Rep. Kelly M. Burke

Filed: 3/27/2024

 

 


 

 


 
10300HB0220ham001LRB103 03744 JDS 70363 a

1
AMENDMENT TO HOUSE BILL 220

2    AMENDMENT NO. ______. Amend House Bill 220 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Common Interest Community Association Act
5is amended by adding Section 1-32 as follows:
 
6    (765 ILCS 160/1-32 new)
7    Sec. 1-32. Reserve study.
8    (a) Any association with major shared components or
9significant infrastructure that has had a reserve study
10conducted on or after January 1, 2020 shall have an updated
11reserve study conducted within 5 years after the date the
12reserve study was conducted, and at least every 5 years
13thereafter, for purposes of assessing the condition of and
14planning for maintenance, repair, and replacement of the
15common areas.
16    (b) Any association with major shared components or

 

 

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1significant infrastructure that has not had a reserve study
2conducted on or after January 1, 2020, shall require that a
3reserve study be conducted on or before January 1, 2026, and
4shall update the study every 5 years for purposes of assessing
5the condition of and planning for maintenance, repair, and
6replacement of the common areas.
7    (c) As used in this Section, "reserve study" means an
8analysis of the reserves required for future major
9maintenance, repairs, and replacements of the common areas
10that:
11        (1) identifies each structural, mechanical,
12    electrical, and plumbing component of the common areas and
13    any other components that are the responsibility of the
14    association to maintain, repair, and replace;
15        (2) states the normal useful life and the estimated
16    remaining useful life of each identified component;
17        (3) states the estimated cost of maintenance, repair,
18    or replacement of each identified component; and
19        (4) states the estimated annual reserve amount
20    necessary to accomplish any identified future maintenance,
21    repair, or replacement.
22    (d) As used in this Section, "major shared components or
23significant infrastructure" means structural, mechanical,
24electrical, and plumbing components of the common areas and
25any other components that are the responsibility of the
26association to maintain, restore, repair, and replace, or

 

 

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1infrastructure including, but not limited to, roads, street
2lighting, hardscape, landscape, ponds and lakes, water
3features, pools, and accessory buildings, with an aggregate
4restoration or replacement cost exceeding $10,000, that are
5capital expenses as identified in the federal tax code and
6generally accepted accounting principles.
 
7    Section 10. The Condominium Property Act is amended by
8changing Section 18.5 and by adding Section 18.12 as follows:
 
9    (765 ILCS 605/18.5)  (from Ch. 30, par. 318.5)
10    Sec. 18.5. Master Associations.
11    (a) If the declaration, other condominium instrument, or
12other duly recorded covenants provide that any of the powers
13of the unit owners associations are to be exercised by or may
14be delegated to a nonprofit corporation or unincorporated
15association that exercises those or other powers on behalf of
16one or more condominiums, or for the benefit of the unit owners
17of one or more condominiums, such corporation or association
18shall be a master association.
19    (b) There shall be included in the declaration, other
20condominium instruments, or other duly recorded covenants
21establishing the powers and duties of the master association
22the provisions set forth in subsections (c) through (h).
23    In interpreting subsections (c) through (h), the courts
24should interpret these provisions so that they are interpreted

 

 

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1consistently with the similar parallel provisions found in
2other parts of this Act.
3    (c) Meetings and finances.
4        (1) Each unit owner of a condominium subject to the
5    authority of the board of the master association shall
6    receive, at least 30 days prior to the adoption thereof by
7    the board of the master association, a copy of the
8    proposed annual budget.
9        (2) The board of the master association shall annually
10    supply to all unit owners of condominiums subject to the
11    authority of the board of the master association an
12    itemized accounting of the common expenses for the
13    preceding year actually incurred or paid, together with a
14    tabulation of the amounts collected pursuant to the budget
15    or assessment, and showing the net excess or deficit of
16    income over expenditures plus reserves.
17        (3) Each unit owner of a condominium subject to the
18    authority of the board of the master association shall
19    receive written notice mailed or delivered no less than 10
20    and no more than 30 days prior to any meeting of the board
21    of the master association concerning the adoption of the
22    proposed annual budget or any increase in the budget, or
23    establishment of an assessment.
24        (4) Meetings of the board of the master association
25    shall be open to any unit owner in a condominium subject to
26    the authority of the board of the master association,

 

 

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1    except for the portion of any meeting held:
2            (A) to discuss litigation when an action against
3        or on behalf of the particular master association has
4        been filed and is pending in a court or administrative
5        tribunal, or when the board of the master association
6        finds that such an action is probable or imminent,
7            (B) to consider information regarding appointment,
8        employment or dismissal of an employee, or
9            (C) to discuss violations of rules and regulations
10        of the master association or unpaid common expenses
11        owed to the master association.
12    Any vote on these matters shall be taken at a meeting or
13    portion thereof open to any unit owner of a condominium
14    subject to the authority of the master association.
15        Any unit owner may record the proceedings at meetings
16    required to be open by this Act by tape, film or other
17    means; the board may prescribe reasonable rules and
18    regulations to govern the right to make such recordings.
19    Notice of meetings shall be mailed or delivered at least
20    48 hours prior thereto, unless a written waiver of such
21    notice is signed by the persons entitled to notice before
22    the meeting is convened. Copies of notices of meetings of
23    the board of the master association shall be posted in
24    entranceways, elevators, or other conspicuous places in
25    the condominium at least 48 hours prior to the meeting of
26    the board of the master association. Where there is no

 

 

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1    common entranceway for 7 or more units, the board of the
2    master association may designate one or more locations in
3    the proximity of these units where the notices of meetings
4    shall be posted.
5        (5) If the declaration provides for election by unit
6    owners of members of the board of directors in the event of
7    a resale of a unit in the master association, the
8    purchaser of a unit from a seller other than the developer
9    pursuant to an installment sales contract for purchase
10    shall, during such times as he or she resides in the unit,
11    be counted toward a quorum for purposes of election of
12    members of the board of directors at any meeting of the
13    unit owners called for purposes of electing members of the
14    board, and shall have the right to vote for the election of
15    members of the board of directors and to be elected to and
16    serve on the board of directors unless the seller
17    expressly retains in writing any or all of those rights.
18    In no event may the seller and purchaser both be counted
19    toward a quorum, be permitted to vote for a particular
20    office, or be elected and serve on the board. Satisfactory
21    evidence of the installment sales contract shall be made
22    available to the association or its agents. For purposes
23    of this subsection, "installment sales contract" shall
24    have the same meaning as set forth in Section 5 of the
25    Installment Sales Contract Act and subsection (e) of
26    Section 1 of the Dwelling Unit Installment Contract Act.

 

 

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1        (6) The board of the master association shall have the
2    authority to establish and maintain a system of master
3    metering of public utility services and to collect
4    payments in connection therewith, subject to the
5    requirements of the Tenant Utility Payment Disclosure Act.
6        (7) The board of the master association or a common
7    interest community association shall have the power, after
8    notice and an opportunity to be heard, to levy and collect
9    reasonable fines from members for violations of the
10    declaration, bylaws, and rules and regulations of the
11    master association or the common interest community
12    association. Nothing contained in this subdivision (7)
13    shall give rise to a statutory lien for unpaid fines.
14        (8) Other than attorney's fees, no fees pertaining to
15    the collection of a unit owner's financial obligation to
16    the Association, including fees charged by a manager or
17    managing agent, shall be added to and deemed a part of an
18    owner's respective share of the common expenses unless:
19    (i) the managing agent fees relate to the costs to collect
20    common expenses for the Association; (ii) the fees are set
21    forth in a contract between the managing agent and the
22    Association; and (iii) the authority to add the management
23    fees to an owner's respective share of the common expenses
24    is specifically stated in the declaration or bylaws of the
25    Association.
26    (d) Records.

 

 

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1        (1) The board of the master association shall maintain
2    the following records of the association and make them
3    available for examination and copying at convenient hours
4    of weekdays by any unit owners in a condominium subject to
5    the authority of the board or their mortgagees and their
6    duly authorized agents or attorneys:
7            (i) Copies of the recorded declaration, other
8        condominium instruments, other duly recorded covenants
9        and bylaws and any amendments, articles of
10        incorporation of the master association, annual
11        reports and any rules and regulations adopted by the
12        master association or its board shall be available.
13        Prior to the organization of the master association,
14        the developer shall maintain and make available the
15        records set forth in this subdivision (d)(1) for
16        examination and copying.
17            (ii) Detailed and accurate records in
18        chronological order of the receipts and expenditures
19        affecting the common areas, specifying and itemizing
20        the maintenance and repair expenses of the common
21        areas and any other expenses incurred, and copies of
22        all contracts, leases, or other agreements entered
23        into by the master association, shall be maintained.
24            (iii) The minutes of all meetings of the master
25        association and the board of the master association
26        shall be maintained for not less than 7 years.

 

 

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1            (iv) Ballots and proxies related thereto, if any,
2        for any election held for the board of the master
3        association and for any other matters voted on by the
4        unit owners shall be maintained for not less than one
5        year.
6            (v) Such other records of the master association
7        as are available for inspection by members of a
8        not-for-profit corporation pursuant to Section 107.75
9        of the General Not For Profit Corporation Act of 1986
10        shall be maintained.
11            (vi) With respect to units owned by a land trust,
12        if a trustee designates in writing a person to cast
13        votes on behalf of the unit owner, the designation
14        shall remain in effect until a subsequent document is
15        filed with the association.
16        (2) Where a request for records under this subsection
17    is made in writing to the board of managers or its agent,
18    failure to provide the requested record or to respond
19    within 30 days shall be deemed a denial by the board of
20    directors.
21        (3) A reasonable fee may be charged by the master
22    association or its board for the cost of copying.
23        (4) If the board of directors fails to provide records
24    properly requested under subdivision (d)(1) within the
25    time period provided in subdivision (d)(2), the unit owner
26    may seek appropriate relief, including an award of

 

 

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1    attorney's fees and costs.
2    (e) The board of directors shall have standing and
3capacity to act in a representative capacity in relation to
4matters involving the common areas of the master association
5or more than one unit, on behalf of the unit owners as their
6interests may appear.
7    (f) Administration of property prior to election of the
8initial board of directors.
9        (1) Until the election, by the unit owners or the
10    boards of managers of the underlying condominium
11    associations, of the initial board of directors of a
12    master association whose declaration is recorded on or
13    after August 10, 1990, the same rights, titles, powers,
14    privileges, trusts, duties and obligations that are vested
15    in or imposed upon the board of directors by this Act or in
16    the declaration or other duly recorded covenant shall be
17    held and performed by the developer.
18        (2) The election of the initial board of directors of
19    a master association whose declaration is recorded on or
20    after August 10, 1990, by the unit owners or the boards of
21    managers of the underlying condominium associations, shall
22    be held not later than 60 days after the conveyance by the
23    developer of 75% of the units, or 3 years after the
24    recording of the declaration, whichever is earlier. The
25    developer shall give at least 21 days notice of the
26    meeting to elect the initial board of directors and shall

 

 

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1    upon request provide to any unit owner, within 3 working
2    days of the request, the names, addresses, and weighted
3    vote of each unit owner entitled to vote at the meeting.
4    Any unit owner shall upon receipt of the request be
5    provided with the same information, within 10 days of the
6    request, with respect to each subsequent meeting to elect
7    members of the board of directors.
8        (3) If the initial board of directors of a master
9    association whose declaration is recorded on or after
10    August 10, 1990 is not elected by the unit owners or the
11    members of the underlying condominium association board of
12    managers at the time established in subdivision (f)(2),
13    the developer shall continue in office for a period of 30
14    days, whereupon written notice of his resignation shall be
15    sent to all of the unit owners or members of the underlying
16    condominium board of managers entitled to vote at an
17    election for members of the board of directors.
18        (4) Within 60 days following the election of a
19    majority of the board of directors, other than the
20    developer, by unit owners, the developer shall deliver to
21    the board of directors:
22            (i) All original documents as recorded or filed
23        pertaining to the property, its administration, and
24        the association, such as the declaration, articles of
25        incorporation, other instruments, annual reports,
26        minutes, rules and regulations, and contracts, leases,

 

 

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1        or other agreements entered into by the association.
2        If any original documents are unavailable, a copy may
3        be provided if certified by affidavit of the
4        developer, or an officer or agent of the developer, as
5        being a complete copy of the actual document recorded
6        or filed.
7            (ii) A detailed accounting by the developer,
8        setting forth the source and nature of receipts and
9        expenditures in connection with the management,
10        maintenance and operation of the property, copies of
11        all insurance policies, and a list of any loans or
12        advances to the association which are outstanding.
13            (iii) Association funds, which shall have been at
14        all times segregated from any other moneys of the
15        developer.
16            (iv) A schedule of all real or personal property,
17        equipment and fixtures belonging to the association,
18        including documents transferring the property,
19        warranties, if any, for all real and personal property
20        and equipment, deeds, title insurance policies, and
21        all tax bills.
22            (v) A list of all litigation, administrative
23        action and arbitrations involving the association, any
24        notices of governmental bodies involving actions taken
25        or which may be taken concerning the association,
26        engineering and architectural drawings and

 

 

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1        specifications as approved by any governmental
2        authority, all other documents filed with any other
3        governmental authority, all governmental certificates,
4        correspondence involving enforcement of any
5        association requirements, copies of any documents
6        relating to disputes involving unit owners, and
7        originals of all documents relating to everything
8        listed in this subparagraph.
9            (vi) If the developer fails to fully comply with
10        this paragraph (4) within the 60 days provided and
11        fails to fully comply within 10 days of written demand
12        mailed by registered or certified mail to his or her
13        last known address, the board may bring an action to
14        compel compliance with this paragraph (4). If the
15        court finds that any of the required deliveries were
16        not made within the required period, the board shall
17        be entitled to recover its reasonable attorneys' fees
18        and costs incurred from and after the date of
19        expiration of the 10 day demand.
20        (5) With respect to any master association whose
21    declaration is recorded on or after August 10, 1990, any
22    contract, lease, or other agreement made prior to the
23    election of a majority of the board of directors other
24    than the developer by or on behalf of unit owners or
25    underlying condominium associations, the association or
26    the board of directors, which extends for a period of more

 

 

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1    than 2 years from the recording of the declaration, shall
2    be subject to cancellation by more than 1/2 of the votes of
3    the unit owners, other than the developer, cast at a
4    special meeting of members called for that purpose during
5    a period of 90 days prior to the expiration of the 2 year
6    period if the board of managers is elected by the unit
7    owners, otherwise by more than 1/2 of the underlying
8    condominium board of managers. At least 60 days prior to
9    the expiration of the 2 year period, the board of
10    directors, or, if the board is still under developer
11    control, then the board of managers or the developer shall
12    send notice to every unit owner or underlying condominium
13    board of managers, notifying them of this provision, of
14    what contracts, leases and other agreements are affected,
15    and of the procedure for calling a meeting of the unit
16    owners or for action by the underlying condominium board
17    of managers for the purpose of acting to terminate such
18    contracts, leases or other agreements. During the 90 day
19    period the other party to the contract, lease, or other
20    agreement shall also have the right of cancellation.
21        (6) The statute of limitations for any actions in law
22    or equity which the master association may bring shall not
23    begin to run until the unit owners or underlying
24    condominium board of managers have elected a majority of
25    the members of the board of directors.
26    (g) In the event of any resale of a unit in a master

 

 

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1association by a unit owner other than the developer, the
2owner shall obtain from the board of directors and shall make
3available for inspection to the prospective purchaser, upon
4demand, the following:
5        (1) A copy of the declaration, other instruments and
6    any rules and regulations.
7        (2) A statement of any liens, including a statement of
8    the account of the unit setting forth the amounts of
9    unpaid assessments and other charges due and owing.
10        (3) A statement of any capital expenditures
11    anticipated by the association within the current or
12    succeeding 2 fiscal years.
13        (4) A statement of the status and amount of any
14    reserve for replacement fund and any portion of such fund
15    earmarked for any specified project by the board of
16    directors.
17        (5) A copy of the statement of financial condition of
18    the association for the last fiscal year for which such a
19    statement is available.
20        (6) A statement of the status of any pending suits or
21    judgments in which the association is a party.
22        (7) A statement setting forth what insurance coverage
23    is provided for all unit owners by the association.
24        (8) A statement that any improvements or alterations
25    made to the unit, or any part of the common areas assigned
26    thereto, by the prior unit owner are in good faith

 

 

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1    believed to be in compliance with the declaration of the
2    master association.
3    The principal officer of the unit owner's association or
4such other officer as is specifically designated shall furnish
5the above information when requested to do so in writing,
6within 30 days of receiving the request.
7    A reasonable fee covering the direct out-of-pocket cost of
8copying and providing such information may be charged by the
9association or its board of directors to the unit seller for
10providing the information.
11    (g-1) The purchaser of a unit of a common interest
12community at a judicial foreclosure sale, other than a
13mortgagee, who takes possession of a unit of a common interest
14community pursuant to a court order or a purchaser who
15acquires title from a mortgagee shall have the duty to pay the
16proportionate share, if any, of the common expenses for the
17unit that would have become due in the absence of any
18assessment acceleration during the 6 months immediately
19preceding institution of an action to enforce the collection
20of assessments and the court costs incurred by the association
21in an action to enforce the collection that remain unpaid by
22the owner during whose possession the assessments accrued. If
23the outstanding assessments and the court costs incurred by
24the association in an action to enforce the collection are
25paid at any time during any action to enforce the collection of
26assessments, the purchaser shall have no obligation to pay any

 

 

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1assessments that accrued before he or she acquired title. The
2notice of sale of a unit of a common interest community under
3subsection (c) of Section 15-1507 of the Code of Civil
4Procedure shall state that the purchaser of the unit other
5than a mortgagee shall pay the assessments and court costs
6required by this subsection (g-1).
7    (h) Errors and omissions.
8        (1) If there is an omission or error in the
9    declaration or other instrument of the master association,
10    the master association may correct the error or omission
11    by an amendment to the declaration or other instrument, as
12    may be required to conform it to this Act, to any other
13    applicable statute, or to the declaration. The amendment
14    shall be adopted by vote of two-thirds of the members of
15    the board of directors or by a majority vote of the unit
16    owners at a meeting called for that purpose, unless the
17    Act or the declaration of the master association
18    specifically provides for greater percentages or different
19    procedures.
20        (2) If, through a scrivener's error, a unit has not
21    been designated as owning an appropriate undivided share
22    of the common areas or does not bear an appropriate share
23    of the common expenses, or if all of the common expenses or
24    all of the common elements in the condominium have not
25    been distributed in the declaration, so that the sum total
26    of the shares of common areas which have been distributed

 

 

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1    or the sum total of the shares of the common expenses fail
2    to equal 100%, or if it appears that more than 100% of the
3    common elements or common expenses have been distributed,
4    the error may be corrected by operation of law by filing an
5    amendment to the declaration, approved by vote of
6    two-thirds of the members of the board of directors or a
7    majority vote of the unit owners at a meeting called for
8    that purpose, which proportionately adjusts all percentage
9    interests so that the total is equal to 100%, unless the
10    declaration specifically provides for a different
11    procedure or different percentage vote by the owners of
12    the units and the owners of mortgages thereon affected by
13    modification being made in the undivided interest in the
14    common areas, the number of votes in the unit owners
15    association or the liability for common expenses
16    appertaining to the unit.
17        (3) If an omission or error or a scrivener's error in
18    the declaration or other instrument is corrected by vote
19    of two-thirds of the members of the board of directors
20    pursuant to the authority established in subdivisions
21    (h)(1) or (h)(2) of this Section, the board, upon written
22    petition by unit owners with 20% of the votes of the
23    association or resolutions adopted by the board of
24    managers or board of directors of the condominium and
25    common interest community associations which select 20% of
26    the members of the board of directors of the master

 

 

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1    association, whichever is applicable, received within 30
2    days of the board action, shall call a meeting of the unit
3    owners or the boards of the condominium and common
4    interest community associations which select members of
5    the board of directors of the master association within 30
6    days of the filing of the petition or receipt of the
7    condominium and common interest community association
8    resolution to consider the board action. Unless a majority
9    of the votes of the unit owners of the association are cast
10    at the meeting to reject the action, or board of managers
11    or board of directors of condominium and common interest
12    community associations which select over 50% of the
13    members of the board of the master association adopt
14    resolutions prior to the meeting rejecting the action of
15    the board of directors of the master association, it is
16    ratified whether or not a quorum is present.
17        (4) The procedures for amendments set forth in this
18    subsection (h) cannot be used if such an amendment would
19    materially or adversely affect property rights of the unit
20    owners unless the affected unit owners consent in writing.
21    This Section does not restrict the powers of the
22    association to otherwise amend the declaration, bylaws, or
23    other condominium instruments, but authorizes a simple
24    process of amendment requiring a lesser vote for the
25    purpose of correcting defects, errors, or omissions when
26    the property rights of the unit owners are not materially

 

 

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1    or adversely affected.
2        (5) If there is an omission or error in the
3    declaration or other instruments that may not be corrected
4    by an amendment procedure set forth in subdivision (h)(1)
5    or (h)(2) of this Section, then the circuit court in the
6    county in which the master association is located shall
7    have jurisdiction to hear a petition of one or more of the
8    unit owners thereon or of the association, to correct the
9    error or omission, and the action may be a class action.
10    The court may require that one or more methods of
11    correcting the error or omission be submitted to the unit
12    owners to determine the most acceptable correction. All
13    unit owners in the association must be joined as parties
14    to the action. Service of process on owners may be by
15    publication, but the plaintiff shall furnish all unit
16    owners not personally served with process with copies of
17    the petition and final judgment of the court by certified
18    mail, return receipt requested, at their last known
19    address.
20        (6) Nothing contained in this Section shall be
21    construed to invalidate any provision of a declaration
22    authorizing the developer to amend an instrument prior to
23    the latest date on which the initial membership meeting of
24    the unit owners must be held, whether or not it has
25    actually been held, to bring the instrument into
26    compliance with the legal requirements of the Federal

 

 

10300HB0220ham001- 21 -LRB103 03744 JDS 70363 a

1    National Mortgage Association, the Federal Home Loan
2    Mortgage Corporation, the Federal Housing Administration,
3    the United States Veterans Administration or their
4    respective successors and assigns.
5    (i) The provisions of subsections (c) through (h) are
6applicable to all declarations, other condominium instruments,
7and other duly recorded covenants establishing the powers and
8duties of the master association recorded under this Act. Any
9portion of a declaration, other condominium instrument, or
10other duly recorded covenant establishing the powers and
11duties of a master association which contains provisions
12contrary to the provisions of subsection (c) through (h) shall
13be void as against public policy and ineffective. Any
14declaration, other condominium instrument, or other duly
15recorded covenant establishing the powers and duties of the
16master association which fails to contain the provisions
17required by subsections (c) through (h) shall be deemed to
18incorporate such provisions by operation of law.
19    (j) Reserve study.
20        (1) Any association with major shared components or
21    significant infrastructure that has had a reserve study
22    conducted on or after January 1, 2020 shall have an
23    updated reserve study conducted within 5 years after the
24    date the reserve study was conducted, and at least every 5
25    years thereafter, for purposes of assessing the condition
26    of and planning for maintenance, repair, and replacement

 

 

10300HB0220ham001- 22 -LRB103 03744 JDS 70363 a

1    of the common areas.
2        (2) Any association with major shared components or
3    significant infrastructure that has not had a reserve
4    study conducted on or after January 1, 2020, shall require
5    that a reserve study be conducted on or before January 1,
6    2026, and shall update the study every 5 years for
7    purposes of assessing the condition of and planning for
8    maintenance, repair, and replacement of the common areas.
9        (3) As used in this subsection (j), "reserve study"
10    means an analysis of the reserves required for future
11    major maintenance, repairs, and replacements of the common
12    areas that:
13            (i) identifies each structural, mechanical,
14        electrical, and plumbing component of the common areas
15        and any other components that are the responsibility
16        of the association to maintain, repair, and replace;
17            (ii) states the normal useful life and the
18        estimated remaining useful life of each identified
19        component;
20            (iii) states the estimated cost of maintenance,
21        repair, or replacement of each identified component;
22        and
23            (iv) states the estimated annual reserve amount
24        necessary to accomplish any identified future
25        maintenance, repair, or replacement.
26        (4) As used in this subsection (j), "major shared

 

 

10300HB0220ham001- 23 -LRB103 03744 JDS 70363 a

1    components or significant infrastructure" means
2    structural, mechanical, electrical, and plumbing
3    components of the common areas and any other components
4    that are the responsibility of the association to
5    maintain, restore, repair, and replace, or infrastructure
6    including, but not limited to, roads, street lighting,
7    hardscape, landscape, ponds and lakes, water features,
8    pools, and accessory buildings, with an aggregate
9    restoration or replacement cost exceeding $10,000, that
10    are capital expenses as identified in the federal tax code
11    and generally accepted accounting principles (Blank).
12(Source: P.A. 100-416, eff. 1-1-18.)
 
13    (765 ILCS 605/18.12 new)
14    Sec. 18.12. Reserve study.
15    (a) Any association with major shared components or
16significant infrastructure that has had a reserve study
17conducted on or after January 1, 2020 shall have an updated
18reserve study conducted within 5 years after the date the
19reserve study was conducted, and at least every 5 years
20thereafter, for purposes of assessing the condition of and
21planning for maintenance, repair, and replacement of the
22common elements.
23    (b) Any association with major shared components or
24significant infrastructure that has not had a reserve study
25conducted on or after January 1, 2020, shall require that a

 

 

10300HB0220ham001- 24 -LRB103 03744 JDS 70363 a

1reserve study be conducted on or before January 1, 2026, and
2shall update the study every 5 years for purposes of assessing
3the condition of and planning for maintenance, repair, and
4replacement of the common elements.
5    (c) As used in this Section, "reserve study" means an
6analysis of the reserves required for future major
7maintenance, repairs, and replacements of the common elements
8that:
9        (1) identifies each structural, mechanical,
10    electrical, and plumbing component of the common elements
11    and any other components that are the responsibility of
12    the association to maintain, repair, and replace;
13        (2) states the normal useful life and the estimated
14    remaining useful life of each identified component;
15        (3) states the estimated cost of maintenance, repair,
16    or replacement of each identified component; and
17        (4) states the estimated annual reserve amount
18    necessary to accomplish any identified future maintenance,
19    repair, or replacement.
20    (d) As used in this Section, "major shared components or
21significant infrastructure" means structural, mechanical,
22electrical, and plumbing components of the common elements and
23any other components that are the responsibility of the
24association to maintain, restore, repair, and replace, or
25infrastructure including, but not limited to, roads, street
26lighting, hardscape, landscape, ponds and lakes, water

 

 

10300HB0220ham001- 25 -LRB103 03744 JDS 70363 a

1features, pools, and accessory buildings, with an aggregate
2restoration or replacement cost exceeding $10,000, that are
3capital expenses as identified in the federal tax code and
4generally accepted accounting principles.".