103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3715

 

Introduced 2/9/2024, by Sen. Ram Villivalam

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Condominium Property Act. Prohibits directors from voting by proxy or by secret ballot at board meetings with the exception that secret ballots may be used in the election of officers. Prohibits voting by proxy or by secret ballot at any meeting or special meeting if a final decision may be made affecting (i) the expenditure of association funds; and (ii) architectural decisions affecting a unit owner's residential property. Requires removal from the board members who have been charged with a number of crimes including but not limited to (i) forgery of a ballot envelope or voting certificate used in a homeowners' association election; (ii) theft or embezzlement involving the association's funds or property; and destruction of or the refusal to allow inspection or copying of an official record of a homeowners' association which is accessible to parcel owners within the time periods required by law in furtherance of any crime. Provides that if charges are resolved without a finding of guilt or without acceptance of a plea of guilty or nolo contendere, the member of the board shall be reinstated for any remainder of their term. Requires members of the board who are appointed by the developer to disclose to the association their relationship to the developer each calendar year in which they serve on the board. Requires members appointed by the developer must disclose any other activity that may reasonably be construed to be a conflict of interest. Provides that members of the board must disclose any activity that may be reasonably construed to be a conflict of interest at least 14 days before voting on an issue or entering into a contract that is the subject of the conflict. Imposes a fine of not more than $2,500 if the board fails to provide documents to any member of the association as provided in this Act. Requires that the declaration or bylaws of a condominium association require mediation or arbitration of disputes in which the matter in controversy has either no specific monetary value or a value of $10,000 or less, other than the levying and collection of assessments, or that arises out of violations of the declaration, bylaws, or rules and regulations of the condominium association. Provides that the declaration or bylaws of a condominium association may require mediation or arbitration of disputes for all other disputes.


LRB103 38640 JRC 68777 b

 

 

A BILL FOR

 

SB3715LRB103 38640 JRC 68777 b

1    AN ACT concerning property.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Condominium Property Act is amended by
5changing Sections 18, 18.4, 19, and 32 as follows:
 
6    (765 ILCS 605/18)  (from Ch. 30, par. 318)
7    Sec. 18. Contents of bylaws. The bylaws shall provide for
8at least the following:
9        (a)(1) The election from among the unit owners of a
10    board of managers, the number of persons constituting such
11    board, and that the terms of at least one-third of the
12    members of the board shall expire annually and that all
13    members of the board shall be elected at large; if there
14    are multiple owners of a single unit, only one of the
15    multiple owners shall be eligible to serve as a member of
16    the board at any one time. A declaration first submitting
17    property to the provisions of this Act, in accordance with
18    Section 3 after the effective date of this amendatory Act
19    of the 102nd General Assembly, or an amendment to the
20    condominium instruments adopted in accordance with Section
21    27 after the effective date of this amendatory Act of the
22    102nd General Assembly, may provide that a majority of the
23    board of managers, or such lesser number as may be

 

 

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1    specified in the declaration, must be comprised of unit
2    owners occupying their unit as their primary residence;
3    provided that the condominium instruments may not require
4    that more than a majority of the board shall be comprised
5    of unit owners who occupy their unit as their principal
6    residence;
7        (2) the powers and duties of the board;
8        (3) the compensation, if any, of the members of the
9    board;
10        (4) the method of removal from office of members of
11    the board;
12        (5) that the board may engage the services of a
13    manager or managing agent;
14        (6) that each unit owner shall receive, at least 25
15    days prior to the adoption thereof by the board of
16    managers, a copy of the proposed annual budget together
17    with an indication of which portions are intended for
18    reserves, capital expenditures or repairs or payment of
19    real estate taxes;
20        (7) that the board of managers shall annually supply
21    to all unit owners an itemized accounting of the common
22    expenses for the preceding year actually incurred or paid,
23    together with an indication of which portions were for
24    reserves, capital expenditures or repairs or payment of
25    real estate taxes and with a tabulation of the amounts
26    collected pursuant to the budget or assessment, and

 

 

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1    showing the net excess or deficit of income over
2    expenditures plus reserves;
3        (8)(i) that each unit owner shall receive notice, in
4    the same manner as is provided in this Act for membership
5    meetings, of any meeting of the board of managers
6    concerning the adoption of the proposed annual budget and
7    regular assessments pursuant thereto or to adopt a
8    separate (special) assessment, (ii) that except as
9    provided in subsection (iv) below, if an adopted budget or
10    any separate assessment adopted by the board would result
11    in the sum of all regular and separate assessments payable
12    in the current fiscal year exceeding 115% of the sum of all
13    regular and separate assessments payable during the
14    preceding fiscal year, the board of managers, upon written
15    petition by unit owners with 20 percent of the votes of the
16    association delivered to the board within 21 days of the
17    board action, shall call a meeting of the unit owners
18    within 30 days of the date of delivery of the petition to
19    consider the budget or separate assessment; unless a
20    majority of the total votes of the unit owners are cast at
21    the meeting to reject the budget or separate assessment,
22    it is ratified, (iii) that any common expense not set
23    forth in the budget or any increase in assessments over
24    the amount adopted in the budget shall be separately
25    assessed against all unit owners, (iv) that separate
26    assessments for expenditures relating to emergencies or

 

 

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1    mandated by law may be adopted by the board of managers
2    without being subject to unit owner approval or the
3    provisions of item (ii) above or item (v) below. As used
4    herein, "emergency" means an immediate danger to the
5    structural integrity of the common elements or to the
6    life, health, safety or property of the unit owners, (v)
7    that assessments for additions and alterations to the
8    common elements or to association-owned property not
9    included in the adopted annual budget, shall be separately
10    assessed and are subject to approval of two-thirds of the
11    total votes of all unit owners, (vi) that the board of
12    managers may adopt separate assessments payable over more
13    than one fiscal year. With respect to multi-year
14    assessments not governed by items (iv) and (v), the entire
15    amount of the multi-year assessment shall be deemed
16    considered and authorized in the first fiscal year in
17    which the assessment is approved;
18        (9)(A) that every meeting of the board of managers
19    shall be open to any unit owner, except that the board may
20    close any portion of a noticed meeting or meet separately
21    from a noticed meeting to: (i) discuss litigation when an
22    action against or on behalf of the particular association
23    has been filed and is pending in a court or administrative
24    tribunal, or when the board of managers finds that such an
25    action is probable or imminent, (ii) discuss the
26    appointment, employment, engagement, or dismissal of an

 

 

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1    employee, independent contractor, agent, or other provider
2    of goods and services, (iii) interview a potential
3    employee, independent contractor, agent, or other provider
4    of goods and services, (iv) discuss violations of rules
5    and regulations of the association, (v) discuss a unit
6    owner's unpaid share of common expenses, or (vi) consult
7    with the association's legal counsel; that any vote on
8    these matters shall take place at a meeting of the board of
9    managers or portion thereof open to any unit owner;
10        (B) that board members may participate in and act at
11    any meeting of the board of managers in person, by
12    telephonic means, or by use of any acceptable
13    technological means whereby all persons participating in
14    the meeting can communicate with each other; that
15    participation constitutes attendance and presence in
16    person at the meeting;
17        (C) that any unit owner may record the proceedings at
18    meetings of the board of managers or portions thereof
19    required to be open by this Act by tape, film or other
20    means, and that the board may prescribe reasonable rules
21    and regulations to govern the right to make such
22    recordings;
23        (D) that notice of every meeting of the board of
24    managers shall be given to every board member at least 48
25    hours prior thereto, unless the board member waives notice
26    of the meeting pursuant to subsection (a) of Section 18.8;

 

 

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1    and
2        (E) that notice of every meeting of the board of
3    managers shall be posted in entranceways, elevators, or
4    other conspicuous places in the condominium at least 48
5    hours prior to the meeting of the board of managers except
6    where there is no common entranceway for 7 or more units,
7    the board of managers may designate one or more locations
8    in the proximity of these units where the notices of
9    meetings shall be posted; that notice of every meeting of
10    the board of managers shall also be given at least 48 hours
11    prior to the meeting, or such longer notice as this Act may
12    separately require, to: (i) each unit owner who has
13    provided the association with written authorization to
14    conduct business by acceptable technological means, and
15    (ii) to the extent that the condominium instruments of an
16    association require, to each other unit owner, as required
17    by subsection (f) of Section 18.8, by mail or delivery,
18    and that no other notice of a meeting of the board of
19    managers need be given to any unit owner;
20        (10) that the board shall meet at least 4 times
21    annually;
22        (11) that no member of the board or officer shall be
23    elected for a term of more than 2 years, but that officers
24    and board members may succeed themselves;
25        (12) the designation of an officer to mail and receive
26    all notices and execute amendments to condominium

 

 

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1    instruments as provided for in this Act and in the
2    condominium instruments;
3        (13) the method of filling vacancies on the board
4    which shall include authority for the remaining members of
5    the board to fill the vacancy by two-thirds vote until the
6    next annual meeting of unit owners or for a period
7    terminating no later than 30 days following the filing of
8    a petition signed by unit owners holding 20% of the votes
9    of the association requesting a meeting of the unit owners
10    to fill the vacancy for the balance of the term, and that a
11    meeting of the unit owners shall be called for purposes of
12    filling a vacancy on the board no later than 30 days
13    following the filing of a petition signed by unit owners
14    holding 20% of the votes of the association requesting
15    such a meeting, and the method of filling vacancies among
16    the officers that shall include the authority for the
17    members of the board to fill the vacancy for the unexpired
18    portion of the term;
19        (14) what percentage of the board of managers, if
20    other than a majority, shall constitute a quorum;
21        (15) provisions concerning notice of board meetings to
22    members of the board;
23        (16) the board of managers may not enter into a
24    contract with a current board member or with a corporation
25    or partnership in which a board member or a member of the
26    board member's immediate family has 25% or more interest,

 

 

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1    unless notice of intent to enter the contract is given to
2    unit owners within 20 days after a decision is made to
3    enter into the contract and the unit owners are afforded
4    an opportunity by filing a petition, signed by 20% of the
5    unit owners, for an election to approve or disapprove the
6    contract; such petition shall be filed within 30 days
7    after such notice and such election shall be held within
8    30 days after filing the petition; for purposes of this
9    subsection, a board member's immediate family means the
10    board member's spouse, parents, and children;
11        (17) that the board of managers may disseminate to
12    unit owners biographical and background information about
13    candidates for election to the board if (i) reasonable
14    efforts to identify all candidates are made and all
15    candidates are given an opportunity to include
16    biographical and background information in the information
17    to be disseminated; and (ii) the board does not express a
18    preference in favor of any candidate;
19        (18) any proxy distributed for board elections by the
20    board of managers gives unit owners the opportunity to
21    designate any person as the proxy holder, and gives the
22    unit owner the opportunity to express a preference for any
23    of the known candidates for the board or to write in a
24    name;
25        (19) that special meetings of the board of managers
26    can be called by the president or 25% of the members of the

 

 

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1    board;
2        (20) that the board of managers may establish and
3    maintain a system of master metering of public utility
4    services and collect payments in connection therewith,
5    subject to the requirements of the Tenant Utility Payment
6    Disclosure Act; and
7        (21) that the board may ratify and confirm actions of
8    the members of the board taken in response to an
9    emergency, as that term is defined in subdivision
10    (a)(8)(iv) of this Section; that the board shall give
11    notice to the unit owners of: (i) the occurrence of the
12    emergency event within 7 business days after the emergency
13    event, and (ii) the general description of the actions
14    taken to address the event within 7 days after the
15    emergency event.
16        The intent of the provisions of Public Act 99-472
17    adding this paragraph (21) is to empower and support
18    boards to act in emergencies.
19        (b)(1) What percentage of the unit owners, if other
20    than 20%, shall constitute a quorum provided that, for
21    condominiums with 20 or more units, the percentage of unit
22    owners constituting a quorum shall be 20% unless the unit
23    owners holding a majority of the percentage interest in
24    the association provide for a higher percentage, provided
25    that in voting on amendments to the association's bylaws,
26    a unit owner who is in arrears on the unit owner's regular

 

 

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1    or separate assessments for 60 days or more, shall not be
2    counted for purposes of determining if a quorum is
3    present, but that unit owner retains the right to vote on
4    amendments to the association's bylaws;
5        (2) that the association shall have one class of
6    membership;
7        (3) that the members shall hold an annual meeting, one
8    of the purposes of which shall be to elect members of the
9    board of managers;
10        (4) the method of calling meetings of the unit owners;
11        (5) that special meetings of the members can be called
12    by the president, board of managers, or by 20% of unit
13    owners;
14        (6) that written notice of any membership meeting
15    shall be mailed or delivered giving members no less than
16    10 and no more than 30 days notice of the time, place and
17    purpose of such meeting except that notice may be sent, to
18    the extent the condominium instruments or rules adopted
19    thereunder expressly so provide, by electronic
20    transmission consented to by the unit owner to whom the
21    notice is given, provided the director and officer or his
22    agent certifies in writing to the delivery by electronic
23    transmission;
24        (7) that voting shall be on a percentage basis, and
25    that the percentage vote to which each unit is entitled is
26    the percentage interest of the undivided ownership of the

 

 

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1    common elements appurtenant thereto, provided that the
2    bylaws may provide for approval by unit owners in
3    connection with matters where the requisite approval on a
4    percentage basis is not specified in this Act, on the
5    basis of one vote per unit;
6        (8) that, where there is more than one owner of a unit,
7    if only one of the multiple owners is present at a meeting
8    of the association, he is entitled to cast all the votes
9    allocated to that unit, if more than one of the multiple
10    owners are present, the votes allocated to that unit may
11    be cast only in accordance with the agreement of a
12    majority in interest of the multiple owners, unless the
13    declaration expressly provides otherwise, that there is
14    majority agreement if any one of the multiple owners cast
15    the votes allocated to that unit without protest being
16    made promptly to the person presiding over the meeting by
17    any of the other owners of the unit;
18        (9)(A) except as provided in subparagraph (B) of this
19    paragraph (9) in connection with board elections, that a
20    unit owner may vote by proxy executed in writing by the
21    unit owner or by his duly authorized attorney in fact;
22    that the proxy must bear the date of execution and, unless
23    the condominium instruments or the written proxy itself
24    provide otherwise, is invalid after 11 months from the
25    date of its execution; to the extent the condominium
26    instruments or rules adopted thereunder expressly so

 

 

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1    provide, a vote or proxy may be submitted by electronic
2    transmission, provided that any such electronic
3    transmission shall either set forth or be submitted with
4    information from which it can be determined that the
5    electronic transmission was authorized by the unit owner
6    or the unit owner's proxy;
7        (B) that if a rule adopted at least 120 days before a
8    board election or the declaration or bylaws provide for
9    balloting as set forth in this subsection, unit owners may
10    not vote by proxy in board elections, but may vote only (i)
11    by submitting an association-issued ballot in person at
12    the election meeting or (ii) by submitting an
13    association-issued ballot to the association or its
14    designated agent by mail or other means of delivery
15    specified in the declaration, bylaws, or rule; that the
16    ballots shall be mailed or otherwise distributed to unit
17    owners not less than 10 and not more than 30 days before
18    the election meeting, and the board shall give unit owners
19    not less than 21 days' prior written notice of the
20    deadline for inclusion of a candidate's name on the
21    ballots; that the deadline shall be no more than 7 days
22    before the ballots are mailed or otherwise distributed to
23    unit owners; that every such ballot must include the names
24    of all candidates who have given the board or its
25    authorized agent timely written notice of their candidacy
26    and must give the person casting the ballot the

 

 

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1    opportunity to cast votes for candidates whose names do
2    not appear on the ballot; that a ballot received by the
3    association or its designated agent after the close of
4    voting shall not be counted; that a unit owner who submits
5    a ballot by mail or other means of delivery specified in
6    the declaration, bylaws, or rule may request and cast a
7    ballot in person at the election meeting, and thereby void
8    any ballot previously submitted by that unit owner;
9        (B-5) that if a rule adopted at least 120 days before a
10    board election or the declaration or bylaws provide for
11    balloting as set forth in this subparagraph, unit owners
12    may not vote by proxy in board elections, but may vote only
13    (i) by submitting an association-issued ballot in person
14    at the election meeting; or (ii) by any acceptable
15    technological means as defined in Section 2 of this Act;
16    instructions regarding the use of electronic means for
17    voting shall be distributed to all unit owners not less
18    than 10 and not more than 30 days before the election
19    meeting, and the board shall give unit owners not less
20    than 21 days' prior written notice of the deadline for
21    inclusion of a candidate's name on the ballots; the
22    deadline shall be no more than 7 days before the
23    instructions for voting using electronic or acceptable
24    technological means is distributed to unit owners; every
25    instruction notice must include the names of all
26    candidates who have given the board or its authorized

 

 

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1    agent timely written notice of their candidacy and must
2    give the person voting through electronic or acceptable
3    technological means the opportunity to cast votes for
4    candidates whose names do not appear on the ballot; a unit
5    owner who submits a vote using electronic or acceptable
6    technological means may request and cast a ballot in
7    person at the election meeting, thereby voiding any vote
8    previously submitted by that unit owner;
9        (B-10) that directors may not vote by proxy or by
10    secret ballot at board meetings with the exception that
11    secret ballots may be used in the election of officers.
12    This prohibition against voting by proxy or by secret
13    ballot also applies to any meeting or special meeting if a
14    final decision may be made affecting (i) the expenditure
15    of association funds; and (ii) architectural decisions
16    affecting a unit owner's residential property;
17        (C) that if a written petition by unit owners with at
18    least 20% of the votes of the association is delivered to
19    the board within 30 days after the board's approval of a
20    rule adopted pursuant to subparagraph (B) or subparagraph
21    (B-5) of this paragraph (9), the board shall call a
22    meeting of the unit owners within 30 days after the date of
23    delivery of the petition; that unless a majority of the
24    total votes of the unit owners are cast at the meeting to
25    reject the rule, the rule is ratified;
26        (D) that votes cast by ballot under subparagraph (B)

 

 

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1    or electronic or acceptable technological means under
2    subparagraph (B-5) of this paragraph (9) are valid for the
3    purpose of establishing a quorum;
4        (10) that the association may, upon adoption of the
5    appropriate rules by the board of managers, conduct
6    elections by secret ballot whereby the voting ballot is
7    marked only with the percentage interest for the unit and
8    the vote itself, provided that the board further adopt
9    rules to verify the status of the unit owner issuing a
10    proxy or casting a ballot; and further, that a candidate
11    for election to the board of managers or such candidate's
12    representative shall have the right to be present at the
13    counting of ballots at such election;
14        (11) that in the event of a resale of a condominium
15    unit the purchaser of a unit from a seller other than the
16    developer pursuant to an installment sales contract for
17    purchase shall during such times as he or she resides in
18    the unit be counted toward a quorum for purposes of
19    election of members of the board of managers at any
20    meeting of the unit owners called for purposes of electing
21    members of the board, shall have the right to vote for the
22    election of members of the board of managers and to be
23    elected to and serve on the board of managers unless the
24    seller expressly retains in writing any or all of such
25    rights. In no event may the seller and purchaser both be
26    counted toward a quorum, be permitted to vote for a

 

 

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1    particular office or be elected and serve on the board.
2    Satisfactory evidence of the installment sales contract
3    shall be made available to the association or its agents.
4    For purposes of this subsection, "installment sales
5    contract" shall have the same meaning as set forth in
6    Section 5 of the Installment Sales Contract Act and
7    Section 1(e) of the Dwelling Unit Installment Contract
8    Act;
9        (12) the method by which matters subject to the
10    approval of unit owners set forth in this Act, or in the
11    condominium instruments, will be submitted to the unit
12    owners at special membership meetings called for such
13    purposes; and
14        (13) that matters subject to the affirmative vote of
15    not less than 2/3 of the votes of unit owners at a meeting
16    duly called for that purpose, shall include, but not be
17    limited to:
18            (i) merger or consolidation of the association;
19            (ii) sale, lease, exchange, or other disposition
20        (excluding the mortgage or pledge) of all, or
21        substantially all of the property and assets of the
22        association; and
23            (iii) the purchase or sale of land or of units on
24        behalf of all unit owners.
25        (c) Election of a president from among the board of
26    managers, who shall preside over the meetings of the board

 

 

SB3715- 17 -LRB103 38640 JRC 68777 b

1    of managers and of the unit owners.
2        (d) Election of a secretary from among the board of
3    managers, who shall keep the minutes of all meetings of
4    the board of managers and of the unit owners and who shall,
5    in general, perform all the duties incident to the office
6    of secretary.
7        (e) Election of a treasurer from among the board of
8    managers, who shall keep the financial records and books
9    of account.
10        (f) Maintenance, repair and replacement of the common
11    elements and payments therefor, including the method of
12    approving payment vouchers.
13        (g) An association with 30 or more units shall obtain
14    and maintain fidelity insurance covering persons who
15    control or disburse funds of the association for the
16    maximum amount of coverage available to protect funds in
17    the custody or control of the association plus the
18    association reserve fund. All management companies which
19    are responsible for the funds held or administered by the
20    association shall maintain and furnish to the association
21    a fidelity bond for the maximum amount of coverage
22    available to protect funds in the custody of the
23    management company at any time. The association shall bear
24    the cost of the fidelity insurance and fidelity bond,
25    unless otherwise provided by contract between the
26    association and a management company. The association

 

 

SB3715- 18 -LRB103 38640 JRC 68777 b

1    shall be the direct obligee of any such fidelity bond. A
2    management company holding reserve funds of an association
3    shall at all times maintain a separate account for each
4    association, provided, however, that for investment
5    purposes, the Board of Managers of an association may
6    authorize a management company to maintain the
7    association's reserve funds in a single interest bearing
8    account with similar funds of other associations. The
9    management company shall at all times maintain records
10    identifying all moneys of each association in such
11    investment account. The management company may hold all
12    operating funds of associations which it manages in a
13    single operating account but shall at all times maintain
14    records identifying all moneys of each association in such
15    operating account. Such operating and reserve funds held
16    by the management company for the association shall not be
17    subject to attachment by any creditor of the management
18    company.
19        For the purpose of this subsection, a management
20    company shall be defined as a person, partnership,
21    corporation, or other legal entity entitled to transact
22    business on behalf of others, acting on behalf of or as an
23    agent for a unit owner, unit owners or association of unit
24    owners for the purpose of carrying out the duties,
25    responsibilities, and other obligations necessary for the
26    day to day operation and management of any property

 

 

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1    subject to this Act. For purposes of this subsection, the
2    term "fiduciary insurance coverage" shall be defined as
3    both a fidelity bond and directors and officers liability
4    coverage, the fidelity bond in the full amount of
5    association funds and association reserves that will be in
6    the custody of the association, and the directors and
7    officers liability coverage at a level as shall be
8    determined to be reasonable by the board of managers, if
9    not otherwise established by the declaration or by laws.
10        Until one year after September 21, 1985 (the effective
11    date of Public Act 84-722), if a condominium association
12    has reserves plus assessments in excess of $250,000 and
13    cannot reasonably obtain 100% fidelity bond coverage for
14    such amount, then it must obtain a fidelity bond coverage
15    of $250,000.
16        (h) Method of estimating the amount of the annual
17    budget, and the manner of assessing and collecting from
18    the unit owners their respective shares of such estimated
19    expenses, and of any other expenses lawfully agreed upon.
20        (i) That upon 10 days notice to the manager or board of
21    managers and payment of a reasonable fee, any unit owner
22    shall be furnished a statement of his account setting
23    forth the amount of any unpaid assessments or other
24    charges due and owing from such owner.
25        (j) Designation and removal of personnel necessary for
26    the maintenance, repair and replacement of the common

 

 

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1    elements.
2        (k) Such restrictions on and requirements respecting
3    the use and maintenance of the units and the use of the
4    common elements, not set forth in the declaration, as are
5    designed to prevent unreasonable interference with the use
6    of their respective units and of the common elements by
7    the several unit owners.
8        (l) Method of adopting and of amending administrative
9    rules and regulations governing the operation and use of
10    the common elements.
11        (m) The percentage of votes required to modify or
12    amend the bylaws, but each one of the particulars set
13    forth in this section shall always be embodied in the
14    bylaws.
15        (n)(i) The provisions of this Act, the declaration,
16    bylaws, other condominium instruments, and rules and
17    regulations that relate to the use of the individual unit
18    or the common elements shall be applicable to any person
19    leasing a unit and shall be deemed to be incorporated in
20    any lease executed or renewed on or after August 30, 1984
21    (the effective date of Public Act 83-1271).
22        (ii) With regard to any lease entered into subsequent
23    to July 1, 1990 (the effective date of Public Act 86-991),
24    the unit owner leasing the unit shall deliver a copy of the
25    signed lease to the board or if the lease is oral, a
26    memorandum of the lease, not later than the date of

 

 

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1    occupancy or 10 days after the lease is signed, whichever
2    occurs first. In addition to any other remedies, by filing
3    an action jointly against the tenant and the unit owner,
4    an association may seek to enjoin a tenant from occupying
5    a unit or seek to evict a tenant under the provisions of
6    Article IX of the Code of Civil Procedure for failure of
7    the lessor-owner to comply with the leasing requirements
8    prescribed by this Section or by the declaration, bylaws,
9    and rules and regulations. The board of managers may
10    proceed directly against a tenant, at law or in equity, or
11    under the provisions of Article IX of the Code of Civil
12    Procedure, for any other breach by tenant of any
13    covenants, rules, regulations or bylaws.
14        (o) The association shall have no authority to forbear
15    the payment of assessments by any unit owner.
16        (p) That when 30% or fewer of the units, by number,
17    possess over 50% in the aggregate of the votes in the
18    association, any percentage vote of members specified
19    herein or in the condominium instruments shall require the
20    specified percentage by number of units rather than by
21    percentage of interest in the common elements allocated to
22    units that would otherwise be applicable and garage units
23    or storage units, or both, shall have, in total, no more
24    votes than their aggregate percentage of ownership in the
25    common elements; this shall mean that if garage units or
26    storage units, or both, are to be given a vote, or portion

 

 

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1    of a vote, that the association must add the total number
2    of votes cast of garage units, storage units, or both, and
3    divide the total by the number of garage units, storage
4    units, or both, and multiply by the aggregate percentage
5    of ownership of garage units and storage units to
6    determine the vote, or portion of a vote, that garage
7    units or storage units, or both, have. For purposes of
8    this subsection (p), when making a determination of
9    whether 30% or fewer of the units, by number, possess over
10    50% in the aggregate of the votes in the association, a
11    unit shall not include a garage unit or a storage unit.
12        (q) That a unit owner may not assign, delegate,
13    transfer, surrender, or avoid the duties,
14    responsibilities, and liabilities of a unit owner under
15    this Act, the condominium instruments, or the rules and
16    regulations of the Association; and that such an attempted
17    assignment, delegation, transfer, surrender, or avoidance
18    shall be deemed void.
19    The provisions of this Section are applicable to all
20condominium instruments recorded under this Act. Any portion
21of a condominium instrument which contains provisions contrary
22to these provisions shall be void as against public policy and
23ineffective. Any such instrument which fails to contain the
24provisions required by this Section shall be deemed to
25incorporate such provisions by operation of law.
26(Source: P.A. 102-162, eff. 1-1-22.)
 

 

 

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1    (765 ILCS 605/18.4)  (from Ch. 30, par. 318.4)
2    Sec. 18.4. Board Powers and duties of board of managers.
3    (A) The board of managers shall exercise for the
4association all powers, duties and authority vested in the
5association by law or the condominium instruments except for
6such powers, duties and authority reserved by law to the
7members of the association. The powers and duties of the board
8of managers shall include, but shall not be limited to, the
9following:
10        (a) To provide for the operation, care, upkeep,
11    maintenance, replacement and improvement of the common
12    elements. Nothing in this subsection (a) shall be deemed
13    to invalidate any provision in a condominium instrument
14    placing limits on expenditures for the common elements,
15    provided, that such limits shall not be applicable to
16    expenditures for repair, replacement, or restoration of
17    existing portions of the common elements. The term
18    "repair, replacement or restoration" means expenditures to
19    deteriorated or damaged portions of the property related
20    to the existing decorating, facilities, or structural or
21    mechanical components, interior or exterior surfaces, or
22    energy systems and equipment with the functional
23    equivalent of the original portions of such areas.
24    Replacement of the common elements may result in an
25    improvement over the original quality of such elements or

 

 

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1    facilities; provided that, unless the improvement is
2    mandated by law or is an emergency as defined in item (iv)
3    of subparagraph (8) of paragraph (a) of Section 18, if the
4    improvement results in a proposed expenditure exceeding 5%
5    of the annual budget, the board of managers, upon written
6    petition by unit owners with 20% of the votes of the
7    association delivered to the board within 21 days of the
8    board action to approve the expenditure, shall call a
9    meeting of the unit owners within 30 days of the date of
10    delivery of the petition to consider the expenditure.
11    Unless a majority of the total votes of the unit owners are
12    cast at the meeting to reject the expenditure, it is
13    ratified.
14        (b) To prepare, adopt and distribute the annual budget
15    for the property.
16        (c) To levy and expend assessments.
17        (d) To collect assessments from unit owners.
18        (e) To provide for the employment and dismissal of the
19    personnel necessary or advisable for the maintenance and
20    operation of the common elements.
21        (f) To obtain adequate and appropriate kinds of
22    insurance.
23        (g) To own, convey, encumber, lease, and otherwise
24    deal with units conveyed to or purchased by it.
25        (h) To adopt and amend rules and regulations covering
26    the details of the operation and use of the property,

 

 

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1    after a meeting of the unit owners called for the specific
2    purpose of discussing the proposed rules and regulations.
3    Notice of the meeting shall contain the full text of the
4    proposed rules and regulations, and the meeting shall
5    conform to the requirements of Section 18(b) of this Act,
6    except that no quorum is required at the meeting of the
7    unit owners unless the declaration, bylaws or other
8    condominium instrument expressly provides to the contrary.
9    However, no rule or regulation may impair any rights
10    guaranteed by the First Amendment to the Constitution of
11    the United States or Section 4 of Article I of the Illinois
12    Constitution including, but not limited to, the free
13    exercise of religion, nor may any rules or regulations
14    conflict with the provisions of this Act or the
15    condominium instruments. No rule or regulation shall
16    prohibit any reasonable accommodation for religious
17    practices, including the attachment of religiously
18    mandated objects to the front-door area of a condominium
19    unit.
20        (i) To keep detailed, accurate records of the receipts
21    and expenditures affecting the use and operation of the
22    property.
23        (j) To have access to each unit from time to time as
24    may be necessary for the maintenance, repair or
25    replacement of any common elements or for making emergency
26    repairs necessary to prevent damage to the common elements

 

 

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1    or to other units.
2        (k) To pay real property taxes, special assessments,
3    and any other special taxes or charges of the State of
4    Illinois or of any political subdivision thereof, or other
5    lawful taxing or assessing body, which are authorized by
6    law to be assessed and levied upon the real property of the
7    condominium.
8        (l) To impose charges for late payment of a unit
9    owner's proportionate share of the common expenses, or any
10    other expenses lawfully agreed upon, and after notice and
11    an opportunity to be heard, to levy reasonable fines for
12    violation of the declaration, by-laws, and rules and
13    regulations of the association.
14        (m) By a majority vote of the entire board of
15    managers, to assign the right of the association to future
16    income from common expenses or other sources, and to
17    mortgage or pledge substantially all of the remaining
18    assets of the association.
19        (n) To record the dedication of a portion of the
20    common elements to a public body for use as, or in
21    connection with, a street or utility where authorized by
22    the unit owners under the provisions of Section 14.2.
23        (o) To record the granting of an easement for the
24    laying of cable television or high speed Internet cable
25    where authorized by the unit owners under the provisions
26    of Section 14.3; to obtain, if available and determined by

 

 

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1    the board to be in the best interests of the association,
2    cable television or bulk high speed Internet service for
3    all of the units of the condominium on a bulk identical
4    service and equal cost per unit basis; and to assess and
5    recover the expense as a common expense and, if so
6    determined by the board, to assess each and every unit on
7    the same equal cost per unit basis.
8        (p) To seek relief on behalf of all unit owners when
9    authorized pursuant to subsection (c) of Section 10 from
10    or in connection with the assessment or levying of real
11    property taxes, special assessments, and any other special
12    taxes or charges of the State of Illinois or of any
13    political subdivision thereof or of any lawful taxing or
14    assessing body.
15        (q) To reasonably accommodate the needs of a unit
16    owner who is a person with a disability as required by the
17    federal Civil Rights Act of 1968, the Human Rights Act and
18    any applicable local ordinances in the exercise of its
19    powers with respect to the use of common elements or
20    approval of modifications in an individual unit.
21        (r) To accept service of a notice of claim for
22    purposes of the Mechanics Lien Act on behalf of each
23    respective member of the Unit Owners' Association with
24    respect to improvements performed pursuant to any contract
25    entered into by the Board of Managers or any contract
26    entered into prior to the recording of the condominium

 

 

SB3715- 28 -LRB103 38640 JRC 68777 b

1    declaration pursuant to this Act, for a property
2    containing more than 8 units, and to distribute the notice
3    to the unit owners within 7 days of the acceptance of the
4    service by the Board of Managers. The service shall be
5    effective as if each individual unit owner had been served
6    individually with notice.
7        (s) To adopt and amend rules and regulations (l)
8    authorizing electronic delivery of notices and other
9    communications required or contemplated by this Act to
10    each unit owner who provides the association with written
11    authorization for electronic delivery and an electronic
12    address to which such communications are to be
13    electronically transmitted; and (2) authorizing each unit
14    owner to designate an electronic address or a U.S. Postal
15    Service address, or both, as the unit owner's address on
16    any list of members or unit owners which an association is
17    required to provide upon request pursuant to any provision
18    of this Act or any condominium instrument.
19    In the performance of their duties, the officers and
20members of the board, whether appointed by the developer or
21elected by the unit owners, shall exercise the care required
22of a fiduciary of the unit owners.
23    The collection of assessments from unit owners by an
24association, board of managers or their duly authorized agents
25shall not be considered acts constituting a collection agency
26for purposes of the Collection Agency Act.

 

 

SB3715- 29 -LRB103 38640 JRC 68777 b

1    (B) A member of the board charged by information or
2indictment with any of the following crimes shall be removed
3from office:
4        (a) Forgery of a ballot envelope or voting certificate
5    used in a homeowners' association election;
6        (b) Theft or embezzlement involving the association's
7    funds or property;
8        (c) Destruction of or the refusal to allow inspection
9    or copying of an official record of a homeowners'
10    association which is accessible to parcel owners within
11    the time periods required by general law, in furtherance
12    of any crime;
13        (d) Any fraudulent voting activity relating to
14    association elections including:
15            (i) Willfully and falsely swearing to or affirming
16        an oath or affirmation, or willfully procuring another
17        person to falsely swear to or affirm an oath or
18        affirmation, in connection with or arising out of
19        voting activities.
20            (ii) Perpetrating or attempting to perpetrate, or
21        aiding in the perpetration of, fraud in connection
22        with a vote cast, to be cast, or attempted to be cast.
23            (iii) Preventing a member from voting or
24        preventing a member from voting as he or she intended
25        by fraudulently changing or attempting to change a
26        ballot, ballot envelope, vote, or voting certificate

 

 

SB3715- 30 -LRB103 38640 JRC 68777 b

1        of the member.
2            (iv) Menacing, threatening, or using bribery or
3        any other corruption to attempt, directly or
4        indirectly, to influence, deceive, or deter a member
5        when the member is voting.
6            (v) Giving or promising, directly or indirectly,
7        anything of value to another member with the intent to
8        buy the vote of that member or another member or to
9        corruptly influence that member or another member in
10        casting his or her vote. This subsection does not
11        apply to any food served which is to be consumed at an
12        election rally or a meeting or to any item of nominal
13        value which is used as an election advertisement,
14        including a campaign message designed to be worn by a
15        member.
16            (vi) Using or threatening to use, directly or
17        indirectly, force, violence, or intimidation or any
18        tactic of coercion or intimidation to induce or compel
19        a member to vote or refrain from voting in an election
20        or on a particular ballot measure.
21    The board shall fill vacancies in accordance with Section
2218(a)(13). If such criminal charge is pending against the
23officer or director, he or she may not be appointed or elected
24to a position on the board of directors of any association and
25may not have access to the official records of any
26association, except by court order. If charges are resolved

 

 

SB3715- 31 -LRB103 38640 JRC 68777 b

1without a finding of guilt or without acceptance of a plea of
2guilty or nolo contendere, the member of the board shall be
3reinstated for any remainder of their term.
4    (C) Members of the board who are appointed by the
5developer must disclose to the association their relationship
6to the developer each calendar year in which they serve on the
7board. Members appointed by the developer must disclose any
8other activity that may reasonably be construed to be a
9conflict of interest.
10    (D) Members of the board must disclose any activity that
11may be reasonably construed to be a conflict of interest at
12least 14 days before voting on an issue or entering into a
13contract that is the subject of the conflict. A rebuttable
14presumption of a conflict of interest exists if any of the
15following acts occur without prior disclosure to the
16association:
17        (i) A member of the board or their relative enters
18    into a contract for goods or services with the
19    association.
20        (ii) A member of the board or their relative holds an
21    interest in a corporation, limited liability company,
22    partnership, limited liability partnership, or other
23    business entity that conducts business with the
24    association or proposes to enter into a contract or other
25    transaction with the associations.
26    The provisions of this Section are applicable to all

 

 

SB3715- 32 -LRB103 38640 JRC 68777 b

1condominium instruments recorded under this Act. Any portion
2of a condominium instrument which contains provisions contrary
3to these provisions shall be void as against public policy and
4ineffective. Any such instrument that fails to contain the
5provisions required by this Section shall be deemed to
6incorporate such provisions by operation of law.
7(Source: P.A. 99-143, eff. 7-27-15; 99-849, eff. 1-1-17;
8100-292, eff. 1-1-18.)
 
9    (765 ILCS 605/19)  (from Ch. 30, par. 319)
10    Sec. 19. Records of the association; availability for
11examination.
12    (a) The board of managers of every association shall keep
13and maintain the following records, or true and complete
14copies of these records, at the association's principal
15office:
16        (1) the association's declaration, bylaws, and plats
17    of survey, and all amendments of these;
18        (2) the rules and regulations of the association, if
19    any;
20        (3) if the association is incorporated as a
21    corporation, the articles of incorporation of the
22    association and all amendments to the articles of
23    incorporation;
24        (4) minutes of all meetings of the association and its
25    board of managers for the immediately preceding 7 years;

 

 

SB3715- 33 -LRB103 38640 JRC 68777 b

1        (5) all current policies of insurance of the
2    association;
3        (6) all contracts, leases, and other agreements then
4    in effect to which the association is a party or under
5    which the association or the unit owners have obligations
6    or liabilities;
7        (7) a current listing of the names, addresses, email
8    addresses, telephone numbers, and weighted vote of all
9    members entitled to vote;
10        (8) ballots and proxies related to ballots for all
11    matters voted on by the members of the association during
12    the immediately preceding 12 months, including, but not
13    limited to, the election of members of the board of
14    managers;
15        (9) the books and records for the association's
16    current and 10 immediately preceding fiscal years,
17    including, but not limited to, itemized and detailed
18    records of all receipts, expenditures, and accounts; and
19        (10) any reserve study.
20    (b) Any member of an association shall have the right to
21inspect, examine, and make copies of the records described in
22subdivisions (1), (2), (3), (4), (5), (6), (9), and (10) of
23subsection (a) of this Section, in person or by agent, at any
24reasonable time or times, at the association's principal
25office. In order to exercise this right, a member must submit a
26written request to the association's board of managers or its

 

 

SB3715- 34 -LRB103 38640 JRC 68777 b

1authorized agent, stating with particularity the records
2sought to be examined. Failure of an association's board of
3managers to make available all records so requested within 10
4business days of receipt of the member's written request shall
5be deemed a denial.
6    Any member who prevails in an enforcement action to compel
7examination of records described in subdivisions (1), (2),
8(3), (4), (5), (6), (9), and (10) of subsection (a) of this
9Section shall be entitled to recover reasonable attorney's
10fees and costs from the association.
11    (c) (Blank).
12    (d) (Blank).
13    (d-5) As used in this Section, "commercial purpose" means
14the use of any part of a record or records described in
15subdivisions (7) and (8) of subsection (a) of this Section, or
16information derived from such records, in any form for sale,
17resale, or solicitation or advertisement for sales or
18services.
19    (e) Except as otherwise provided in subsection (g) of this
20Section, any member of an association shall have the right to
21inspect, examine, and make copies of the records described in
22subdivisions (7) and (8) of subsection (a) of this Section, in
23person or by agent, at any reasonable time or times but only
24for a purpose that relates to the association, at the
25association's principal office. In order to exercise this
26right, a member must submit a written request, to the

 

 

SB3715- 35 -LRB103 38640 JRC 68777 b

1association's board of managers or its authorized agent,
2stating with particularity the records sought to be examined.
3As a condition for exercising this right, the board of
4managers or authorized agent of the association may require
5the member to certify in writing that the information
6contained in the records obtained by the member will not be
7used by the member for any commercial purpose or for any
8purpose that does not relate to the association. The board of
9managers of the association may impose a fine in accordance
10with item (l) of Section 18.4 upon any person who makes a false
11certification. Subject to the provisions of subsection (g) of
12this Section, failure of an association's board of managers to
13make available all records so requested within 10 business
14days of receipt of the member's written request shall be
15deemed a denial; provided, however, that the board of managers
16of an association that has adopted a secret ballot election
17process as provided in Section 18 of this Act shall not be
18deemed to have denied a member's request for records described
19in subdivision (8) of subsection (a) of this Section if voting
20ballots, without identifying unit numbers, are made available
21to the requesting member within 10 business days of receipt of
22the member's written request.
23    Any member who prevails in an enforcement action to compel
24examination of records described in subdivision (7) or (8) of
25subsection (a) of this Section shall be entitled to recover
26reasonable attorney's fees and costs from the association only

 

 

SB3715- 36 -LRB103 38640 JRC 68777 b

1if the court finds that the board of directors acted in bad
2faith in denying the member's request.
3    (f) The actual cost to the association of retrieving and
4making requested records available for inspection and
5examination under this Section may be charged by the
6association to the requesting member. If a member requests
7copies of records requested under this Section, the actual
8costs to the association of reproducing the records may also
9be charged by the association to the requesting member.
10    (g) Notwithstanding the provisions of subsection (e) of
11this Section, unless otherwise directed by court order, an
12association need not make the following records available for
13inspection, examination, or copying by its members:
14        (1) documents relating to appointment, employment,
15    discipline, or dismissal of association employees;
16        (2) documents relating to actions pending against or
17    on behalf of the association or its board of managers in a
18    court or administrative tribunal;
19        (3) documents relating to actions threatened against,
20    or likely to be asserted on behalf of, the association or
21    its board of managers in a court or administrative
22    tribunal;
23        (4) documents relating to common expenses or other
24    charges owed by a member other than the requesting member;
25    and
26        (5) documents provided to an association in connection

 

 

SB3715- 37 -LRB103 38640 JRC 68777 b

1    with the lease, sale, or other transfer of a unit by a
2    member other than the requesting member.
3    (h) The provisions of this Section are applicable to all
4condominium instruments recorded under this Act. Any portion
5of a condominium instrument that contains provisions contrary
6to these provisions shall be void as against public policy and
7ineffective. Any condominium instrument that fails to contain
8the provisions required by this Section shall be deemed to
9incorporate the provisions by operation of law.
10    (i) Failure to provide the requested documents within the
11prescribed timeframe shall result in a fine of not more than
12$2,500.
13(Source: P.A. 102-921, eff. 5-27-22.)
 
14    (765 ILCS 605/32)
15    Sec. 32. Alternate dispute resolution; mediation;
16arbitration.
17    (a) The declaration or bylaws of a condominium association
18shall may require mediation or arbitration of disputes in
19which the matter in controversy has either no specific
20monetary value or a value of $10,000 or less, other than the
21levying and collection of assessments, or that arises out of
22violations of the declaration, bylaws, or rules and
23regulations of the condominium association. The declaration or
24bylaws of a condominium association may require mediation or
25arbitration of disputes for all other disputes. A dispute not

 

 

SB3715- 38 -LRB103 38640 JRC 68777 b

1required to be mediated or arbitrated by an association
2pursuant to its powers under this Section, that is submitted
3to mediation or arbitration by the agreement of the
4disputants, is also subject to this Section.
5    (b) The Illinois Uniform Arbitration Act shall govern all
6arbitrations proceeding under this Section.
7    (b-5) The Uniform Mediation Act shall govern all
8mediations proceeding under this Section.
9    (c) The association may require the disputants to bear the
10costs of mediation or arbitration.
11(Source: P.A. 93-399, eff. 1-1-04.)

 

 

SB3715- 39 -LRB103 38640 JRC 68777 b

1 INDEX
2 Statutes amended in order of appearance
3    765 ILCS 605/18from Ch. 30, par. 318
4    765 ILCS 605/18.4from Ch. 30, par. 318.4
5    765 ILCS 605/19from Ch. 30, par. 319
6    765 ILCS 605/32