Rep. Sandra M. Pihos
Filed: 4/10/2008
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1 | AMENDMENT TO HOUSE BILL 5189
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2 | AMENDMENT NO. ______. Amend House Bill 5189, AS AMENDED, by | ||||||
3 | replacing everything after the enacting clause with the | ||||||
4 | following:
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5 | "Section 5. The Condominium Property Act is amended by | ||||||
6 | changing Sections 18 and 18.4 as follows:
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7 | (765 ILCS 605/18) (from Ch. 30, par. 318)
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8 | (Text of Section before amendment by P.A. 95-624 )
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9 | Sec. 18. Contents of bylaws. The bylaws shall provide for | ||||||
10 | at least
the following:
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11 | (a) (1) The election from among the unit owners of a board | ||||||
12 | of managers,
the number of persons constituting such board, | ||||||
13 | and that the terms of at
least one-third of the members of | ||||||
14 | the board shall expire annually and that
all members of the | ||||||
15 | board shall be elected at large.
If there are multiple | ||||||
16 | owners of a single unit, only one of the multiple
owners |
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1 | shall be eligible to serve as a member of the board at any | ||||||
2 | one time.
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3 | (2) the powers and duties of the board;
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4 | (3) the compensation, if any, of the members of the | ||||||
5 | board;
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6 | (4) the method of removal from office of members of the | ||||||
7 | board;
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8 | (5) that the board may engage the services of a manager | ||||||
9 | or managing agent;
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10 | (6) that each unit owner shall receive, at least 30 | ||||||
11 | days prior to the
adoption thereof by the board of | ||||||
12 | managers, a copy of the proposed annual
budget together | ||||||
13 | with an indication of which portions are intended for
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14 | reserves, capital expenditures or repairs or payment of | ||||||
15 | real estate taxes;
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16 | (7) that the board of managers shall annually supply to
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17 | all unit owners an itemized accounting of the common | ||||||
18 | expenses
for the preceding year actually incurred or paid, | ||||||
19 | together
with an indication of which portions were for | ||||||
20 | reserves, capital
expenditures or repairs or payment of | ||||||
21 | real estate taxes and
with a tabulation of the amounts | ||||||
22 | collected pursuant to the
budget or assessment, and showing | ||||||
23 | the net excess or
deficit of income over expenditures plus | ||||||
24 | reserves;
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25 | (8) (i) that each unit owner shall receive notice, in | ||||||
26 | the same manner
as is provided in this Act for membership |
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1 | meetings, of any meeting of the
board of managers | ||||||
2 | concerning the adoption of the proposed annual budget and
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3 | regular assessments pursuant thereto or to adopt a separate | ||||||
4 | (special)
assessment, (ii) that except as provided in | ||||||
5 | subsection (iv) below, if an
adopted
budget or any separate | ||||||
6 | assessment adopted by the board would result in the
sum of | ||||||
7 | all regular and separate assessments payable in the current | ||||||
8 | fiscal year
exceeding 115% of the sum of all regular and | ||||||
9 | separate
assessments payable during the
preceding fiscal | ||||||
10 | year, the
board of managers, upon written petition by unit | ||||||
11 | owners with 20 percent of
the votes of the association | ||||||
12 | delivered to the board within 14
days of the board action,
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13 | shall call a meeting of the unit owners within 30 days of | ||||||
14 | the date of
delivery of the petition to consider the budget | ||||||
15 | or separate
assessment; unless a
majority of
the total | ||||||
16 | votes of the unit owners are cast at the meeting to reject | ||||||
17 | the
budget or separate assessment,
it is ratified, (iii) | ||||||
18 | that any common expense not set forth in the budget or
any | ||||||
19 | increase in assessments over the amount adopted in the | ||||||
20 | budget shall be
separately assessed against all unit | ||||||
21 | owners, (iv) that separate assessments for
expenditures | ||||||
22 | relating to emergencies or mandated by law may be adopted | ||||||
23 | by the
board of managers without being subject to unit | ||||||
24 | owner approval or the
provisions of item (ii) above or item | ||||||
25 | (v) below. As used
herein, "emergency" means an immediate | ||||||
26 | danger to the structural integrity of
the
common elements |
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1 | or to the life, health, safety or property of the unit | ||||||
2 | owners,
(v) that assessments
for additions and alterations | ||||||
3 | to the common elements or to association-owned
property not | ||||||
4 | included in the adopted annual budget, shall be separately
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5 | assessed and are subject to approval of two-thirds of the | ||||||
6 | total votes of all
unit owners, (vi) that the board of | ||||||
7 | managers may adopt separate assessments
payable over more | ||||||
8 | than one fiscal year. With respect to multi-year | ||||||
9 | assessments
not governed by items (iv) and (v), the entire | ||||||
10 | amount of the multi-year
assessment shall be deemed | ||||||
11 | considered and authorized in the first fiscal year
in which | ||||||
12 | the assessment is approved;
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13 | (9) that meetings of the board of managers shall be | ||||||
14 | open to any unit
owner, except for the portion of any | ||||||
15 | meeting held (i) to discuss litigation
when an action | ||||||
16 | against or on behalf of the particular association has been
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17 | filed and is pending in a court or administrative tribunal,
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18 | or when the board of managers finds that such an action is | ||||||
19 | probable
or imminent, (ii) to consider information | ||||||
20 | regarding appointment, employment
or dismissal of an | ||||||
21 | employee, or (iii) to discuss violations of rules and
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22 | regulations of the association or a unit owner's unpaid | ||||||
23 | share of common
expenses; that any vote on these matters | ||||||
24 | shall be taken at a meeting or
portion thereof open to any | ||||||
25 | unit owner; that any unit owner may record the
proceedings | ||||||
26 | at meetings or portions thereof required to be open by this
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1 | Act by tape, film or other means; that the board may | ||||||
2 | prescribe reasonable
rules and regulations to govern the | ||||||
3 | right to make such recordings, that
notice of such meetings | ||||||
4 | shall be mailed or delivered at least 48 hours
prior | ||||||
5 | thereto, unless a written waiver of such notice is signed | ||||||
6 | by the
person or persons entitled to such notice pursuant | ||||||
7 | to the declaration,
bylaws, other condominium instrument, | ||||||
8 | or provision of law other than this
subsection before the | ||||||
9 | meeting is convened, and that copies of notices of
meetings | ||||||
10 | of the board of managers shall be posted in entranceways,
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11 | elevators, or other conspicuous places in the condominium | ||||||
12 | at least 48 hours
prior to the meeting of the board of | ||||||
13 | managers except where there is no
common entranceway for 7 | ||||||
14 | or more units, the board of managers may designate
one or | ||||||
15 | more locations in the proximity of these units where the | ||||||
16 | notices of
meetings shall be posted;
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17 | (10) that the board shall meet at least 4 times | ||||||
18 | annually;
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19 | (11) that no member of the board or officer shall be | ||||||
20 | elected for a term
of more than 2 years, but that officers | ||||||
21 | and board members may succeed
themselves;
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22 | (12) the designation of an officer to mail and receive | ||||||
23 | all notices and
execute amendments to condominium | ||||||
24 | instruments as provided for in this Act
and in the | ||||||
25 | condominium instruments;
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26 | (13) the method of filling vacancies on the board
which |
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1 | shall include authority for the remaining members of the | ||||||
2 | board to
fill the vacancy by two-thirds vote until the next | ||||||
3 | annual meeting of unit
owners or for a period terminating | ||||||
4 | no later than 30 days following the
filing of a petition | ||||||
5 | signed by unit owners holding 20% of the votes of the
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6 | association requesting a meeting of the unit owners to fill | ||||||
7 | the vacancy for
the balance of the term, and that a meeting | ||||||
8 | of the unit owners shall be
called for purposes of filling | ||||||
9 | a vacancy on the board no later than 30 days
following the | ||||||
10 | filing of a petition signed by unit owners holding 20% of | ||||||
11 | the
votes of the association requesting such a meeting, and | ||||||
12 | the method of filling
vacancies among the officers that | ||||||
13 | shall include the authority for the members
of the board to | ||||||
14 | fill the vacancy for the unexpired portion of the term;
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15 | (14) what percentage of the board of managers, if other | ||||||
16 | than a majority,
shall constitute a quorum;
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17 | (15) provisions concerning notice of board meetings to | ||||||
18 | members of the
board;
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19 | (16) the board of managers may not enter into a | ||||||
20 | contract with a
current board member
or with a corporation | ||||||
21 | or partnership in which a board
member or a member of the | ||||||
22 | board member's immediate family has 25% or
more interest, | ||||||
23 | unless notice of intent to enter the
contract is given to | ||||||
24 | unit owners within 20 days after a decision is made
to | ||||||
25 | enter into the contract and the unit owners are
afforded an | ||||||
26 | opportunity by filing a petition, signed by 20% of the unit
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1 | owners, for an election to approve or disapprove the | ||||||
2 | contract;
such petition shall be filed within 20 days after | ||||||
3 | such notice and such
election shall be held within 30 days | ||||||
4 | after filing the petition; for purposes
of this subsection, | ||||||
5 | a board member's immediate family means the board member's
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6 | spouse, parents, and children;
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7 | (17) that the board of managers may disseminate
to unit | ||||||
8 | owners biographical and background information about | ||||||
9 | candidates for
election to the board if (i) reasonable | ||||||
10 | efforts to identify all candidates are
made and all | ||||||
11 | candidates are given an opportunity to include | ||||||
12 | biographical and
background information in the information | ||||||
13 | to be disseminated; and (ii) the
board does not express a | ||||||
14 | preference in favor of any candidate;
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15 | (18) any proxy distributed for board elections
by the | ||||||
16 | board of managers gives unit owners the
opportunity to | ||||||
17 | designate any person as the proxy holder, and gives the | ||||||
18 | unit
owner the opportunity to express a preference for any | ||||||
19 | of the known
candidates for the board or to write in a | ||||||
20 | name;
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21 | (19) that special meetings of the board of managers can | ||||||
22 | be called by
the president or 25% of the members of the | ||||||
23 | board; and
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24 | (20) that the board of managers may establish
and | ||||||
25 | maintain a system of master metering of public utility | ||||||
26 | services and
collect payments in connection therewith, |
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1 | subject to the requirements of the
Tenant Utility Payment | ||||||
2 | Disclosure Act.
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3 | (b) (1) What percentage of the unit owners, if other than | ||||||
4 | 20%, shall
constitute a quorum provided that, for | ||||||
5 | condominiums with 20 or more units,
the percentage of unit | ||||||
6 | owners constituting a quorum shall be 20% unless the
unit | ||||||
7 | owners holding a majority of the percentage interest in the
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8 | association provide for a higher percentage;
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9 | (2) that the association shall have one class of | ||||||
10 | membership;
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11 | (3) that the members shall hold an annual meeting, one | ||||||
12 | of the purposes
of which shall be to elect members of the | ||||||
13 | board of managers;
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14 | (4) the method of calling meetings of the unit owners;
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15 | (5) that special meetings of the members can be called | ||||||
16 | by the president,
board of managers, or by 20% of unit | ||||||
17 | owners;
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18 | (6) that written notice of any membership meeting shall | ||||||
19 | be mailed
or delivered giving members no less than 10 and | ||||||
20 | no more than 30 days
notice of the time, place and purpose | ||||||
21 | of such meeting;
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22 | (7) that voting shall be on a percentage basis, and | ||||||
23 | that the percentage
vote to which each unit is entitled is | ||||||
24 | the percentage interest of the
undivided ownership of the | ||||||
25 | common elements appurtenant thereto, provided
that the | ||||||
26 | bylaws may provide for approval by unit owners in |
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1 | connection with
matters where the requisite approval on a | ||||||
2 | percentage basis is not specified
in this Act, on the basis | ||||||
3 | of one vote per unit;
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4 | (8) that, where there is more than one owner of a unit, | ||||||
5 | if only one
of the multiple owners is present at a meeting | ||||||
6 | of the association, he is
entitled to cast all the votes | ||||||
7 | allocated to that unit, if more than one of
the multiple | ||||||
8 | owners are present, the votes allocated to that unit may be
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9 | cast only in accordance with the agreement of a majority in | ||||||
10 | interest of the
multiple owners, unless the declaration | ||||||
11 | expressly provides otherwise, that
there is majority | ||||||
12 | agreement if any one of the multiple owners cast the
votes | ||||||
13 | allocated to that unit without protest being made promptly | ||||||
14 | to the
person presiding over the meeting by any of the | ||||||
15 | other owners of the unit;
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16 | (9)(A) that unless the Articles of Incorporation or the | ||||||
17 | bylaws
otherwise
provide, and except as provided in | ||||||
18 | subparagraph (B) of this paragraph (9) in
connection with | ||||||
19 | board elections,
a unit owner may vote by proxy executed in | ||||||
20 | writing by the unit
owner or by his duly authorized | ||||||
21 | attorney in fact; that the proxy must bear the date of
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22 | execution
and, unless the condominium instruments or the | ||||||
23 | written proxy itself provide
otherwise, is
invalid after 11 | ||||||
24 | months from the date of its execution;
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25 | (B) that if a rule adopted at least 120 days before a | ||||||
26 | board election
or the
declaration or bylaws provide for |
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1 | balloting as set forth in this subsection,
unit
owners may | ||||||
2 | not vote by proxy in board elections, but may vote only (i) | ||||||
3 | by
submitting an association-issued ballot in person at the | ||||||
4 | election meeting or
(ii) by
submitting an | ||||||
5 | association-issued ballot to the association or its | ||||||
6 | designated
agent
by mail or other means of delivery | ||||||
7 | specified in the declaration, bylaws, or
rule; that
the | ||||||
8 | ballots shall be mailed or otherwise distributed to unit | ||||||
9 | owners not less
than 10
and not more than 30 days before | ||||||
10 | the election meeting, and the board shall give
unit owners | ||||||
11 | not less than 21 days' prior written notice of the deadline | ||||||
12 | for
inclusion of a candidate's name on the ballots; that | ||||||
13 | the deadline shall be no
more
than 7 days before the | ||||||
14 | ballots are mailed or otherwise distributed to unit
owners; | ||||||
15 | that
every such ballot must include the names of all | ||||||
16 | candidates who have given the
board or its authorized agent | ||||||
17 | timely written notice of their candidacy and must
give the | ||||||
18 | person casting the ballot the opportunity to cast votes for | ||||||
19 | candidates
whose names do not appear on the ballot; that a | ||||||
20 | ballot received by the
association
or
its designated agent | ||||||
21 | after the close of voting shall not be counted; that a
unit
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22 | owner
who submits a ballot by mail or other means of | ||||||
23 | delivery specified in the
declaration, bylaws, or rule may | ||||||
24 | request and cast a ballot in person at the
election
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25 | meeting, and thereby void any ballot previously submitted | ||||||
26 | by that unit owner;
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1 | (C) that if a written petition by unit owners with at | ||||||
2 | least 20% of the
votes of
the association is delivered to | ||||||
3 | the board within 14 days after the board's
approval
of a | ||||||
4 | rule adopted pursuant to subparagraph (B) of this paragraph | ||||||
5 | (9), the board
shall call a meeting of the unit owners | ||||||
6 | within 30 days after the date of
delivery of
the petition; | ||||||
7 | that unless a majority of the total votes of the unit | ||||||
8 | owners are
cast
at the
meeting to reject the rule, the rule | ||||||
9 | is ratified;
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10 | (10) that the association may, upon adoption of the | ||||||
11 | appropriate rules by
the board of managers, conduct | ||||||
12 | elections by secret ballot whereby the voting
ballot is | ||||||
13 | marked only with the percentage interest for the unit and | ||||||
14 | the vote
itself, provided that the board further adopt | ||||||
15 | rules to verify the status of the
unit owner issuing a | ||||||
16 | proxy or casting a ballot; and further, that a candidate
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17 | for election to the board of managers or such
candidate's | ||||||
18 | representative shall have the right to be present at the
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19 | counting of ballots at such election;
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20 | (11) that in the event of a resale of a condominium | ||||||
21 | unit the purchaser
of a unit from a seller other than the | ||||||
22 | developer pursuant to an installment
contract for purchase | ||||||
23 | shall during such times as he or she resides in the
unit be | ||||||
24 | counted toward a quorum for purposes of election of members | ||||||
25 | of the
board of managers at any meeting of the unit owners | ||||||
26 | called for purposes of
electing members of the board, shall |
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1 | have the right to vote for the
election of members of the | ||||||
2 | board of managers and to be elected to and serve
on the | ||||||
3 | board of managers unless the seller expressly retains in | ||||||
4 | writing any
or all of such rights. In no event may the | ||||||
5 | seller and purchaser both be
counted toward a quorum, be | ||||||
6 | permitted to vote for a particular office or be
elected and | ||||||
7 | serve on the board. Satisfactory evidence of the | ||||||
8 | installment
contact shall be made available to the | ||||||
9 | association or its agents. For
purposes of this subsection, | ||||||
10 | "installment contact" shall have the same
meaning as set | ||||||
11 | forth in Section 1 (e) of "An Act relating to installment
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12 | contracts to sell dwelling structures", approved August | ||||||
13 | 11, 1967, as amended;
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14 | (12) the method by which matters subject to the | ||||||
15 | approval of unit owners
set forth in this Act, or in the | ||||||
16 | condominium instruments, will be
submitted to the unit | ||||||
17 | owners at special membership meetings called for such
| ||||||
18 | purposes; and
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19 | (13) that matters subject to the affirmative vote of | ||||||
20 | not less than 2/3
of the votes of unit owners at a meeting | ||||||
21 | duly called for that purpose,
shall include, but not be | ||||||
22 | limited to:
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23 | (i) merger or consolidation of the association;
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24 | (ii) sale, lease, exchange, or other disposition | ||||||
25 | (excluding the mortgage
or pledge) of all, or | ||||||
26 | substantially all of the property and assets of the
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1 | association; and
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2 | (iii) the purchase or sale of land or of units on | ||||||
3 | behalf of all unit owners.
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4 | (c) Election of a president from among the board of | ||||||
5 | managers, who shall
preside over the meetings of the board of | ||||||
6 | managers and of the unit owners.
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7 | (d) Election of a secretary from among the board of | ||||||
8 | managers, who shall
keep the minutes of all meetings
of the | ||||||
9 | board of managers and of the unit owners and who shall, in | ||||||
10 | general,
perform all the duties incident to the office of | ||||||
11 | secretary.
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12 | (e) Election of a treasurer from among the board of | ||||||
13 | managers, who shall
keep the financial records and
books of | ||||||
14 | account.
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15 | (f) Maintenance, repair and replacement of the common | ||||||
16 | elements and
payments therefor, including the method of | ||||||
17 | approving payment vouchers.
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18 | (g) An association with 30 or more units shall obtain and | ||||||
19 | maintain
fidelity insurance covering persons who control or | ||||||
20 | disburse funds of the
association for the maximum amount of | ||||||
21 | coverage available to protect funds
in the custody or control | ||||||
22 | of the association plus the association reserve
fund. All | ||||||
23 | management companies which are responsible for the funds held | ||||||
24 | or
administered by the association shall maintain and furnish | ||||||
25 | to the
association a fidelity bond for the maximum amount of | ||||||
26 | coverage available to
protect funds in the custody of the |
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1 | management company at any time. The
association shall bear the | ||||||
2 | cost of the fidelity insurance and fidelity
bond, unless | ||||||
3 | otherwise provided by contract between the association and a
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4 | management company. The association shall be the direct obligee | ||||||
5 | of any
such fidelity bond. A management company holding reserve | ||||||
6 | funds of an
association shall at all times maintain a separate | ||||||
7 | account for each
association, provided, however, that for | ||||||
8 | investment purposes, the Board of
Managers of an association | ||||||
9 | may authorize a management company to maintain
the | ||||||
10 | association's reserve funds in a single interest bearing | ||||||
11 | account with
similar funds of other associations. The | ||||||
12 | management company shall at all
times maintain records | ||||||
13 | identifying all moneys of each association in such
investment | ||||||
14 | account. The management company may hold all operating funds of
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15 | associations which it manages in a single operating account but | ||||||
16 | shall at
all times maintain records identifying all moneys of | ||||||
17 | each association in
such operating account. Such operating and | ||||||
18 | reserve funds held by the
management company for the | ||||||
19 | association shall not be subject to attachment
by any creditor | ||||||
20 | of the management company.
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21 | For the purpose of this subsection a management company | ||||||
22 | shall be
defined as a person, partnership, corporation, or | ||||||
23 | other legal entity
entitled to transact business on behalf of | ||||||
24 | others, acting on behalf of or
as an agent for a unit owner, | ||||||
25 | unit owners or association of unit owners for
the purpose of | ||||||
26 | carrying out the duties, responsibilities, and other
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1 | obligations necessary for the day to day operation and | ||||||
2 | management of any
property subject to this Act. For purposes of | ||||||
3 | this subsection, the term
"fiduciary insurance coverage" shall | ||||||
4 | be defined as both a fidelity bond and
directors and officers | ||||||
5 | liability coverage, the fidelity bond in the full
amount of | ||||||
6 | association funds and association reserves that will be in the
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7 | custody of the association, and the directors and officers | ||||||
8 | liability
coverage at a level as shall be determined to be | ||||||
9 | reasonable by the board of
managers, if not otherwise | ||||||
10 | established by the declaration or by laws.
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11 | Until one year after the effective date of this amendatory | ||||||
12 | Act of 1985,
if a condominium association has reserves plus | ||||||
13 | assessments in excess of
$250,000 and cannot reasonably obtain | ||||||
14 | 100% fidelity bond coverage for such
amount, then it must | ||||||
15 | obtain a fidelity bond coverage of $250,000.
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16 | (h) Method of estimating the amount of the annual budget, | ||||||
17 | and the manner
of assessing and collecting from the unit owners | ||||||
18 | their respective shares of
such estimated expenses, and of any | ||||||
19 | other expenses lawfully agreed upon.
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20 | (i) That upon 10 days notice to the manager or board of | ||||||
21 | managers and
payment of a reasonable fee, any unit owner shall | ||||||
22 | be furnished a statement
of his account setting forth the | ||||||
23 | amount of any unpaid assessments or other
charges due and owing | ||||||
24 | from such owner.
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25 | (j) Designation and removal of personnel necessary for the | ||||||
26 | maintenance,
repair and replacement of the common elements.
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1 | (k) Such restrictions on and requirements respecting the | ||||||
2 | use and
maintenance of the units and the use of the common | ||||||
3 | elements, not set forth
in the declaration, as are designed to | ||||||
4 | prevent unreasonable interference
with the use of their | ||||||
5 | respective units and of the common elements by the
several unit | ||||||
6 | owners.
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7 | (l) Method of adopting and of amending administrative rules | ||||||
8 | and
regulations governing the operation and use of the common | ||||||
9 | elements.
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10 | (m) The percentage of votes required to modify or amend the | ||||||
11 | bylaws, but
each one of the particulars set forth in this | ||||||
12 | section shall always be
embodied in the bylaws.
| ||||||
13 | (n) (i) The provisions of this Act, the declaration, | ||||||
14 | bylaws, other
condominium instruments, and rules and | ||||||
15 | regulations that relate to the use
of the individual unit or | ||||||
16 | the common elements shall be applicable to
any person leasing a | ||||||
17 | unit and shall be deemed to be incorporated in any
lease | ||||||
18 | executed or renewed on or after the effective date of this | ||||||
19 | amendatory
Act of 1984. (ii) With regard to any lease entered | ||||||
20 | into subsequent to the
effective date of this amendatory Act of | ||||||
21 | 1989, the unit owner leasing the
unit shall deliver a copy of | ||||||
22 | the signed lease to the board or if the
lease is oral, a | ||||||
23 | memorandum of the lease, not later than the date of
occupancy | ||||||
24 | or 10 days after the lease is signed, whichever occurs first. | ||||||
25 | In
addition to any other remedies, by filing an action jointly | ||||||
26 | against the
tenant and the unit owner, an association may seek |
| |||||||
| |||||||
1 | to enjoin a tenant from
occupying a unit or seek to evict a | ||||||
2 | tenant under the provisions of Article
IX of the Code of Civil | ||||||
3 | Procedure for failure of the lessor-owner to
comply with the | ||||||
4 | leasing requirements prescribed by
this Section or by the | ||||||
5 | declaration, bylaws, and
rules and regulations. The board of | ||||||
6 | managers may proceed directly against a
tenant, at law or in | ||||||
7 | equity, or under the provisions of Article IX of the
Code of | ||||||
8 | Civil Procedure, for any other breach by tenant of any
| ||||||
9 | covenants, rules, regulations or bylaws.
| ||||||
10 | (o) The association shall have no authority to forbear the | ||||||
11 | payment
of assessments by any unit owner.
| ||||||
12 | (p) That when 30% or fewer of the units, by number,
possess | ||||||
13 | over 50% in the aggregate of the votes in the association,
any | ||||||
14 | percentage vote of members specified herein or in the | ||||||
15 | condominium
instruments shall require the specified percentage | ||||||
16 | by number of units
rather than by percentage of interest in the | ||||||
17 | common elements allocated
to units that would otherwise be | ||||||
18 | applicable.
| ||||||
19 | (q) That a unit owner may not assign, delegate, transfer, | ||||||
20 | surrender, or
avoid the duties, responsibilities, and | ||||||
21 | liabilities of a unit owner under this
Act, the condominium | ||||||
22 | instruments, or the rules and regulations of the
Association; | ||||||
23 | and that such an attempted assignment, delegation, transfer,
| ||||||
24 | surrender, or avoidance shall be deemed void.
| ||||||
25 | The provisions of this Section are applicable to all | ||||||
26 | condominium
instruments recorded under this Act. Any portion of |
| |||||||
| |||||||
1 | a condominium
instrument which contains provisions contrary to | ||||||
2 | these provisions shall be
void as against public policy and | ||||||
3 | ineffective. Any such instrument which
fails to contain the | ||||||
4 | provisions required by this Section shall be deemed to
| ||||||
5 | incorporate such provisions by operation of law.
| ||||||
6 | (Source: P.A. 93-243, eff. 1-1-04.)
| ||||||
7 | (Text of Section after 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 | ||||||
24 | or managing agent;
| ||||||
25 | (6) that each unit owner shall receive, at least 30 |
| |||||||
| |||||||
1 | days prior to the
adoption thereof by the board of | ||||||
2 | managers, a copy of the proposed annual
budget together | ||||||
3 | with an indication of which portions are intended for
| ||||||
4 | reserves, capital expenditures or repairs or payment of | ||||||
5 | real estate taxes;
| ||||||
6 | (7) that the board of managers shall annually supply to
| ||||||
7 | all unit owners an itemized accounting of the common | ||||||
8 | expenses
for the preceding year actually incurred or paid, | ||||||
9 | together
with an indication of which portions were for | ||||||
10 | reserves, capital
expenditures or repairs or payment of | ||||||
11 | real estate taxes and
with a tabulation of the amounts | ||||||
12 | collected pursuant to the
budget or assessment, and showing | ||||||
13 | the net excess or
deficit of income over expenditures plus | ||||||
14 | reserves;
| ||||||
15 | (8) (i) that each unit owner shall receive notice, in | ||||||
16 | the same manner
as is provided in this Act for membership | ||||||
17 | meetings, of any meeting of the
board of managers | ||||||
18 | concerning the adoption of the proposed annual budget and
| ||||||
19 | regular assessments pursuant thereto or to adopt a separate | ||||||
20 | (special)
assessment, (ii) that except as provided in | ||||||
21 | subsection (iv) below, if an
adopted
budget or any separate | ||||||
22 | assessment adopted by the board would result in the
sum of | ||||||
23 | all regular and separate assessments payable in the current | ||||||
24 | fiscal year
exceeding 115% of the sum of all regular and | ||||||
25 | separate
assessments payable during the
preceding fiscal | ||||||
26 | year, the
board of managers, upon written petition by unit |
| |||||||
| |||||||
1 | owners with 20 percent of
the votes of the association | ||||||
2 | delivered to the board within 14
days of the board action,
| ||||||
3 | shall call a meeting of the unit owners within 30 days of | ||||||
4 | the date of
delivery of the petition to consider the budget | ||||||
5 | or separate
assessment; unless a
majority of
the total | ||||||
6 | votes of the unit owners are cast at the meeting to reject | ||||||
7 | the
budget or separate assessment,
it is ratified, (iii) | ||||||
8 | that any common expense not set forth in the budget or
any | ||||||
9 | increase in assessments over the amount adopted in the | ||||||
10 | budget shall be
separately assessed against all unit | ||||||
11 | owners, (iv) that separate assessments for
expenditures | ||||||
12 | relating to emergencies or mandated by law may be adopted | ||||||
13 | by the
board of managers without being subject to unit | ||||||
14 | owner approval or the
provisions of item (ii) above or item | ||||||
15 | (v) below. As used
herein, "emergency" means an immediate | ||||||
16 | danger to the structural integrity of
the
common elements | ||||||
17 | or to the life, health, safety or property of the unit | ||||||
18 | owners,
(v) that assessments
for additions and alterations | ||||||
19 | to the common elements or to association-owned
property not | ||||||
20 | included in the adopted annual budget, shall be separately
| ||||||
21 | assessed and are subject to approval of two-thirds of the | ||||||
22 | total votes of all
unit owners, (vi) that the board of | ||||||
23 | managers may adopt separate assessments
payable over more | ||||||
24 | than one fiscal year. With respect to multi-year | ||||||
25 | assessments
not governed by items (iv) and (v), the entire | ||||||
26 | amount of the multi-year
assessment shall be deemed |
| |||||||
| |||||||
1 | considered and authorized in the first fiscal year
in which | ||||||
2 | the assessment is approved;
| ||||||
3 | (9) that meetings of the board of managers shall be | ||||||
4 | open to any unit
owner, except for the portion of any | ||||||
5 | meeting held (i) to discuss litigation
when an action | ||||||
6 | against or on behalf of the particular association has been
| ||||||
7 | filed and is pending in a court or administrative tribunal,
| ||||||
8 | or when the board of managers finds that such an action is | ||||||
9 | probable
or imminent, (ii) to consider information | ||||||
10 | regarding appointment, employment
or dismissal of an | ||||||
11 | employee, or (iii) to discuss violations of rules and
| ||||||
12 | regulations of the association or a unit owner's unpaid | ||||||
13 | share of common
expenses; that any vote on these matters | ||||||
14 | shall be taken at a meeting or
portion thereof open to any | ||||||
15 | unit owner; that any unit owner may record the
proceedings | ||||||
16 | at meetings or portions thereof required to be open by this
| ||||||
17 | Act by tape, film or other means; that the board may | ||||||
18 | prescribe reasonable
rules and regulations to govern the | ||||||
19 | right to make such recordings, that
notice of such meetings | ||||||
20 | shall be mailed or delivered at least 48 hours
prior | ||||||
21 | thereto, unless a written waiver of such notice is signed | ||||||
22 | by the
person or persons entitled to such notice pursuant | ||||||
23 | to the declaration,
bylaws, other condominium instrument, | ||||||
24 | or provision of law other than this
subsection before the | ||||||
25 | meeting is convened, and that copies of notices of
meetings | ||||||
26 | of the board of managers shall be posted in entranceways,
|
| |||||||
| |||||||
1 | elevators, or other conspicuous places in the condominium | ||||||
2 | at least 48 hours
prior to the meeting of the board of | ||||||
3 | managers except where there is no
common entranceway for 7 | ||||||
4 | or more units, the board of managers may designate
one or | ||||||
5 | more locations in the proximity of these units where the | ||||||
6 | notices of
meetings shall be posted;
| ||||||
7 | (10) that the board shall meet at least 4 times | ||||||
8 | annually;
| ||||||
9 | (11) that no member of the board or officer shall be | ||||||
10 | elected for a term
of more than 2 years, but that officers | ||||||
11 | and board members may succeed
themselves;
| ||||||
12 | (12) the designation of an officer to mail and receive | ||||||
13 | all notices and
execute amendments to condominium | ||||||
14 | instruments as provided for in this Act
and in the | ||||||
15 | condominium instruments;
| ||||||
16 | (13) the method of filling vacancies on the board
which | ||||||
17 | shall include authority for the remaining members of the | ||||||
18 | board to
fill the vacancy by two-thirds vote until the next | ||||||
19 | annual meeting of unit
owners or for a period terminating | ||||||
20 | no later than 30 days following the
filing of a petition | ||||||
21 | signed by unit owners holding 20% of the votes of the
| ||||||
22 | association requesting a meeting of the unit owners to fill | ||||||
23 | the vacancy for
the balance of the term, and that a meeting | ||||||
24 | of the unit owners shall be
called for purposes of filling | ||||||
25 | a vacancy on the board no later than 30 days
following the | ||||||
26 | filing of a petition signed by unit owners holding 20% of |
| |||||||
| |||||||
1 | the
votes of the association requesting such a meeting, and | ||||||
2 | the method of filling
vacancies among the officers that | ||||||
3 | shall include the authority for the members
of the board to | ||||||
4 | fill the vacancy for the unexpired portion of the term;
| ||||||
5 | (14) what percentage of the board of managers, if other | ||||||
6 | than a majority,
shall constitute a quorum;
| ||||||
7 | (15) provisions concerning notice of board meetings to | ||||||
8 | members of the
board;
| ||||||
9 | (16) the board of managers may not enter into a | ||||||
10 | contract with a
current board member
or with a corporation | ||||||
11 | or partnership in which a board
member or a member of the | ||||||
12 | board member's immediate family has 25% or
more interest, | ||||||
13 | unless notice of intent to enter the
contract is given to | ||||||
14 | unit owners within 20 days after a decision is made
to | ||||||
15 | enter into the contract and the unit owners are
afforded an | ||||||
16 | opportunity by filing a petition, signed by 20% of the unit
| ||||||
17 | owners, for an election to approve or disapprove the | ||||||
18 | contract;
such petition shall be filed within 20 days after | ||||||
19 | such notice and such
election shall be held within 30 days | ||||||
20 | after filing the petition; for purposes
of this subsection, | ||||||
21 | a board member's immediate family means the board member's
| ||||||
22 | spouse, parents, and children;
| ||||||
23 | (17) that the board of managers may disseminate
to unit | ||||||
24 | owners biographical and background information about | ||||||
25 | candidates for
election to the board if (i) reasonable | ||||||
26 | efforts to identify all candidates are
made and all |
| |||||||
| |||||||
1 | candidates are given an opportunity to include | ||||||
2 | biographical and
background information in the information | ||||||
3 | to be disseminated; and (ii) the
board does not express a | ||||||
4 | preference in favor of any candidate;
| ||||||
5 | (18) any proxy distributed for board elections
by the | ||||||
6 | board of managers gives unit owners the
opportunity to | ||||||
7 | designate any person as the proxy holder, and gives the | ||||||
8 | unit
owner the opportunity to express a preference for any | ||||||
9 | of the known
candidates for the board or to write in a | ||||||
10 | name;
| ||||||
11 | (19) that special meetings of the board of managers can | ||||||
12 | be called by
the president or 25% of the members of the | ||||||
13 | board; and
| ||||||
14 | (20) that the board of managers may establish
and | ||||||
15 | maintain a system of master metering of public utility | ||||||
16 | services and
collect payments in connection therewith, | ||||||
17 | subject to the requirements of the
Tenant Utility Payment | ||||||
18 | Disclosure Act.
| ||||||
19 | (b) (1) What percentage of the unit owners, if other than | ||||||
20 | 20%, shall
constitute a quorum provided that, for | ||||||
21 | condominiums with 20 or more units,
the percentage of unit | ||||||
22 | owners constituting a quorum shall be 20% unless the
unit | ||||||
23 | owners holding a majority of the percentage interest in the
| ||||||
24 | association provide for a higher percentage;
| ||||||
25 | (2) that the association shall have one class of | ||||||
26 | membership;
|
| |||||||
| |||||||
1 | (3) that the members shall hold an annual meeting, one | ||||||
2 | of the purposes
of which shall be to elect members of the | ||||||
3 | board of managers;
| ||||||
4 | (4) the method of calling meetings of the unit owners;
| ||||||
5 | (5) that special meetings of the members can be called | ||||||
6 | by the president,
board of managers, or by 20% of unit | ||||||
7 | owners;
| ||||||
8 | (6) that written notice of any membership meeting shall | ||||||
9 | be mailed
or delivered giving members no less than 10 and | ||||||
10 | no more than 30 days
notice of the time, place and purpose | ||||||
11 | of such meeting;
| ||||||
12 | (7) that voting shall be on a percentage basis, and | ||||||
13 | that the percentage
vote to which each unit is entitled is | ||||||
14 | the percentage interest of the
undivided ownership of the | ||||||
15 | common elements appurtenant thereto, provided
that the | ||||||
16 | bylaws may provide for approval by unit owners in | ||||||
17 | connection with
matters where the requisite approval on a | ||||||
18 | percentage basis is not specified
in this Act, on the basis | ||||||
19 | of one vote per unit;
| ||||||
20 | (8) that, where there is more than one owner of a unit, | ||||||
21 | if only one
of the multiple owners is present at a meeting | ||||||
22 | of the association, he is
entitled to cast all the votes | ||||||
23 | allocated to that unit, if more than one of
the multiple | ||||||
24 | owners are present, the votes allocated to that unit may be
| ||||||
25 | cast only in accordance with the agreement of a majority in | ||||||
26 | interest of the
multiple owners, unless the declaration |
| |||||||
| |||||||
1 | expressly provides otherwise, that
there is majority | ||||||
2 | agreement if any one of the multiple owners cast the
votes | ||||||
3 | allocated to that unit without protest being made promptly | ||||||
4 | to the
person presiding over the meeting by any of the | ||||||
5 | other owners of the unit;
| ||||||
6 | (9)(A) that unless the Articles of Incorporation or the | ||||||
7 | bylaws
otherwise
provide, and except as provided in | ||||||
8 | subparagraph (B) of this paragraph (9) in
connection with | ||||||
9 | board elections,
a unit owner may vote by proxy executed in | ||||||
10 | writing by the unit
owner or by his duly authorized | ||||||
11 | attorney in fact; that the proxy must bear the date of
| ||||||
12 | execution
and, unless the condominium instruments or the | ||||||
13 | written proxy itself provide
otherwise, is
invalid after 11 | ||||||
14 | months from the date of its execution;
| ||||||
15 | (B) that if a rule adopted at least 120 days before a | ||||||
16 | board election
or the
declaration or bylaws provide for | ||||||
17 | balloting as set forth in this subsection,
unit
owners may | ||||||
18 | not vote by proxy in board elections, but may vote only (i) | ||||||
19 | by
submitting an association-issued ballot in person at the | ||||||
20 | election meeting or
(ii) by
submitting an | ||||||
21 | association-issued ballot to the association or its | ||||||
22 | designated
agent
by mail or other means of delivery | ||||||
23 | specified in the declaration, bylaws, or
rule; that
the | ||||||
24 | ballots shall be mailed or otherwise distributed to unit | ||||||
25 | owners not less
than 10
and not more than 30 days before | ||||||
26 | the election meeting, and the board shall give
unit owners |
| |||||||
| |||||||
1 | not less than 21 days' prior written notice of the deadline | ||||||
2 | for
inclusion of a candidate's name on the ballots; that | ||||||
3 | the deadline shall be no
more
than 7 days before the | ||||||
4 | ballots are mailed or otherwise distributed to unit
owners; | ||||||
5 | that
every such ballot must include the names of all | ||||||
6 | candidates who have given the
board or its authorized agent | ||||||
7 | timely written notice of their candidacy and must
give the | ||||||
8 | person casting the ballot the opportunity to cast votes for | ||||||
9 | candidates
whose names do not appear on the ballot; that a | ||||||
10 | ballot received by the
association
or
its designated agent | ||||||
11 | after the close of voting shall not be counted; that a
unit
| ||||||
12 | owner
who submits a ballot by mail or other means of | ||||||
13 | delivery specified in the
declaration, bylaws, or rule may | ||||||
14 | request and cast a ballot in person at the
election
| ||||||
15 | meeting, and thereby void any ballot previously submitted | ||||||
16 | by that unit owner;
| ||||||
17 | (C) that if a written petition by unit owners with at | ||||||
18 | least 20% of the
votes of
the association is delivered to | ||||||
19 | the board within 14 days after the board's
approval
of a | ||||||
20 | rule adopted pursuant to subparagraph (B) of this paragraph | ||||||
21 | (9), the board
shall call a meeting of the unit owners | ||||||
22 | within 30 days after the date of
delivery of
the petition; | ||||||
23 | that unless a majority of the total votes of the unit | ||||||
24 | owners are
cast
at the
meeting to reject the rule, the rule | ||||||
25 | is ratified;
| ||||||
26 | (10) that the association may, upon adoption of the |
| |||||||
| |||||||
1 | appropriate rules by
the board of managers, conduct | ||||||
2 | elections by secret ballot whereby the voting
ballot is | ||||||
3 | marked only with the percentage interest for the unit and | ||||||
4 | the vote
itself, provided that the board further adopt | ||||||
5 | rules to verify the status of the
unit owner issuing a | ||||||
6 | proxy or casting a ballot; and further, that a candidate
| ||||||
7 | for election to the board of managers or such
candidate's | ||||||
8 | representative shall have the right to be present at the
| ||||||
9 | counting of ballots at such election;
| ||||||
10 | (11) that in the event of a resale of a condominium | ||||||
11 | unit the purchaser
of a unit from a seller other than the | ||||||
12 | developer pursuant to an installment
contract for purchase | ||||||
13 | shall during such times as he or she resides in the
unit be | ||||||
14 | counted toward a quorum for purposes of election of members | ||||||
15 | of the
board of managers at any meeting of the unit owners | ||||||
16 | called for purposes of
electing members of the board, shall | ||||||
17 | have the right to vote for the
election of members of the | ||||||
18 | board of managers and to be elected to and serve
on the | ||||||
19 | board of managers unless the seller expressly retains in | ||||||
20 | writing any
or all of such rights. In no event may the | ||||||
21 | seller and purchaser both be
counted toward a quorum, be | ||||||
22 | permitted to vote for a particular office or be
elected and | ||||||
23 | serve on the board. Satisfactory evidence of the | ||||||
24 | installment
contact shall be made available to the | ||||||
25 | association or its agents. For
purposes of this subsection, | ||||||
26 | "installment contact" shall have the same
meaning as set |
| |||||||
| |||||||
1 | forth in Section 1 (e) of "An Act relating to installment
| ||||||
2 | contracts to sell dwelling structures", approved August | ||||||
3 | 11, 1967, as amended;
| ||||||
4 | (12) the method by which matters subject to the | ||||||
5 | approval of unit owners
set forth in this Act, or in the | ||||||
6 | condominium instruments, will be
submitted to the unit | ||||||
7 | owners at special membership meetings called for such
| ||||||
8 | purposes; and
| ||||||
9 | (13) that matters subject to the affirmative vote of | ||||||
10 | not less than 2/3
of the votes of unit owners at a meeting | ||||||
11 | duly called for that purpose,
shall include, but not be | ||||||
12 | limited to:
| ||||||
13 | (i) merger or consolidation of the association;
| ||||||
14 | (ii) sale, lease, exchange, or other disposition | ||||||
15 | (excluding the mortgage
or pledge) of all, or | ||||||
16 | substantially all of the property and assets of the
| ||||||
17 | association; and
| ||||||
18 | (iii) the purchase or sale of land or of units on | ||||||
19 | behalf of all unit owners.
| ||||||
20 | (c) Election of a president from among the board of | ||||||
21 | managers, who shall
preside over the meetings of the board of | ||||||
22 | managers and of the unit owners.
| ||||||
23 | (d) Election of a secretary from among the board of | ||||||
24 | managers, who shall
keep the minutes of all meetings
of the | ||||||
25 | board of managers and of the unit owners and who shall, in | ||||||
26 | general,
perform all the duties incident to the office of |
| |||||||
| |||||||
1 | secretary.
| ||||||
2 | (e) Election of a treasurer from among the board of | ||||||
3 | managers, who shall
keep the financial records and
books of | ||||||
4 | account.
| ||||||
5 | (f) Maintenance, repair and replacement of the common | ||||||
6 | elements and
payments therefor, including the method of | ||||||
7 | approving payment vouchers.
| ||||||
8 | (g) An association with 30 or more units shall obtain and | ||||||
9 | maintain
fidelity insurance covering persons who control or | ||||||
10 | disburse funds of the
association for the maximum amount of | ||||||
11 | coverage available to protect funds
in the custody or control | ||||||
12 | of the association plus the association reserve
fund. All | ||||||
13 | management companies which are responsible for the funds held | ||||||
14 | or
administered by the association shall maintain and furnish | ||||||
15 | to the
association a fidelity bond for the maximum amount of | ||||||
16 | coverage available to
protect funds in the custody of the | ||||||
17 | management company at any time. The
association shall bear the | ||||||
18 | cost of the fidelity insurance and fidelity
bond, unless | ||||||
19 | otherwise provided by contract between the association and a
| ||||||
20 | management company. The association shall be the direct obligee | ||||||
21 | of any
such fidelity bond. A management company holding reserve | ||||||
22 | funds of an
association shall at all times maintain a separate | ||||||
23 | account for each
association, provided, however, that for | ||||||
24 | investment purposes, the Board of
Managers of an association | ||||||
25 | may authorize a management company to maintain
the | ||||||
26 | association's reserve funds in a single interest bearing |
| |||||||
| |||||||
1 | account with
similar funds of other associations. The | ||||||
2 | management company shall at all
times maintain records | ||||||
3 | identifying all moneys of each association in such
investment | ||||||
4 | account. The management company may hold all operating funds of
| ||||||
5 | associations which it manages in a single operating account but | ||||||
6 | shall at
all times maintain records identifying all moneys of | ||||||
7 | each association in
such operating account. Such operating and | ||||||
8 | reserve funds held by the
management company for the | ||||||
9 | association shall not be subject to attachment
by any creditor | ||||||
10 | of the management company.
| ||||||
11 | For the purpose of this subsection a management company | ||||||
12 | shall be
defined as a person, partnership, corporation, or | ||||||
13 | other legal entity
entitled to transact business on behalf of | ||||||
14 | others, acting on behalf of or
as an agent for a unit owner, | ||||||
15 | unit owners or association of unit owners for
the purpose of | ||||||
16 | carrying out the duties, responsibilities, and other
| ||||||
17 | obligations necessary for the day to day operation and | ||||||
18 | management of any
property subject to this Act. For purposes of | ||||||
19 | this subsection, the term
"fiduciary insurance coverage" shall | ||||||
20 | be defined as both a fidelity bond and
directors and officers | ||||||
21 | liability coverage, the fidelity bond in the full
amount of | ||||||
22 | association funds and association reserves that will be in the
| ||||||
23 | custody of the association, and the directors and officers | ||||||
24 | liability
coverage at a level as shall be determined to be | ||||||
25 | reasonable by the board of
managers, if not otherwise | ||||||
26 | established by the declaration or by laws.
|
| |||||||
| |||||||
1 | Until one year after the effective date of this amendatory | ||||||
2 | Act of 1985,
if a condominium association has reserves plus | ||||||
3 | assessments in excess of
$250,000 and cannot reasonably obtain | ||||||
4 | 100% fidelity bond coverage for such
amount, then it must | ||||||
5 | obtain a fidelity bond coverage of $250,000.
| ||||||
6 | (h) Method of estimating the amount of the annual budget, | ||||||
7 | and the manner
of assessing and collecting from the unit owners | ||||||
8 | their respective shares of
such estimated expenses, and of any | ||||||
9 | other expenses lawfully agreed upon.
| ||||||
10 | (i) That upon 10 days notice to the manager or board of | ||||||
11 | managers and
payment of a reasonable fee, any unit owner shall | ||||||
12 | be furnished a statement
of his account setting forth the | ||||||
13 | amount of any unpaid assessments or other
charges due and owing | ||||||
14 | from such owner.
| ||||||
15 | (j) Designation and removal of personnel necessary for the | ||||||
16 | maintenance,
repair and replacement of the common elements.
| ||||||
17 | (k) Such restrictions on and requirements respecting the | ||||||
18 | use and
maintenance of the units and the use of the common | ||||||
19 | elements, not set forth
in the declaration, as are designed to | ||||||
20 | prevent unreasonable interference
with the use of their | ||||||
21 | respective units and of the common elements by the
several unit | ||||||
22 | owners.
| ||||||
23 | (l) Method of adopting and of amending administrative rules | ||||||
24 | and
regulations governing the operation and use of the common | ||||||
25 | elements.
| ||||||
26 | (m) The percentage of votes required to modify or amend the |
| |||||||
| |||||||
1 | bylaws, but
each one of the particulars set forth in this | ||||||
2 | section shall always be
embodied in the bylaws.
| ||||||
3 | (n) (i) The provisions of this Act, the declaration, | ||||||
4 | bylaws, other
condominium instruments, and rules and | ||||||
5 | regulations that relate to the use
of the individual unit or | ||||||
6 | the common elements shall be applicable to
any person leasing a | ||||||
7 | unit and shall be deemed to be incorporated in any
lease | ||||||
8 | executed or renewed on or after the effective date of this | ||||||
9 | amendatory
Act of 1984. (ii) With regard to any lease entered | ||||||
10 | into subsequent to the
effective date of this amendatory Act of | ||||||
11 | 1989, the unit owner leasing the
unit shall deliver a copy of | ||||||
12 | the signed lease to the board or if the
lease is oral, a | ||||||
13 | memorandum of the lease, not later than the date of
occupancy | ||||||
14 | or 10 days after the lease is signed, whichever occurs first. | ||||||
15 | In
addition to any other remedies, by filing an action jointly | ||||||
16 | against the
tenant and the unit owner, an association may seek | ||||||
17 | to enjoin a tenant from
occupying a unit or seek to evict a | ||||||
18 | tenant under the provisions of Article
IX of the Code of Civil | ||||||
19 | Procedure for failure of the lessor-owner to
comply with the | ||||||
20 | leasing requirements prescribed by
this Section or by the | ||||||
21 | declaration, bylaws, and
rules and regulations. However, if an | ||||||
22 | association that currently permits leasing amends its | ||||||
23 | declaration, bylaws, or rules and regulations, to prohibit | ||||||
24 | leasing, nothing in this Act or the declarations, bylaws, rules | ||||||
25 | and regulations of an association, shall prohibit a unit owner | ||||||
26 | who is leasing his or her unit or units at the time of the |
| |||||||
| |||||||
1 | prohibition from continuing to do so, until such time that the | ||||||
2 | unit owner voluntarily sells the unit or units; and no special | ||||||
3 | fines, fees, dues, or penalties shall be assessed against the | ||||||
4 | unit owner for leasing his or her unit or units. The board of | ||||||
5 | managers may proceed directly against a
tenant, at law or in | ||||||
6 | equity, or under the provisions of Article IX of the
Code of | ||||||
7 | Civil Procedure, for any other breach by tenant of any
| ||||||
8 | covenants, rules, regulations or bylaws.
| ||||||
9 | (o) The association shall have no authority to forbear the | ||||||
10 | payment
of assessments by any unit owner.
| ||||||
11 | (p) That when 30% or fewer of the units, by number,
possess | ||||||
12 | over 50% in the aggregate of the votes in the association,
any | ||||||
13 | percentage vote of members specified herein or in the | ||||||
14 | condominium
instruments shall require the specified percentage | ||||||
15 | by number of units
rather than by percentage of interest in the | ||||||
16 | common elements allocated
to units that would otherwise be | ||||||
17 | applicable. For purposes of this subsection (p), when making a | ||||||
18 | determination of whether 30% or fewer of the units, by number, | ||||||
19 | possess over 50% in the aggregate of the votes in the | ||||||
20 | association, a unit shall not include a garage unit or a | ||||||
21 | storage unit.
| ||||||
22 | (q) That a unit owner may not assign, delegate, transfer, | ||||||
23 | surrender, or
avoid the duties, responsibilities, and | ||||||
24 | liabilities of a unit owner under this
Act, the condominium | ||||||
25 | instruments, or the rules and regulations of the
Association; | ||||||
26 | and that such an attempted assignment, delegation, transfer,
|
| |||||||
| |||||||
1 | surrender, or avoidance shall be deemed void.
| ||||||
2 | The provisions of this Section are applicable to all | ||||||
3 | condominium
instruments recorded under this Act. Any portion of | ||||||
4 | a condominium
instrument which contains provisions contrary to | ||||||
5 | these provisions shall be
void as against public policy and | ||||||
6 | ineffective. Any such instrument which
fails to contain the | ||||||
7 | provisions required by this Section shall be deemed to
| ||||||
8 | incorporate such provisions by operation of law.
| ||||||
9 | (Source: P.A. 95-624, eff. 6-1-08.)
| ||||||
10 | (765 ILCS 605/18.4) (from Ch. 30, par. 318.4)
| ||||||
11 | Sec. 18.4. Powers and Duties of Board of Managers. The | ||||||
12 | board of
managers shall exercise for the association all | ||||||
13 | powers, duties and
authority vested in the association by law | ||||||
14 | or the condominium instruments
except for such powers, duties | ||||||
15 | and authority reserved by law to the members
of the | ||||||
16 | association. The powers and duties of the board of managers | ||||||
17 | shall
include, but shall not be limited to, the following:
| ||||||
18 | (a) To provide for the operation, care, upkeep, | ||||||
19 | maintenance,
replacement and improvement of the common | ||||||
20 | elements. Nothing
in
this subsection (a) shall be deemed to | ||||||
21 | invalidate any provision in a
condominium instrument | ||||||
22 | placing limits on expenditures for the common elements, | ||||||
23 | provided, that such
limits shall not be applicable to | ||||||
24 | expenditures for repair, replacement, or
restoration of | ||||||
25 | existing portions of the common elements. The
term "repair, |
| |||||||
| |||||||
1 | replacement or restoration" means expenditures to | ||||||
2 | deteriorated or
damaged portions of the property related to | ||||||
3 | the existing decorating,
facilities, or structural or | ||||||
4 | mechanical components, interior or exterior
surfaces, or | ||||||
5 | energy systems and equipment with the functional | ||||||
6 | equivalent of the
original portions of such areas. | ||||||
7 | Replacement of the common elements may
result in an | ||||||
8 | improvement over the original quality of such elements or
| ||||||
9 | facilities; provided that, unless the improvement is | ||||||
10 | mandated by law or is an
emergency as defined in item (iv) | ||||||
11 | of subparagraph (8) of paragraph (a) of
Section 18, if the | ||||||
12 | improvement results in a proposed expenditure
exceeding 5% | ||||||
13 | of the annual budget, the board of managers, upon written | ||||||
14 | petition
by unit owners with 20% of the votes of the | ||||||
15 | association delivered to the board
within 14 days of the | ||||||
16 | board action to approve the expenditure, shall call a
| ||||||
17 | meeting of the unit owners within 30 days of the date of | ||||||
18 | delivery of the
petition to consider the expenditure. | ||||||
19 | Unless a majority of the total votes of
the unit owners are | ||||||
20 | cast at the meeting to reject the expenditure, it is
| ||||||
21 | ratified.
| ||||||
22 | (b) To prepare, adopt and distribute the annual budget | ||||||
23 | for the property.
| ||||||
24 | (c) To levy and expend assessments.
| ||||||
25 | (d) To collect assessments from unit
owners.
| ||||||
26 | (e) To provide for the employment and dismissal of the |
| |||||||
| |||||||
1 | personnel
necessary or advisable for the maintenance and | ||||||
2 | operation of the common
elements.
| ||||||
3 | (f) To obtain adequate and appropriate kinds of
| ||||||
4 | insurance.
| ||||||
5 | (g) To own, convey, encumber, lease, and otherwise deal | ||||||
6 | with units
conveyed to or purchased by it.
| ||||||
7 | (h) To adopt and amend rules and regulations covering | ||||||
8 | the details of
the operation and use of the property, after | ||||||
9 | a meeting of the unit owners
called for the specific | ||||||
10 | purpose of discussing the proposed rules and
regulations. | ||||||
11 | Notice of the meeting shall contain the full text of the
| ||||||
12 | proposed rules and regulations, and the meeting shall | ||||||
13 | conform to the
requirements of Section 18(b) of this Act, | ||||||
14 | except that no quorum is
required at the meeting of the | ||||||
15 | unit owners unless the declaration, bylaws
or other | ||||||
16 | condominium instrument expressly provides to the contrary.
| ||||||
17 | However, no rule or regulation may impair any rights | ||||||
18 | guaranteed by the
First Amendment to the Constitution of | ||||||
19 | the United States or Section 4 of
Article I of the Illinois | ||||||
20 | Constitution including, but not limited to, the free | ||||||
21 | exercise of religion, nor may any rules or regulations
| ||||||
22 | conflict with the provisions of this Act or the condominium | ||||||
23 | instruments. No rule or regulation shall prohibit any | ||||||
24 | reasonable accommodation for religious practices, | ||||||
25 | including the attachment of religiously mandated objects | ||||||
26 | to the front-door area of a condominium unit.
However, if |
| |||||||
| |||||||
1 | an association that currently permits leasing amends its | ||||||
2 | declaration, bylaws, or rules and regulations, to prohibit | ||||||
3 | leasing, nothing in this Act or the declarations, bylaws, | ||||||
4 | rules and regulations of an association, shall prohibit a | ||||||
5 | unit owner who is leasing his or her unit or units at the | ||||||
6 | time of the prohibition from continuing to do so, until | ||||||
7 | such time that the unit owner voluntarily sells the unit or | ||||||
8 | units; and no special fines, fees, dues, or penalties shall | ||||||
9 | be assessed against the unit owner for leasing his or her | ||||||
10 | unit or units.
| ||||||
11 | (i) To keep detailed, accurate records of the receipts | ||||||
12 | and
expenditures affecting the use and operation of the | ||||||
13 | property.
| ||||||
14 | (j) To have access to each unit from time to time as | ||||||
15 | may be necessary
for the maintenance, repair or replacement | ||||||
16 | of any common elements or for
making emergency repairs | ||||||
17 | necessary to prevent damage to the common elements
or to | ||||||
18 | other units.
| ||||||
19 | (k) To pay real property taxes, special assessments, | ||||||
20 | and any other
special taxes or charges of the State of | ||||||
21 | Illinois or of any political
subdivision thereof, or other | ||||||
22 | lawful taxing or assessing body, which are
authorized by | ||||||
23 | law to be assessed and levied upon the real property of the
| ||||||
24 | condominium.
| ||||||
25 | (l) To impose charges for late payment of a unit | ||||||
26 | owner's proportionate
share of the common expenses, or any |
| |||||||
| |||||||
1 | other expenses lawfully agreed upon,
and after notice and | ||||||
2 | an opportunity to be heard, to levy reasonable fines
for | ||||||
3 | violation of the declaration, by-laws, and rules and | ||||||
4 | regulations of
the association.
| ||||||
5 | (m) Unless the condominium instruments expressly | ||||||
6 | provide to the
contrary, by a majority vote of the entire | ||||||
7 | board of managers, to assign the
right of the association | ||||||
8 | to future income from common expenses or other
sources, and | ||||||
9 | to mortgage or pledge substantially all of the remaining
| ||||||
10 | assets of the association.
| ||||||
11 | (n) To record the dedication of a portion of the common | ||||||
12 | elements
to a public body for use as, or in connection | ||||||
13 | with, a street or utility
where authorized by the unit | ||||||
14 | owners under the provisions of Section 14.2.
| ||||||
15 | (o) To record the granting of an easement for the | ||||||
16 | laying of cable
television cable where authorized by the | ||||||
17 | unit owners under the provisions
of Section 14.3; to | ||||||
18 | obtain, if available and determined by the board to be in
| ||||||
19 | the best interests of the association, cable television
| ||||||
20 | service for all of the units of the condominium on a bulk
| ||||||
21 | identical service and equal cost per unit basis; and to | ||||||
22 | assess and recover the
expense as a common expense and, if | ||||||
23 | so determined by the board, to assess each
and every unit | ||||||
24 | on the same equal cost per unit basis.
| ||||||
25 | (p) To seek relief on behalf of all unit owners when | ||||||
26 | authorized
pursuant to subsection (c) of Section 10 from or |
| |||||||
| |||||||
1 | in connection with the
assessment or levying of real | ||||||
2 | property taxes, special assessments, and any
other special | ||||||
3 | taxes or changes of the State of Illinois or of any | ||||||
4 | political
subdivision thereof or of any lawful taxing or | ||||||
5 | assessing body.
| ||||||
6 | (q) To reasonably accommodate the needs of a | ||||||
7 | handicapped unit owner
as required by the federal Civil | ||||||
8 | Rights Act of 1968, the Human Rights Act
and any applicable | ||||||
9 | local ordinances in the exercise of its powers with
respect | ||||||
10 | to the use of common elements or approval of modifications | ||||||
11 | in an
individual unit.
| ||||||
12 | (r) To accept service of a notice of claim for purposes | ||||||
13 | of the Mechanics Lien Act on behalf of each respective | ||||||
14 | member of the Unit Owners' Association with respect to | ||||||
15 | improvements performed pursuant to any contract entered | ||||||
16 | into by the Board of Managers or any contract entered into | ||||||
17 | prior to the recording of the condominium declaration | ||||||
18 | pursuant to this Act, for a property containing more than 8 | ||||||
19 | units, and to distribute the notice to the unit owners | ||||||
20 | within 7 days of the acceptance of the service by the Board | ||||||
21 | of Managers. The service shall be effective as if each | ||||||
22 | individual unit owner had been served individually with | ||||||
23 | notice.
| ||||||
24 | In the performance of their duties, the officers and | ||||||
25 | members of the board,
whether appointed by the developer or | ||||||
26 | elected by the unit owners, shall
exercise the care required of |
| |||||||
| |||||||
1 | a fiduciary of the unit owners.
| ||||||
2 | The collection of assessments from unit owners by an | ||||||
3 | association, board
of managers or their duly authorized agents | ||||||
4 | shall not be considered acts
constituting a collection agency | ||||||
5 | for purposes of the Collection Agency Act.
| ||||||
6 | The provisions of this Section are
applicable to all | ||||||
7 | condominium instruments recorded under this Act. Any
portion of | ||||||
8 | a condominium instrument which contains provisions contrary to
| ||||||
9 | these provisions shall be void as against public policy and | ||||||
10 | ineffective.
Any such instrument that fails to contain the | ||||||
11 | provisions required by this
Section shall be deemed to | ||||||
12 | incorporate such provisions by operation of law.
| ||||||
13 | (Source: P.A. 94-384, eff. 1-1-06; 94-729, eff. 1-1-07.)
| ||||||
14 | Section 10. The General Not For Profit Corporation Act of | ||||||
15 | 1986 is amended by adding Section 103.35 as follows: | ||||||
16 | (805 ILCS 105/103.35 new)
| ||||||
17 | Sec. 103.35. Leasing units. | ||||||
18 | (a) If a common interest community or homeowners' | ||||||
19 | association's that currently permits leasing amends its | ||||||
20 | declaration, covenants, bylaws, rules, regulations, or any | ||||||
21 | other instruments, to prohibit leasing, nothing in this Act, or | ||||||
22 | a common interest community or homeowners' association's | ||||||
23 | declaration, covenants, bylaws, rules, regulations, or any | ||||||
24 | other instruments, shall prohibit a unit owner who is leasing |
| |||||||
| |||||||
1 | his or her unit or units at the time of the prohibition from | ||||||
2 | continuing to do so, until such time that the unit owner | ||||||
3 | voluntarily sells the unit or units; and no special fines, | ||||||
4 | fees, dues, or penalties shall be assessed against the unit | ||||||
5 | owner for leasing his or her unit or units. | ||||||
6 | (b) As used in this Section: | ||||||
7 | "Homeowners' association" includes a property owners' | ||||||
8 | association, townhome association, and any similar entity, | ||||||
9 | and "homeowner" includes a townhome owner. | ||||||
10 | "Common interest community" means the definition | ||||||
11 | provided in subsection (c) of Section 9-102 of the Code of | ||||||
12 | Civil Procedure. | ||||||
13 | Section 95. No acceleration or delay. Where this Act makes | ||||||
14 | changes in a statute that is represented in this Act by text | ||||||
15 | that is not yet or no longer in effect (for example, a Section | ||||||
16 | represented by multiple versions), the use of that text does | ||||||
17 | not accelerate or delay the taking effect of (i) the changes | ||||||
18 | made by this Act or (ii) provisions derived from any other | ||||||
19 | Public Act.
| ||||||
20 | Section 99. Effective date. This Act takes effect upon | ||||||
21 | becoming law.".
|