ||
combined unit, who shall assume the rights and
responsibilities | ||
of the original owner or owners. | ||
(e) Under this Section, the exclusive right to use as a | ||
limited common element any portion of the common elements that | ||
is not necessary or practical for use by the owners of any | ||
other units is not a diminution of the ownership interests of | ||
all other unit owners requiring unanimous consent of all unit | ||
owners under subsection (e) of Section 4 of this Act or any | ||
percentage set forth in the condominium instruments. | ||
(f) Notwithstanding Section 27 of this Act and any other | ||
amendment provisions set forth in the condominium instruments, | ||
an amendment pursuant to this Section is effective if it meets | ||
the requirements set forth in this Section.
| ||
(Source: P.A. 90-199, eff. 7-24-97.)
|