95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB5189


 
Introduced , by Rep. Sandra M. Pihos
 
SYNOPSIS AS INTRODUCED:
 		








    



765 ILCS 605/18
  from Ch. 30, par. 318


765 ILCS 605/18.4
  from Ch. 30, par. 318.4



805 ILCS 105/103.35 new










    Amends the Condominium Property Act.  Provides that nothing in the Act or the declarations, bylaws, and rules of a condominium unit owner's association shall prohibit unit owners from leasing up to 20% of the units, if they otherwise comply with the Act. Provides that the powers and duties of the board of managers of a condominium association may not provide in the declaration, bylaws, rules, or other documents for a prohibition against unit owners leasing up to 20% of the total units, as long as there is compliance with the Act. Amends the General Not For Profit Corporation Act of 1986. Provides that a common interest community or homeowners' association, notwithstanding the declaration, covenants, bylaws, rules, regulations, or any other instrument, may not prohibit 20% of the total units from being used as rental property. Defines homeowners' association and common interest community. Effective immediately.
















LRB095 18627 AJO 44713 b

















 


 


A BILL FOR









 











HB5189

LRB095 18627 AJO 44713 b






1
    AN ACT concerning property.

 
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 and 18.4 as follows:
 


6
    (765 ILCS 605/18)  (from Ch. 30, par. 318)


7
    (Text of Section before amendment by P.A. 95-624)

8
    Sec. 18. Contents of bylaws. The bylaws shall provide for 
9
at least
the following:


10
    (a) (1) The election from among the unit owners of a board 
11
    of managers,
the number of persons constituting such board, 
12
    and that the terms of at
least one-third of the members of 
13
    the board shall expire annually and that
all members of the 
14
    board shall be elected at large.
If there are multiple 
15
    owners of a single unit, only one of the multiple
owners 
16
    shall be eligible to serve as a member of the board at any 
17
    one time.


18
        (2) the powers and duties of the board;


19
        (3) the compensation, if any, of the members of the 
20
    board;


21
        (4) the method of removal from office of members of the 
22
    board;


23
        (5) that the board may engage the services of a manager 
 


 






HB5189
- 2 -
LRB095 18627 AJO 44713 b




1
    or managing agent;


2
        (6) that each unit owner shall receive, at least 30 
3
    days prior to the
adoption thereof by the board of 
4
    managers, a copy of the proposed annual
budget together 
5
    with an indication of which portions are intended for

6
    reserves, capital expenditures or repairs or payment of 
7
    real estate taxes;


8
        (7) that the board of managers shall annually supply to

9
    all unit owners an itemized accounting of the common 
10
    expenses
for the preceding year actually incurred or paid, 
11
    together
with an indication of which portions were for 
12
    reserves, capital
expenditures or repairs or payment of 
13
    real estate taxes and
with a tabulation of the amounts 
14
    collected pursuant to the
budget or assessment, and showing 
15
    the net excess or
deficit of income over expenditures plus 
16
    reserves;


17
        (8) (i) that each unit owner shall receive notice, in 
18
    the same manner
as is provided in this Act for membership 
19
    meetings, of any meeting of the
board of managers 
20
    concerning the adoption of the proposed annual budget and

21
    regular assessments pursuant thereto or to adopt a separate 
22
    (special)
assessment, (ii) that except as provided in 
23
    subsection (iv) below, if an
adopted
budget or any separate 
24
    assessment adopted by the board would result in the
sum of 
25
    all regular and separate assessments payable in the current 
26
    fiscal year
exceeding 115% of the sum of all regular and 
 


 






HB5189
- 3 -
LRB095 18627 AJO 44713 b




1
    separate
assessments payable during the
preceding fiscal 
2
    year, the
board of managers, upon written petition by unit 
3
    owners with 20 percent of
the votes of the association 
4
    delivered to the board within 14
days of the board action,

5
    shall call a meeting of the unit owners within 30 days of 
6
    the date of
delivery of the petition to consider the budget 
7
    or separate
assessment; unless a
majority of
the total 
8
    votes of the unit owners are cast at the meeting to reject 
9
    the
budget or separate assessment,
it is ratified, (iii) 
10
    that any common expense not set forth in the budget or
any 
11
    increase in assessments over the amount adopted in the 
12
    budget shall be
separately assessed against all unit 
13
    owners, (iv) that separate assessments for
expenditures 
14
    relating to emergencies or mandated by law may be adopted 
15
    by the
board of managers without being subject to unit 
16
    owner approval or the
provisions of item (ii) above or item 
17
    (v) below.  As used
herein, "emergency" means an immediate 
18
    danger to the structural integrity of
the
common elements 
19
    or to the life, health, safety or property of the unit 
20
    owners,
(v) that assessments
for additions and alterations 
21
    to the common elements or to association-owned
property not 
22
    included in the adopted annual budget, shall be separately

23
    assessed and are subject to approval of two-thirds of the 
24
    total votes of all
unit owners, (vi) that the board of 
25
    managers may adopt separate assessments
payable over more 
26
    than one fiscal year.  With respect to multi-year 
 


 






HB5189
- 4 -
LRB095 18627 AJO 44713 b




1
    assessments
not governed by items (iv) and (v), the entire 
2
    amount of the multi-year
assessment shall be deemed 
3
    considered and authorized in the first fiscal year
in which 
4
    the assessment is approved;


5
        (9) that meetings of the board of managers shall be 
6
    open to any unit
owner, except for the portion of any 
7
    meeting held (i) to discuss litigation
when an action 
8
    against or on behalf of the particular association has been

9
    filed and is pending in a court or administrative tribunal,

10
    or when the board of managers finds that such an action is 
11
    probable
or imminent, (ii) to consider information 
12
    regarding appointment, employment
or dismissal of an 
13
    employee, or (iii) to discuss violations of rules and

14
    regulations of the association or a unit owner's unpaid 
15
    share of common
expenses; that any vote on these matters 
16
    shall be taken at a meeting or
portion thereof open to any 
17
    unit owner; that any unit owner may record the
proceedings 
18
    at meetings or portions thereof required to be open by this

19
    Act by tape, film or other means; that the board may 
20
    prescribe reasonable
rules and regulations to govern the 
21
    right to make such recordings, that
notice of such meetings 
22
    shall be mailed or delivered at least 48 hours
prior 
23
    thereto, unless a written waiver of  such notice is signed 
24
    by the
person or persons entitled to such notice pursuant 
25
    to the declaration,
bylaws, other condominium instrument, 
26
    or provision of law other than this
subsection before the 
 


 






HB5189
- 5 -
LRB095 18627 AJO 44713 b




1
    meeting is convened, and that copies of notices of
meetings 
2
    of the board of managers shall be posted in entranceways,

3
    elevators, or other conspicuous places in the condominium 
4
    at least 48 hours
prior to the meeting of the board of 
5
    managers except where there is no
common entranceway for 7 
6
    or more units, the board of managers may designate
one or 
7
    more locations in the proximity of these units where the 
8
    notices of
meetings shall be posted;


9
        (10) that the board shall meet at least 4 times 
10
    annually;


11
        (11) that no member of the board or officer shall be 
12
    elected for a term
of more than 2 years, but that officers 
13
    and board members may succeed
themselves;


14
        (12) the designation of an officer to mail and receive 
15
    all notices and
execute amendments to condominium 
16
    instruments as provided for in this Act
and in the 
17
    condominium instruments;


18
        (13) the method of filling vacancies on the board
which 
19
    shall include authority for the remaining members of the 
20
    board to
fill the vacancy by two-thirds vote until the next 
21
    annual meeting of unit
owners or for a period terminating 
22
    no later than 30 days following the
filing of a petition 
23
    signed by unit owners holding 20% of the votes of the

24
    association requesting a meeting of the unit owners to fill 
25
    the vacancy for
the balance of the term, and that a meeting 
26
    of the unit owners shall be
called for purposes of filling 
 


 






HB5189
- 6 -
LRB095 18627 AJO 44713 b




1
    a vacancy on the board no later than 30 days
following the 
2
    filing of a petition signed by unit owners holding 20% of 
3
    the
votes of the association requesting such a meeting, and 
4
    the method of filling
vacancies among the officers that 
5
    shall include the authority for the members
of the board to 
6
    fill the vacancy for the unexpired portion of the term;


7
        (14) what percentage of the board of managers, if other 
8
    than a majority,
shall constitute a quorum;


9
        (15) provisions concerning notice of board meetings to 
10
    members of the
board;


11
        (16) the board of managers may not enter into a 
12
    contract with a
current board member
or with a corporation 
13
    or partnership in which a board
member or a member of the 
14
    board member's immediate family has 25% or
more interest, 
15
    unless notice of intent to enter the
contract is given to 
16
    unit owners within 20 days after a decision is made
to 
17
    enter into the contract and the unit owners are
afforded an 
18
    opportunity by filing a petition, signed by 20% of the unit

19
    owners, for an election to approve or disapprove the 
20
    contract;
such petition shall be filed within 20 days after 
21
    such notice and such
election shall be held within 30 days 
22
    after filing the petition; for purposes
of this subsection, 
23
    a board member's immediate family means the board member's

24
    spouse, parents, and children;


25
        (17) that the board of managers may disseminate
to unit 
26
    owners biographical and background information about 
 


 






HB5189
- 7 -
LRB095 18627 AJO 44713 b




1
    candidates for
election to the board if (i) reasonable 
2
    efforts to identify all candidates are
made and all 
3
    candidates are given an opportunity to include 
4
    biographical and
background information in the information 
5
    to be disseminated; and (ii) the
board does not express a 
6
    preference in favor of any candidate;


7
        (18) any proxy distributed for board elections
by the 
8
    board of managers gives unit owners the
opportunity to 
9
    designate any person as the proxy holder, and gives the 
10
    unit
owner the opportunity to express a preference for any 
11
    of the known
candidates for the board or to write in a 
12
    name;


13
        (19) that special meetings of the board of managers can 
14
    be called by
the president or 25% of the members of the 
15
    board; and


16
        (20) that the board of managers may establish
and 
17
    maintain a system of master metering of public utility 
18
    services and
collect payments in connection therewith, 
19
    subject to the requirements of the
Tenant Utility Payment 
20
    Disclosure Act.


21
    (b) (1) What percentage of the unit owners, if other than 
22
    20%, shall
constitute a quorum provided that, for 
23
    condominiums with 20 or more units,
the percentage of unit 
24
    owners constituting a quorum shall be 20% unless the
unit 
25
    owners holding a majority of the percentage interest in the

26
    association provide for a higher percentage;


 


 






HB5189
- 8 -
LRB095 18627 AJO 44713 b




1
        (2) that the association shall have one class of 
2
    membership;


3
        (3) that the members shall hold an annual meeting, one 
4
    of the purposes
of which shall be to elect members of the 
5
    board of managers;


6
        (4) the method of calling meetings of the unit owners;


7
        (5) that special meetings of the members can be called 
8
    by the president,
board of managers, or by 20% of unit 
9
    owners;


10
        (6) that written notice of any membership meeting shall 
11
    be mailed
or delivered giving members no less than 10 and 
12
    no more than 30 days
notice of the time, place and purpose 
13
    of such meeting;


14
        (7) that voting shall be on a percentage basis, and 
15
    that the percentage
vote to which each unit is entitled is 
16
    the percentage interest of the
undivided ownership of the 
17
    common elements appurtenant thereto, provided
that the 
18
    bylaws may provide for approval by unit owners in 
19
    connection with
matters where the requisite approval on a 
20
    percentage basis is not specified
in this Act, on the basis 
21
    of one vote per unit;


22
        (8) that, where there is more than one owner of a unit, 
23
    if only one
of the multiple owners is present at a meeting 
24
    of the association, he is
entitled to cast all the votes 
25
    allocated to that unit, if more than one of
the multiple 
26
    owners are present, the votes allocated to that unit may be

 


 






HB5189
- 9 -
LRB095 18627 AJO 44713 b




1
    cast only in accordance with the agreement of a majority in 
2
    interest of the
multiple owners, unless the declaration 
3
    expressly provides otherwise, that
there is majority 
4
    agreement if any one of the multiple owners cast the
votes 
5
    allocated to that unit without protest being made promptly 
6
    to the
person presiding over the meeting by any of the 
7
    other owners of the unit;


8
        (9)(A) that  unless the Articles of Incorporation or the 
9
    bylaws
otherwise
provide, and except as provided in 
10
    subparagraph (B) of this paragraph (9) in
connection with 
11
    board elections,
a unit owner may vote by proxy executed in 
12
    writing by the unit
owner or by his duly authorized 
13
    attorney in fact; that the proxy must bear the date of

14
    execution
and, unless the condominium instruments or the 
15
    written proxy itself provide
otherwise, is
invalid after 11 
16
    months from the date of its execution;


17
        (B) that if a rule adopted at least 120 days before a 
18
    board election
or the
declaration or bylaws provide for 
19
    balloting as set forth in this subsection,
unit
owners may 
20
    not vote by proxy in board elections, but may vote only (i) 
21
    by
submitting an association-issued ballot in person at the 
22
    election meeting or
(ii) by
submitting an 
23
    association-issued ballot to the association or its 
24
    designated
agent
by mail or other means of delivery 
25
    specified in the declaration, bylaws, or
rule; that
the 
26
    ballots shall be mailed or otherwise distributed to unit 
 


 






HB5189
- 10 -
LRB095 18627 AJO 44713 b




1
    owners not less
than 10
and not more than 30 days before 
2
    the election meeting, and the board shall give
unit owners 
3
    not less than 21 days' prior written notice of the deadline 
4
    for
inclusion of a candidate's name on the ballots; that 
5
    the deadline shall be no
more
than 7 days before the 
6
    ballots are mailed or otherwise distributed to unit
owners; 
7
    that
every such ballot must include the names of all 
8
    candidates who have given the
board or its authorized agent 
9
    timely written notice of their candidacy and must
give the 
10
    person casting the ballot the opportunity to cast votes for 
11
    candidates
whose names do not appear on the ballot; that a 
12
    ballot received by the
association
or
its designated agent 
13
    after the close of voting shall not be counted; that a
unit

14
    owner
who submits a ballot by mail or other means of 
15
    delivery specified in the
declaration, bylaws, or rule may 
16
    request and cast a ballot in person at the
election

17
    meeting, and thereby void any ballot previously submitted 
18
    by that unit owner;


19
        (C) that if a written petition by unit owners with at 
20
    least 20% of the
votes of
the association is delivered to 
21
    the board within 14 days after the board's
approval
of a 
22
    rule adopted pursuant to subparagraph (B) of this paragraph 
23
    (9), the board
shall call a meeting of the unit owners 
24
    within 30 days after the date of
delivery of
the petition; 
25
    that unless a majority of the total votes of the unit 
26
    owners are
cast
at the
meeting to reject the rule, the rule 
 


 






HB5189
- 11 -
LRB095 18627 AJO 44713 b




1
    is ratified;


2
        (10) that the association may, upon adoption of the 
3
    appropriate rules by
the board of managers, conduct 
4
    elections by secret ballot whereby the voting
ballot is 
5
    marked only with the percentage interest for the unit and 
6
    the vote
itself, provided that the board further adopt 
7
    rules to verify the status of the
unit owner issuing a 
8
    proxy or casting a ballot; and further, that a candidate

9
    for election to the board of managers or such
candidate's 
10
    representative shall have the right to be present at the

11
    counting of ballots at such election;


12
        (11) that in the event of a resale of a condominium 
13
    unit the purchaser
of a unit from a seller other than the 
14
    developer pursuant to an installment
contract for purchase 
15
    shall during such times as he or she resides in the
unit be 
16
    counted toward a quorum for purposes of election of members 
17
    of the
board of managers at any meeting of the unit owners 
18
    called for purposes of
electing members of the board, shall 
19
    have the right to vote for the
election of members of the 
20
    board of managers and to be elected to and serve
on the 
21
    board of managers unless the seller expressly retains in 
22
    writing any
or all of such rights.  In no event may the 
23
    seller and purchaser both be
counted toward a quorum, be 
24
    permitted to vote for a particular office or be
elected and 
25
    serve on the board.  Satisfactory evidence of the 
26
    installment
contact shall be made available to the 
 


 






HB5189
- 12 -
LRB095 18627 AJO 44713 b




1
    association or its agents.  For
purposes of this subsection, 
2
    "installment contact" shall have the same
meaning as set 
3
    forth in Section 1 (e) of "An Act relating to installment

4
    contracts to sell dwelling structures", approved August 
5
    11, 1967, as amended;


6
        (12) the method by which matters subject to the 
7
    approval of unit owners
set forth in this Act, or in the 
8
    condominium instruments, will be
submitted to the unit 
9
    owners at special membership meetings called for such

10
    purposes; and


11
        (13) that matters subject to the affirmative vote of 
12
    not less than 2/3
of the votes of unit owners at a meeting 
13
    duly called for that purpose,
shall include, but not be 
14
    limited to:


15
            (i) merger or consolidation of the association;


16
            (ii) sale, lease, exchange, or other disposition 
17
        (excluding the mortgage
or pledge) of all, or 
18
        substantially all of the property and assets of the

19
        association; and


20
            (iii) the purchase or sale of land or of units on 
21
        behalf of all unit owners.

22
    (c) Election of a president from among the board of 
23
managers, who shall
preside over the meetings of the board of 
24
managers and of the unit owners.

25
    (d) Election of a secretary from among the board of 
26
managers, who shall
keep the minutes of all meetings
of the 
 


 






HB5189
- 13 -
LRB095 18627 AJO 44713 b




1
board of managers and of the unit owners and who shall, in 
2
general,
perform all the duties incident to the office of 
3
secretary.

4
    (e) Election of a treasurer from among the board of 
5
managers, who shall
keep the financial records and
books of 
6
account.

7
    (f) Maintenance, repair and replacement of the common 
8
elements and
payments therefor, including the method of 
9
approving payment vouchers.

10
    (g) An association with 30 or more units shall obtain and 
11
maintain
fidelity insurance covering persons who control or 
12
disburse funds of the
association for the maximum amount of 
13
coverage available to protect funds
in the custody or control 
14
of the association plus the association reserve
fund.  All 
15
management companies which are responsible for the funds held 
16
or
administered by the association shall maintain and furnish 
17
to the
association a fidelity bond for the maximum amount of 
18
coverage available to
protect funds in the custody of the 
19
management company at any time.  The
association shall bear the 
20
cost of the fidelity insurance and fidelity
bond, unless 
21
otherwise provided by contract between the association and a

22
management company.  The association shall be the direct obligee 
23
of any
such fidelity bond.  A management company holding reserve 
24
funds of an
association shall at all times maintain a separate 
25
account for each
association, provided, however, that for 
26
investment purposes, the Board of
Managers of an association 
 


 






HB5189
- 14 -
LRB095 18627 AJO 44713 b




1
may authorize a management company to maintain
the 
2
association's reserve funds in a single interest bearing 
3
account with
similar funds of other associations.  The 
4
management company shall at all
times maintain records 
5
identifying all moneys of each association in such
investment 
6
account. The management company may hold all operating funds of

7
associations which it manages in a single operating account but 
8
shall at
all times maintain records identifying all moneys of 
9
each association in
such operating account. Such operating and 
10
reserve funds held by the
management company for the 
11
association shall not be subject to attachment
by any creditor 
12
of the management company.

13
    For the purpose of this subsection a management company 
14
shall be
defined as a person, partnership, corporation, or 
15
other legal entity
entitled to transact business on behalf of 
16
others, acting on behalf of or
as an agent for a unit owner, 
17
unit owners or association of unit owners for
the purpose of 
18
carrying out the duties, responsibilities, and other

19
obligations necessary for the day to day operation and 
20
management of any
property subject to this Act.  For purposes of 
21
this subsection, the term
"fiduciary insurance coverage" shall 
22
be defined as both a fidelity bond and
directors and officers 
23
liability coverage, the fidelity bond in the full
amount of 
24
association funds and association reserves that will be in the

25
custody of the association, and the directors and officers 
26
liability
coverage at a level as shall be determined to be 
 


 






HB5189
- 15 -
LRB095 18627 AJO 44713 b




1
reasonable by the board of
managers, if not otherwise 
2
established by the declaration or by laws.

3
    Until one year after the effective date of this amendatory 
4
Act of 1985,
if a condominium association has reserves plus 
5
assessments in excess of
$250,000 and cannot reasonably obtain 
6
100% fidelity bond coverage for such
amount, then it must 
7
obtain a fidelity bond coverage of $250,000.

8
    (h) Method of estimating the amount of the annual budget, 
9
and the manner
of assessing and collecting from the unit owners 
10
their respective shares of
such estimated expenses, and of any 
11
other expenses lawfully agreed upon.

12
    (i) That upon 10 days notice to the manager or board of 
13
managers and
payment of a reasonable fee, any unit owner shall 
14
be furnished a statement
of his account setting forth the 
15
amount of any unpaid assessments or other
charges due and owing 
16
from such owner.

17
    (j) Designation and removal of personnel necessary for the 
18
maintenance,
repair and replacement of the common elements.

19
    (k) Such restrictions on and requirements respecting the 
20
use and
maintenance of the units and the use of the common 
21
elements, not set forth
in the declaration, as are designed to 
22
prevent unreasonable interference
with the use of their 
23
respective units and of the common elements by the
several unit 
24
owners.

25
    (l) Method of adopting and of amending administrative rules 
26
and
regulations governing the operation and use of the common 
 


 






HB5189
- 16 -
LRB095 18627 AJO 44713 b




1
elements.

2
    (m) The percentage of votes required to modify or amend the 
3
bylaws, but
each one of the particulars set forth in this 
4
section shall always be
embodied in the bylaws.

5
    (n) (i) The provisions of this Act, the declaration, 
6
bylaws, other
condominium instruments, and rules and 
7
regulations that relate to the use
of the individual unit or 
8
the common elements shall be applicable to
any person leasing a 
9
unit and shall be deemed to be incorporated in any
lease 
10
executed or renewed on or after the effective date of this 
11
amendatory
Act of 1984. (ii) With regard to any lease entered 
12
into subsequent to the
effective date of this amendatory Act of 
13
1989, the unit owner leasing the
unit shall deliver a copy of 
14
the signed lease to the board or if the
lease is oral, a 
15
memorandum of the lease, not later than the date of
occupancy 
16
or 10 days after the lease is signed, whichever occurs first. 
17
In
addition to any other remedies, by filing an action jointly 
18
against the
tenant and the unit owner, an association may seek 
19
to enjoin a tenant from
occupying a unit or seek to evict a 
20
tenant under the provisions of Article
IX of the Code of Civil 
21
Procedure for failure of the lessor-owner to
comply with the 
22
leasing requirements prescribed by
this Section or by the 
23
declaration, bylaws, and
rules and regulations. However, 
24
nothing in this Act or in the  declarations, bylaws, and rules 
25
and regulations of the association shall prohibit the unit 
26
owners from leasing up to 20% of the units, as long as they 
 


 






HB5189
- 17 -
LRB095 18627 AJO 44713 b




1
otherwise comply with the provisions of this Act. The board of 
2
managers may proceed directly against a
tenant, at law or in 
3
equity, or under the provisions of Article IX of the
Code of 
4
Civil Procedure, for any other breach by tenant of any

5
covenants, rules, regulations or bylaws.

6
    (o) The association shall have no authority to forbear the 
7
payment
of assessments by any unit owner.

8
    (p) That when 30% or fewer of the units, by number,
possess 
9
over 50% in the aggregate of the votes in the association,
any 
10
percentage vote of members specified herein or in the 
11
condominium
instruments shall require the specified percentage 
12
by number of units
rather than by percentage of interest in the 
13
common elements allocated
to units that would otherwise be 
14
applicable.

15
    (q) That a unit owner may not assign, delegate, transfer, 
16
surrender, or
avoid the duties, responsibilities, and 
17
liabilities of a unit owner under this
Act, the condominium 
18
instruments, or the rules and regulations of the
Association; 
19
and that such an attempted assignment, delegation, transfer,

20
surrender, or avoidance shall be deemed void.

21
    The provisions of this Section are applicable to all 
22
condominium
instruments recorded under this Act.  Any portion of 
23
a condominium
instrument which contains provisions contrary to 
24
these provisions shall be
void as against public policy and 
25
ineffective.  Any such instrument which
fails to contain the 
26
provisions required by this Section shall be deemed to

 


 






HB5189
- 18 -
LRB095 18627 AJO 44713 b




1
incorporate such provisions by operation of law.

2
(Source: P.A. 93-243, eff. 1-1-04.)

 
3
    (Text of Section after amendment by P.A. 95-624)

4
    Sec. 18. Contents of bylaws. The bylaws shall provide for 
5
at least
the following:


6
    (a) (1) The election from among the unit owners of a board 
7
    of managers,
the number of persons constituting such board, 
8
    and that the terms of at
least one-third of the members of 
9
    the board shall expire annually and that
all members of the 
10
    board shall be elected at large.
If there are multiple 
11
    owners of a single unit, only one of the multiple
owners 
12
    shall be eligible to serve as a member of the board at any 
13
    one time.


14
        (2) the powers and duties of the board;


15
        (3) the compensation, if any, of the members of the 
16
    board;


17
        (4) the method of removal from office of members of the 
18
    board;


19
        (5) that the board may engage the services of a manager 
20
    or managing agent;


21
        (6) that each unit owner shall receive, at least 30 
22
    days prior to the
adoption thereof by the board of 
23
    managers, a copy of the proposed annual
budget together 
24
    with an indication of which portions are intended for

25
    reserves, capital expenditures or repairs or payment of 
 


 






HB5189
- 19 -
LRB095 18627 AJO 44713 b




1
    real estate taxes;


2
        (7) that the board of managers shall annually supply to

3
    all unit owners an itemized accounting of the common 
4
    expenses
for the preceding year actually incurred or paid, 
5
    together
with an indication of which portions were for 
6
    reserves, capital
expenditures or repairs or payment of 
7
    real estate taxes and
with a tabulation of the amounts 
8
    collected pursuant to the
budget or assessment, and showing 
9
    the net excess or
deficit of income over expenditures plus 
10
    reserves;


11
        (8) (i) that each unit owner shall receive notice, in 
12
    the same manner
as is provided in this Act for membership 
13
    meetings, of any meeting of the
board of managers 
14
    concerning the adoption of the proposed annual budget and

15
    regular assessments pursuant thereto or to adopt a separate 
16
    (special)
assessment, (ii) that except as provided in 
17
    subsection (iv) below, if an
adopted
budget or any separate 
18
    assessment adopted by the board would result in the
sum of 
19
    all regular and separate assessments payable in the current 
20
    fiscal year
exceeding 115% of the sum of all regular and 
21
    separate
assessments payable during the
preceding fiscal 
22
    year, the
board of managers, upon written petition by unit 
23
    owners with 20 percent of
the votes of the association 
24
    delivered to the board within 14
days of the board action,

25
    shall call a meeting of the unit owners within 30 days of 
26
    the date of
delivery of the petition to consider the budget 
 


 






HB5189
- 20 -
LRB095 18627 AJO 44713 b




1
    or separate
assessment; unless a
majority of
the total 
2
    votes of the unit owners are cast at the meeting to reject 
3
    the
budget or separate assessment,
it is ratified, (iii) 
4
    that any common expense not set forth in the budget or
any 
5
    increase in assessments over the amount adopted in the 
6
    budget shall be
separately assessed against all unit 
7
    owners, (iv) that separate assessments for
expenditures 
8
    relating to emergencies or mandated by law may be adopted 
9
    by the
board of managers without being subject to unit 
10
    owner approval or the
provisions of item (ii) above or item 
11
    (v) below.  As used
herein, "emergency" means an immediate 
12
    danger to the structural integrity of
the
common elements 
13
    or to the life, health, safety or property of the unit 
14
    owners,
(v) that assessments
for additions and alterations 
15
    to the common elements or to association-owned
property not 
16
    included in the adopted annual budget, shall be separately

17
    assessed and are subject to approval of two-thirds of the 
18
    total votes of all
unit owners, (vi) that the board of 
19
    managers may adopt separate assessments
payable over more 
20
    than one fiscal year.  With respect to multi-year 
21
    assessments
not governed by items (iv) and (v), the entire 
22
    amount of the multi-year
assessment shall be deemed 
23
    considered and authorized in the first fiscal year
in which 
24
    the assessment is approved;


25
        (9) that meetings of the board of managers shall be 
26
    open to any unit
owner, except for the portion of any 
 


 






HB5189
- 21 -
LRB095 18627 AJO 44713 b




1
    meeting held (i) to discuss litigation
when an action 
2
    against or on behalf of the particular association has been

3
    filed and is pending in a court or administrative tribunal,

4
    or when the board of managers finds that such an action is 
5
    probable
or imminent, (ii) to consider information 
6
    regarding appointment, employment
or dismissal of an 
7
    employee, or (iii) to discuss violations of rules and

8
    regulations of the association or a unit owner's unpaid 
9
    share of common
expenses; that any vote on these matters 
10
    shall be taken at a meeting or
portion thereof open to any 
11
    unit owner; that any unit owner may record the
proceedings 
12
    at meetings or portions thereof required to be open by this

13
    Act by tape, film or other means; that the board may 
14
    prescribe reasonable
rules and regulations to govern the 
15
    right to make such recordings, that
notice of such meetings 
16
    shall be mailed or delivered at least 48 hours
prior 
17
    thereto, unless a written waiver of  such notice is signed 
18
    by the
person or persons entitled to such notice pursuant 
19
    to the declaration,
bylaws, other condominium instrument, 
20
    or provision of law other than this
subsection before the 
21
    meeting is convened, and that copies of notices of
meetings 
22
    of the board of managers shall be posted in entranceways,

23
    elevators, or other conspicuous places in the condominium 
24
    at least 48 hours
prior to the meeting of the board of 
25
    managers except where there is no
common entranceway for 7 
26
    or more units, the board of managers may designate
one or 
 


 






HB5189
- 22 -
LRB095 18627 AJO 44713 b




1
    more locations in the proximity of these units where the 
2
    notices of
meetings shall be posted;


3
        (10) that the board shall meet at least 4 times 
4
    annually;


5
        (11) that no member of the board or officer shall be 
6
    elected for a term
of more than 2 years, but that officers 
7
    and board members may succeed
themselves;


8
        (12) the designation of an officer to mail and receive 
9
    all notices and
execute amendments to condominium 
10
    instruments as provided for in this Act
and in the 
11
    condominium instruments;


12
        (13) the method of filling vacancies on the board
which 
13
    shall include authority for the remaining members of the 
14
    board to
fill the vacancy by two-thirds vote until the next 
15
    annual meeting of unit
owners or for a period terminating 
16
    no later than 30 days following the
filing of a petition 
17
    signed by unit owners holding 20% of the votes of the

18
    association requesting a meeting of the unit owners to fill 
19
    the vacancy for
the balance of the term, and that a meeting 
20
    of the unit owners shall be
called for purposes of filling 
21
    a vacancy on the board no later than 30 days
following the 
22
    filing of a petition signed by unit owners holding 20% of 
23
    the
votes of the association requesting such a meeting, and 
24
    the method of filling
vacancies among the officers that 
25
    shall include the authority for the members
of the board to 
26
    fill the vacancy for the unexpired portion of the term;


 


 






HB5189
- 23 -
LRB095 18627 AJO 44713 b




1
        (14) what percentage of the board of managers, if other 
2
    than a majority,
shall constitute a quorum;


3
        (15) provisions concerning notice of board meetings to 
4
    members of the
board;


5
        (16) the board of managers may not enter into a 
6
    contract with a
current board member
or with a corporation 
7
    or partnership in which a board
member or a member of the 
8
    board member's immediate family has 25% or
more interest, 
9
    unless notice of intent to enter the
contract is given to 
10
    unit owners within 20 days after a decision is made
to 
11
    enter into the contract and the unit owners are
afforded an 
12
    opportunity by filing a petition, signed by 20% of the unit

13
    owners, for an election to approve or disapprove the 
14
    contract;
such petition shall be filed within 20 days after 
15
    such notice and such
election shall be held within 30 days 
16
    after filing the petition; for purposes
of this subsection, 
17
    a board member's immediate family means the board member's

18
    spouse, parents, and children;


19
        (17) that the board of managers may disseminate
to unit 
20
    owners biographical and background information about 
21
    candidates for
election to the board if (i) reasonable 
22
    efforts to identify all candidates are
made and all 
23
    candidates are given an opportunity to include 
24
    biographical and
background information in the information 
25
    to be disseminated; and (ii) the
board does not express a 
26
    preference in favor of any candidate;


 


 






HB5189
- 24 -
LRB095 18627 AJO 44713 b




1
        (18) any proxy distributed for board elections
by the 
2
    board of managers gives unit owners the
opportunity to 
3
    designate any person as the proxy holder, and gives the 
4
    unit
owner the opportunity to express a preference for any 
5
    of the known
candidates for the board or to write in a 
6
    name;


7
        (19) that special meetings of the board of managers can 
8
    be called by
the president or 25% of the members of the 
9
    board; and


10
        (20) that the board of managers may establish
and 
11
    maintain a system of master metering of public utility 
12
    services and
collect payments in connection therewith, 
13
    subject to the requirements of the
Tenant Utility Payment 
14
    Disclosure Act.


15
    (b) (1) What percentage of the unit owners, if other than 
16
    20%, shall
constitute a quorum provided that, for 
17
    condominiums with 20 or more units,
the percentage of unit 
18
    owners constituting a quorum shall be 20% unless the
unit 
19
    owners holding a majority of the percentage interest in the

20
    association provide for a higher percentage;


21
        (2) that the association shall have one class of 
22
    membership;


23
        (3) that the members shall hold an annual meeting, one 
24
    of the purposes
of which shall be to elect members of the 
25
    board of managers;


26
        (4) the method of calling meetings of the unit owners;


 


 






HB5189
- 25 -
LRB095 18627 AJO 44713 b




1
        (5) that special meetings of the members can be called 
2
    by the president,
board of managers, or by 20% of unit 
3
    owners;


4
        (6) that written notice of any membership meeting shall 
5
    be mailed
or delivered giving members no less than 10 and 
6
    no more than 30 days
notice of the time, place and purpose 
7
    of such meeting;


8
        (7) that voting shall be on a percentage basis, and 
9
    that the percentage
vote to which each unit is entitled is 
10
    the percentage interest of the
undivided ownership of the 
11
    common elements appurtenant thereto, provided
that the 
12
    bylaws may provide for approval by unit owners in 
13
    connection with
matters where the requisite approval on a 
14
    percentage basis is not specified
in this Act, on the basis 
15
    of one vote per unit;


16
        (8) that, where there is more than one owner of a unit, 
17
    if only one
of the multiple owners is present at a meeting 
18
    of the association, he is
entitled to cast all the votes 
19
    allocated to that unit, if more than one of
the multiple 
20
    owners are present, the votes allocated to that unit may be

21
    cast only in accordance with the agreement of a majority in 
22
    interest of the
multiple owners, unless the declaration 
23
    expressly provides otherwise, that
there is majority 
24
    agreement if any one of the multiple owners cast the
votes 
25
    allocated to that unit without protest being made promptly 
26
    to the
person presiding over the meeting by any of the 
 


 






HB5189
- 26 -
LRB095 18627 AJO 44713 b




1
    other owners of the unit;


2
        (9)(A) that  unless the Articles of Incorporation or the 
3
    bylaws
otherwise
provide, and except as provided in 
4
    subparagraph (B) of this paragraph (9) in
connection with 
5
    board elections,
a unit owner may vote by proxy executed in 
6
    writing by the unit
owner or by his duly authorized 
7
    attorney in fact; that the proxy must bear the date of

8
    execution
and, unless the condominium instruments or the 
9
    written proxy itself provide
otherwise, is
invalid after 11 
10
    months from the date of its execution;


11
        (B) that if a rule adopted at least 120 days before a 
12
    board election
or the
declaration or bylaws provide for 
13
    balloting as set forth in this subsection,
unit
owners may 
14
    not vote by proxy in board elections, but may vote only (i) 
15
    by
submitting an association-issued ballot in person at the 
16
    election meeting or
(ii) by
submitting an 
17
    association-issued ballot to the association or its 
18
    designated
agent
by mail or other means of delivery 
19
    specified in the declaration, bylaws, or
rule; that
the 
20
    ballots shall be mailed or otherwise distributed to unit 
21
    owners not less
than 10
and not more than 30 days before 
22
    the election meeting, and the board shall give
unit owners 
23
    not less than 21 days' prior written notice of the deadline 
24
    for
inclusion of a candidate's name on the ballots; that 
25
    the deadline shall be no
more
than 7 days before the 
26
    ballots are mailed or otherwise distributed to unit
owners; 
 


 






HB5189
- 27 -
LRB095 18627 AJO 44713 b




1
    that
every such ballot must include the names of all 
2
    candidates who have given the
board or its authorized agent 
3
    timely written notice of their candidacy and must
give the 
4
    person casting the ballot the opportunity to cast votes for 
5
    candidates
whose names do not appear on the ballot; that a 
6
    ballot received by the
association
or
its designated agent 
7
    after the close of voting shall not be counted; that a
unit

8
    owner
who submits a ballot by mail or other means of 
9
    delivery specified in the
declaration, bylaws, or rule may 
10
    request and cast a ballot in person at the
election

11
    meeting, and thereby void any ballot previously submitted 
12
    by that unit owner;


13
        (C) that if a written petition by unit owners with at 
14
    least 20% of the
votes of
the association is delivered to 
15
    the board within 14 days after the board's
approval
of a 
16
    rule adopted pursuant to subparagraph (B) of this paragraph 
17
    (9), the board
shall call a meeting of the unit owners 
18
    within 30 days after the date of
delivery of
the petition; 
19
    that unless a majority of the total votes of the unit 
20
    owners are
cast
at the
meeting to reject the rule, the rule 
21
    is ratified;


22
        (10) that the association may, upon adoption of the 
23
    appropriate rules by
the board of managers, conduct 
24
    elections by secret ballot whereby the voting
ballot is 
25
    marked only with the percentage interest for the unit and 
26
    the vote
itself, provided that the board further adopt 
 


 






HB5189
- 28 -
LRB095 18627 AJO 44713 b




1
    rules to verify the status of the
unit owner issuing a 
2
    proxy or casting a ballot; and further, that a candidate

3
    for election to the board of managers or such
candidate's 
4
    representative shall have the right to be present at the

5
    counting of ballots at such election;


6
        (11) that in the event of a resale of a condominium 
7
    unit the purchaser
of a unit from a seller other than the 
8
    developer pursuant to an installment
contract for purchase 
9
    shall during such times as he or she resides in the
unit be 
10
    counted toward a quorum for purposes of election of members 
11
    of the
board of managers at any meeting of the unit owners 
12
    called for purposes of
electing members of the board, shall 
13
    have the right to vote for the
election of members of the 
14
    board of managers and to be elected to and serve
on the 
15
    board of managers unless the seller expressly retains in 
16
    writing any
or all of such rights.  In no event may the 
17
    seller and purchaser both be
counted toward a quorum, be 
18
    permitted to vote for a particular office or be
elected and 
19
    serve on the board.  Satisfactory evidence of the 
20
    installment
contact shall be made available to the 
21
    association or its agents.  For
purposes of this subsection, 
22
    "installment contact" shall have the same
meaning as set 
23
    forth in Section 1 (e) of "An Act relating to installment

24
    contracts to sell dwelling structures", approved August 
25
    11, 1967, as amended;


26
        (12) the method by which matters subject to the 
 


 






HB5189
- 29 -
LRB095 18627 AJO 44713 b




1
    approval of unit owners
set forth in this Act, or in the 
2
    condominium instruments, will be
submitted to the unit 
3
    owners at special membership meetings called for such

4
    purposes; and


5
        (13) that matters subject to the affirmative vote of 
6
    not less than 2/3
of the votes of unit owners at a meeting 
7
    duly called for that purpose,
shall include, but not be 
8
    limited to:


9
            (i) merger or consolidation of the association;


10
            (ii) sale, lease, exchange, or other disposition 
11
        (excluding the mortgage
or pledge) of all, or 
12
        substantially all of the property and assets of the

13
        association; and


14
            (iii) the purchase or sale of land or of units on 
15
        behalf of all unit owners.

16
    (c) Election of a president from among the board of 
17
managers, who shall
preside over the meetings of the board of 
18
managers and of the unit owners.

19
    (d) Election of a secretary from among the board of 
20
managers, who shall
keep the minutes of all meetings
of the 
21
board of managers and of the unit owners and who shall, in 
22
general,
perform all the duties incident to the office of 
23
secretary.

24
    (e) Election of a treasurer from among the board of 
25
managers, who shall
keep the financial records and
books of 
26
account.

 


 






HB5189
- 30 -
LRB095 18627 AJO 44713 b




1
    (f) Maintenance, repair and replacement of the common 
2
elements and
payments therefor, including the method of 
3
approving payment vouchers.

4
    (g) An association with 30 or more units shall obtain and 
5
maintain
fidelity insurance covering persons who control or 
6
disburse funds of the
association for the maximum amount of 
7
coverage available to protect funds
in the custody or control 
8
of the association plus the association reserve
fund.  All 
9
management companies which are responsible for the funds held 
10
or
administered by the association shall maintain and furnish 
11
to the
association a fidelity bond for the maximum amount of 
12
coverage available to
protect funds in the custody of the 
13
management company at any time.  The
association shall bear the 
14
cost of the fidelity insurance and fidelity
bond, unless 
15
otherwise provided by contract between the association and a

16
management company.  The association shall be the direct obligee 
17
of any
such fidelity bond.  A management company holding reserve 
18
funds of an
association shall at all times maintain a separate 
19
account for each
association, provided, however, that for 
20
investment purposes, the Board of
Managers of an association 
21
may authorize a management company to maintain
the 
22
association's reserve funds in a single interest bearing 
23
account with
similar funds of other associations.  The 
24
management company shall at all
times maintain records 
25
identifying all moneys of each association in such
investment 
26
account. The management company may hold all operating funds of

 


 






HB5189
- 31 -
LRB095 18627 AJO 44713 b




1
associations which it manages in a single operating account but 
2
shall at
all times maintain records identifying all moneys of 
3
each association in
such operating account. Such operating and 
4
reserve funds held by the
management company for the 
5
association shall not be subject to attachment
by any creditor 
6
of the management company.

7
    For the purpose of this subsection a management company 
8
shall be
defined as a person, partnership, corporation, or 
9
other legal entity
entitled to transact business on behalf of 
10
others, acting on behalf of or
as an agent for a unit owner, 
11
unit owners or association of unit owners for
the purpose of 
12
carrying out the duties, responsibilities, and other

13
obligations necessary for the day to day operation and 
14
management of any
property subject to this Act.  For purposes of 
15
this subsection, the term
"fiduciary insurance coverage" shall 
16
be defined as both a fidelity bond and
directors and officers 
17
liability coverage, the fidelity bond in the full
amount of 
18
association funds and association reserves that will be in the

19
custody of the association, and the directors and officers 
20
liability
coverage at a level as shall be determined to be 
21
reasonable by the board of
managers, if not otherwise 
22
established by the declaration or by laws.

23
    Until one year after the effective date of this amendatory 
24
Act of 1985,
if a condominium association has reserves plus 
25
assessments in excess of
$250,000 and cannot reasonably obtain 
26
100% fidelity bond coverage for such
amount, then it must 
 


 






HB5189
- 32 -
LRB095 18627 AJO 44713 b




1
obtain a fidelity bond coverage of $250,000.

2
    (h) Method of estimating the amount of the annual budget, 
3
and the manner
of assessing and collecting from the unit owners 
4
their respective shares of
such estimated expenses, and of any 
5
other expenses lawfully agreed upon.

6
    (i) That upon 10 days notice to the manager or board of 
7
managers and
payment of a reasonable fee, any unit owner shall 
8
be furnished a statement
of his account setting forth the 
9
amount of any unpaid assessments or other
charges due and owing 
10
from such owner.

11
    (j) Designation and removal of personnel necessary for the 
12
maintenance,
repair and replacement of the common elements.

13
    (k) Such restrictions on and requirements respecting the 
14
use and
maintenance of the units and the use of the common 
15
elements, not set forth
in the declaration, as are designed to 
16
prevent unreasonable interference
with the use of their 
17
respective units and of the common elements by the
several unit 
18
owners.

19
    (l) Method of adopting and of amending administrative rules 
20
and
regulations governing the operation and use of the common 
21
elements.

22
    (m) The percentage of votes required to modify or amend the 
23
bylaws, but
each one of the particulars set forth in this 
24
section shall always be
embodied in the bylaws.

25
    (n) (i) The provisions of this Act, the declaration, 
26
bylaws, other
condominium instruments, and rules and 
 


 






HB5189
- 33 -
LRB095 18627 AJO 44713 b




1
regulations that relate to the use
of the individual unit or 
2
the common elements shall be applicable to
any person leasing a 
3
unit and shall be deemed to be incorporated in any
lease 
4
executed or renewed on or after the effective date of this 
5
amendatory
Act of 1984. (ii) With regard to any lease entered 
6
into subsequent to the
effective date of this amendatory Act of 
7
1989, the unit owner leasing the
unit shall deliver a copy of 
8
the signed lease to the board or if the
lease is oral, a 
9
memorandum of the lease, not later than the date of
occupancy 
10
or 10 days after the lease is signed, whichever occurs first. 
11
In
addition to any other remedies, by filing an action jointly 
12
against the
tenant and the unit owner, an association may seek 
13
to enjoin a tenant from
occupying a unit or seek to evict a 
14
tenant under the provisions of Article
IX of the Code of Civil 
15
Procedure for failure of the lessor-owner to
comply with the 
16
leasing requirements prescribed by
this Section or by the 
17
declaration, bylaws, and
rules and regulations. The board of 
18
managers may proceed directly against a
tenant, at law or in 
19
equity, or under the provisions of Article IX of the
Code of 
20
Civil Procedure, for any other breach by tenant of any

21
covenants, rules, regulations or bylaws. However, nothing in 
22
this Act or in the declarations, bylaws, and rules and 
23
regulations of the association shall prohibit the unit owners 
24
from leasing up to 20% of the units, as long as they otherwise 
25
comply with the provisions of this Act.

26
    (o) The association shall have no authority to forbear the 
 


 






HB5189
- 34 -
LRB095 18627 AJO 44713 b




1
payment
of assessments by any unit owner.

2
    (p) That when 30% or fewer of the units, by number,
possess 
3
over 50% in the aggregate of the votes in the association,
any 
4
percentage vote of members specified herein or in the 
5
condominium
instruments shall require the specified percentage 
6
by number of units
rather than by percentage of interest in the 
7
common elements allocated
to units that would otherwise be 
8
applicable. For purposes of this subsection (p), when making a 
9
determination of whether 30% or fewer of the units, by number, 
10
possess over 50% in the aggregate of the votes in the 
11
association,  a unit shall not include a garage unit or a 
12
storage unit.


13
    (q) That a unit owner may not assign, delegate, transfer, 
14
surrender, or
avoid the duties, responsibilities, and 
15
liabilities of a unit owner under this
Act, the condominium 
16
instruments, or the rules and regulations of the
Association; 
17
and that such an attempted assignment, delegation, transfer,

18
surrender, or avoidance shall be deemed void.

19
    The provisions of this Section are applicable to all 
20
condominium
instruments recorded under this Act.  Any portion of 
21
a condominium
instrument which contains provisions contrary to 
22
these provisions shall be
void as against public policy and 
23
ineffective.  Any such instrument which
fails to contain the 
24
provisions required by this Section shall be deemed to

25
incorporate such provisions by operation of law.

26
(Source: P.A. 95-624, eff. 6-1-08.)


 



 


 






HB5189
- 35 -
LRB095 18627 AJO 44713 b




1
    (765 ILCS 605/18.4)  (from Ch. 30, par. 318.4)



2
    Sec. 18.4. Powers and Duties of Board of Managers. The 
3
board of
managers shall exercise for the association all 
4
powers, duties and
authority vested in the association by law 
5
or the condominium instruments
except for such powers, duties 
6
and authority reserved by law to the members
of the 
7
association.  The powers and duties of the board of managers 
8
shall
include, but shall not be limited to, the following:


9
        (a) To provide for the operation, care, upkeep, 
10
    maintenance,
replacement and improvement of the common 
11
    elements.  Nothing
in
this subsection (a) shall be deemed to 
12
    invalidate any provision in a
condominium instrument 
13
    placing limits on expenditures for the common elements, 
14
    provided, that such
limits shall not be applicable to 
15
    expenditures for repair, replacement, or
restoration of 
16
    existing portions of the common elements.  The
term "repair, 
17
    replacement or restoration" means expenditures to 
18
    deteriorated or
damaged portions of the property related to 
19
    the existing decorating,
facilities, or structural or 
20
    mechanical components, interior or exterior
surfaces, or 
21
    energy systems and equipment with the functional 
22
    equivalent of the
original portions of such areas.  
23
    Replacement of the common elements may
result in an 
24
    improvement over the original quality of such elements or

25
    facilities; provided that, unless the improvement is 
 


 






HB5189
- 36 -
LRB095 18627 AJO 44713 b




1
    mandated by law or is an
emergency as defined in item (iv) 
2
    of subparagraph (8) of paragraph (a) of
Section 18, if the 
3
    improvement results in a proposed expenditure
exceeding 5% 
4
    of the annual budget, the board of managers, upon written 
5
    petition
by unit owners with 20% of the votes of the 
6
    association delivered to the board
within 14 days of the 
7
    board action to approve the expenditure, shall call a

8
    meeting of the unit owners within 30 days of the date of 
9
    delivery of the
petition to consider the expenditure.  
10
    Unless a majority of the total votes of
the unit owners are 
11
    cast at the meeting to reject the expenditure, it is

12
    ratified.


13
        (b) To prepare, adopt and distribute the annual budget 
14
    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 the 
18
    personnel
necessary or advisable for the maintenance and 
19
    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 deal 
23
    with units
conveyed to or purchased by it.


24
        (h) To adopt and amend rules and regulations covering 
25
    the details of
the operation and use of the property, after 
26
    a meeting of the unit owners
called for the specific 
 


 






HB5189
- 37 -
LRB095 18627 AJO 44713 b




1
    purpose of discussing the proposed rules and
regulations.  
2
    Notice of the meeting shall contain the full text of the

3
    proposed rules and regulations, and the meeting shall 
4
    conform to the
requirements of Section 18(b) of this Act, 
5
    except that no quorum is
required at the meeting of the 
6
    unit owners unless the declaration, bylaws
or other 
7
    condominium instrument expressly provides to the contrary.

8
    However, no rule or regulation may impair any rights 
9
    guaranteed by the
First Amendment to the Constitution of 
10
    the United States or Section 4 of
Article I of the Illinois 
11
    Constitution including, but not limited to, the free 
12
    exercise of religion, nor may any rules or regulations

13
    conflict with the provisions of this Act or the condominium 
14
    instruments. No rule or regulation shall prohibit any 
15
    reasonable accommodation for religious practices, 
16
    including the attachment of religiously mandated objects 
17
    to the front-door area of a condominium unit.
No 
18
    declarations, by-laws, rules or regulations, or other 
19
    condominium instruments shall prohibit the unit owners 
20
    from leasing up to 20% of the total units, as long as they 
21
    otherwise comply with the provisions of this Act. 


22
        (i) To keep detailed, accurate records of the receipts 
23
    and
expenditures affecting the use and operation of the 
24
    property.


25
        (j) To have access to each unit from time to time as 
26
    may be necessary
for the maintenance, repair or replacement 
 


 






HB5189
- 38 -
LRB095 18627 AJO 44713 b




1
    of any common elements or for
making emergency repairs 
2
    necessary to prevent damage to the common elements
or to 
3
    other units.


4
        (k) To pay real property taxes, special assessments, 
5
    and any other
special taxes or charges of the State of 
6
    Illinois or of any political
subdivision thereof, or other 
7
    lawful taxing or assessing body, which are
authorized by 
8
    law to be assessed and levied upon the real property of the

9
    condominium.


10
        (l) To impose charges for late payment of a unit 
11
    owner's proportionate
share of the common expenses, or any 
12
    other expenses lawfully agreed upon,
and after notice and 
13
    an opportunity to be heard, to levy reasonable fines
for 
14
    violation of the declaration, by-laws, and rules and 
15
    regulations of
the association.


16
        (m) Unless the condominium instruments expressly 
17
    provide to the
contrary, by a majority vote of the entire 
18
    board of managers, to assign the
right of the association 
19
    to future income from common expenses or other
sources, and 
20
    to mortgage or pledge substantially all of the remaining

21
    assets of the association.


22
        (n) To record the dedication of a portion of the common 
23
    elements
to a public body for use as, or in connection 
24
    with, a street or utility
where authorized by the unit 
25
    owners under the provisions of Section 14.2.


26
        (o) To record the granting of an easement for the 
 


 






HB5189
- 39 -
LRB095 18627 AJO 44713 b




1
    laying of cable
television cable where authorized by the 
2
    unit owners under the provisions
of Section 14.3; to 
3
    obtain, if available and determined by the board to be in

4
    the best interests of the association, cable television

5
    service for all of the units of the condominium on a bulk

6
    identical service and equal cost per unit basis; and to 
7
    assess and recover the
expense as a common expense and, if 
8
    so determined by the board, to assess each
and every unit 
9
    on the same equal cost per unit basis.


10
        (p) To seek relief on behalf of all unit owners when 
11
    authorized
pursuant to subsection (c) of Section 10 from or 
12
    in connection with the
assessment or levying of real 
13
    property taxes, special assessments, and any
other special 
14
    taxes or changes of the State of Illinois or of any 
15
    political
subdivision thereof or of any lawful taxing or 
16
    assessing body.


17
        (q) To reasonably accommodate the needs of a 
18
    handicapped unit owner
as required by the federal Civil 
19
    Rights Act of 1968, the Human Rights Act
and any applicable 
20
    local ordinances in the exercise of its powers with
respect 
21
    to the use of common elements or approval of modifications 
22
    in an
individual unit.

23
        (r) To accept service of a notice of claim for purposes 
24
    of the Mechanics Lien Act on behalf of each respective 
25
    member of the Unit Owners' Association with respect to 
26
    improvements performed pursuant to any contract entered 
 


 






HB5189
- 40 -
LRB095 18627 AJO 44713 b




1
    into by the Board of Managers or any contract entered into 
2
    prior to the recording of the condominium declaration 
3
    pursuant to this Act, for a property containing more than 8 
4
    units, and to distribute the notice to the unit owners 
5
    within 7 days of the acceptance of the service by the Board 
6
    of Managers. The service shall be effective as if each 
7
    individual unit owner had been served individually with 
8
    notice.

9
    In the performance of their duties, the officers and 
10
members of the board,
whether appointed by the developer or 
11
elected by the unit owners, shall
exercise the care required of 
12
a fiduciary of the unit owners.

13
    The collection of assessments from unit owners by an 
14
association, board
of managers or their duly authorized agents 
15
shall not be considered acts
constituting a collection agency 
16
for purposes of the Collection Agency Act.

17
    The provisions of this Section are
applicable to all 
18
condominium instruments recorded under this Act.  Any
portion of 
19
a condominium instrument which contains provisions contrary to

20
these provisions shall be void as against public policy and 
21
ineffective.
Any such instrument that fails to contain the 
22
provisions required by this
Section shall be deemed to 
23
incorporate such provisions by operation of law.

24
(Source: P.A. 94-384, eff. 1-1-06; 94-729, eff. 1-1-07.)

 
25
    Section 10. The General Not For Profit Corporation Act of 
 


 






HB5189
- 41 -
LRB095 18627 AJO 44713 b




1
1986 is amended  by adding Section 103.35 as follows:
 
2
    (805 ILCS 105/103.35  new)
3
    Sec. 103.35. Leasing units.
4
    (a) Notwithstanding any other provision in the common 
5
interest community or homeowners' association's declaration, 
6
covenants, bylaws, rules, regulations, or other instruments or 
7
any construction of those instruments by a common interest 
8
community or homeowners' association's board of directors, a 
9
homeowners' association or common interest community 
10
incorporated under this Act may not prohibit 20% of the total 
11
units from being used as leasing property.
12
    (b) As used in this Section:
13
    "Homeowners' association" includes a property owners' 
14
association, townhome association, and any similar entity, and 
15
"homeowner" includes a townhome owner.
16
    "Common interest community" has the meaning ascribed to 
17
that term in subsection (c) of Section 9-102 of the Code of 
18
Civil Procedure.
 
19
    Section 95. No acceleration or delay. Where this Act makes 
20
changes in a statute that is represented in this Act by text 
21
that is not yet or no longer in effect (for example, a Section 
22
represented by multiple versions), the use of that text does 
23
not accelerate or delay the taking effect of (i) the changes 
24
made by this Act or (ii) provisions derived from any other 
 


 






HB5189
- 42 -
LRB095 18627 AJO 44713 b




1
Public Act.
 

2
    Section 99. Effective date. This Act takes effect upon 
3
becoming law.