Public Act 093-0243
Public Act 93-0243 of the 93rd General Assembly
Public Act 93-0243
HB1584 Enrolled LRB093 03887 DRJ 03922 b
AN ACT in relation to property.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Condominium Property Act is amended by
changing Section 18 as follows:
(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.
(2) the powers and duties of the board;
(3) the compensation, if any, of the members of the
board;
(4) the method of removal from office of members of
the board;
(5) that the board may engage the services of a
manager or managing agent;
(6) that each unit owner shall receive, at least 30
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;
(7) that the board of managers shall annually
supply 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;
(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 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;
(9) that meetings of the board of managers shall be
open to any unit owner, except for the portion of any
meeting held (i) to 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) to consider
information regarding appointment, employment or
dismissal of an employee, or (iii) to discuss violations
of rules and regulations of the association or a unit
owner's unpaid share of common expenses; that any vote on
these matters shall be taken at a meeting or portion
thereof open to any unit owner; that any unit owner may
record the proceedings at meetings or portions thereof
required to be open by this Act by tape, film or other
means; that the board may prescribe reasonable rules and
regulations to govern the right to make such recordings,
that notice of such meetings shall be mailed or delivered
at least 48 hours prior thereto, unless a written waiver
of such notice is signed by the person or persons
entitled to such notice pursuant to the declaration,
bylaws, other condominium instrument, or provision of law
other than this subsection before the meeting is
convened, and that copies of notices of meetings 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;
(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 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; and
(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.
(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;
(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;
(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) that unless the Articles of Incorporation
or the bylaws otherwise provide, and except as provided
in subparagraph (B) of this paragraph (9) in connection
with board elections, 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 shall be
invalid after 11 months from the date of its execution,
unless otherwise provided in the proxy, and that the
every 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;
(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;
(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 14 days after the board's approval of
a rule adopted pursuant to subparagraph (B) 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;
(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 contact shall be
made available to the association or its agents. For
purposes of this subsection, "installment contact" shall
have the same meaning as set forth in Section 1 (e) of
"An Act relating to installment contracts to sell
dwelling structures", approved August 11, 1967, as
amended;
(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 the effective date of this
amendatory Act of 1985, 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 the effective date of this
amendatory Act of 1984. (ii) With regard to any lease entered
into subsequent to the effective date of this amendatory Act
of 1989, 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.
(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. 88-135; 88-417; 88-626, eff. 9-9-94; 88-670,
eff. 12-2-94; 89-41, eff. 6-23-95.)
Effective Date: 01/01/04
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