| ||||||||||||||||||||||
| ||||||||||||||||||||||
| ||||||||||||||||||||||
| ||||||||||||||||||||||
| ||||||||||||||||||||||
1 | AN ACT concerning civil law.
| |||||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois,
| |||||||||||||||||||||
3 | represented in the General Assembly:
| |||||||||||||||||||||
4 | Section 5. The Common Interest Community Association Act | |||||||||||||||||||||
5 | is amended by changing Sections 1-5 and 1-45 as follows: | |||||||||||||||||||||
6 | (765 ILCS 160/1-5) | |||||||||||||||||||||
7 | Sec. 1-5. Definitions. As used in this Act, unless the | |||||||||||||||||||||
8 | context otherwise requires: | |||||||||||||||||||||
9 | "Acceptable technological means" includes, without | |||||||||||||||||||||
10 | limitation, electronic transmission over the Internet or other | |||||||||||||||||||||
11 | network, whether by direct connection, intranet, telecopier, | |||||||||||||||||||||
12 | electronic mail, and any generally available technology that, | |||||||||||||||||||||
13 | by rule of the association, is deemed to provide reasonable | |||||||||||||||||||||
14 | security, reliability, identification, and verifiability. | |||||||||||||||||||||
15 | "Association" or "common interest community association" | |||||||||||||||||||||
16 | means the association of all the members of a common interest | |||||||||||||||||||||
17 | community, acting pursuant to bylaws or an operating agreement | |||||||||||||||||||||
18 | through its duly elected board of managers or board of | |||||||||||||||||||||
19 | directors. | |||||||||||||||||||||
20 | "Board" means a common interest community association's | |||||||||||||||||||||
21 | board of managers or board of directors, whichever is | |||||||||||||||||||||
22 | applicable. | |||||||||||||||||||||
23 | "Board member" or "member of the board" means a member of |
| |||||||
| |||||||
1 | the board of managers or the board of directors, whichever is | ||||||
2 | applicable. | ||||||
3 | "Board of directors" means, for a common interest | ||||||
4 | community that has been incorporated as an Illinois | ||||||
5 | not-for-profit corporation, the group of people elected by the | ||||||
6 | members of a common interest community as the governing body | ||||||
7 | to exercise for the members of the common interest community | ||||||
8 | association all powers, duties, and authority vested in the | ||||||
9 | board of directors under this Act and the common interest | ||||||
10 | community association's declaration and bylaws. | ||||||
11 | "Board of managers" means, for a common interest community | ||||||
12 | that is an unincorporated association or organized as a | ||||||
13 | limited liability company, the group of people elected by the | ||||||
14 | members of a common interest community as the governing body | ||||||
15 | to exercise for the members of the common interest community | ||||||
16 | association all powers, duties, and authority vested in the | ||||||
17 | board of managers under this Act and the common interest | ||||||
18 | community association's declaration, bylaws, or operating | ||||||
19 | agreement. | ||||||
20 | "Building" means all structures, attached or unattached, | ||||||
21 | containing one or more units. | ||||||
22 | "Common areas" means the portion of the property other | ||||||
23 | than a unit. | ||||||
24 | "Common expenses" means the proposed or actual expenses | ||||||
25 | affecting the property, including reserves, if any, lawfully | ||||||
26 | assessed by the common interest community association. |
| |||||||
| |||||||
1 | "Common interest community" means real estate other than a | ||||||
2 | condominium or cooperative with respect to which any person by | ||||||
3 | virtue of his or her ownership of a partial interest or a unit | ||||||
4 | therein is obligated to pay for the maintenance, improvement, | ||||||
5 | insurance premiums or real estate taxes of common areas | ||||||
6 | described in a declaration which is administered by an | ||||||
7 | association. "Common interest community" may include, but not | ||||||
8 | be limited to, an attached or detached townhome, villa, or | ||||||
9 | single-family home. A "common interest community" does not | ||||||
10 | include a master association. | ||||||
11 | "Community instruments" means all documents and authorized | ||||||
12 | amendments thereto recorded by a developer or common interest | ||||||
13 | community association, including, but not limited to, the | ||||||
14 | declaration, bylaws, operating agreement, plat of survey, and | ||||||
15 | rules and regulations. | ||||||
16 | "Declaration" means any duly recorded instruments, however | ||||||
17 | designated, that have created a common interest community and | ||||||
18 | any duly recorded amendments to those instruments. | ||||||
19 | "Developer" means any person who submits property legally | ||||||
20 | or equitably owned in fee simple by the person to the | ||||||
21 | provisions of this Act, or any person who offers units legally | ||||||
22 | or equitably owned in fee simple by the person for sale in the | ||||||
23 | ordinary course of such person's business, including any | ||||||
24 | successor to such person's entire interest in the property | ||||||
25 | other than the purchaser of an individual unit. | ||||||
26 | "Developer control" means such control at a time prior to |
| |||||||
| |||||||
1 | the election of the board of the common interest community | ||||||
2 | association by a majority of the members other than the | ||||||
3 | developer. | ||||||
4 | "Electronic transmission" means any form of communication, | ||||||
5 | not directly involving the physical transmission of paper, | ||||||
6 | that creates a record that may be retained, retrieved, and | ||||||
7 | reviewed by a recipient and that may be directly reproduced in | ||||||
8 | paper form by the recipient through an automated process. | ||||||
9 | "Majority" or "majority of the members" means the owners | ||||||
10 | of more than 50% in the aggregate in interest of the undivided | ||||||
11 | ownership of the common elements. Any specified percentage of | ||||||
12 | the members means such percentage in the aggregate in interest | ||||||
13 | of such undivided ownership. "Majority" or "majority of the | ||||||
14 | members of the board of the common interest community | ||||||
15 | association" means more than 50% of the total number of | ||||||
16 | persons constituting such board pursuant to the bylaws or | ||||||
17 | operating agreement. Any specified percentage of the members | ||||||
18 | of the common interest community association means that | ||||||
19 | percentage of the total number of persons constituting such | ||||||
20 | board pursuant to the bylaws or operating agreement. | ||||||
21 | "Management company" or "community association manager" | ||||||
22 | means a person, partnership, corporation, or other legal | ||||||
23 | entity entitled to transact business on behalf of others, | ||||||
24 | acting on behalf of or as an agent for an association for the | ||||||
25 | purpose of carrying out the duties, responsibilities, and | ||||||
26 | other obligations necessary for the day to day operation and |
| |||||||
| |||||||
1 | management of any property subject to this Act.
| ||||||
2 | "Meeting of the board" or "board meeting" means any | ||||||
3 | gathering of a quorum of the members of the board of the common | ||||||
4 | interest community association held for the purpose of | ||||||
5 | conducting board business. | ||||||
6 | "Member" means the person or entity designated as an owner | ||||||
7 | and entitled to one vote as defined by the community | ||||||
8 | instruments. The terms "member" and "unit owner" may be used | ||||||
9 | interchangeably as defined by the community instruments, | ||||||
10 | except in situations in which a matter of legal title to the | ||||||
11 | unit is involved or at issue, in which case the term "unit | ||||||
12 | owner" would be the applicable term used. | ||||||
13 | "Membership" means the collective group of members | ||||||
14 | entitled to vote as defined by the community instruments. | ||||||
15 | "Parcel" means the lot or lots or tract or tracts of land | ||||||
16 | described in the declaration as part of a common interest | ||||||
17 | community. | ||||||
18 | "Person" means a natural individual, corporation, | ||||||
19 | partnership, trustee, or other legal entity capable of holding | ||||||
20 | title to real property. | ||||||
21 | "Plat" means a plat or plats of survey of the parcel and of | ||||||
22 | all units in the common interest community, which may consist | ||||||
23 | of a three-dimensional horizontal and vertical delineation of | ||||||
24 | all such units, structures, easements, and common areas on the | ||||||
25 | property. | ||||||
26 | "Prescribed delivery method" means mailing, delivering, |
| |||||||
| |||||||
1 | posting in an association publication that is routinely mailed | ||||||
2 | to all members, electronic transmission, or any other delivery | ||||||
3 | method that is approved in writing by the member and | ||||||
4 | authorized by the community instruments. | ||||||
5 | "Property" means all the land, property, and space | ||||||
6 | comprising the parcel, all improvements and structures | ||||||
7 | erected, constructed or contained therein or thereon, | ||||||
8 | including any building and all easements, rights, and | ||||||
9 | appurtenances belonging thereto, and all fixtures and | ||||||
10 | equipment intended for the mutual use, benefit, or enjoyment | ||||||
11 | of the members, under the authority or control of a common | ||||||
12 | interest community association. | ||||||
13 | "Purchaser" means any person or persons, other than the | ||||||
14 | developer, who purchase a unit in a bona fide transaction for | ||||||
15 | value. | ||||||
16 | "Record" means to record in the office of the recorder of | ||||||
17 | the county wherein the property is located. | ||||||
18 | "Reserves" means those sums paid by members which are | ||||||
19 | separately maintained by the common interest community | ||||||
20 | association for purposes specified by the declaration and | ||||||
21 | bylaws of the common interest community association. | ||||||
22 | "Retirement community" means a community intended and | ||||||
23 | operated: (i) for occupancy by persons 55 years of age or | ||||||
24 | older; and (ii) with at least 80% of the occupied units | ||||||
25 | occupied by at least one person 55 years of age or older. | ||||||
26 | "Unit" means a part of the property designed and intended |
| |||||||
| |||||||
1 | for any type of independent use. | ||||||
2 | "Unit owner" means the person or persons whose estates or | ||||||
3 | interests, individually or collectively, aggregate fee simple | ||||||
4 | absolute ownership of a unit.
| ||||||
5 | (Source: P.A. 98-1042, eff. 1-1-15; 99-41, eff. 7-14-15; | ||||||
6 | 99-612, eff. 1-1-17 .) | ||||||
7 | (765 ILCS 160/1-45) | ||||||
8 | Sec. 1-45. Finances. | ||||||
9 | (a) Each member shall receive through a prescribed | ||||||
10 | delivery method, at least 30 days but not more than 60 days | ||||||
11 | prior to the adoption thereof by the board, a copy of the | ||||||
12 | proposed annual budget together with an indication of which | ||||||
13 | portions are intended for reserves, capital expenditures or | ||||||
14 | repairs or payment of real estate taxes. | ||||||
15 | (b) The board shall provide all members with a reasonably | ||||||
16 | detailed summary of the receipts, common expenses, and | ||||||
17 | reserves for the preceding budget year. The board shall (i) | ||||||
18 | make available for review to all members an itemized | ||||||
19 | accounting of the common expenses for the preceding year | ||||||
20 | actually incurred or paid, together with an indication of | ||||||
21 | which portions were for reserves, capital expenditures or | ||||||
22 | repairs or payment of real estate taxes and with a tabulation | ||||||
23 | of the amounts collected pursuant to the budget or assessment, | ||||||
24 | and showing the net excess or deficit of income over | ||||||
25 | expenditures plus reserves or (ii) provide a consolidated |
| |||||||
| |||||||
1 | annual independent audit report of the financial status of all | ||||||
2 | fund accounts within the association. | ||||||
3 | (c) If an adopted budget or any separate assessment | ||||||
4 | adopted by the board would result in the sum of all regular and | ||||||
5 | separate assessments payable in the current fiscal year | ||||||
6 | exceeding 115% of the sum of all regular and separate | ||||||
7 | assessments payable during the preceding fiscal year, the | ||||||
8 | common interest community association, upon written petition | ||||||
9 | by members with 20% of the votes of the association delivered | ||||||
10 | to the board within 14 days of the board action, shall call a | ||||||
11 | meeting of the members within 30 days of the date of delivery | ||||||
12 | of the petition to consider the budget or separate assessment; | ||||||
13 | unless a majority of the total votes of the members are cast at | ||||||
14 | the meeting to reject the budget or separate assessment, it | ||||||
15 | shall be deemed ratified. | ||||||
16 | (d) If total common expenses exceed the total amount of | ||||||
17 | the approved and adopted budget, the common interest community | ||||||
18 | association shall disclose this variance to all its members | ||||||
19 | and specifically identify the subsequent assessments needed to | ||||||
20 | offset this variance in future budgets. | ||||||
21 | (e) Separate assessments for expenditures relating to | ||||||
22 | emergencies or mandated by law may be adopted by the board | ||||||
23 | without being subject to member approval or the provisions of | ||||||
24 | subsection (c) or (f) of this Section. As used herein, | ||||||
25 | "emergency" means a danger to or a compromise of the | ||||||
26 | structural integrity of the common areas or any of the common |
| |||||||
| |||||||
1 | facilities of the common interest community. "Emergency" also | ||||||
2 | includes a danger to the life, health or safety of the | ||||||
3 | membership. | ||||||
4 | (f) Assessments for additions and alterations to the | ||||||
5 | common areas or to association-owned property not included in | ||||||
6 | the adopted annual budget, shall be separately assessed and | ||||||
7 | are subject to approval of a simple majority of the total | ||||||
8 | members at a meeting called for that purpose. | ||||||
9 | (g) The board may adopt separate assessments payable over | ||||||
10 | more than one fiscal year. With respect to multi-year | ||||||
11 | assessments not governed by subsections (e) and (f) of this | ||||||
12 | Section, the entire amount of the multi-year assessment shall | ||||||
13 | be deemed considered and authorized in the first fiscal year | ||||||
14 | in which the assessment is approved. | ||||||
15 | (h) The board of a common interest community association | ||||||
16 | shall have the authority to establish and maintain a system of | ||||||
17 | master metering of public utility services to collect payments | ||||||
18 | in conjunction therewith, subject to the requirements of the | ||||||
19 | Tenant Utility Payment Disclosure Act. | ||||||
20 | (i) An association subject to this Act that consists of | ||||||
21 | 100 or more units shall use generally accepted accounting | ||||||
22 | principles in fulfilling any accounting obligations under this | ||||||
23 | Act.
| ||||||
24 | (j) The real estate taxes on a unit in a retirement | ||||||
25 | community shall be assessed on the unit and paid by the unit | ||||||
26 | owner. The real estate taxes on a unit in a retirement |
| |||||||
| |||||||
1 | community shall not be included in an assessment. Only real | ||||||
2 | estate taxes on a common area may be included in an assessment. | ||||||
3 | (k) A common interest community shall provide a detailed | ||||||
4 | breakdown of all costs in an association assessment, including | ||||||
5 | a breakdown of real estate tax information. | ||||||
6 | (Source: P.A. 100-292, eff. 1-1-18 .)
| ||||||
7 | Section 99. Effective date. This Act takes effect upon | ||||||
8 | becoming law.
|