98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB3040

 

Introduced 2/7/2014, by Sen. Kwame Raoul

 

SYNOPSIS AS INTRODUCED:
 
765 ILCS 160/1-5
765 ILCS 160/1-25
765 ILCS 160/1-75
765 ILCS 160/1-85 new
765 ILCS 605/2  from Ch. 30, par. 302
765 ILCS 605/18  from Ch. 30, par. 318
765 ILCS 605/18.8 new

    Amends the Common Interest Community Association Act and the Condominium Property Act. Defines "acceptable technological means" and "electronic transmission". Provides that "prescribed delivery method" includes electronic transmission. Provides that electronic votes are valid for the purpose of establishing a quorum. Provides that an association may conduct elections by electronic or acceptable technological means and adds provisions concerning the procedure for conducting such elections. Deletes provisions concerning secret ballots. Provides that, with exceptions, any notice required to be sent or received or signature, vote, consent, or approval required to be obtained may be accomplished using the most advanced technology available at that time. Provides that a verifiable electronic signature satisfies any requirement for a signature. Provides that no action need be acknowledged before a notary public if the identity and signature of the person can otherwise be authenticated to the satisfaction of the board of directors. Provides that if a person does not have the capability or desire to conduct business using electronic transmission or other equivalent technological means, the common interest community association shall make reasonable accommodation, at its expense, for the person to conduct business with the association without the use of electronic or other means. Provides that certain common interest community associations having 10 units or less (instead of "either (i) 10 units or less or (ii) annual budgeted assessments of $100,000 or less") are exempt from the Common Interest Community Association Act.


LRB098 17495 HEP 52602 b

 

 

A BILL FOR

 

SB3040LRB098 17495 HEP 52602 b

1    AN ACT concerning civil law.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Common Interest Community Association Act is
5amended by changing Sections 1-5, 1-25, and 1-75 and by adding
6Section 1-85 as follows:
 
7    (765 ILCS 160/1-5)
8    Sec. 1-5. Definitions. As used in this Act, unless the
9context otherwise requires:
10    "Acceptable technological means" includes, without
11limitation, electronic transmission over the Internet or other
12network, whether by direct connection, intranet, telecopier,
13or electronic mail.
14    "Association" or "common interest community association"
15means the association of all the members of a common interest
16community, acting pursuant to bylaws through its duly elected
17board of managers or board of directors.
18    "Board" means a common interest community association's
19board of managers or board of directors, whichever is
20applicable.
21    "Board member" or "member of the board" means a member of
22the board of managers or the board of directors, whichever is
23applicable.

 

 

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1    "Board of directors" means, for a common interest community
2that has been incorporated as an Illinois not-for-profit
3corporation, the group of people elected by the members of a
4common interest community as the governing body to exercise for
5the members of the common interest community association all
6powers, duties, and authority vested in the board of directors
7under this Act and the common interest community association's
8declaration and bylaws.
9    "Board of managers" means, for a common interest community
10that is an unincorporated association, the group of people
11elected by the members of a common interest community as the
12governing body to exercise for the members of the common
13interest community association all powers, duties, and
14authority vested in the board of managers under this Act and
15the common interest community association's declaration and
16bylaws.
17    "Building" means all structures, attached or unattached,
18containing one or more units.
19    "Common areas" means the portion of the property other than
20a unit.
21    "Common expenses" means the proposed or actual expenses
22affecting the property, including reserves, if any, lawfully
23assessed by the common interest community association.
24    "Common interest community" means real estate other than a
25condominium or cooperative with respect to which any person by
26virtue of his or her ownership of a partial interest or a unit

 

 

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1therein is obligated to pay for the maintenance, improvement,
2insurance premiums or real estate taxes of common areas
3described in a declaration which is administered by an
4association. "Common interest community" may include, but not
5be limited to, an attached or detached townhome, villa, or
6single-family home. A "common interest community" does not
7include a master association.
8    "Community instruments" means all documents and authorized
9amendments thereto recorded by a developer or common interest
10community association, including, but not limited to, the
11declaration, bylaws, plat of survey, and rules and regulations.
12    "Declaration" means any duly recorded instruments, however
13designated, that have created a common interest community and
14any duly recorded amendments to those instruments.
15    "Developer" means any person who submits property legally
16or equitably owned in fee simple by the person to the
17provisions of this Act, or any person who offers units legally
18or equitably owned in fee simple by the person for sale in the
19ordinary course of such person's business, including any
20successor to such person's entire interest in the property
21other than the purchaser of an individual unit.
22    "Developer control" means such control at a time prior to
23the election of the board of the common interest community
24association by a majority of the members other than the
25developer.
26    "Electronic transmission" means any form of communication,

 

 

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1not directly involving the physical transmission of paper, that
2creates a record that may be retained, retrieved, and reviewed
3by a recipient and that may be directly reproduced in paper
4form by the recipient through an automated process.
5    "Majority" or "majority of the members" means the owners of
6more than 50% in the aggregate in interest of the undivided
7ownership of the common elements. Any specified percentage of
8the members means such percentage in the aggregate in interest
9of such undivided ownership. "Majority" or "majority of the
10members of the board of the common interest community
11association" means more than 50% of the total number of persons
12constituting such board pursuant to the bylaws. Any specified
13percentage of the members of the common interest community
14association means that percentage of the total number of
15persons constituting such board pursuant to the bylaws.
16    "Management company" or "community association manager"
17means a person, partnership, corporation, or other legal entity
18entitled to transact business on behalf of others, acting on
19behalf of or as an agent for an association for the purpose of
20carrying out the duties, responsibilities, and other
21obligations necessary for the day to day operation and
22management of any property subject to this Act.
23    "Meeting of the board" or "board meeting" means any
24gathering of a quorum of the members of the board of the common
25interest community association held for the purpose of
26conducting board business.

 

 

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1    "Member" means the person or entity designated as an owner
2and entitled to one vote as defined by the community
3instruments. The terms "member" and "unit owner" may be used
4interchangeably as defined by the community instruments,
5except in situations in which a matter of legal title to the
6unit is involved or at issue, in which case the term "unit
7owner" would be the applicable term used.
8    "Membership" means the collective group of members
9entitled to vote as defined by the community instruments.
10    "Parcel" means the lot or lots or tract or tracts of land
11described in the declaration as part of a common interest
12community.
13    "Person" means a natural individual, corporation,
14partnership, trustee, or other legal entity capable of holding
15title to real property.
16    "Plat" means a plat or plats of survey of the parcel and of
17all units in the common interest community, which may consist
18of a three-dimensional horizontal and vertical delineation of
19all such units, structures, easements, and common areas on the
20property.
21    "Prescribed delivery method" means mailing, delivering,
22posting in an association publication that is routinely mailed
23to all members, electronic transmission, or any other delivery
24method that is approved in writing by the member and authorized
25by the community instruments.
26    "Property" means all the land, property, and space

 

 

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1comprising the parcel, all improvements and structures
2erected, constructed or contained therein or thereon,
3including any building and all easements, rights, and
4appurtenances belonging thereto, and all fixtures and
5equipment intended for the mutual use, benefit, or enjoyment of
6the members, under the authority or control of a common
7interest community association.
8    "Purchaser" means any person or persons, other than the
9developer, who purchase a unit in a bona fide transaction for
10value.
11    "Record" means to record in the office of the recorder of
12the county wherein the property is located.
13    "Reserves" means those sums paid by members which are
14separately maintained by the common interest community
15association for purposes specified by the declaration and
16bylaws of the common interest community association.
17    "Unit" means a part of the property designed and intended
18for any type of independent use.
19    "Unit owner" means the person or persons whose estates or
20interests, individually or collectively, aggregate fee simple
21absolute ownership of a unit.
22(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11;
2397-1090, eff. 8-24-12.)
 
24    (765 ILCS 160/1-25)
25    Sec. 1-25. Board of managers, board of directors, duties,

 

 

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1elections, and voting.
2    (a) Elections shall be held in accordance with the
3community instruments, provided that an election shall be held
4no less frequently than once every 24 months, for the board of
5managers or board of directors from among the membership of a
6common interest community association.
7    (b) (Blank).
8    (c) The members of the board shall serve without
9compensation, unless the community instruments indicate
10otherwise.
11    (d) No member of the board or officer shall be elected for
12a term of more than 4 years, but officers and board members may
13succeed themselves.
14    (e) If there is a vacancy on the board, the remaining
15members of the board may fill the vacancy by a two-thirds vote
16of the remaining board members until the next annual meeting of
17the membership or until members holding 20% of the votes of the
18association request a meeting of the members to fill the
19vacancy for the balance of the term. A meeting of the members
20shall be called for purposes of filling a vacancy on the board
21no later than 30 days following the filing of a petition signed
22by membership holding 20% of the votes of the association
23requesting such a meeting.
24    (f) There shall be an election of a:
25        (1) president from among the members of the board, who
26    shall preside over the meetings of the board and of the

 

 

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1    membership;
2        (2) secretary from among the members of the board, who
3    shall keep the minutes of all meetings of the board and of
4    the membership and who shall, in general, perform all the
5    duties incident to the office of secretary; and
6        (3) treasurer from among the members of the board, who
7    shall keep the financial records and books of account.
8    (g) If no election is held to elect board members within
9the time period specified in the bylaws, or within a reasonable
10amount of time thereafter not to exceed 90 days, then 20% of
11the members may bring an action to compel compliance with the
12election requirements specified in the bylaws. If the court
13finds that an election was not held to elect members of the
14board within the required period due to the bad faith acts or
15omissions of the board of managers or the board of directors,
16the members shall be entitled to recover their reasonable
17attorney's fees and costs from the association. If the relevant
18notice requirements have been met and an election is not held
19solely due to a lack of a quorum, then this subsection (g) does
20not apply.
21    (h) Where there is more than one owner of a unit and there
22is only one member vote associated with that unit, if only one
23of the multiple owners is present at a meeting of the
24membership, he or she is entitled to cast the member vote
25associated with that unit.
26    (h-5) A member may vote:

 

 

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1        (1) by proxy executed in writing by the member or by
2    his or her duly authorized attorney in fact, provided,
3    however, that the proxy bears the date of execution. Unless
4    the community instruments or the written proxy itself
5    provide otherwise, proxies will not be valid for more than
6    11 months after the date of its execution; or
7        (2) by submitting an association-issued ballot in
8    person at the election meeting; or
9        (3) by submitting an association-issued ballot to the
10    association or its designated agent by mail or other means
11    of delivery specified in the declaration or bylaws; or .
12        (4) by any electronic or acceptable technological
13    means.
14    Votes cast under any paragraph of this subsection (h-5) are
15valid for the purpose of establishing a quorum.
16    (i) The association may, upon adoption of the appropriate
17rules by the board, conduct elections by electronic or
18acceptable technological means. Members may not vote by proxy
19in board elections. Instructions regarding the use of
20electronic means or acceptable technological means for voting
21shall be distributed to all members not less than 10 and not
22more than 30 days before the election meeting. The instruction
23notice must include the names of all candidates who have given
24the board or its authorized agent timely written notice of
25their candidacy and must give the person voting through
26electronic or acceptable technological means the opportunity

 

 

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1to cast votes for candidates whose names do not appear on the
2ballot. The board rules shall provide and the instructions
3provided to the member shall state that a member who submits a
4vote using electronic or acceptable technological means may
5request and cast a ballot in person at the election meeting,
6and thereby void any vote previously submitted by that member.
7secret ballot, distributed by the association, whereby the
8voting ballot is marked only with the voting interest for the
9member and the vote itself, provided that the association shall
10further adopt rules to verify the status of the member casting
11a ballot and provided further that proxies shall not be
12allowed. A candidate for election to the board or such
13candidate's representative shall have the right to be present
14at the counting of ballots at such election.
15    (j) Upon proof of purchase, the purchaser of a unit from a
16seller other than the developer pursuant to an installment
17contract for purchase shall, during such times as he or she
18resides in the unit, be counted toward a quorum for purposes of
19election of members of the board at any meeting of the
20membership called for purposes of electing members of the
21board, shall have the right to vote for the members of the
22board of the common interest community association and to be
23elected to and serve on the board unless the seller expressly
24retains in writing any or all of such rights.
25(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11;
2697-1090, eff. 8-24-12.)
 

 

 

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1    (765 ILCS 160/1-75)
2    Sec. 1-75. Exemptions for small common interest
3communities.
4    (a) A common interest community association organized
5under the General Not for Profit Corporation Act of 1986 and
6having either (i) 10 units or less or (ii) annual budgeted
7assessments of $100,000 or less shall be exempt from this Act
8unless the association affirmatively elects to be covered by
9this Act by a majority of its directors or members.
10    (b) Common interest community associations which in their
11declaration, bylaws, or other governing documents provide that
12the association may not use the courts or an arbitration
13process to collect or enforce assessments, fines, or similar
14levies and common interest community associations (i) of 10
15units or less or (ii) having annual budgeted assessments of
16$50,000 or less shall be exempt from subsection (a) of Section
171-30, subsections (a) and (b) of Section 1-40, and Section 1-55
18but shall be required to provide notice of meetings to members
19in a manner and at a time that will allow members to
20participate in those meetings.
21(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11;
2297-1090, eff. 8-24-12.)
 
23    (765 ILCS 160/1-85 new)
24    Sec. 1-85. Use of technology.

 

 

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1    (a) Any notice required to be sent or received or
2signature, vote, consent, or approval required to be obtained
3under any community instrument or any provision of this Act may
4be accomplished using the most advanced technology available at
5that time. This Section governs the use of technology in
6implementing the provisions of any community instrument or any
7provision of this Act concerning notices, signatures, votes,
8consents, or approvals.
9    (b) The common interest community association, unit
10owners, and other persons entitled to occupy a unit may perform
11any obligation or exercise any right under any community
12instrument or any provision of this Act by use of any
13technological means that provides sufficient security,
14reliability, identification, and verifiability.
15    (c) A verifiable electronic signature satisfies any
16requirement for a signature under any community instrument or
17any provision of this Act.
18    (d) Voting on, consent to, and approval of any matter under
19any community instrument or any provision of this Act may be
20accomplished by electronic transmission or other equivalent
21technological means, provided that a record is created as
22evidence thereof and maintained as long as the record would be
23required to be maintained in nonelectronic form.
24    (e) Subject to other provisions of law, no action required
25or permitted by any community instrument or any provision of
26this Act need be acknowledged before a notary public if the

 

 

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1identity and signature of the person can otherwise be
2authenticated to the satisfaction of the board of directors.
3    (f) If any person does not have the capability or desire to
4conduct business using electronic transmission or other
5equivalent technological means, the common interest community
6association shall make reasonable accommodation, at its
7expense, for the person to conduct business with the common
8interest community association without the use of electronic or
9other means.
10    (g) This Section does not apply to any notices required
11under Article IX of the Code of Civil Procedure related to: (i)
12an action by the common interest community association to
13collect a common expense; or (ii) foreclosure proceedings in
14enforcement of any lien rights under this Act.
 
15    Section 10. The Condominium Property Act is amended by
16changing Sections 2 and 18 and by adding Section 18.8 as
17follows:
 
18    (765 ILCS 605/2)  (from Ch. 30, par. 302)
19    Sec. 2. Definitions. As used in this Act, unless the
20context otherwise requires:
21    (a) "Declaration" means the instrument by which the
22property is submitted to the provisions of this Act, as
23hereinafter provided, and such declaration as from time to time
24amended.

 

 

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1    (b) "Parcel" means the lot or lots, tract or tracts of
2land, described in the declaration, submitted to the provisions
3of this Act.
4    (c) "Property" means all the land, property and space
5comprising the parcel, all improvements and structures
6erected, constructed or contained therein or thereon,
7including the building and all easements, rights and
8appurtenances belonging thereto, and all fixtures and
9equipment intended for the mutual use, benefit or enjoyment of
10the unit owners, submitted to the provisions of this Act.
11    (d) "Unit" means a part of the property designed and
12intended for any type of independent use.
13    (e) "Common Elements" means all portions of the property
14except the units, including limited common elements unless
15otherwise specified.
16    (f) "Person" means a natural individual, corporation,
17partnership, trustee or other legal entity capable of holding
18title to real property.
19    (g) "Unit Owner" means the person or persons whose estates
20or interests, individually or collectively, aggregate fee
21simple absolute ownership of a unit, or, in the case of a
22leasehold condominium, the lessee or lessees of a unit whose
23leasehold ownership of the unit expires simultaneously with the
24lease described in item (x) of this Section.
25    (h) "Majority" or "majority of the unit owners" means the
26owners of more than 50% in the aggregate in interest of the

 

 

SB3040- 15 -LRB098 17495 HEP 52602 b

1undivided ownership of the common elements. Any specified
2percentage of the unit owners means such percentage in the
3aggregate in interest of such undivided ownership. "Majority"
4or "majority of the members of the board of managers" means
5more than 50% of the total number of persons constituting such
6board pursuant to the bylaws. Any specified percentage of the
7members of the board of managers means that percentage of the
8total number of persons constituting such board pursuant to the
9bylaws.
10    (i) "Plat" means a plat or plats of survey of the parcel
11and of all units in the property submitted to the provisions of
12this Act, which may consist of a three-dimensional horizontal
13and vertical delineation of all such units.
14    (j) "Record" means to record in the office of the recorder
15or, whenever required, to file in the office of the Registrar
16of Titles of the county wherein the property is located.
17    (k) "Conversion Condominium" means a property which
18contains structures, excepting those newly constructed and
19intended for condominium ownership, which are, or have
20previously been, wholly or partially occupied before recording
21of condominium instruments by persons other than those who have
22contracted for the purchase of condominiums.
23    (l) "Condominium Instruments" means all documents and
24authorized amendments thereto recorded pursuant to the
25provisions of the Act, including the declaration, bylaws and
26plat.

 

 

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1    (m) "Common Expenses" means the proposed or actual expenses
2affecting the property, including reserves, if any, lawfully
3assessed by the Board of Managers of the Unit Owner's
4Association.
5    (n) "Reserves" means those sums paid by unit owners which
6are separately maintained by the board of managers for purposes
7specified by the board of managers or the condominium
8instruments.
9    (o) "Unit Owners' Association" or "Association" means the
10association of all the unit owners, acting pursuant to bylaws
11through its duly elected board of managers.
12    (p) "Purchaser" means any person or persons other than the
13Developer who purchase a unit in a bona fide transaction for
14value.
15    (q) "Developer" means any person who submits property
16legally or equitably owned in fee simple by the developer, or
17leased to the developer under a lease described in item (x) of
18this Section, to the provisions of this Act, or any person who
19offers units legally or equitably owned in fee simple by the
20developer, or leased to the developer under a lease described
21in item (x) of this Section, for sale in the ordinary course of
22such person's business, including any successor or successors
23to such developers' entire interest in the property other than
24the purchaser of an individual unit.
25    (r) "Add-on Condominium" means a property to which
26additional property may be added in accordance with condominium

 

 

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1instruments and this Act.
2    (s) "Limited Common Elements" means a portion of the common
3elements so designated in the declaration as being reserved for
4the use of a certain unit or units to the exclusion of other
5units, including but not limited to balconies, terraces, patios
6and parking spaces or facilities.
7    (t) "Building" means all structures, attached or
8unattached, containing one or more units.
9    (u) "Master Association" means an organization described
10in Section 18.5 whether or not it is also an association
11described in Section 18.3.
12    (v) "Developer Control" means such control at a time prior
13to the election of the Board of Managers provided for in
14Section 18.2(b) of this Act.
15    (w) "Meeting of Board of Managers or Board of Master
16Association" means any gathering of a quorum of the members of
17the Board of Managers or Board of the Master Association held
18for the purpose of conducting board business.
19    (x) "Leasehold Condominium" means a property submitted to
20the provisions of this Act which is subject to a lease, the
21expiration or termination of which would terminate the
22condominium and the lessor of which is (i) exempt from taxation
23under Section 501(c)(3) of the Internal Revenue Code of 1986,
24as amended, (ii) a limited liability company whose sole member
25is exempt from taxation under Section 501 (c)(3) of the
26Internal Revenue Code of 1986, as amended, or (iii) a Public

 

 

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1Housing Authority created pursuant to the Housing Authorities
2Act that is located in a municipality having a population in
3excess of 1,000,000 inhabitants.
4    (y) "Electronic transmission" means any form of
5communication, not directly involving the physical
6transmission of paper, that creates a record that may be
7retained, retrieved, and reviewed by a recipient and that may
8be directly reproduced in paper form by the recipient through
9an automated process.
10    (z) "Acceptable technological means" includes, without
11limitation, electronic transmission over the Internet or other
12network, whether by direct connection, intranet, telecopier,
13or electronic mail.
14(Source: P.A. 93-474, eff. 8-8-03.)
 
15    (765 ILCS 605/18)  (from Ch. 30, par. 318)
16    Sec. 18. Contents of bylaws. The bylaws shall provide for
17at least the following:
18    (a) (1) The election from among the unit owners of a board
19    of managers, the number of persons constituting such board,
20    and that the terms of at least one-third of the members of
21    the board shall expire annually and that all members of the
22    board shall be elected at large. If there are multiple
23    owners of a single unit, only one of the multiple owners
24    shall be eligible to serve as a member of the board at any
25    one time.

 

 

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1        (2) the powers and duties of the board;
2        (3) the compensation, if any, of the members of the
3    board;
4        (4) the method of removal from office of members of the
5    board;
6        (5) that the board may engage the services of a manager
7    or managing agent;
8        (6) that each unit owner shall receive, at least 30
9    days prior to the adoption thereof by the board of
10    managers, a copy of the proposed annual budget together
11    with an indication of which portions are intended for
12    reserves, capital expenditures or repairs or payment of
13    real estate taxes;
14        (7) that the board of managers shall annually supply to
15    all unit owners an itemized accounting of the common
16    expenses for the preceding year actually incurred or paid,
17    together with an indication of which portions were for
18    reserves, capital expenditures or repairs or payment of
19    real estate taxes and with a tabulation of the amounts
20    collected pursuant to the budget or assessment, and showing
21    the net excess or deficit of income over expenditures plus
22    reserves;
23        (8) (i) that each unit owner shall receive notice, in
24    the same manner as is provided in this Act for membership
25    meetings, of any meeting of the board of managers
26    concerning the adoption of the proposed annual budget and

 

 

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1    regular assessments pursuant thereto or to adopt a separate
2    (special) assessment, (ii) that except as provided in
3    subsection (iv) below, if an adopted budget or any separate
4    assessment adopted by the board would result in the sum of
5    all regular and separate assessments payable in the current
6    fiscal year exceeding 115% of the sum of all regular and
7    separate assessments payable during the preceding fiscal
8    year, the board of managers, upon written petition by unit
9    owners with 20 percent of the votes of the association
10    delivered to the board within 14 days of the board action,
11    shall call a meeting of the unit owners within 30 days of
12    the date of delivery of the petition to consider the budget
13    or separate assessment; unless a majority of the total
14    votes of the unit owners are cast at the meeting to reject
15    the budget or separate assessment, it is ratified, (iii)
16    that any common expense not set forth in the budget or any
17    increase in assessments over the amount adopted in the
18    budget shall be separately assessed against all unit
19    owners, (iv) that separate assessments for expenditures
20    relating to emergencies or mandated by law may be adopted
21    by the board of managers without being subject to unit
22    owner approval or the provisions of item (ii) above or item
23    (v) below. As used herein, "emergency" means an immediate
24    danger to the structural integrity of the common elements
25    or to the life, health, safety or property of the unit
26    owners, (v) that assessments for additions and alterations

 

 

SB3040- 21 -LRB098 17495 HEP 52602 b

1    to the common elements or to association-owned property not
2    included in the adopted annual budget, shall be separately
3    assessed and are subject to approval of two-thirds of the
4    total votes of all unit owners, (vi) that the board of
5    managers may adopt separate assessments payable over more
6    than one fiscal year. With respect to multi-year
7    assessments not governed by items (iv) and (v), the entire
8    amount of the multi-year assessment shall be deemed
9    considered and authorized in the first fiscal year in which
10    the assessment is approved;
11        (9) that meetings of the board of managers shall be
12    open to any unit owner, except for the portion of any
13    meeting held (i) to discuss litigation when an action
14    against or on behalf of the particular association has been
15    filed and is pending in a court or administrative tribunal,
16    or when the board of managers finds that such an action is
17    probable or imminent, (ii) to consider information
18    regarding appointment, employment or dismissal of an
19    employee, or (iii) to discuss violations of rules and
20    regulations of the association or a unit owner's unpaid
21    share of common expenses; that any vote on these matters
22    shall be taken at a meeting or portion thereof open to any
23    unit owner; that any unit owner may record the proceedings
24    at meetings or portions thereof required to be open by this
25    Act by tape, film or other means; that the board may
26    prescribe reasonable rules and regulations to govern the

 

 

SB3040- 22 -LRB098 17495 HEP 52602 b

1    right to make such recordings, that notice of such meetings
2    shall be mailed or delivered at least 48 hours prior
3    thereto, unless a written waiver of such notice is signed
4    by the person or persons entitled to such notice pursuant
5    to the declaration, bylaws, other condominium instrument,
6    or provision of law other than this subsection before the
7    meeting is convened, and that copies of notices of meetings
8    of the board of managers shall be posted in entranceways,
9    elevators, or other conspicuous places in the condominium
10    at least 48 hours prior to the meeting of the board of
11    managers except where there is no common entranceway for 7
12    or more units, the board of managers may designate one or
13    more locations in the proximity of these units where the
14    notices of meetings shall be posted;
15        (10) that the board shall meet at least 4 times
16    annually;
17        (11) that no member of the board or officer shall be
18    elected for a term of more than 2 years, but that officers
19    and board members may succeed themselves;
20        (12) the designation of an officer to mail and receive
21    all notices and execute amendments to condominium
22    instruments as provided for in this Act and in the
23    condominium instruments;
24        (13) the method of filling vacancies on the board which
25    shall include authority for the remaining members of the
26    board to fill the vacancy by two-thirds vote until the next

 

 

SB3040- 23 -LRB098 17495 HEP 52602 b

1    annual meeting of unit owners or for a period terminating
2    no later than 30 days following the filing of a petition
3    signed by unit owners holding 20% of the votes of the
4    association requesting a meeting of the unit owners to fill
5    the vacancy for the balance of the term, and that a meeting
6    of the unit owners shall be called for purposes of filling
7    a vacancy on the board no later than 30 days following the
8    filing of a petition signed by unit owners holding 20% of
9    the votes of the association requesting such a meeting, and
10    the method of filling vacancies among the officers that
11    shall include the authority for the members of the board to
12    fill the vacancy for the unexpired portion of the term;
13        (14) what percentage of the board of managers, if other
14    than a majority, shall constitute a quorum;
15        (15) provisions concerning notice of board meetings to
16    members of the board;
17        (16) the board of managers may not enter into a
18    contract with a current board member or with a corporation
19    or partnership in which a board member or a member of the
20    board member's immediate family has 25% or more interest,
21    unless notice of intent to enter the contract is given to
22    unit owners within 20 days after a decision is made to
23    enter into the contract and the unit owners are afforded an
24    opportunity by filing a petition, signed by 20% of the unit
25    owners, for an election to approve or disapprove the
26    contract; such petition shall be filed within 20 days after

 

 

SB3040- 24 -LRB098 17495 HEP 52602 b

1    such notice and such election shall be held within 30 days
2    after filing the petition; for purposes of this subsection,
3    a board member's immediate family means the board member's
4    spouse, parents, and children;
5        (17) that the board of managers may disseminate to unit
6    owners biographical and background information about
7    candidates for election to the board if (i) reasonable
8    efforts to identify all candidates are made and all
9    candidates are given an opportunity to include
10    biographical and background information in the information
11    to be disseminated; and (ii) the board does not express a
12    preference in favor of any candidate;
13        (18) any proxy distributed for board elections by the
14    board of managers gives unit owners the opportunity to
15    designate any person as the proxy holder, and gives the
16    unit owner the opportunity to express a preference for any
17    of the known candidates for the board or to write in a
18    name;
19        (19) that special meetings of the board of managers can
20    be called by the president or 25% of the members of the
21    board; and
22        (20) that the board of managers may establish and
23    maintain a system of master metering of public utility
24    services and collect payments in connection therewith,
25    subject to the requirements of the Tenant Utility Payment
26    Disclosure Act.

 

 

SB3040- 25 -LRB098 17495 HEP 52602 b

1    (b) (1) What percentage of the unit owners, if other than
2    20%, shall constitute a quorum provided that, for
3    condominiums with 20 or more units, the percentage of unit
4    owners constituting a quorum shall be 20% unless the unit
5    owners holding a majority of the percentage interest in the
6    association provide for a higher percentage, provided that
7    in voting on amendments to the association's bylaws, a unit
8    owner who is in arrears on the unit owner's regular or
9    separate assessments for 60 days or more, shall not be
10    counted for purposes of determining if a quorum is present,
11    but that unit owner retains the right to vote on amendments
12    to the association's bylaws;
13        (2) that the association shall have one class of
14    membership;
15        (3) that the members shall hold an annual meeting, one
16    of the purposes of which shall be to elect members of the
17    board of managers;
18        (4) the method of calling meetings of the unit owners;
19        (5) that special meetings of the members can be called
20    by the president, board of managers, or by 20% of unit
21    owners;
22        (6) that written notice of any membership meeting shall
23    be mailed or delivered giving members no less than 10 and
24    no more than 30 days notice of the time, place and purpose
25    of such meeting except that notice may be sent, to the
26    extent the condominium instruments or rules adopted

 

 

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1    thereunder expressly so provide, by electronic
2    transmission consented to by the unit owner to whom the
3    notice is given, provided the director and officer or his
4    agent certifies in writing to the delivery by electronic
5    transmission;
6        (7) that voting shall be on a percentage basis, and
7    that the percentage vote to which each unit is entitled is
8    the percentage interest of the undivided ownership of the
9    common elements appurtenant thereto, provided that the
10    bylaws may provide for approval by unit owners in
11    connection with matters where the requisite approval on a
12    percentage basis is not specified in this Act, on the basis
13    of one vote per unit;
14        (8) that, where there is more than one owner of a unit,
15    if only one of the multiple owners is present at a meeting
16    of the association, he is entitled to cast all the votes
17    allocated to that unit, if more than one of the multiple
18    owners are present, the votes allocated to that unit may be
19    cast only in accordance with the agreement of a majority in
20    interest of the multiple owners, unless the declaration
21    expressly provides otherwise, that there is majority
22    agreement if any one of the multiple owners cast the votes
23    allocated to that unit without protest being made promptly
24    to the person presiding over the meeting by any of the
25    other owners of the unit;
26        (9)(A) that unless the Articles of Incorporation or the

 

 

SB3040- 27 -LRB098 17495 HEP 52602 b

1    bylaws otherwise provide, and except as provided in
2    subparagraph (B) of this paragraph (9) in connection with
3    board elections, that a unit owner may vote by proxy
4    executed in writing by the unit owner or by his duly
5    authorized attorney in fact; that the proxy must bear the
6    date of execution and, unless the condominium instruments
7    or the written proxy itself provide otherwise, is invalid
8    after 11 months from the date of its execution; to the
9    extent the condominium instruments or rules adopted
10    thereunder expressly so provide, a vote or proxy may be
11    submitted by electronic transmission, provided that any
12    such electronic transmission shall either set forth or be
13    submitted with information from which it can be determined
14    that the electronic transmission was authorized by the unit
15    owner or the unit owner's proxy;
16        (B) that if a rule adopted at least 120 days before a
17    board election or the declaration or bylaws provide for
18    balloting as set forth in this subsection, unit owners may
19    not vote by proxy in board elections, but may vote only (i)
20    by submitting an association-issued ballot in person at the
21    election meeting or (ii) by submitting an
22    association-issued ballot to the association or its
23    designated agent by mail or other means of delivery
24    specified in the declaration, bylaws, or rule; that the
25    ballots shall be mailed or otherwise distributed to unit
26    owners not less than 10 and not more than 30 days before

 

 

SB3040- 28 -LRB098 17495 HEP 52602 b

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

 

 

SB3040- 29 -LRB098 17495 HEP 52602 b

1    than 10 and not more than 30 days before the election
2    meeting, and the board shall give unit owners not less than
3    21 days' prior written notice of the deadline for inclusion
4    of a candidate's name on the ballots; the deadline shall be
5    no more than 7 days before the instructions for voting
6    using electronic or acceptable technological means is
7    distributed to unit owners; every instruction notice must
8    include the names of all candidates who have given the
9    board or its authorized agent timely written notice of
10    their candidacy and must give the person voting through
11    electronic or acceptable technological means the
12    opportunity to cast votes for candidates whose names do not
13    appear on the ballot; a unit owner who submits a vote using
14    electronic or acceptable technological means may request
15    and cast a ballot in person at the election meeting,
16    thereby voiding any vote previously submitted by that unit
17    owner;
18        (C) that if a written petition by unit owners with at
19    least 20% of the votes of the association is delivered to
20    the board within 14 days after the board's approval of a
21    rule adopted pursuant to subparagraph (B) or subparagraph
22    (B-5) of this paragraph (9), the board shall call a meeting
23    of the unit owners within 30 days after the date of
24    delivery of the petition; that unless a majority of the
25    total votes of the unit owners are cast at the meeting to
26    reject the rule, the rule is ratified;

 

 

SB3040- 30 -LRB098 17495 HEP 52602 b

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

 

 

SB3040- 31 -LRB098 17495 HEP 52602 b

1    permitted to vote for a particular office or be elected and
2    serve on the board. Satisfactory evidence of the
3    installment contact shall be made available to the
4    association or its agents. For purposes of this subsection,
5    "installment contact" shall have the same meaning as set
6    forth in Section 1 (e) of "An Act relating to installment
7    contracts to sell dwelling structures", approved August
8    11, 1967, as amended;
9        (12) the method by which matters subject to the
10    approval of unit owners set forth in this Act, or in the
11    condominium instruments, will be submitted to the unit
12    owners at special membership meetings called for such
13    purposes; and
14        (13) that matters subject to the affirmative vote of
15    not less than 2/3 of the votes of unit owners at a meeting
16    duly called for that purpose, shall include, but not be
17    limited to:
18            (i) merger or consolidation of the association;
19            (ii) sale, lease, exchange, or other disposition
20        (excluding the mortgage or pledge) of all, or
21        substantially all of the property and assets of the
22        association; and
23            (iii) the purchase or sale of land or of units on
24        behalf of all unit owners.
25    (c) Election of a president from among the board of
26managers, who shall preside over the meetings of the board of

 

 

SB3040- 32 -LRB098 17495 HEP 52602 b

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

 

 

SB3040- 33 -LRB098 17495 HEP 52602 b

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

 

 

SB3040- 34 -LRB098 17495 HEP 52602 b

1association funds and association reserves that will be in the
2custody of the association, and the directors and officers
3liability coverage at a level as shall be determined to be
4reasonable by the board of managers, if not otherwise
5established by the declaration or by laws.
6    Until one year after the effective date of this amendatory
7Act of 1985, if a condominium association has reserves plus
8assessments in excess of $250,000 and cannot reasonably obtain
9100% fidelity bond coverage for such amount, then it must
10obtain a fidelity bond coverage of $250,000.
11    (h) Method of estimating the amount of the annual budget,
12and the manner of assessing and collecting from the unit owners
13their respective shares of such estimated expenses, and of any
14other expenses lawfully agreed upon.
15    (i) That upon 10 days notice to the manager or board of
16managers and payment of a reasonable fee, any unit owner shall
17be furnished a statement of his account setting forth the
18amount of any unpaid assessments or other charges due and owing
19from such owner.
20    (j) Designation and removal of personnel necessary for the
21maintenance, repair and replacement of the common elements.
22    (k) Such restrictions on and requirements respecting the
23use and maintenance of the units and the use of the common
24elements, not set forth in the declaration, as are designed to
25prevent unreasonable interference with the use of their
26respective units and of the common elements by the several unit

 

 

SB3040- 35 -LRB098 17495 HEP 52602 b

1owners.
2    (l) Method of adopting and of amending administrative rules
3and regulations governing the operation and use of the common
4elements.
5    (m) The percentage of votes required to modify or amend the
6bylaws, but each one of the particulars set forth in this
7section shall always be embodied in the bylaws.
8    (n) (i) The provisions of this Act, the declaration,
9bylaws, other condominium instruments, and rules and
10regulations that relate to the use of the individual unit or
11the common elements shall be applicable to any person leasing a
12unit and shall be deemed to be incorporated in any lease
13executed or renewed on or after the effective date of this
14amendatory Act of 1984. (ii) With regard to any lease entered
15into subsequent to the effective date of this amendatory Act of
161989, the unit owner leasing the unit shall deliver a copy of
17the signed lease to the board or if the lease is oral, a
18memorandum of the lease, not later than the date of occupancy
19or 10 days after the lease is signed, whichever occurs first.
20In addition to any other remedies, by filing an action jointly
21against the tenant and the unit owner, an association may seek
22to enjoin a tenant from occupying a unit or seek to evict a
23tenant under the provisions of Article IX of the Code of Civil
24Procedure for failure of the lessor-owner to comply with the
25leasing requirements prescribed by this Section or by the
26declaration, bylaws, and rules and regulations. The board of

 

 

SB3040- 36 -LRB098 17495 HEP 52602 b

1managers may proceed directly against a tenant, at law or in
2equity, or under the provisions of Article IX of the Code of
3Civil Procedure, for any other breach by tenant of any
4covenants, rules, regulations or bylaws.
5    (o) The association shall have no authority to forbear the
6payment of assessments by any unit owner.
7    (p) That when 30% or fewer of the units, by number, possess
8over 50% in the aggregate of the votes in the association, any
9percentage vote of members specified herein or in the
10condominium instruments shall require the specified percentage
11by number of units rather than by percentage of interest in the
12common elements allocated to units that would otherwise be
13applicable and garage units or storage units, or both, shall
14have, in total, no more votes than their aggregate percentage
15of ownership in the common elements; this shall mean that if
16garage units or storage units, or both, are to be given a vote,
17or portion of a vote, that the association must add the total
18number of votes cast of garage units, storage units, or both,
19and divide the total by the number of garage units, storage
20units, or both, and multiply by the aggregate percentage of
21ownership of garage units and storage units to determine the
22vote, or portion of a vote, that garage units or storage units,
23or both, have. For purposes of this subsection (p), when making
24a determination of whether 30% or fewer of the units, by
25number, possess over 50% in the aggregate of the votes in the
26association, a unit shall not include a garage unit or a

 

 

SB3040- 37 -LRB098 17495 HEP 52602 b

1storage unit.
2    (q) That a unit owner may not assign, delegate, transfer,
3surrender, or avoid the duties, responsibilities, and
4liabilities of a unit owner under this Act, the condominium
5instruments, or the rules and regulations of the Association;
6and that such an attempted assignment, delegation, transfer,
7surrender, or avoidance shall be deemed void.
8    The provisions of this Section are applicable to all
9condominium instruments recorded under this Act. Any portion of
10a condominium instrument which contains provisions contrary to
11these provisions shall be void as against public policy and
12ineffective. Any such instrument which fails to contain the
13provisions required by this Section shall be deemed to
14incorporate such provisions by operation of law.
15(Source: P.A. 95-624, eff. 6-1-08; 96-55, eff. 1-1-10; 96-977,
16eff. 7-2-10.)
 
17    (765 ILCS 605/18.8 new)
18    Sec. 18.8. Use of technology.
19    (a) Any notice required to be sent or received or
20signature, vote, consent, or approval required to be obtained
21under any condominium instrument or any provision of this Act
22may be accomplished using the most advanced technology
23available at that time. This Section shall govern the use of
24technology in implementing the provisions of any condominium
25instrument or any provision of this Act concerning notices,

 

 

SB3040- 38 -LRB098 17495 HEP 52602 b

1signatures, votes, consents, or approvals.
2    (b) The association, unit owners, and other persons
3entitled to occupy a unit may perform any obligation or
4exercise any right under any condominium instrument or any
5provision of this Act by use of any technological means that
6provides sufficient security, reliability, identification, and
7verifiability.
8    (c) A verifiable electronic signature satisfies any
9requirement for a signature under any condominium instrument or
10any provision of this Act.
11    (d) Voting on, consent to, and approval of any matter under
12any condominium instrument or any provision of this Act may be
13accomplished by electronic transmission or other equivalent
14technological means, provided that a record is created as
15evidence thereof and maintained as long as the record would be
16required to be maintained in nonelectronic form.
17    (e) Subject to other provisions of law, no action required
18or permitted by any condominium instrument or any provision of
19this Act need be acknowledged before a notary public if the
20identity and signature of the person can otherwise be
21authenticated to the satisfaction of the board of directors or
22board of managers.
23    (f) If any person does not have the capability or desire to
24conduct business using electronic transmission or other
25equivalent technological means, the association shall make
26reasonable accommodation, at its expense, for the person to

 

 

SB3040- 39 -LRB098 17495 HEP 52602 b

1conduct business with the association without the use of
2electronic or other means.
3    (g) This Section does not apply to any notices required
4under Article IX of the Code of Civil Procedure related to: (i)
5an action by the association to collect a common expense; or
6(ii) foreclosure proceedings in enforcement of any lien rights
7under this Act.