|
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 HB2401 Introduced , by Rep. Elaine Nekritz SYNOPSIS AS INTRODUCED: |
| 765 ILCS 160/1-30 | |
765 ILCS 605/15 | from Ch. 30, par. 315 |
765 ILCS 605/18 | from Ch. 30, par. 318 |
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Amends the Common Interest Community Association Act. Provides that the association shall have one class of voting membership (instead of "one class of membership") unless the declaration, bylaws, or operating agreement provide otherwise. Makes a similar change in the Condominium Property Act. Further amends the Condominium Property Act. Deletes language providing that if the property contains 4 or more units, the owners may agree to sell the property by a vote of 75%. Provides instead that if the property contains at least 4 but not more than 6 units, a vote of 75% of the owners is required to sell the condominium property. Provides that if the property contains 7 or more units, a vote of 85% of the owners is required to sell the condominium property.
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| | A BILL FOR |
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1 | | AN ACT concerning civil law.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 5. The Common Interest Community Association Act is |
5 | | amended by changing Section 1-30 as follows: |
6 | | (765 ILCS 160/1-30)
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7 | | Sec. 1-30. Board duties and obligations; records. |
8 | | (a) The board shall meet at least 4 times annually. |
9 | | (b) A common interest community association may not enter |
10 | | into a contract with a current board member, or with a |
11 | | corporation, limited liability company, or partnership in |
12 | | which a board member or a member of his or her immediate family |
13 | | has 25% or more interest, unless notice of intent to enter into |
14 | | the contract is given to members within 20 days after a |
15 | | decision is made to enter into the contract and the members are |
16 | | afforded an opportunity by filing a petition, signed by 20% of |
17 | | the membership, for an election to approve or disapprove the |
18 | | contract; such petition shall be filed within 20 days after |
19 | | such notice and such election shall be held within 30 days |
20 | | after filing the petition. For purposes of this subsection, a |
21 | | board member's immediate family means the board member's |
22 | | spouse, parents, siblings, and children. |
23 | | (c) The bylaws or operating agreement shall provide for the |
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1 | | maintenance, repair, and replacement of the common areas and |
2 | | payments therefor, including the method of approving payment |
3 | | vouchers. |
4 | | (d) (Blank). |
5 | | (e) The association may engage the services of a manager or |
6 | | management company. |
7 | | (f) The association shall have one class of voting |
8 | | membership unless the declaration, bylaws, or operating |
9 | | agreement provide otherwise; however, this subsection (f) |
10 | | shall not be construed to limit the operation of subsection (c) |
11 | | of Section 1-20 of this Act. |
12 | | (g) The board shall have the power, after notice and an |
13 | | opportunity to be heard, to levy and collect reasonable fines |
14 | | from members or unit owners for violations of the declaration, |
15 | | bylaws, operating agreement, and rules and regulations of the |
16 | | common interest community association. |
17 | | (h) Other than attorney's fees and court or arbitration |
18 | | costs, no fees pertaining to the collection of a member's or |
19 | | unit owner's financial obligation to the association, |
20 | | including fees charged by a manager or managing agent, shall be |
21 | | added to and deemed a part of a member's or unit owner's |
22 | | respective share of the common expenses unless: (i) the |
23 | | managing agent fees relate to the costs to collect common |
24 | | expenses for the association; (ii) the fees are set forth in a |
25 | | contract between the managing agent and the association; and |
26 | | (iii) the authority to add the management fees to a member's or |
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1 | | unit owner's respective share of the common expenses is |
2 | | specifically stated in the declaration, bylaws, or operating |
3 | | agreement of the association. |
4 | | (i) Board records. |
5 | | (1) The board shall maintain the following records of |
6 | | the association and make them available for examination and |
7 | | copying at convenient hours of weekdays by any member or |
8 | | unit owner in a common interest community subject to the |
9 | | authority of the board, their mortgagees, and their duly |
10 | | authorized agents or attorneys: |
11 | | (i) Copies of the recorded declaration, other |
12 | | community instruments, other duly recorded covenants |
13 | | and bylaws and any amendments, articles of |
14 | | incorporation, articles of organization, annual |
15 | | reports, and any rules and regulations adopted by the |
16 | | board shall be available. Prior to the organization of |
17 | | the board, the developer shall maintain and make |
18 | | available the records set forth in this paragraph (i) |
19 | | for examination and copying. |
20 | | (ii) Detailed and accurate records in |
21 | | chronological order of the receipts and expenditures |
22 | | affecting the common areas, specifying and itemizing |
23 | | the maintenance and repair expenses of the common areas |
24 | | and any other expenses incurred, and copies of all |
25 | | contracts, leases, or other agreements entered into by |
26 | | the board shall be maintained. |
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1 | | (iii) The minutes of all meetings of the board |
2 | | which shall be maintained for not less than 7 years. |
3 | | (iv) With a written statement of a proper purpose, |
4 | | ballots and proxies related thereto, if any, for any |
5 | | election held for the board and for any other matters |
6 | | voted on by the members, which shall be maintained for |
7 | | not less than one year. |
8 | | (v) With a written statement of a proper purpose, |
9 | | such other records of the board as are available for |
10 | | inspection by members of a not-for-profit corporation |
11 | | pursuant to Section 107.75 of the General Not For |
12 | | Profit Corporation Act of 1986 shall be maintained. |
13 | | (vi) With respect to units owned by a land trust, a |
14 | | living trust, or other legal entity, the trustee, |
15 | | officer, or manager of the entity may designate, in |
16 | | writing, a person to cast votes on behalf of the member |
17 | | or unit owner and a designation shall remain in effect |
18 | | until a subsequent document is filed with the |
19 | | association. |
20 | | (2) Where a request for records under this subsection |
21 | | is made in writing to the board or its agent, failure to |
22 | | provide the requested record or to respond within 30 days |
23 | | shall be deemed a denial by the board. |
24 | | (3) A reasonable fee may be charged by the board for |
25 | | the cost of retrieving and copying records properly |
26 | | requested. |
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1 | | (4) If the board fails to provide records properly |
2 | | requested under paragraph (1) of this subsection (i) within |
3 | | the time period provided in that paragraph (1), the member |
4 | | may seek appropriate relief and shall be entitled to an |
5 | | award of reasonable attorney's fees and costs if the member |
6 | | prevails and the court finds that such failure is due to |
7 | | the acts or omissions of the board of managers or the board |
8 | | of directors. |
9 | | (j) The board shall have standing and capacity to act in a |
10 | | representative capacity in relation to matters involving the |
11 | | common areas or more than one unit, on behalf of the members or |
12 | | unit owners as their interests may appear.
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13 | | (Source: P.A. 98-232, eff. 1-1-14; 98-241, eff. 8-9-13; 98-756, |
14 | | eff. 7-16-14; 99-41, eff. 7-14-15.) |
15 | | Section 10. The Condominium Property Act is amended by |
16 | | changing Sections 15 and 18 as follows:
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17 | | (765 ILCS 605/15) (from Ch. 30, par. 315)
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18 | | Sec. 15. Sale of property.
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19 | | (a) Unless a greater percentage is provided for in the |
20 | | declaration or
bylaws, and notwithstanding the provisions of |
21 | | Sections 13 and 14 hereof,
a majority of the unit owners if |
22 | | where the property contains 2 units, or not
less than 66 2/3% |
23 | | if where the property contains 3 three units, or and not less
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24 | | than 75% if where the property contains at least 4 but not more |
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1 | | than 6 units, or not less than 85% if the property contains 7 |
2 | | or more units, 4 or more units may, by affirmative
vote at a |
3 | | meeting of unit owners duly called for such purpose, elect to
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4 | | sell the property. Such action shall be binding upon all unit |
5 | | owners, and
it shall thereupon become the duty of every unit |
6 | | owner to execute and
deliver such instruments and to perform |
7 | | all acts as in manner and form may
be necessary to effect such |
8 | | sale, provided, however, that any unit owner
who did not vote |
9 | | in favor of such action and who has filed written
objection |
10 | | thereto with the manager or board of managers within 20 days
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11 | | after the date of the meeting at which such sale was approved |
12 | | shall be
entitled to receive from the proceeds of such sale an |
13 | | amount equivalent to
the value of his interest, as determined |
14 | | by a fair appraisal, less the
amount of any unpaid assessments |
15 | | or charges due and owing from such unit
owner.
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16 | | (b) If there is a disagreement as to the value of the
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17 | | interest of a unit owner who did not vote in favor of the sale |
18 | | of the
property, that unit owner shall have a right to |
19 | | designate an expert in
appraisal or property valuation to |
20 | | represent him, in which case, the
prospective purchaser of the |
21 | | property shall designate an expert in
appraisal or property |
22 | | valuation to represent him, and both of these experts
shall |
23 | | mutually designate a third expert in appraisal or property |
24 | | valuation.
The 3 experts shall constitute a panel to determine |
25 | | by vote of at least 2
of the members of the panel, the value of |
26 | | that unit owner's interest in
the property.
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1 | | (Source: P.A. 86-1156.)
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2 | | (765 ILCS 605/18) (from Ch. 30, par. 318)
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3 | | Sec. 18. Contents of bylaws. The bylaws shall provide for |
4 | | at least
the following:
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5 | | (a)(1) The election from among the unit owners of a |
6 | | board of managers,
the number of persons constituting such |
7 | | board, and that the terms of at
least one-third of the |
8 | | members of the board shall expire annually and that
all |
9 | | members of the board shall be elected at large; if there |
10 | | are multiple owners of a single unit, only one of the |
11 | | multiple
owners shall be eligible to serve as a member of |
12 | | the board at any one time;
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13 | | (2) the powers and duties of the board;
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14 | | (3) the compensation, if any, of the members of the |
15 | | board;
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16 | | (4) the method of removal from office of members of the |
17 | | board;
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18 | | (5) that the board may engage the services of a manager |
19 | | or managing agent;
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20 | | (6) that each unit owner shall receive, at least 25 |
21 | | days prior to the
adoption thereof by the board of |
22 | | managers, a copy of the proposed annual
budget together |
23 | | with an indication of which portions are intended for
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24 | | reserves, capital expenditures or repairs or payment of |
25 | | real estate taxes;
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1 | | (7) that the board of managers shall annually supply to
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2 | | all unit owners an itemized accounting of the common |
3 | | expenses
for the preceding year actually incurred or paid, |
4 | | together
with an indication of which portions were for |
5 | | reserves, capital
expenditures or repairs or payment of |
6 | | real estate taxes and
with a tabulation of the amounts |
7 | | collected pursuant to the
budget or assessment, and showing |
8 | | the net excess or
deficit of income over expenditures plus |
9 | | reserves;
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10 | | (8)(i) that each unit owner shall receive notice, in |
11 | | the same manner
as is provided in this Act for membership |
12 | | meetings, of any meeting of the
board of managers |
13 | | concerning the adoption of the proposed annual budget and
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14 | | regular assessments pursuant thereto or to adopt a separate |
15 | | (special)
assessment, (ii) that except as provided in |
16 | | subsection (iv) below, if an
adopted
budget or any separate |
17 | | assessment adopted by the board would result in the
sum of |
18 | | all regular and separate assessments payable in the current |
19 | | fiscal year
exceeding 115% of the sum of all regular and |
20 | | separate
assessments payable during the
preceding fiscal |
21 | | year, the
board of managers, upon written petition by unit |
22 | | owners with 20 percent of
the votes of the association |
23 | | delivered to the board within 14
days of the board action,
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24 | | shall call a meeting of the unit owners within 30 days of |
25 | | the date of
delivery of the petition to consider the budget |
26 | | or separate
assessment; unless a
majority of
the total |
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1 | | votes of the unit owners are cast at the meeting to reject |
2 | | the
budget or separate assessment,
it is ratified, (iii) |
3 | | that any common expense not set forth in the budget or
any |
4 | | increase in assessments over the amount adopted in the |
5 | | budget shall be
separately assessed against all unit |
6 | | owners, (iv) that separate assessments for
expenditures |
7 | | relating to emergencies or mandated by law may be adopted |
8 | | by the
board of managers without being subject to unit |
9 | | owner approval or the
provisions of item (ii) above or item |
10 | | (v) below. As used
herein, "emergency" means an immediate |
11 | | danger to the structural integrity of
the
common elements |
12 | | or to the life, health, safety or property of the unit |
13 | | owners,
(v) that assessments
for additions and alterations |
14 | | to the common elements or to association-owned
property not |
15 | | included in the adopted annual budget, shall be separately
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16 | | assessed and are subject to approval of two-thirds of the |
17 | | total votes of all
unit owners, (vi) that the board of |
18 | | managers may adopt separate assessments
payable over more |
19 | | than one fiscal year. With respect to multi-year |
20 | | assessments
not governed by items (iv) and (v), the entire |
21 | | amount of the multi-year
assessment shall be deemed |
22 | | considered and authorized in the first fiscal year
in which |
23 | | the assessment is approved;
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24 | | (9)(A) that every meeting of the board of managers |
25 | | shall be open to any unit
owner, except that the board may |
26 | | close any portion of a noticed meeting or meet separately |
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1 | | from a noticed meeting to: (i) discuss litigation
when an |
2 | | action against or on behalf of the particular association |
3 | | has been
filed and is pending in a court or administrative |
4 | | tribunal,
or when the board of managers finds that such an |
5 | | action is probable
or imminent, (ii) discuss the |
6 | | appointment, employment, engagement,
or dismissal of an |
7 | | employee, independent contractor, agent, or other provider |
8 | | of goods and services, (iii) interview a potential |
9 | | employee, independent contractor, agent, or other provider |
10 | | of goods and services, (iv) discuss violations of rules and
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11 | | regulations of the association, (v) discuss a unit owner's |
12 | | unpaid share of common
expenses, or (vi) consult with the |
13 | | association's legal counsel; that any vote on these matters |
14 | | shall take place at a meeting of the board of managers or
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15 | | portion thereof open to any unit owner; |
16 | | (B) that board members may participate in and act at |
17 | | any meeting of the board of managers in person, by |
18 | | telephonic means, or by use of any acceptable technological |
19 | | means whereby all persons participating in the meeting can |
20 | | communicate with each other; that participation |
21 | | constitutes attendance and presence in person at the |
22 | | meeting; |
23 | | (C) that any unit owner may record the
proceedings at |
24 | | meetings of the board of managers or portions thereof |
25 | | required to be open by this
Act by tape, film or other |
26 | | means, and that the board may prescribe reasonable
rules |
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1 | | and regulations to govern the right to make such |
2 | | recordings; |
3 | | (D) that
notice of every meeting of the board of |
4 | | managers shall be given to every board member at least 48 |
5 | | hours
prior thereto, unless the board member waives notice |
6 | | of the meeting pursuant to subsection (a) of Section 18.8; |
7 | | and |
8 | | (E) that notice of every meeting
of the board of |
9 | | managers shall be posted in entranceways,
elevators, or |
10 | | other conspicuous places in the condominium at least 48 |
11 | | hours
prior to the meeting of the board of managers except |
12 | | where there is no
common entranceway for 7 or more units, |
13 | | the board of managers may designate
one or more locations |
14 | | in the proximity of these units where the notices of
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15 | | meetings shall be posted; that notice of every meeting of |
16 | | the board of managers shall also be given at least 48 hours |
17 | | prior to the meeting, or such longer notice as this Act may |
18 | | separately require, to: (i) each unit owner who has |
19 | | provided the association with written authorization to |
20 | | conduct business by acceptable technological means, and |
21 | | (ii) to the extent that the condominium instruments of an |
22 | | association require, to each other unit owner, as required |
23 | | by subsection (f) of Section 18.8, by mail or delivery, and |
24 | | that no other notice of a meeting of the board of managers |
25 | | need be given to any unit owner;
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26 | | (10) that the board shall meet at least 4 times |
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1 | | annually;
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2 | | (11) that no member of the board or officer shall be |
3 | | elected for a term
of more than 2 years, but that officers |
4 | | and board members may succeed
themselves;
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5 | | (12) the designation of an officer to mail and receive |
6 | | all notices and
execute amendments to condominium |
7 | | instruments as provided for in this Act
and in the |
8 | | condominium instruments;
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9 | | (13) the method of filling vacancies on the board
which |
10 | | shall include authority for the remaining members of the |
11 | | board to
fill the vacancy by two-thirds vote until the next |
12 | | annual meeting of unit
owners or for a period terminating |
13 | | no later than 30 days following the
filing of a petition |
14 | | signed by unit owners holding 20% of the votes of the
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15 | | association requesting a meeting of the unit owners to fill |
16 | | the vacancy for
the balance of the term, and that a meeting |
17 | | of the unit owners shall be
called for purposes of filling |
18 | | a vacancy on the board no later than 30 days
following the |
19 | | filing of a petition signed by unit owners holding 20% of |
20 | | the
votes of the association requesting such a meeting, and |
21 | | the method of filling
vacancies among the officers that |
22 | | shall include the authority for the members
of the board to |
23 | | fill the vacancy for the unexpired portion of the term;
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24 | | (14) what percentage of the board of managers, if other |
25 | | than a majority,
shall constitute a quorum;
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26 | | (15) provisions concerning notice of board meetings to |
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1 | | members of the
board;
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2 | | (16) the board of managers may not enter into a |
3 | | contract with a
current board member
or with a corporation |
4 | | or partnership in which a board
member or a member of the |
5 | | board member's immediate family has 25% or
more interest, |
6 | | unless notice of intent to enter the
contract is given to |
7 | | unit owners within 20 days after a decision is made
to |
8 | | enter into the contract and the unit owners are
afforded an |
9 | | opportunity by filing a petition, signed by 20% of the unit
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10 | | owners, for an election to approve or disapprove the |
11 | | contract;
such petition shall be filed within 20 days after |
12 | | such notice and such
election shall be held within 30 days |
13 | | after filing the petition; for purposes
of this subsection, |
14 | | a board member's immediate family means the board member's
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15 | | spouse, parents, and children;
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16 | | (17) that the board of managers may disseminate
to unit |
17 | | owners biographical and background information about |
18 | | candidates for
election to the board if (i) reasonable |
19 | | efforts to identify all candidates are
made and all |
20 | | candidates are given an opportunity to include |
21 | | biographical and
background information in the information |
22 | | to be disseminated; and (ii) the
board does not express a |
23 | | preference in favor of any candidate;
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24 | | (18) any proxy distributed for board elections
by the |
25 | | board of managers gives unit owners the
opportunity to |
26 | | designate any person as the proxy holder, and gives the |
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1 | | unit
owner the opportunity to express a preference for any |
2 | | of the known
candidates for the board or to write in a |
3 | | name;
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4 | | (19) that special meetings of the board of managers can |
5 | | be called by
the president or 25% of the members of the |
6 | | board;
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7 | | (20) that the board of managers may establish
and |
8 | | maintain a system of master metering of public utility |
9 | | services and
collect payments in connection therewith, |
10 | | subject to the requirements of the
Tenant Utility Payment |
11 | | Disclosure Act; and
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12 | | (21) that the board may ratify and confirm actions of |
13 | | the
members of the board taken in response to an emergency, |
14 | | as that
term is defined in subdivision (a)(8)(iv) of this |
15 | | Section; that
the board shall give notice to the unit |
16 | | owners of: (i) the
occurrence of the emergency event within |
17 | | 7 business days after
the emergency event, and (ii) the |
18 | | general description of the
actions taken to address the |
19 | | event within 7 days after the
emergency event. |
20 | | The intent of the provisions of Public Act 99-472 |
21 | | adding this paragraph (21) is to empower and support boards |
22 | | to act in
emergencies. |
23 | | (b)(1) What percentage of the unit owners, if other |
24 | | than 20%, shall
constitute a quorum provided that, for |
25 | | condominiums with 20 or more units,
the percentage of unit |
26 | | owners constituting a quorum shall be 20% unless the
unit |
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1 | | owners holding a majority of the percentage interest in the
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2 | | association provide for a higher percentage, provided that |
3 | | in voting on amendments to the association's bylaws, a unit |
4 | | owner who is in arrears on the unit owner's regular or |
5 | | separate assessments for 60 days or more, shall not be |
6 | | counted for purposes of determining if a quorum is present, |
7 | | but that unit owner retains the right to vote on amendments |
8 | | to the association's bylaws;
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9 | | (2) that the association shall have one class of voting |
10 | | membership;
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11 | | (3) that the members shall hold an annual meeting, one |
12 | | of the purposes
of which shall be to elect members of the |
13 | | board of managers;
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14 | | (4) the method of calling meetings of the unit owners;
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15 | | (5) that special meetings of the members can be called |
16 | | by the president,
board of managers, or by 20% of unit |
17 | | owners;
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18 | | (6) that written notice of any membership meeting shall |
19 | | be mailed
or delivered giving members no less than 10 and |
20 | | no more than 30 days
notice of the time, place and purpose |
21 | | of such meeting except that notice may be sent, to the |
22 | | extent the condominium instruments or rules adopted |
23 | | thereunder expressly so provide, by electronic |
24 | | transmission consented to by the unit owner to whom the |
25 | | notice is given, provided the director and officer or his |
26 | | agent certifies in writing to the delivery by electronic |
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1 | | transmission;
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2 | | (7) that voting shall be on a percentage basis, and |
3 | | that the percentage
vote to which each unit is entitled is |
4 | | the percentage interest of the
undivided ownership of the |
5 | | common elements appurtenant thereto, provided
that the |
6 | | bylaws may provide for approval by unit owners in |
7 | | connection with
matters where the requisite approval on a |
8 | | percentage basis is not specified
in this Act, on the basis |
9 | | of one vote per unit;
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10 | | (8) that, where there is more than one owner of a unit, |
11 | | if only one
of the multiple owners is present at a meeting |
12 | | of the association, he is
entitled to cast all the votes |
13 | | allocated to that unit, if more than one of
the multiple |
14 | | owners are present, the votes allocated to that unit may be
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15 | | cast only in accordance with the agreement of a majority in |
16 | | interest of the
multiple owners, unless the declaration |
17 | | expressly provides otherwise, that
there is majority |
18 | | agreement if any one of the multiple owners cast the
votes |
19 | | allocated to that unit without protest being made promptly |
20 | | to the
person presiding over the meeting by any of the |
21 | | other owners of the unit;
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22 | | (9)(A) except as provided in subparagraph (B) of this |
23 | | paragraph (9) in
connection with board elections, that
a |
24 | | unit owner may vote by proxy executed in writing by the |
25 | | unit
owner or by his duly authorized attorney in fact; that |
26 | | the proxy must bear the date of
execution
and, unless the |
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1 | | condominium instruments or the written proxy itself |
2 | | provide
otherwise, is
invalid after 11 months from the date |
3 | | of its execution; to the extent the condominium instruments |
4 | | or rules adopted thereunder expressly so provide, a vote or |
5 | | proxy may be submitted by electronic transmission, |
6 | | provided that any such electronic transmission shall |
7 | | either set forth or be submitted with information from |
8 | | which it can be determined that the electronic transmission |
9 | | was authorized by the unit owner or the unit owner's proxy;
|
10 | | (B) that if a rule adopted at least 120 days before a |
11 | | board election
or the
declaration or bylaws provide for |
12 | | balloting as set forth in this subsection,
unit
owners may |
13 | | not vote by proxy in board elections, but may vote only (i) |
14 | | by
submitting an association-issued ballot in person at the |
15 | | election meeting or
(ii) by
submitting an |
16 | | association-issued ballot to the association or its |
17 | | designated
agent
by mail or other means of delivery |
18 | | specified in the declaration, bylaws, or
rule; that
the |
19 | | ballots shall be mailed or otherwise distributed to unit |
20 | | owners not less
than 10
and not more than 30 days before |
21 | | the election meeting, and the board shall give
unit owners |
22 | | not less than 21 days' prior written notice of the deadline |
23 | | for
inclusion of a candidate's name on the ballots; that |
24 | | the deadline shall be no
more
than 7 days before the |
25 | | ballots are mailed or otherwise distributed to unit
owners; |
26 | | that
every such ballot must include the names of all |
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1 | | candidates who have given the
board or its authorized agent |
2 | | timely written notice of their candidacy and must
give the |
3 | | person casting the ballot the opportunity to cast votes for |
4 | | candidates
whose names do not appear on the ballot; that a |
5 | | ballot received by the
association
or
its designated agent |
6 | | after the close of voting shall not be counted; that a
unit
|
7 | | owner
who submits a ballot by mail or other means of |
8 | | delivery specified in the
declaration, bylaws, or rule may |
9 | | request and cast a ballot in person at the
election
|
10 | | meeting, and thereby void any ballot previously submitted |
11 | | by that unit owner; |
12 | | (B-5) that if a rule adopted at least 120 days before a |
13 | | board election or the declaration or bylaws provide for |
14 | | balloting as set forth in this subparagraph, unit owners |
15 | | may not vote by proxy in board elections, but may vote only |
16 | | (i) by submitting an association-issued ballot in person at |
17 | | the election meeting; or (ii) by any acceptable |
18 | | technological means as defined in Section 2 of this Act; |
19 | | instructions regarding the use of electronic means for |
20 | | voting shall be distributed to all unit owners not less |
21 | | than 10 and not more than 30 days before the election |
22 | | meeting, and the board shall give unit owners not less than |
23 | | 21 days' prior written notice of the deadline for inclusion |
24 | | of a candidate's name on the ballots; the deadline shall be |
25 | | no more than 7 days before the instructions for voting |
26 | | using electronic or acceptable technological means is |
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1 | | distributed to unit owners; every instruction notice must |
2 | | include the names of all candidates who have given the |
3 | | board or its authorized agent timely written notice of |
4 | | their candidacy and must give the person voting through |
5 | | electronic or acceptable technological means the |
6 | | opportunity to cast votes for candidates whose names do not |
7 | | appear on the ballot; a unit owner who submits a vote using |
8 | | electronic or acceptable technological means may request |
9 | | and cast a ballot in person at the election meeting, |
10 | | thereby voiding any vote previously submitted by that unit |
11 | | owner;
|
12 | | (C) that if a written petition by unit owners with at |
13 | | least 20% of the
votes of
the association is delivered to |
14 | | the board within 14 days after the board's
approval
of a |
15 | | rule adopted pursuant to subparagraph (B) or subparagraph |
16 | | (B-5) of this paragraph (9), the board
shall call a meeting |
17 | | of the unit owners within 30 days after the date of
|
18 | | delivery of
the petition; that unless a majority of the |
19 | | total votes of the unit owners are
cast
at the
meeting to |
20 | | reject the rule, the rule is ratified;
|
21 | | (D) that votes cast by ballot under subparagraph (B) or |
22 | | electronic or acceptable technological means under |
23 | | subparagraph (B-5) of this paragraph (9) are valid for the |
24 | | purpose of establishing a quorum; |
25 | | (10) that the association may, upon adoption of the |
26 | | appropriate rules by
the board of managers, conduct |
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1 | | elections by secret ballot whereby the voting
ballot is |
2 | | marked only with the percentage interest for the unit and |
3 | | the vote
itself, provided that the board further adopt |
4 | | rules to verify the status of the
unit owner issuing a |
5 | | proxy or casting a ballot; and further, that a candidate
|
6 | | for election to the board of managers or such
candidate's |
7 | | representative shall have the right to be present at the
|
8 | | counting of ballots at such election;
|
9 | | (11) that in the event of a resale of a condominium |
10 | | unit the purchaser
of a unit from a seller other than the |
11 | | developer pursuant to an installment
contract for purchase |
12 | | shall during such times as he or she resides in the
unit be |
13 | | counted toward a quorum for purposes of election of members |
14 | | of the
board of managers at any meeting of the unit owners |
15 | | called for purposes of
electing members of the board, shall |
16 | | have the right to vote for the
election of members of the |
17 | | board of managers and to be elected to and serve
on the |
18 | | board of managers unless the seller expressly retains in |
19 | | writing any
or all of such rights. In no event may the |
20 | | seller and purchaser both be
counted toward a quorum, be |
21 | | permitted to vote for a particular office or be
elected and |
22 | | serve on the board. Satisfactory evidence of the |
23 | | installment contract
shall be made available to the |
24 | | association or its agents. For
purposes of this subsection, |
25 | | "installment contract" shall have the same
meaning as set |
26 | | forth in Section 1(e) of the Dwelling Unit Installment |
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1 | | Contract Act;
|
2 | | (12) the method by which matters subject to the |
3 | | approval of unit owners
set forth in this Act, or in the |
4 | | condominium instruments, will be
submitted to the unit |
5 | | owners at special membership meetings called for such
|
6 | | purposes; and
|
7 | | (13) that matters subject to the affirmative vote of |
8 | | not less than 2/3
of the votes of unit owners at a meeting |
9 | | duly called for that purpose,
shall include, but not be |
10 | | limited to:
|
11 | | (i) merger or consolidation of the association;
|
12 | | (ii) sale, lease, exchange, or other disposition |
13 | | (excluding the mortgage
or pledge) of all, or |
14 | | substantially all of the property and assets of the
|
15 | | association; and
|
16 | | (iii) the purchase or sale of land or of units on |
17 | | behalf of all unit owners.
|
18 | | (c) Election of a president from among the board of |
19 | | managers, who shall
preside over the meetings of the board |
20 | | of managers and of the unit owners.
|
21 | | (d) Election of a secretary from among the board of |
22 | | managers, who shall
keep the minutes of all meetings
of the |
23 | | board of managers and of the unit owners and who shall, in |
24 | | general,
perform all the duties incident to the office of |
25 | | secretary.
|
26 | | (e) Election of a treasurer from among the board of |
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1 | | managers, who shall
keep the financial records and
books of |
2 | | account.
|
3 | | (f) Maintenance, repair and replacement of the common |
4 | | elements and
payments therefor, including the method of |
5 | | approving payment vouchers.
|
6 | | (g) An association with 30 or more units shall obtain |
7 | | and maintain
fidelity insurance covering persons who |
8 | | control or disburse funds of the
association for the |
9 | | maximum amount of coverage available to protect funds
in |
10 | | the custody or control of the association plus the |
11 | | association reserve
fund. All management companies which |
12 | | are responsible for the funds held or
administered by the |
13 | | association shall maintain and furnish to the
association a |
14 | | fidelity bond for the maximum amount of coverage available |
15 | | to
protect funds in the custody of the management company |
16 | | at any time. The
association shall bear the cost of the |
17 | | fidelity insurance and fidelity
bond, unless otherwise |
18 | | provided by contract between the association and a
|
19 | | management company. The association shall be the direct |
20 | | obligee of any
such fidelity bond. A management company |
21 | | holding reserve funds of an
association shall at all times |
22 | | maintain a separate account for each
association, |
23 | | provided, however, that for investment purposes, the Board |
24 | | of
Managers of an association may authorize a management |
25 | | company to maintain
the association's reserve funds in a |
26 | | single interest bearing account with
similar funds of other |
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1 | | associations. The management company shall at all
times |
2 | | maintain records identifying all moneys of each |
3 | | association in such
investment account. The management |
4 | | company may hold all operating funds of
associations which |
5 | | it manages in a single operating account but shall at
all |
6 | | times maintain records identifying all moneys of each |
7 | | association in
such operating account. Such operating and |
8 | | reserve funds held by the
management company for the |
9 | | association shall not be subject to attachment
by any |
10 | | creditor of the management company.
|
11 | | For the purpose of this subsection, a management |
12 | | company shall be
defined as a person, partnership, |
13 | | corporation, or other legal entity
entitled to transact |
14 | | business on behalf of others, acting on behalf of or
as an |
15 | | agent for a unit owner, unit owners or association of unit |
16 | | owners for
the purpose of carrying out the duties, |
17 | | responsibilities, and other
obligations necessary for the |
18 | | day to day operation and management of any
property subject |
19 | | to this Act. For purposes of this subsection, the term
|
20 | | "fiduciary insurance coverage" shall be defined as both a |
21 | | fidelity bond and
directors and officers liability |
22 | | coverage, the fidelity bond in the full
amount of |
23 | | association funds and association reserves that will be in |
24 | | the
custody of the association, and the directors and |
25 | | officers liability
coverage at a level as shall be |
26 | | determined to be reasonable by the board of
managers, if |
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1 | | not otherwise established by the declaration or by laws.
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2 | | Until one year after September 21, 1985 (the effective |
3 | | date of Public Act 84-722),
if a condominium association |
4 | | has reserves plus assessments in excess of
$250,000 and |
5 | | cannot reasonably obtain 100% fidelity bond coverage for |
6 | | such
amount, then it must obtain a fidelity bond coverage |
7 | | of $250,000.
|
8 | | (h) Method of estimating the amount of the annual |
9 | | budget, and the manner
of assessing and collecting from the |
10 | | unit owners their respective shares of
such estimated |
11 | | expenses, and of any other expenses lawfully agreed upon.
|
12 | | (i) That upon 10 days notice to the manager or board of |
13 | | managers and
payment of a reasonable fee, any unit owner |
14 | | shall be furnished a statement
of his account setting forth |
15 | | the amount of any unpaid assessments or other
charges due |
16 | | and owing from such owner.
|
17 | | (j) Designation and removal of personnel necessary for |
18 | | the maintenance,
repair and replacement of the common |
19 | | elements.
|
20 | | (k) Such restrictions on and requirements respecting |
21 | | the use and
maintenance of the units and the use of the |
22 | | common elements, not set forth
in the declaration, as are |
23 | | designed to prevent unreasonable interference
with the use |
24 | | of their respective units and of the common elements by the
|
25 | | several unit owners.
|
26 | | (l) Method of adopting and of amending administrative |
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1 | | rules and
regulations governing the operation and use of |
2 | | the common elements.
|
3 | | (m) The percentage of votes required to modify or amend |
4 | | the bylaws, but
each one of the particulars set forth in |
5 | | this section shall always be
embodied in the bylaws.
|
6 | | (n)(i) The provisions of this Act, the declaration, |
7 | | bylaws, other
condominium instruments, and rules and |
8 | | regulations that relate to the use
of the individual unit |
9 | | or the common elements shall be applicable to
any person |
10 | | leasing a unit and shall be deemed to be incorporated in |
11 | | any
lease executed or renewed on or after August 30, 1984 |
12 | | (the effective date of Public Act 83-1271). |
13 | | (ii) With regard to any lease entered into subsequent |
14 | | to July 1, 1990 (the
effective date of Public Act 86-991), |
15 | | the unit owner leasing the
unit shall deliver a copy of the |
16 | | signed lease to the board or if the
lease is oral, a |
17 | | memorandum of the lease, not later than the date of
|
18 | | occupancy or 10 days after the lease is signed, whichever |
19 | | occurs first. In
addition to any other remedies, by filing |
20 | | an action jointly against the
tenant and the unit owner, an |
21 | | association may seek to enjoin a tenant from
occupying a |
22 | | unit or seek to evict a tenant under the provisions of |
23 | | Article
IX of the Code of Civil Procedure for failure of |
24 | | the lessor-owner to
comply with the leasing requirements |
25 | | prescribed by
this Section or by the declaration, bylaws, |
26 | | and
rules and regulations. The board of managers may |
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1 | | proceed directly against a
tenant, at law or in equity, or |
2 | | under the provisions of Article IX of the
Code of Civil |
3 | | Procedure, for any other breach by tenant of any
covenants, |
4 | | rules, regulations or bylaws.
|
5 | | (o) The association shall have no authority to forbear |
6 | | the payment
of assessments by any unit owner.
|
7 | | (p) That when 30% or fewer of the units, by number,
|
8 | | possess over 50% in the aggregate of the votes in the |
9 | | association,
any percentage vote of members specified |
10 | | herein or in the condominium
instruments shall require the |
11 | | specified percentage by number of units
rather than by |
12 | | percentage of interest in the common elements allocated
to |
13 | | units that would otherwise be applicable and garage units |
14 | | or storage units, or both, shall have, in total, no more |
15 | | votes than their aggregate percentage of ownership in the |
16 | | common elements; this shall mean that if garage units or |
17 | | storage units, or both, are to be given a vote, or portion |
18 | | of a vote, that the association must add the total number |
19 | | of votes cast of garage units, storage units, or both, and |
20 | | divide the total by the number of garage units, storage |
21 | | units, or both, and multiply by the aggregate percentage of |
22 | | ownership of garage units and storage units to determine |
23 | | the vote, or portion of a vote, that garage units or |
24 | | storage units, or both, have. For purposes of this |
25 | | subsection (p), when making a determination of whether 30% |
26 | | or fewer of the units, by number, possess over 50% in the |
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1 | | aggregate of the votes in the association, a unit shall not |
2 | | include a garage unit or a storage unit.
|
3 | | (q) That a unit owner may not assign, delegate, |
4 | | transfer, surrender, or
avoid the duties, |
5 | | responsibilities, and liabilities of a unit owner under |
6 | | this
Act, the condominium instruments, or the rules and |
7 | | regulations of the
Association; and that such an attempted |
8 | | assignment, delegation, transfer,
surrender, or avoidance |
9 | | shall be deemed void.
|
10 | | The provisions of this Section are applicable to all |
11 | | condominium
instruments recorded under this Act. Any portion of |
12 | | a condominium
instrument which contains provisions contrary to |
13 | | these provisions shall be
void as against public policy and |
14 | | ineffective. Any such instrument which
fails to contain the |
15 | | provisions required by this Section shall be deemed to
|
16 | | incorporate such provisions by operation of law.
|
17 | | (Source: P.A. 98-1042, eff. 1-1-15; 99-472, eff. 6-1-16; |
18 | | 99-567, eff. 1-1-17; 99-642, eff. 7-28-16 .)
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