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1 | AN ACT concerning condominium property.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 1. Short title. This Act may be cited as the | ||||||
5 | Condominium and Common Interest Community Ombudsperson Act. | ||||||
6 | Section 5. Applicability. This Act applies to all | ||||||
7 | condominium associations governed by the Condominium Property | ||||||
8 | Act and all common interest community associations governed by | ||||||
9 | the Common Interest Community Association Act. | ||||||
10 | Section 10. Findings. The General Assembly finds as | ||||||
11 | follows:
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12 | (1) Managing condominium property or common interest | ||||||
13 | community property is a complex responsibility. Unit | ||||||
14 | owners and persons charged with managing condominium | ||||||
15 | property or common interest community property may have | ||||||
16 | little or no prior experience in managing real property, | ||||||
17 | operating a not-for-profit association or corporation, | ||||||
18 | complying with the laws governing condominium property or | ||||||
19 | common interest community property, and interpreting and | ||||||
20 | enforcing restrictions and rules imposed by applicable | ||||||
21 | instruments or covenants. Unit owners may not fully | ||||||
22 | understand their rights and obligations under the law or |
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1 | applicable instruments or covenants. Mistakes and | ||||||
2 | misunderstandings are inevitable and may lead to serious, | ||||||
3 | costly, and divisive problems. This Act seeks to educate | ||||||
4 | unit owners, condominium associations, common interest | ||||||
5 | community associations, boards of managers, and boards of | ||||||
6 | directors about the Condominium Property Act and the Common | ||||||
7 | Interest Community Association Act. Effective education | ||||||
8 | can prevent or reduce the severity of problems within a | ||||||
9 | condominium or common interest community. | ||||||
10 | (2) Anecdotal accounts of abuses within condominiums | ||||||
11 | and common interest communities create continuing public | ||||||
12 | demand for reform of condominium and common interest | ||||||
13 | community property law. This results in frequent changes to | ||||||
14 | the law, making it difficult to understand and apply, and | ||||||
15 | imposes significant transitional costs on these | ||||||
16 | communities statewide. By collecting empirical data on the | ||||||
17 | nature and incidence of problems within these communities, | ||||||
18 | this Act will provide a sound basis for prioritizing reform | ||||||
19 | efforts, thereby increasing the stability of condominium | ||||||
20 | and common interest community property law. | ||||||
21 | Section 15. Definitions. As used in this Act:
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22 | "Association" means a condominium association or common | ||||||
23 | interest community association as defined in this Act.
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24 | "Board of managers" or "board of directors" means:
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25 | (1) a common interest community association's board of |
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1 | managers or board of directors, whichever is applicable; or
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2 | (2) a condominium association's board of managers or | ||||||
3 | board or directors, whichever is applicable.
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4 | "Common interest community" means a property governed by | ||||||
5 | the Common Interest Community Association Act.
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6 | "Common interest community association" has the meaning | ||||||
7 | ascribed to it in Section 1-5 of the Common Interest Community | ||||||
8 | Association Act.
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9 | "Condominium" means a property governed by the Condominium | ||||||
10 | Property Act.
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11 | "Condominium association" means an association in which | ||||||
12 | membership is a condition of ownership or shareholder interest | ||||||
13 | of a unit in a condominium, cooperative, townhouse, villa, or | ||||||
14 | other residential unit which is part of a residential | ||||||
15 | development plan and that is authorized to impose an | ||||||
16 | assessment, rents, or other costs that may become a lien on the | ||||||
17 | unit or lot, and includes a unit owners' association as defined | ||||||
18 | in subsection (o) of Section 2 of the Condominium Property Act | ||||||
19 | and a master association as defined in subsection (u) of | ||||||
20 | Section 2 of the Condominium Property Act.
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21 | "Declaration" has the meaning ascribed to it in:
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22 | (1) Section 1-5 of the Common Interest Community | ||||||
23 | Association Act; or
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24 | (2) Section 2 of the Condominium Property Act.
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25 | "Department" means the Department of Financial and | ||||||
26 | Professional Regulation.
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1 | "Director" means the Director of the Division of | ||||||
2 | Professional Regulation.
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3 | "Division" means the Division of Professional Regulation | ||||||
4 | within the Department of Financial and Professional | ||||||
5 | Regulation.
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6 | "Office" means the Office of the Condominium and Common | ||||||
7 | Interest Community Ombudsperson established under Section 20 | ||||||
8 | of this Act.
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9 | "Ombudsperson" means the Condominium and Common Interest | ||||||
10 | Community Ombudsperson employed under Section 20 of this Act.
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11 | "Person" includes a natural person, firm, association, | ||||||
12 | organization, partnership, business trust, corporation, | ||||||
13 | limited liability company, or public entity.
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14 | "Secretary" means the Secretary of Financial and | ||||||
15 | Professional Regulation.
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16 | "Unit" means a part of the condominium property or common | ||||||
17 | interest community property designed and intended for any type | ||||||
18 | of independent use.
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19 | "Unit owner" has the meaning ascribed to it in: | ||||||
20 | (1) subsection (g) of Section 2 of the Condominium | ||||||
21 | Property Act; or | ||||||
22 | (2) Section 1-5 of the Common Interest Community | ||||||
23 | Association Act. | ||||||
24 | Section 20. Office of the Condominium and Common Interest | ||||||
25 | Community Ombudsperson.
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1 | (a) There is created in the Division of Professional | ||||||
2 | Regulation within the Department of Financial and Professional | ||||||
3 | Regulation, under the supervision and control of the Secretary, | ||||||
4 | the Office of the Condominium and Common Interest Community | ||||||
5 | Ombudsperson.
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6 | (b) The Department shall employ an Ombudsperson and other | ||||||
7 | persons as necessary to discharge the requirements of this Act. | ||||||
8 | The Ombudsperson shall have the powers delegated to him or her | ||||||
9 | by the Department, in addition to the powers set forth in this | ||||||
10 | Act.
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11 | (c) Information and advice provided by the Ombudsperson has | ||||||
12 | no binding legal effect and is not subject to the rulemaking | ||||||
13 | provisions of the Illinois Administrative Procedure Act. | ||||||
14 | Section 25. Training and education.
On or before July 1, | ||||||
15 | 2018, the Ombudsperson shall offer training, educational | ||||||
16 | materials, and courses to unit owners, associations, boards of | ||||||
17 | managers, and boards of directors in subjects relevant to: (i) | ||||||
18 | the operation and management of condominiums and common | ||||||
19 | interest communities; and (ii) the Condominium Property Act and | ||||||
20 | the Common Interest Community Association Act.
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21 | Section 30. Website.
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22 | (a) The Office shall maintain on the Department's website | ||||||
23 | the following information:
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24 | (1) the text of this Act, the Condominium Property Act, |
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1 | the Community Interest Community Association Act, and any | ||||||
2 | other statute, administrative rule, or regulation that the | ||||||
3 | Ombudsperson determines is relevant to the operation and | ||||||
4 | management of a condominium association or common interest | ||||||
5 | community association;
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6 | (2) information concerning nonjudicial resolution of | ||||||
7 | disputes that may arise within a condominium or common | ||||||
8 | interest community;
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9 | (3) a description of the services provided by the | ||||||
10 | Ombudsperson and information on how to contact the | ||||||
11 | Ombudsperson for assistance; and
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12 | (4) any other information that the Ombudsperson | ||||||
13 | determines is useful to unit owners, associations, boards | ||||||
14 | of managers, and boards of directors.
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15 | (b) The Office shall make the information described in | ||||||
16 | subsection (a) of this Section available in printed form. | ||||||
17 | Section 35. Written policy for resolving complaints.
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18 | (a) Each association, except for those outlined in Section | ||||||
19 | (b) of this Section, shall adopt a written policy for resolving | ||||||
20 | complaints made by unit owners. The association shall make the | ||||||
21 | policy available to all unit owners upon request. The policy | ||||||
22 | must include:
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23 | (1) a sample form on which a unit owner may make a | ||||||
24 | complaint to the association;
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25 | (2) a description of the process by which complaints |
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1 | shall be delivered to the association;
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2 | (3) the association's timeline and manner of making | ||||||
3 | final determinations in response to a unit owner's | ||||||
4 | complaint; and | ||||||
5 | (4) a requirement that the final determination made by | ||||||
6 | the association in response to a unit owner's complaint be: | ||||||
7 | (i) made in writing;
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8 | (ii) made within a reasonable time after the unit | ||||||
9 | owner's original complaint; and
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10 | (iii) marked clearly and conspicuously as "final".
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11 | (b) Common interest community associations exempt from the | ||||||
12 | Common Interest Community Association Act are not required to | ||||||
13 | have a written policy for resolving complaints. | ||||||
14 | (c) No later than 180 days after the effective date of this | ||||||
15 | Act, associations existing on the effective date of this Act, | ||||||
16 | except for those identified in subsection (b) of this Section, | ||||||
17 | must establish and adopt the policy required under this | ||||||
18 | Section.
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19 | (d) Associations first created after the effective date of | ||||||
20 | this Act, except for those identified in subsection (b) of this | ||||||
21 | Section, must establish and adopt the policy required under | ||||||
22 | this Section at the time of initial registration as required by | ||||||
23 | Section 65 of this Act.
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24 | (e) A unit owner may not bring a request for assistance | ||||||
25 | under Section 40 of this Act for an association's lack of or | ||||||
26 | inadequacy of a written policy to resolve complaints, but may |
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1 | notify the Department in writing of the association's lack of | ||||||
2 | or inadequacy of a written policy. An association that fails to | ||||||
3 | comply with this Section is subject to subsection (g) of | ||||||
4 | Section 65 of this Act.
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5 | Section 40. Requests for assistance.
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6 | (a) Beginning on July 1, 2019, unit owners meeting the | ||||||
7 | requirements of this Section may make a written request, as | ||||||
8 | outlined in subsection (f) of this Section, to the Ombudsperson | ||||||
9 | for assistance in resolving a dispute between a unit owner and | ||||||
10 | an association that involves a violation of the Condominium | ||||||
11 | Property Act or the Common Interest Community Property Act.
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12 | (b) The Ombudsperson shall not accept requests for | ||||||
13 | resolutions of disputes with community association managers, | ||||||
14 | supervising community association managers, or community | ||||||
15 | association management firms, as defined in the Community | ||||||
16 | Association Manager Licensing and Disciplinary Act.
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17 | (c) The Ombudsperson shall not accept requests for | ||||||
18 | resolutions of disputes for which there is a pending complaint | ||||||
19 | filed in any court or administrative tribunal in any | ||||||
20 | jurisdiction or for which arbitration or alternative dispute | ||||||
21 | resolution is scheduled to occur or has previously occurred.
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22 | (d) The assistance described in subsection (a) of this | ||||||
23 | Section is available only to unit owners. In order for a unit | ||||||
24 | owner to receive the assistance from the Ombudsperson described | ||||||
25 | in subsection (a) of this Section, the unit owner must:
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1 | (1) owe no outstanding assessments, fees, or funds to | ||||||
2 | the association, unless the assessments, fees, or funds are | ||||||
3 | central to the dispute;
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4 | (2) allege a dispute that was initiated or initially | ||||||
5 | occurred within the past 2 calendar years of the date of | ||||||
6 | the request;
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7 | (3) have made a written complaint pursuant to the unit | ||||||
8 | owner's association's complaint policy, as outlined in | ||||||
9 | Section 35, which alleges violations of the Condominium | ||||||
10 | Property Act or the Common Interest Community Association | ||||||
11 | Act;
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12 | (4) have received a final and adverse decision from the | ||||||
13 | association and attach a copy of the association's final | ||||||
14 | adverse decision marked "final" to the request to the | ||||||
15 | Ombudsperson; and
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16 | (5) have filed the request within 30 days after the | ||||||
17 | receipt of the association's final adverse decision.
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18 | (e) A unit owner who has not received a response, marked | ||||||
19 | "final", to his or her complaint from the association within a | ||||||
20 | reasonable time may request assistance from the Ombudsperson | ||||||
21 | pursuant to subsection (a) of this Section if the unit owner | ||||||
22 | meets the requirements of items (1), (2), and (3) of subsection | ||||||
23 | (d) of this Section. A unit owner may not request assistance | ||||||
24 | from the Ombudsperson until at least 90 days after the initial | ||||||
25 | written complaint was submitted to the association. The | ||||||
26 | Ombudsperson may decline a unit owner's request for assistance |
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1 | on the basis that a reasonable time has not yet passed.
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2 | (f) The request for assistance shall be in writing, on | ||||||
3 | forms provided by the Office, and include the following:
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4 | (1) the name, address, and contact information of the | ||||||
5 | unit owner;
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6 | (2) the name, address, and contact information of the | ||||||
7 | association;
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8 | (3) the applicable association governing documents | ||||||
9 | unless the absence of governing documents is central to the | ||||||
10 | dispute;
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11 | (4) the date of the final adverse decision by the | ||||||
12 | association;
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13 | (5) a copy of the association's written complaint | ||||||
14 | policy required under Section 35 of this Act;
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15 | (6) a copy of the unit owner's complaint to the | ||||||
16 | association with a specific reference to the alleged | ||||||
17 | violations of the Condominium Property Act or the Common | ||||||
18 | Interest Community Association Act;
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19 | (7) documentation verifying the unit owner's ownership | ||||||
20 | of a unit, such as a copy of a recorded deed or other | ||||||
21 | document conferring title; and
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22 | (8) a copy of the association's adverse decision marked | ||||||
23 | "final", if applicable.
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24 | (g) On receipt of a unit owner's request for assistance | ||||||
25 | that the Department determines meets the requirements of this | ||||||
26 | Section, the Ombudsperson shall, within the limits of the |
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1 | available resources, confer with the interested parties and | ||||||
2 | assist in efforts to resolve the dispute by mutual agreement of | ||||||
3 | the parties.
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4 | (h) The Ombudsperson shall assist only opposing parties who | ||||||
5 | mutually agree to participate in dispute resolution.
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6 | (i) A unit owner is limited to one request for assistance | ||||||
7 | per dispute. The meaning of dispute is to be broadly | ||||||
8 | interpreted by the Department.
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9 | (j) The Department has the authority to determine whether | ||||||
10 | or not a final decision is adverse under paragraph (4) of | ||||||
11 | subsection (d) of this Section.
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12 | (k) The Department shall establish rules describing the | ||||||
13 | time limit, method, and manner for dispute resolution.
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14 | (l) A request under the Freedom of Information Act for | ||||||
15 | information does not constitute a request for assistance under | ||||||
16 | this Section.
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17 | Section 45. Confidentiality. All information collected by | ||||||
18 | the Department in the course of addressing a request for | ||||||
19 | assistance pursuant to Section 40 shall be maintained for the | ||||||
20 | confidential use of the Department and shall not be disclosed. | ||||||
21 | The Department shall not disclose the information to anyone | ||||||
22 | other than law enforcement officials or regulatory agencies | ||||||
23 | that have an appropriate regulatory interest as determined by | ||||||
24 | the Secretary. Information and documents disclosed to a | ||||||
25 | federal, State, county, or local law enforcement agency shall |
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1 | not be disclosed by that agency for any purpose to any other | ||||||
2 | agency or person. | ||||||
3 | Section 50. Reports.
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4 | (a) The Department shall submit an annual written report on | ||||||
5 | the activities of the Office to the General Assembly, no later | ||||||
6 | than October 1 of each year, with the initial report being due | ||||||
7 | October 1, 2020. The report shall include all of the following:
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8 | (1) annual workload and performance data, including | ||||||
9 | the number of requests for assistance received, the manner | ||||||
10 | in which requests were or were not resolved and the staff | ||||||
11 | time required to resolve the requests. For each category of | ||||||
12 | data, the report shall provide subtotals based on the type | ||||||
13 | of question or dispute involved in the request; and
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14 | (2) analysis of the most common and serious types of | ||||||
15 | disputes within condominiums and common interest | ||||||
16 | communities, along with any recommendations for statutory | ||||||
17 | reform to reduce the frequency or severity of those | ||||||
18 | disputes.
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19 | Section 55. Registration.
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20 | (a) Except as otherwise provided in subsections (d) and (f) | ||||||
21 | of this Section, every association shall register with the | ||||||
22 | Department in a form and manner specified by the Department. A | ||||||
23 | registration shall be valid for 2 years. The initial | ||||||
24 | registration for an association existing on the effective date |
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1 | of this Act is due one year after the effective date of this | ||||||
2 | Act, or at such time as the Department has adopted rules and | ||||||
3 | forms for registration, whichever is later.
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4 | (b) Newly created associations required to register with | ||||||
5 | the Department must register no later than 90 days after the | ||||||
6 | association has assumed control of a property.
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7 | (c) The Department may issue a certification of | ||||||
8 | registration under this Act to any association that applies to | ||||||
9 | the Department on forms provided by the Department and provides | ||||||
10 | the following:
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11 | (1) the business name of the association seeking | ||||||
12 | registration;
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13 | (2) the business address or addresses and contact | ||||||
14 | information of the association seeking registration;
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15 | (3) the name, address, and contact information for the | ||||||
16 | association's authorized agent or management company and | ||||||
17 | management company representative;
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18 | (4) a certification that the applicant has a written | ||||||
19 | policy for resolving complaints as required by Section 35 | ||||||
20 | of this Act;
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21 | (5) the initial date of recording of the declaration;
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22 | (6) the recording number or book and page for the | ||||||
23 | document that constitutes the declaration; and
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24 | (7) a certification that the association will comply | ||||||
25 | with all other requirements of this Act and rules | ||||||
26 | established for the implementation of this Act.
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1 | (d) This Section does not apply to a unit, or the owner | ||||||
2 | thereof, if the unit is a timeshare property subject to the | ||||||
3 | Real Estate Timeshare Act of 1999.
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4 | (e) If any of the information submitted under subsection | ||||||
5 | (c) of this Section changes, the association shall provide | ||||||
6 | updated information to the Department no later than 60 days | ||||||
7 | after the change.
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8 | (f) A common interest community association is exempt from | ||||||
9 | registration if it is exempt from the Common Interest Community | ||||||
10 | Association Act.
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11 | (g) If an association fails to initially register as | ||||||
12 | provided in subsection (a) of this Section or fails to timely | ||||||
13 | renew its registration, the Department may impose a late charge | ||||||
14 | or late fee against the association. If an association fails to | ||||||
15 | properly register within 2 years after the effective date of | ||||||
16 | this Act, or fails to renew its registration on 3 or more | ||||||
17 | occasions, the association is ineligible to impose or enforce a | ||||||
18 | lien for common expenses or to pursue any action or employ any | ||||||
19 | enforcement mechanism otherwise available to it in enforcement | ||||||
20 | of a lien for common expenses until it is validly registered | ||||||
21 | pursuant to this Section. A lien for common expenses previously | ||||||
22 | filed during a period in which the association was registered | ||||||
23 | pursuant to this Section shall not be extinguished by a lapse | ||||||
24 | in the association's registration, nor shall the common expense | ||||||
25 | debt reflected by the lien or court action be deemed invalid, | ||||||
26 | but any pending enforcement proceedings related to the lien |
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1 | shall be suspended and any applicable time limits tolled until | ||||||
2 | the association is again validly registered pursuant to this | ||||||
3 | Section.
Nothing contained herein shall be deemed to invalidate | ||||||
4 | any claim for common expenses or other enforcement mechanism, | ||||||
5 | even if the claim arose while the association was not | ||||||
6 | registered. | ||||||
7 | Section 60. Rules. The Department may adopt rules for the | ||||||
8 | administration and enforcement of this Act. Any rule adopted | ||||||
9 | under this Act is subject to the rulemaking provisions of the | ||||||
10 | Illinois Administrative Procedure Act. | ||||||
11 | Section 65. State Lawsuit Immunity Act. Nothing in this Act | ||||||
12 | shall be construed to constitute a waiver of the immunity of | ||||||
13 | the State, Department, Division, Office, or Ombudsperson, or | ||||||
14 | any officer, employee, or agent thereof under the State Lawsuit | ||||||
15 | Immunity Act. | ||||||
16 | Section 70. Repeal. This Act is repealed on July 1, 2021. | ||||||
17 | Section 75. The Condominium Property Act is amended by | ||||||
18 | adding Section 35 as follows: | ||||||
19 | (765 ILCS 605/35 new) | ||||||
20 | Sec. 35. Compliance with the Condominium and Common | ||||||
21 | Interest Community Ombudsperson Act. Every unit owners' |
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1 | association must comply with the Condominium and Common | ||||||
2 | Interest Community Ombudsperson Act and is subject to all | ||||||
3 | provisions of the Condominium and Common Interest Community | ||||||
4 | Ombudsperson Act. This Section is repealed July 1, 2021. | ||||||
5 | Section 80. The Common Interest Community Association Act | ||||||
6 | is amended by adding Section 1-90 as follows: | ||||||
7 | (765 ILCS 160/1-90 new) | ||||||
8 | Sec. 1-90. Compliance with the Condominium and Common | ||||||
9 | Interest Community Ombudsperson Act. Every common interest | ||||||
10 | community association, except for those exempt from this Act | ||||||
11 | under Section 1-75, must comply with the Condominium and | ||||||
12 | Community Interest Community Ombudsperson Act and is subject to | ||||||
13 | all provisions of the Condominium and Community Interest | ||||||
14 | Community Ombudsperson Act. This Section is repealed July 1, | ||||||
15 | 2021.
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16 | Section 999. Effective date. This Act takes effect July 1, | ||||||
17 | 2016.
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