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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;
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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.
|
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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