SB2898 99TH GENERAL ASSEMBLY

LRB099 15973 HEP 40290 b

99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB2898

Introduced 2/18/2016, by Sen. Pamela J. Althoff

SYNOPSIS AS INTRODUCED:

765 ILCS 615/15
765 ILCS 615/20
765 ILCS 615/25
765 ILCS 615/30
765 ILCS 615/35
765 ILCS 615/40
765 ILCS 615/45
765 ILCS 615/50
765 ILCS 615/55 rep.

Amends the Condominium and Common Interest Community Ombudsperson Act. Makes numerous technical and substantive changes in provisions concerning: definitions; the Office of the Condominium and Common Interest Community Ombudsperson; the Office's website; the written policy for receiving complaints; requests for assistance; dispute resolution; confidentiality; and reporting requirements. Repeals a Section concerning registration. Effective July 1, 2016.

A BILL FOR

AN ACT concerning civil law.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Condominium and Common Interest Community Ombudsperson Act is amended by changing Sections 15, 20, 25, 30, 35, 40, 45, and 50 as follows:

(765 ILCS 615/15)

(This Section may contain text from a Public Act with a delayed effective date)

(Section scheduled to be repealed on July 1, 2021)

Sec. 15. Definitions. As used in this Act:

"Association" means a condominium association or common interest community association as defined in this Act.

"Board of managers" or "board of directors" means:

(1) a common interest community association's board of managers or board of directors, whichever is applicable; or

(2) a condominium association's board of managers or board or directors, whichever is applicable.

"Common interest community" means a property governed by the Common Interest Community Association Act.

"Common interest community association" has the meaning ascribed to it in Section 1-5 of the Common Interest Community Association Act.

"Condominium" means a property governed by the Condominium Property Act.

"Condominium association" means an association in which membership is a condition of ownership or shareholder interest of a unit in a condominium, cooperative, townhouse, villa, or other residential unit which is part of a residential development plan and that is authorized to impose an assessment, rents, or other costs that may become a lien on the unit or lot, and includes a unit owners' association as defined in subsection (o) of Section 2 of the Condominium Property Act or and a master association as defined in subsection (u) of Section 2 of the Condominium Property Act.

"Declaration" has the meaning ascribed to it in:

(1) Section 1-5 of the Common Interest Community Association Act; or

(2) Section 2 of the Condominium Property Act.

"Department" means the Department of Financial and Professional Regulation.

"Director" means the Director of the Division of Real Estate Professional Regulation.

"Division" means the Division of Real Estate Professional Regulation within the Department of Financial and Professional Regulation.

"Office" means the Office of the Condominium and Common Interest Community Ombudsperson established under Section 20 of this Act.

"Ombudsperson" means the Condominium and Common Interest Community Ombudsperson named employed under Section 20 of this Act.

"Person" includes a natural person, firm, association, organization, partnership, business trust, corporation, limited liability company, or public entity.

"Secretary" means the Secretary of the Department of Financial and Professional Regulation.

"Unit" means a part of the condominium property or common interest community property designed and intended for any type of independent use.

"Unit owner" has the meaning ascribed to it in:

(1) subsection (g) of Section 2 of the Condominium Property Act; or

(2) Section 1-5 of the Common Interest Community Association Act.

(Source: P.A. 98-1135, eff. 7-1-16.)

(765 ILCS 615/20)

(This Section may contain text from a Public Act with a delayed effective date)

(Section scheduled to be repealed on July 1, 2021)

Sec. 20. Office of the Condominium and Common Interest Community Ombudsperson.

(a) There is created in the Division of Real Estate Professional Regulation within the Department of Financial and Professional Regulation, under the supervision and control of the Secretary, the Office of the Condominium and Common Interest Community Ombudsperson.

(b) The Department shall name employ an Ombudsperson and other persons as necessary to discharge the requirements of this Act. The Ombudsperson shall have the powers delegated to him or her by the Department, in addition to the powers set forth in this Act.

(c) Neither the Ombudsperson nor the Department shall have any authority to consider matters that may constitute grounds for charges or complaints under the Illinois Human Rights Act or that are properly brought before the Department of Human Rights or the Illinois Human Rights Commission.

(d) (c) Information and advice provided by the Ombudsperson has no binding legal effect and is not subject to the rulemaking provisions of the Illinois Administrative Procedure Act.

(Source: P.A. 98-1135, eff. 7-1-16.)

(765 ILCS 615/25)

(This Section may contain text from a Public Act with a delayed effective date)

(Section scheduled to be repealed on July 1, 2021)

Sec. 25. Training and education. On or before July 1, 2018, the Ombudsperson shall offer training, outreach, and educational materials, and may arrange for the offering of courses to unit owners, associations, boards of managers, and boards of directors in subjects relevant to: (i) the operation and management of condominiums and common interest communities; and (ii) the Condominium Property Act and the Common Interest Community Association Act.

(Source: P.A. 98-1135, eff. 7-1-16.)

(765 ILCS 615/30)

(This Section may contain text from a Public Act with a delayed effective date)

(Section scheduled to be repealed on July 1, 2021)

Sec. 30. Website; toll-free number.

(a) The Office shall maintain on the Department's website the following information:

(1) the text of this Act, the Condominium Property Act, the Common Community Interest Community Association Act, and any other statute, administrative rule, or regulation that the Ombudsperson determines is relevant to the operation and management of a condominium association or common interest community association;

(2) information concerning non-judicial nonjudicial resolution of disputes that may arise within a condominium or common interest community, including, but not limited to, alternative dispute resolution programs and contacts for locally-available dispute resolution programs;

(3) a description of the services provided by the Ombudsperson and information on how to contact the Ombudsperson for assistance; and

(4) any other information that the Ombudsperson determines is useful to unit owners, associations, boards of managers, and boards of directors.

(b) The Office may make available during regular business hours a statewide toll-free telephone number to provide information and resources on matters relating to condominium property and common interest community property The Office shall make the information described in subsection (a) of this Section available in printed form.

(Source: P.A. 98-1135, eff. 7-1-16.)

(765 ILCS 615/35)

(This Section may contain text from a Public Act with a delayed effective date)

(Section scheduled to be repealed on July 1, 2021)

Sec. 35. Written policy for resolving complaints.

(a) Each association, except for those outlined in subsection (d) Section (b) of this Section, shall adopt a written policy for resolving complaints made by unit owners. The association shall make the policy available to all unit owners upon request. The policy must include:

(1) a sample form on which a unit owner may make a complaint to the association;

(2) a description of the process by which complaints shall be delivered to the association;

(3) the association's timeline and manner of making final determinations in response to a unit owner's complaint; and

(4) a requirement that the final determination made by the association in response to a unit owner's complaint be:

(i) made in writing;

(ii) made within 90 days a reasonable time after the association received the unit owner's original complaint; and

(iii) marked clearly and conspicuously as "final".

(b) Common interest community associations exempt from the Common Interest Community Association Act are not required to have a written policy for resolving complaints.

(b) (c) No later than 180 days after the effective date of this Act, associations existing on the effective date of this Act, except for those identified in subsection (d) (b) of this Section, must establish and adopt the policy required under this Section.

(c) (d) Associations first created after the effective date of this Act, except for those identified in subsection (d) (b) of this Section, must establish and adopt the policy required under this Section within 180 days following creation of the association at the time of initial registration as required by Section 65 of this Act.

(d) Common interest community associations exempt from the Common Interest Community Association Act are not required to have a written policy for resolving complaints as required by this Section.

(e) A unit owner may not bring a request for assistance under Section 40 of this Act for an association's lack of or inadequacy of a written policy to resolve complaints, but may notify the Department in writing of the association's lack of or inadequacy of a written policy. An association that fails to comply with this Section is subject to subsection (g) of Section 65 of this Act.

(Source: P.A. 98-1135, eff. 7-1-16.)

(765 ILCS 615/40)

(This Section may contain text from a Public Act with a delayed effective date)

(Section scheduled to be repealed on July 1, 2021)

Sec. 40. Dispute resolution Requests for assistance.

(a) Beginning on July 1, 2019, the declaration or bylaws of a condominium association or common interest community association shall require mediation or arbitration of disputes: (1) in which the matter in controversy has either no specific monetary value or a value of $10,000 or less, excluding disputes involving the levying and collection of assessments; or (2) that arise out of violations of the declaration, bylaws, or rules and regulations of the condominium or common interest community association. A dispute that is not required to be mediated or arbitrated by an association pursuant to this Section, but that is submitted to mediation or arbitration by agreement of the disputants, is also subject to this Section.

(b) The Uniform Arbitration Act shall govern all arbitration proceedings under this Section.

(c) The Uniform Mediation Act shall govern all mediation proceedings under this Section.

(d) The disputants shall share equally in the costs of mediation or arbitration.

(e) A unit owner shall initiate the mediation or arbitration process within 30 days after receiving the association's final adverse decision. unit owners meeting the requirements of this Section may make a written request, as outlined in subsection (f) of this Section, to the Ombudsperson for assistance in resolving a dispute between a unit owner and an association that involves a violation of the Condominium Property Act or the Common Interest Community Property Act.

(b) The Ombudsperson shall not accept requests for resolutions of disputes with community association managers, supervising community association managers, or community association management firms, as defined in the Community Association Manager Licensing and Disciplinary Act.

(c) The Ombudsperson shall not accept requests for resolutions of disputes for which there is a pending complaint filed in any court or administrative tribunal in any jurisdiction or for which arbitration or alternative dispute resolution is scheduled to occur or has previously occurred.

(f) Prior to submitting a dispute to mediation or arbitration, a (d) The assistance described in subsection (a) of this Section is available only to unit owners. In order for a unit owner to receive the assistance from the Ombudsperson described in subsection (a) of this Section, the unit owner must:

(1) owe no outstanding assessments, fees, or funds to the association, unless the assessments, fees, or funds are central to the dispute;

(2) allege a dispute that was initiated, or initially occurred, within the past 2 calendar years preceding of the date of the request;

(3) have made a written complaint pursuant to the unit owner's association's complaint policy, as outlined in Section 35, which alleged alleges violations of the Condominium Property Act or the Common Interest Community Association Act; and

(4) have received a final and adverse decision from the association. and attach a copy of the association's final adverse decision marked "final" to the request to the Ombudsperson; and

(5) have filed the request within 30 days after the receipt of the association's final adverse decision.

(e) A unit owner who has not received a response, marked "final", to his or her complaint from the association within a reasonable time may request assistance from the Ombudsperson pursuant to subsection (a) of this Section if the unit owner meets the requirements of items (1), (2), and (3) of subsection (d) of this Section. A unit owner may not request assistance from the Ombudsperson until at least 90 days after the initial written complaint was submitted to the association. The Ombudsperson may decline a unit owner's request for assistance on the basis that a reasonable time has not yet passed.

(f) The request for assistance shall be in writing, on forms provided by the Office, and include the following:

(1) the name, address, and contact information of the unit owner;

(2) the name, address, and contact information of the association;

(3) the applicable association governing documents unless the absence of governing documents is central to the dispute;

(4) the date of the final adverse decision by the association;

(5) a copy of the association's written complaint policy required under Section 35 of this Act;

(6) a copy of the unit owner's complaint to the association with a specific reference to the alleged violations of the Condominium Property Act or the Common Interest Community Association Act;

(7) documentation verifying the unit owner's ownership of a unit, such as a copy of a recorded deed or other document conferring title; and

(8) a copy of the association's adverse decision marked "final", if applicable.

(g) On receipt of a unit owner's request for assistance that the Department determines meets the requirements of this Section, the Ombudsperson shall, within the limits of the available resources, confer with the interested parties and assist in efforts to resolve the dispute by mutual agreement of the parties.

(h) The Ombudsperson shall assist only opposing parties who mutually agree to participate in dispute resolution.

(i) A unit owner is limited to one request for assistance per dispute. The meaning of dispute is to be broadly interpreted by the Department.

(j) The Department has the authority to determine whether or not a final decision is adverse under paragraph (4) of subsection (d) of this Section.

(k) The Department shall establish rules describing the time limit, method, and manner for dispute resolution.

(l) A request under the Freedom of Information Act for information does not constitute a request for assistance under this Section.

(Source: P.A. 98-1135, eff. 7-1-16.)

(765 ILCS 615/45)

(This Section may contain text from a Public Act with a delayed effective date)

(Section scheduled to be repealed on July 1, 2021)

Sec. 45. Confidentiality.

(a) All information collected by the Department in the course of addressing a request for information assistance pursuant to this Act Section 40 shall be maintained for the confidential use of the Department and shall not be disclosed. The Department shall not disclose the information to anyone other than law enforcement officials or regulatory agencies that have an appropriate regulatory interest as determined by the Secretary. Information and documents disclosed to a federal, State, county, or local law enforcement agency shall not be disclosed by that agency for any purpose to any other agency or person.

(b) A request for information made to the Department or the Ombudsperson under this Act does not constitute a request under the Freedom of Information Act.

(Source: P.A. 98-1135, eff. 7-1-16.)

(765 ILCS 615/50)

(This Section may contain text from a Public Act with a delayed effective date)

(Section scheduled to be repealed on July 1, 2021)

Sec. 50. Reports.

(a) The Department shall submit an annual written report on the activities of the Office to the General Assembly, no later than October 1 of each year, with the initial report being due October 1, 2020. The report shall include all of the following:

(1) annual workload and performance data, including (i) the number of requests for information; (ii) training, education, or other information provided; (iii) assistance received, the manner in which education and training was conducted; requests were or were not resolved and (iv) the staff time required to provide the training, education, or other information resolve the requests. For each category of data, the report shall provide subtotals based on the type of question or dispute involved in the request; and

(2) where relevant information is available, analysis of the most common and serious types of concerns disputes within condominiums and common interest communities, along with any recommendations for statutory reform to reduce the frequency or severity of those disputes.

(Source: P.A. 98-1135, eff. 7-1-16.)

(765 ILCS 615/55 rep.)

Section 10. The Condominium and Common Interest Community Ombudsperson Act is amended by repealing Section 55.

Section 99. Effective date. This Act takes effect July 1, 2016.