093_HB0186eng HB0186 Engrossed LRB093 00012 LCB 00012 b 1 AN ACT concerning condominiums. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Condominium Property Act is amended by 5 changing Sections 18.4 and 18.5 and by adding Section 29.5 as 6 follows: 7 (765 ILCS 605/18.4) (from Ch. 30, par. 318.4) 8 Sec. 18.4. Powers and Duties of Board of Managers. The 9 board of managers shall exercise for the association all 10 powers, duties and authority vested in the association by law 11 or the condominium instruments except for such powers, duties 12 and authority reserved by law to the members of the 13 association. The powers and duties of the board of managers 14 shall include, but shall not be limited to, the following: 15 (a) To provide for the operation, care, upkeep, 16 maintenance, replacement and improvement of the common 17 elements. Nothing in this subsection (a) shall be deemed 18 to invalidate any provision in a condominium instrument 19 placing limits on expenditures for the common elements, 20 provided, that such limits shall not be applicable to 21 expenditures for repair, replacement, or restoration of 22 existing portions of the common elements. The term 23 "repair, replacement or restoration" means expenditures 24 to deteriorated or damaged portions of the property 25 related to the existing decorating, facilities, or 26 structural or mechanical components, interior or exterior 27 surfaces, or energy systems and equipment with the 28 functional equivalent of the original portions of such 29 areas. Replacement of the common elements may result in 30 an improvement over the original quality of such elements 31 or facilities; provided that, unless the improvement is HB0186 Engrossed -2- LRB093 00012 LCB 00012 b 1 mandated by law or is an emergency as defined in item 2 (iv) of subparagraph (8) of paragraph (a) of Section 18, 3 if the improvement results in a proposed expenditure 4 exceeding 5% of the annual budget, the board of managers, 5 upon written petition by unit owners with 20% of the 6 votes of the association delivered to the board within 14 7 days of the board action to approve the expenditure, 8 shall call a meeting of the unit owners within 30 days of 9 the date of delivery of the petition to consider the 10 expenditure. Unless a majority of the total votes of the 11 unit owners are cast at the meeting to reject the 12 expenditure, it is ratified. 13 (b) To prepare, adopt and distribute the annual 14 budget for the property. 15 (c) To levy and expend assessments. 16 (d) To collect assessments from unit owners. 17 (e) To provide for the employment and dismissal of 18 the personnel necessary or advisable for the maintenance 19 and operation of the common elements. 20 (f) To obtain adequate and appropriate kinds of 21 insurance. 22 (g) To own, convey, encumber, lease, and otherwise 23 deal with units conveyed to or purchased by it. 24 (h) To adopt and amend rules and regulations 25 covering the details of the operation and use of the 26 property, after a meeting of the unit owners called for 27 the specific purpose of discussing the proposed rules and 28 regulations. Notice of the meeting shall contain the 29 full text of the proposed rules and regulations, and the 30 meeting shall conform to the requirements of Section 31 18(b) of this Act, except that no quorum is required at 32 the meeting of the unit owners unless the declaration, 33 bylaws or other condominium instrument expressly provides 34 to the contrary. However, no rule or regulation may HB0186 Engrossed -3- LRB093 00012 LCB 00012 b 1 impair any rights guaranteed by the First Amendment to 2 the Constitution of the United States or Section 4 of 3 Article I of the Illinois Constitution, nor may any rules 4 or regulations conflict with the provisions of this Act 5 or the condominium instruments. 6 (i) To keep detailed, accurate records of the 7 receipts and expenditures affecting the use and operation 8 of the property. 9 (j) To have access to each unit from time to time 10 as may be necessary for the maintenance, repair or 11 replacement of any common elements or for making 12 emergency repairs necessary to prevent damage to the 13 common elements or to other units. 14 (k) To pay real property taxes, special 15 assessments, and any other special taxes or charges of 16 the State of Illinois or of any political subdivision 17 thereof, or other lawful taxing or assessing body, which 18 are authorized by law to be assessed and levied upon the 19 real property of the condominium. 20 (l) To impose charges for late payment of a unit 21 owner's proportionate share of the common expenses, or 22 any other expenses lawfully agreed upon, and after notice 23 and an opportunity to be heard, to levy reasonable fines 24 for violation of the declaration, by-laws, and rules and 25 regulations of the association. 26 (m) Unless the condominium instruments expressly 27 provide to the contrary, by a majority vote of the entire 28 board of managers, to assign the right of the association 29 to future income from common expenses or other sources, 30 and to mortgage or pledge substantially all of the 31 remaining assets of the association. 32 (n) To record the dedication of a portion of the 33 common elements to a public body for use as, or in 34 connection with, a street or utility where authorized by HB0186 Engrossed -4- LRB093 00012 LCB 00012 b 1 the unit owners under the provisions of Section 14.2. 2 (o) To record the granting of an easement for the 3 laying of cable television cable where authorized by the 4 unit owners under the provisions of Section 14.3; to 5 obtain, if available and determined by the board to be in 6 the best interests of the association, cable television 7 service for all of the units of the condominium on a bulk 8 identical service and equal cost per unit basis; and to 9 assess and recover the expense as a common expense and, 10 if so determined by the board, to assess each and every 11 unit on the same equal cost per unit basis. 12 (p) To seek relief on behalf of all unit owners 13 when authorized pursuant to subsection (c) of Section 10 14 from or in connection with the assessment or levying of 15 real property taxes, special assessments, and any other 16 special taxes or changes of the State of Illinois or of 17 any political subdivision thereof or of any lawful taxing 18 or assessing body. 19 (q) To reasonably accommodate the needs of a 20 handicapped unit owner as required by the federal Civil 21 Rights Act of 1968, the Human Rights Act and any 22 applicable local ordinances in the exercise of its powers 23 with respect to the use of common elements or approval of 24 modifications in an individual unit. 25 No action shall be taken by the board of managers 26 concerning the levying or assessing of any fine or penalty 27 against a unit owner unless proper notice has been given to 28 the owner and the owner has been given an opportunity at a 29 meeting of the board of managers to dispute the fine or 30 penalty. The notice must consist of: (i) the time and place 31 of the meeting at which the fine or penalty will be 32 discussed; (ii) the amount of the proposed penalty or fine; 33 (iii) the reason for the proposed fine or penalty; (iv) a 34 notification that all interested persons shall be given an HB0186 Engrossed -5- LRB093 00012 LCB 00012 b 1 opportunity to be heard; and (v) a statement that the unit 2 owner may be represented by counsel at the meeting. The 3 notice shall be sent by certified mail not more than 30 days 4 and not less than 10 days prior to the meeting. 5 In the performance of their duties, the officers and 6 members of the board, whether appointed by the developer or 7 elected by the unit owners, shall exercise the care required 8 of a fiduciary of the unit owners. 9 The collection of assessments from unit owners by an 10 association, board of managers or their duly authorized 11 agents shall not be considered acts constituting a collection 12 agency for purposes of the Collection Agency Act. 13 The provisions of this Section are applicable to all 14 condominium instruments recorded under this Act. Any portion 15 of a condominium instrument which contains provisions 16 contrary to these provisions shall be void as against public 17 policy and ineffective. Any such instrument that fails to 18 contain the provisions required by this Section shall be 19 deemed to incorporate such provisions by operation of law. 20 (Source: P.A. 91-195, eff. 7-20-99.) 21 (765 ILCS 605/18.5) (from Ch. 30, par. 318.5) 22 Sec. 18.5. Master Associations. 23 (a) If the declaration, other condominium instrument, or 24 other duly recorded covenants provide that any of the powers 25 of the unit owners associations are to be exercised by or may 26 be delegated to a nonprofit corporation or unincorporated 27 association that exercises those or other powers on behalf of 28 one or more condominiums, or for the benefit of the unit 29 owners of one or more condominiums, such corporation or 30 association shall be a master association. 31 (b) There shall be included in the declaration, other 32 condominium instruments, or other duly recorded covenants 33 establishing the powers and duties of the master association HB0186 Engrossed -6- LRB093 00012 LCB 00012 b 1 the provisions set forth in subsections (c) through (h). 2 In interpreting subsections (c) through (h), the courts 3 should interpret these provisions so that they are 4 interpreted consistently with the similar parallel provisions 5 found in other parts of this Act. 6 (c) Meetings and finances. 7 (1) Each unit owner of a condominium subject to the 8 authority of the board of the master association shall 9 receive, at least 30 days prior to the adoption thereof 10 by the board of the master association, a copy of the 11 proposed annual budget. 12 (2) The board of the master association shall 13 annually supply to all unit owners of condominiums 14 subject to the authority of the board of the master 15 association an itemized accounting of the common expenses 16 for the preceding year actually incurred or paid, 17 together with a tabulation of the amounts collected 18 pursuant to the budget or assessment, and showing the net 19 excess or deficit of income over expenditures plus 20 reserves. 21 (3) Each unit owner of a condominium subject to the 22 authority of the board of the master association shall 23 receive written notice mailed or delivered no less than 24 10 and no more than 30 days prior to any meeting of the 25 board of the master association concerning the adoption 26 of the proposed annual budget or any increase in the 27 budget, or establishment of an assessment. 28 (4) Meetings of the board of the master association 29 shall be open to any unit owner in a condominium subject 30 to the authority of the board of the master association, 31 except for the portion of any meeting held: 32 (A) to discuss litigation when an action 33 against or on behalf of the particular master 34 association has been filed and is pending in a court HB0186 Engrossed -7- LRB093 00012 LCB 00012 b 1 or administrative tribunal, or when the board of the 2 master association finds that such an action is 3 probable or imminent, 4 (B) to consider information regarding 5 appointment, employment or dismissal of an employee, 6 or 7 (C) to discuss violations of rules and 8 regulations of the master association or unpaid 9 common expenses owed to the master association. 10 Any vote on these matters shall be taken at a meeting or 11 portion thereof open to any unit owner of a condominium 12 subject to the authority of the master association. 13 Any unit owner may record the proceedings at 14 meetings required to be open by this Act by tape, film or 15 other means; the board may prescribe reasonable rules and 16 regulations to govern the right to make such recordings. 17 Notice of meetings shall be mailed or delivered at least 18 48 hours prior thereto, unless a written waiver of such 19 notice is signed by the persons entitled to notice before 20 the meeting is convened. Copies of notices of meetings 21 of the board of the master association shall be posted in 22 entranceways, elevators, or other conspicuous places in 23 the condominium at least 48 hours prior to the meeting of 24 the board of the master association. Where there is no 25 common entranceway for 7 or more units, the board of the 26 master association may designate one or more locations in 27 the proximity of these units where the notices of 28 meetings shall be posted. 29 (5) If the declaration provides for election by 30 unit owners of members of the board of directors in the 31 event of a resale of a unit in the master association, 32 the purchaser of a unit from a seller other than the 33 developer pursuant to an installment contract for 34 purchase shall, during such times as he or she resides in HB0186 Engrossed -8- LRB093 00012 LCB 00012 b 1 the unit, be counted toward a quorum for purposes of 2 election of members of the board of directors at any 3 meeting of the unit owners called for purposes of 4 electing members of the board, and shall have the right 5 to vote for the election of members of the board of 6 directors and to be elected to and serve on the board of 7 directors unless the seller expressly retains in writing 8 any or all of those rights. In no event may the seller 9 and purchaser both be counted toward a quorum, be 10 permitted to vote for a particular office, or be elected 11 and serve on the board. Satisfactory evidence of the 12 installment contract shall be made available to the 13 association or its agents. For purposes of this 14 subsection, "installment contract" shall have the same 15 meaning as set forth in subsection (e) of Section 1 of 16 the Dwelling Unit Installment Contract Act. 17 (6) The board of the master association shall have 18 the authority to establish and maintain a system of 19 master metering of public utility services and to collect 20 payments in connection therewith, subject to the 21 requirements of the Tenant Utility Payment Disclosure 22 Act. 23 (7) The board of the master association or a common 24 interest community association shall have the power, 25 after notice and an opportunity to be heard, to levy and 26 collect reasonable fines from members for violations of 27 the declaration, bylaws, and rules and regulations of the 28 master association or the common interest community 29 association. Nothing contained in this subdivision (7) 30 shall give rise to a statutory lien for unpaid fines. 31 No action shall be taken by the board of the master 32 association or a common interest community association 33 concerning the levying or assessing of any fine or penalty 34 against a unit owner unless proper notice has been given to HB0186 Engrossed -9- LRB093 00012 LCB 00012 b 1 the owner and the owner has been given an opportunity at a 2 meeting of the board of the master association or a common 3 interest community association to dispute the fine or 4 penalty. The notice must consist of: (i) the time and place 5 of the meeting at which the fine or penalty will be 6 discussed; (ii) the amount of the proposed penalty or fine; 7 (iii) the reason for the proposed fine or penalty; (iv) a 8 notification that all interested persons shall be given an 9 opportunity to be heard; and (v) a statement that the unit 10 owner may be represented by counsel at the meeting. The 11 notice shall be sent by certified mail not more than 30 days 12 and not less than 10 days prior to the meeting. 13 (d) Records. 14 (1) The board of the master association shall 15 maintain the following records of the association and 16 make them available for examination and copying at 17 convenient hours of weekdays by any unit owners in a 18 condominium subject to the authority of the board or 19 their mortgagees and their duly authorized agents or 20 attorneys: 21 (i) Copies of the recorded declaration, other 22 condominium instruments, other duly recorded 23 covenants and bylaws and any amendments, articles of 24 incorporation of the master association, annual 25 reports and any rules and regulations adopted by the 26 master association or its board shall be available. 27 Prior to the organization of the master association, 28 the developer shall maintain and make available the 29 records set forth in this subdivision (d)(1) for 30 examination and copying. 31 (ii) Detailed and accurate records in 32 chronological order of the receipts and expenditures 33 affecting the common areas, specifying and itemizing 34 the maintenance and repair expenses of the common HB0186 Engrossed -10- LRB093 00012 LCB 00012 b 1 areas and any other expenses incurred, and copies of 2 all contracts, leases, or other agreements entered 3 into by the master association, shall be maintained. 4 (iii) The minutes of all meetings of the 5 master association and the board of the master 6 association shall be maintained for not less than 7 7 years. 8 (iv) Ballots and proxies related thereto, if 9 any, for any election held for the board of the 10 master association and for any other matters voted 11 on by the unit owners shall be maintained for not 12 less than one year. 13 (v) Such other records of the master 14 association as are available for inspection by 15 members of a not-for-profit corporation pursuant to 16 Section 107.75 of the General Not For Profit 17 Corporation Act of 1986 shall be maintained. 18 (vi) With respect to units owned by a land 19 trust, if a trustee designates in writing a person 20 to cast votes on behalf of the unit owner, the 21 designation shall remain in effect until a 22 subsequent document is filed with the association. 23 (2) Where a request for records under this 24 subsection is made in writing to the board of managers or 25 its agent, failure to provide the requested record or to 26 respond within 30 days shall be deemed a denial by the 27 board of directors. 28 (3) A reasonable fee may be charged by the master 29 association or its board for the cost of copying. 30 (4) If the board of directors fails to provide 31 records properly requested under subdivision (d)(1) 32 within the time period provided in subdivision (d)(2), 33 the unit owner may seek appropriate relief, including an 34 award of attorney's fees and costs. HB0186 Engrossed -11- LRB093 00012 LCB 00012 b 1 (e) The board of directors shall have standing and 2 capacity to act in a representative capacity in relation to 3 matters involving the common areas of the master association 4 or more than one unit, on behalf of the unit owners as their 5 interests may appear. 6 (f) Administration of property prior to election of the 7 initial board of directors. 8 (1) Until the election, by the unit owners or the 9 boards of managers of the underlying condominium 10 associations, of the initial board of directors of a 11 master association whose declaration is recorded on or 12 after August 10, 1990, the same rights, titles, powers, 13 privileges, trusts, duties and obligations that are 14 vested in or imposed upon the board of directors by this 15 Act or in the declaration or other duly recorded covenant 16 shall be held and performed by the developer. 17 (2) The election of the initial board of directors 18 of a master association whose declaration is recorded on 19 or after August 10, 1990, by the unit owners or the 20 boards of managers of the underlying condominium 21 associations, shall be held not later than 60 days after 22 the conveyance by the developer of 75% of the units, or 3 23 years after the recording of the declaration, whichever 24 is earlier. The developer shall give at least 21 days 25 notice of the meeting to elect the initial board of 26 directors and shall upon request provide to any unit 27 owner, within 3 working days of the request, the names, 28 addresses, and weighted vote of each unit owner entitled 29 to vote at the meeting. Any unit owner shall upon 30 receipt of the request be provided with the same 31 information, within 10 days of the request, with respect 32 to each subsequent meeting to elect members of the board 33 of directors. 34 (3) If the initial board of directors of a master HB0186 Engrossed -12- LRB093 00012 LCB 00012 b 1 association whose declaration is recorded on or after 2 August 10, 1990 is not elected by the unit owners or the 3 members of the underlying condominium association board 4 of managers at the time established in subdivision 5 (f)(2), the developer shall continue in office for a 6 period of 30 days, whereupon written notice of his 7 resignation shall be sent to all of the unit owners or 8 members of the underlying condominium board of managers 9 entitled to vote at an election for members of the board 10 of directors. 11 (4) Within 60 days following the election of a 12 majority of the board of directors, other than the 13 developer, by unit owners, the developer shall deliver to 14 the board of directors: 15 (i) All original documents as recorded or 16 filed pertaining to the property, its 17 administration, and the association, such as the 18 declaration, articles of incorporation, other 19 instruments, annual reports, minutes, rules and 20 regulations, and contracts, leases, or other 21 agreements entered into by the association. If any 22 original documents are unavailable, a copy may be 23 provided if certified by affidavit of the developer, 24 or an officer or agent of the developer, as being a 25 complete copy of the actual document recorded or 26 filed. 27 (ii) A detailed accounting by the developer, 28 setting forth the source and nature of receipts and 29 expenditures in connection with the management, 30 maintenance and operation of the property, copies of 31 all insurance policies, and a list of any loans or 32 advances to the association which are outstanding. 33 (iii) Association funds, which shall have been 34 at all times segregated from any other moneys of the HB0186 Engrossed -13- LRB093 00012 LCB 00012 b 1 developer. 2 (iv) A schedule of all real or personal 3 property, equipment and fixtures belonging to the 4 association, including documents transferring the 5 property, warranties, if any, for all real and 6 personal property and equipment, deeds, title 7 insurance policies, and all tax bills. 8 (v) A list of all litigation, administrative 9 action and arbitrations involving the association, 10 any notices of governmental bodies involving actions 11 taken or which may be taken concerning the 12 association, engineering and architectural drawings 13 and specifications as approved by any governmental 14 authority, all other documents filed with any other 15 governmental authority, all governmental 16 certificates, correspondence involving enforcement 17 of any association requirements, copies of any 18 documents relating to disputes involving unit 19 owners, and originals of all documents relating to 20 everything listed in this subparagraph. 21 (vi) If the developer fails to fully comply 22 with this paragraph (4) within the 60 days provided 23 and fails to fully comply within 10 days of written 24 demand mailed by registered or certified mail to his 25 or her last known address, the board may bring an 26 action to compel compliance with this paragraph (4). 27 If the court finds that any of the required 28 deliveries were not made within the required period, 29 the board shall be entitled to recover its 30 reasonable attorneys' fees and costs incurred from 31 and after the date of expiration of the 10 day 32 demand. 33 (5) With respect to any master association whose 34 declaration is recorded on or after August 10, 1990, any HB0186 Engrossed -14- LRB093 00012 LCB 00012 b 1 contract, lease, or other agreement made prior to the 2 election of a majority of the board of directors other 3 than the developer by or on behalf of unit owners or 4 underlying condominium associations, the association or 5 the board of directors, which extends for a period of 6 more than 2 years from the recording of the declaration, 7 shall be subject to cancellation by more than 1/2 of the 8 votes of the unit owners, other than the developer, cast 9 at a special meeting of members called for that purpose 10 during a period of 90 days prior to the expiration of the 11 2 year period if the board of managers is elected by the 12 unit owners, otherwise by more than 1/2 of the underlying 13 condominium board of managers. At least 60 days prior to 14 the expiration of the 2 year period, the board of 15 directors, or, if the board is still under developer 16 control, then the board of managers or the developer 17 shall send notice to every unit owner or underlying 18 condominium board of managers, notifying them of this 19 provision, of what contracts, leases and other agreements 20 are affected, and of the procedure for calling a meeting 21 of the unit owners or for action by the underlying 22 condominium board of managers for the purpose of acting 23 to terminate such contracts, leases or other agreements. 24 During the 90 day period the other party to the contract, 25 lease, or other agreement shall also have the right of 26 cancellation. 27 (6) The statute of limitations for any actions in 28 law or equity which the master association may bring 29 shall not begin to run until the unit owners or 30 underlying condominium board of managers have elected a 31 majority of the members of the board of directors. 32 (g) In the event of any resale of a unit in a master 33 association by a unit owner other than the developer, the 34 owner shall obtain from the board of directors and shall make HB0186 Engrossed -15- LRB093 00012 LCB 00012 b 1 available for inspection to the prospective purchaser, upon 2 demand, the following: 3 (1) A copy of the declaration, other instruments 4 and any rules and regulations. 5 (2) A statement of any liens, including a statement 6 of the account of the unit setting forth the amounts of 7 unpaid assessments and other charges due and owing. 8 (3) A statement of any capital expenditures 9 anticipated by the association within the current or 10 succeeding 2 fiscal years. 11 (4) A statement of the status and amount of any 12 reserve for replacement fund and any portion of such fund 13 earmarked for any specified project by the board of 14 directors. 15 (5) A copy of the statement of financial condition 16 of the association for the last fiscal year for which 17 such a statement is available. 18 (6) A statement of the status of any pending suits 19 or judgments in which the association is a party. 20 (7) A statement setting forth what insurance 21 coverage is provided for all unit owners by the 22 association. 23 (8) A statement that any improvements or 24 alterations made to the unit, or any part of the common 25 areas assigned thereto, by the prior unit owner are in 26 good faith believed to be in compliance with the 27 declaration of the master association. 28 The principal officer of the unit owner's association or 29 such other officer as is specifically designated shall 30 furnish the above information when requested to do so in 31 writing, within 30 days of receiving the request. 32 A reasonable fee covering the direct out-of-pocket cost 33 of copying and providing such information may be charged by 34 the association or its board of directors to the unit seller HB0186 Engrossed -16- LRB093 00012 LCB 00012 b 1 for providing the information. 2 (h) Errors and omissions. 3 (1) If there is an omission or error in the 4 declaration or other instrument of the master 5 association, the master association may correct the error 6 or omission by an amendment to the declaration or other 7 instrument, as may be required to conform it to this Act, 8 to any other applicable statute, or to the declaration. 9 The amendment shall be adopted by vote of two-thirds of 10 the members of the board of directors or by a majority 11 vote of the unit owners at a meeting called for that 12 purpose, unless the Act or the declaration of the master 13 association specifically provides for greater percentages 14 or different procedures. 15 (2) If, through a scrivener's error, a unit has not 16 been designated as owning an appropriate undivided share 17 of the common areas or does not bear an appropriate share 18 of the common expenses, or if all of the common expenses 19 or all of the common elements in the condominium have not 20 been distributed in the declaration, so that the sum 21 total of the shares of common areas which have been 22 distributed or the sum total of the shares of the common 23 expenses fail to equal 100%, or if it appears that more 24 than 100% of the common elements or common expenses have 25 been distributed, the error may be corrected by operation 26 of law by filing an amendment to the declaration, 27 approved by vote of two-thirds of the members of the 28 board of directors or a majority vote of the unit owners 29 at a meeting called for that purpose, which 30 proportionately adjusts all percentage interests so that 31 the total is equal to 100%, unless the declaration 32 specifically provides for a different procedure or 33 different percentage vote by the owners of the units and 34 the owners of mortgages thereon affected by modification HB0186 Engrossed -17- LRB093 00012 LCB 00012 b 1 being made in the undivided interest in the common areas, 2 the number of votes in the unit owners association or the 3 liability for common expenses appertaining to the unit. 4 (3) If an omission or error or a scrivener's error 5 in the declaration or other instrument is corrected by 6 vote of two-thirds of the members of the board of 7 directors pursuant to the authority established in 8 subdivisions (h)(1) or (h)(2) of this Section, the board, 9 upon written petition by unit owners with 20% of the 10 votes of the association or resolutions adopted by the 11 board of managers or board of directors of the 12 condominium and common interest community associations 13 which select 20% of the members of the board of directors 14 of the master association, whichever is applicable, 15 received within 30 days of the board action, shall call a 16 meeting of the unit owners or the boards of the 17 condominium and common interest community associations 18 which select members of the board of directors of the 19 master association within 30 days of the filing of the 20 petition or receipt of the condominium and common 21 interest community association resolution to consider the 22 board action. Unless a majority of the votes of the unit 23 owners of the association are cast at the meeting to 24 reject the action, or board of managers or board of 25 directors of condominium and common interest community 26 associations which select over 50% of the members of the 27 board of the master association adopt resolutions prior 28 to the meeting rejecting the action of the board of 29 directors of the master association, it is ratified 30 whether or not a quorum is present. 31 (4) The procedures for amendments set forth in this 32 subsection (h) cannot be used if such an amendment would 33 materially or adversely affect property rights of the 34 unit owners unless the affected unit owners consent in HB0186 Engrossed -18- LRB093 00012 LCB 00012 b 1 writing. This Section does not restrict the powers of 2 the association to otherwise amend the declaration, 3 bylaws, or other condominium instruments, but authorizes 4 a simple process of amendment requiring a lesser vote for 5 the purpose of correcting defects, errors, or omissions 6 when the property rights of the unit owners are not 7 materially or adversely affected. 8 (5) If there is an omission or error in the 9 declaration or other instruments that may not be 10 corrected by an amendment procedure set forth in 11 subdivision (h)(1) or (h)(2) of this Section, then the 12 circuit court in the county in which the master 13 association is located shall have jurisdiction to hear a 14 petition of one or more of the unit owners thereon or of 15 the association, to correct the error or omission, and 16 the action may be a class action. The court may require 17 that one or more methods of correcting the error or 18 omission be submitted to the unit owners to determine the 19 most acceptable correction. All unit owners in the 20 association must be joined as parties to the action. 21 Service of process on owners may be by publication, but 22 the plaintiff shall furnish all unit owners not 23 personally served with process with copies of the 24 petition and final judgment of the court by certified 25 mail, return receipt requested, at their last known 26 address. 27 (6) Nothing contained in this Section shall be 28 construed to invalidate any provision of a declaration 29 authorizing the developer to amend an instrument prior to 30 the latest date on which the initial membership meeting 31 of the unit owners must be held, whether or not it has 32 actually been held, to bring the instrument into 33 compliance with the legal requirements of the Federal 34 National Mortgage Association, the Federal Home Loan HB0186 Engrossed -19- LRB093 00012 LCB 00012 b 1 Mortgage Corporation, the Federal Housing Administration, 2 the United States Veterans Administration or their 3 respective successors and assigns. 4 (i) The provisions of subsections (c) through (h) are 5 applicable to all declarations, other condominium 6 instruments, and other duly recorded covenants establishing 7 the powers and duties of the master association recorded 8 under this Act. Any portion of a declaration, other 9 condominium instrument, or other duly recorded covenant 10 establishing the powers and duties of a master association 11 which contains provisions contrary to the provisions of 12 subsection (c) through (h) shall be void as against public 13 policy and ineffective. Any declaration, other condominium 14 instrument, or other duly recorded covenant establishing the 15 powers and duties of the master association which fails to 16 contain the provisions required by subsections (c) through 17 (h) shall be deemed to incorporate such provisions by 18 operation of law. 19 (j) The provisions of subsections (c) through (h) are 20 applicable to all common interest community associations and 21 their unit owners for common interest community associations 22 which are subject to the provisions of Section 9-102(a)(8) of 23 the Code of Civil Procedure. For purposes of this 24 subsection, the terms "common interest community" and "unit 25 owners" shall have the same meaning as set forth in Section 26 9-102(c) of the Code of Civil Procedure. 27 (Source: P.A. 90-229, eff. 7-25-97; 91-616, eff. 8-19-99.) 28 (765 ILCS 605/29.5 new) 29 Section 29.5. Display of flag. A unit owner shall have 30 the right, subject to the restrictions set forth in this 31 Section, to display an American flag on the front of his or 32 her unit. The condominium instrument may impose reasonable 33 restrictions regarding the size, location, and manner of HB0186 Engrossed -20- LRB093 00012 LCB 00012 b 1 display but may not otherwise restrict the display of the 2 American flag on the unit owner's property. 3 Section 99. Effective date. This Act takes effect upon 4 becoming law.