SB2354 EngrossedLRB099 16668 HEP 41006 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 Section 1-40 as follows:
 
6    (765 ILCS 160/1-40)
7    Sec. 1-40. Meetings.
8    (a) Notice of any membership meeting shall be given
9detailing the time, place, and purpose of such meeting no less
10than 10 and no more than 30 days prior to the meeting through a
11prescribed delivery method.
12    (b) Meetings.
13        (1) Twenty percent of the membership shall constitute a
14    quorum, unless the community instruments indicate a lesser
15    amount.
16        (2) The membership shall hold an annual meeting. The
17    board of directors may be elected at the annual meeting.
18        (3) Special meetings of the board may be called by the
19    president, by 25% of the members of the board, or by any
20    other method that is prescribed in the community
21    instruments. Special meetings of the membership may be
22    called by the president, the board, 20% of the membership,
23    or any other method that is prescribed in the community

 

 

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1    instruments.
2        (4) Except to the extent otherwise provided by this
3    Act, the board shall give the members notice of all board
4    meetings at least 48 hours prior to the meeting by sending
5    notice by using a prescribed delivery method or by posting
6    copies of notices of meetings in entranceways, elevators,
7    or other conspicuous places in the common areas of the
8    common interest community at least 48 hours prior to the
9    meeting except where there is no common entranceway for 7
10    or more units, the board may designate one or more
11    locations in the proximity of these units where the notices
12    of meetings shall be posted. The board shall give members
13    notice of any board meeting, through a prescribed delivery
14    method, concerning the adoption of (i) the proposed annual
15    budget, (ii) regular assessments, or (iii) a separate or
16    special assessment within 10 to 60 days prior to the
17    meeting, unless otherwise provided in Section 1-45 (a) or
18    any other provision of this Act.
19        (5) Meetings of the board shall be open to any unit
20    owner, except that the board may close any portion of a
21    noticed meeting or meet separately from a noticed meeting:
22    for the portion of any meeting held (i) to discuss
23    litigation when an action against or on behalf of the
24    particular association has been filed and is pending in a
25    court or administrative tribunal, or when the common
26    interest community association finds that such an action is

 

 

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1    probable or imminent, (ii) to discuss consider third party
2    contracts or information regarding appointment,
3    employment, engagement, or dismissal of an employee,
4    independent contractor, agent, or other provider of goods
5    and services, (iii) to interview a potential employee,
6    independent contractor, agent, or other provider of goods
7    and services, (iv) , or (iii) to discuss violations of rules
8    and regulations of the association, (v) to discuss or a
9    member's or unit owner's unpaid share of common expenses,
10    or (vi) to consult with the association's legal counsel.
11    Any vote on these matters shall be taken at a meeting or
12    portion thereof open to any member.
13        (6) The board must reserve a portion of the meeting of
14    the board for comments by members; provided, however, the
15    duration and meeting order for the member comment period is
16    within the sole discretion of the board.
17(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11;
1897-1090, eff. 8-24-12.)
 
19    Section 10. The Condominium Property Act is amended by
20changing Section 18 as follows:
 
21    (765 ILCS 605/18)  (from Ch. 30, par. 318)
22    (Text of Section before amendment by P.A. 99-472)
23    Sec. 18. Contents of bylaws. The bylaws shall provide for
24at least the following:

 

 

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1    (a)(1) The election from among the unit owners of a board
2of managers, the number of persons constituting such board, and
3that the terms of at least one-third of the members of the
4board shall expire annually and that all members of the board
5shall be elected at large; if . If there are multiple owners of
6a single unit, only one of the multiple owners shall be
7eligible to serve as a member of the board at any one time; .
8    (2) the powers and duties of the board;
9    (3) the compensation, if any, of the members of the board;
10    (4) the method of removal from office of members of the
11board;
12    (5) that the board may engage the services of a manager or
13managing agent;
14    (6) that each unit owner shall receive, at least 30 days
15prior to the adoption thereof by the board of managers, a copy
16of the proposed annual budget together with an indication of
17which portions are intended for reserves, capital expenditures
18or repairs or payment of real estate taxes;
19    (7) that the board of managers shall annually supply to all
20unit owners an itemized accounting of the common expenses for
21the preceding year actually incurred or paid, together with an
22indication of which portions were for reserves, capital
23expenditures or repairs or payment of real estate taxes and
24with a tabulation of the amounts collected pursuant to the
25budget or assessment, and showing the net excess or deficit of
26income over expenditures plus reserves;

 

 

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

 

 

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

 

 

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1such recordings, that notice of such meetings shall be mailed
2or delivered at least 48 hours prior thereto, unless a written
3waiver of such notice is signed by the person or persons
4entitled to such notice pursuant to the declaration, bylaws,
5other condominium instrument, or provision of law other than
6this subsection before the meeting is convened, and that copies
7of notices of meetings of the board of managers shall be posted
8in entranceways, elevators, or other conspicuous places in the
9condominium at least 48 hours prior to the meeting of the board
10of managers except where there is no common entranceway for 7
11or more units, the board of managers may designate one or more
12locations in the proximity of these units where the notices of
13meetings shall be posted;
14    (10) that the board shall meet at least 4 times annually;
15    (11) that no member of the board or officer shall be
16elected for a term of more than 2 years, but that officers and
17board members may succeed themselves;
18    (12) the designation of an officer to mail and receive all
19notices and execute amendments to condominium instruments as
20provided for in this Act and in the condominium instruments;
21    (13) the method of filling vacancies on the board which
22shall include authority for the remaining members of the board
23to fill the vacancy by two-thirds vote until the next annual
24meeting of unit owners or for a period terminating no later
25than 30 days following the filing of a petition signed by unit
26owners holding 20% of the votes of the association requesting a

 

 

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

 

 

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1children;
2    (17) that the board of managers may disseminate to unit
3owners biographical and background information about
4candidates for election to the board if (i) reasonable efforts
5to identify all candidates are made and all candidates are
6given an opportunity to include biographical and background
7information in the information to be disseminated; and (ii) the
8board does not express a preference in favor of any candidate;
9    (18) any proxy distributed for board elections by the board
10of managers gives unit owners the opportunity to designate any
11person as the proxy holder, and gives the unit owner the
12opportunity to express a preference for any of the known
13candidates for the board or to write in a name;
14    (19) that special meetings of the board of managers can be
15called by the president or 25% of the members of the board; and
16    (20) that the board of managers may establish and maintain
17a system of master metering of public utility services and
18collect payments in connection therewith, subject to the
19requirements of the Tenant Utility Payment Disclosure Act.
20    (b)(1) What percentage of the unit owners, if other than
2120%, shall constitute a quorum provided that, for condominiums
22with 20 or more units, the percentage of unit owners
23constituting a quorum shall be 20% unless the unit owners
24holding a majority of the percentage interest in the
25association provide for a higher percentage, provided that in
26voting on amendments to the association's bylaws, a unit owner

 

 

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1who is in arrears on the unit owner's regular or separate
2assessments for 60 days or more, shall not be counted for
3purposes of determining if a quorum is present, but that unit
4owner retains the right to vote on amendments to the
5association's bylaws;
6    (2) that the association shall have one class of
7membership;
8    (3) that the members shall hold an annual meeting, one of
9the purposes of which shall be to elect members of the board of
10managers;
11    (4) the method of calling meetings of the unit owners;
12    (5) that special meetings of the members can be called by
13the president, board of managers, or by 20% of unit owners;
14    (6) that written notice of any membership meeting shall be
15mailed or delivered giving members no less than 10 and no more
16than 30 days notice of the time, place and purpose of such
17meeting except that notice may be sent, to the extent the
18condominium instruments or rules adopted thereunder expressly
19so provide, by electronic transmission consented to by the unit
20owner to whom the notice is given, provided the director and
21officer or his agent certifies in writing to the delivery by
22electronic transmission;
23    (7) that voting shall be on a percentage basis, and that
24the percentage vote to which each unit is entitled is the
25percentage interest of the undivided ownership of the common
26elements appurtenant thereto, provided that the bylaws may

 

 

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1provide for approval by unit owners in connection with matters
2where the requisite approval on a percentage basis is not
3specified in this Act, on the basis of one vote per unit;
4    (8) that, where there is more than one owner of a unit, if
5only one of the multiple owners is present at a meeting of the
6association, he is entitled to cast all the votes allocated to
7that unit, if more than one of the multiple owners are present,
8the votes allocated to that unit may be cast only in accordance
9with the agreement of a majority in interest of the multiple
10owners, unless the declaration expressly provides otherwise,
11that there is majority agreement if any one of the multiple
12owners cast the votes allocated to that unit without protest
13being made promptly to the person presiding over the meeting by
14any of the other owners of the unit;
15    (9)(A) except as provided in subparagraph (B) of this
16paragraph (9) in connection with board elections, that a unit
17owner may vote by proxy executed in writing by the unit owner
18or by his duly authorized attorney in fact; that the proxy must
19bear the date of execution and, unless the condominium
20instruments or the written proxy itself provide otherwise, is
21invalid after 11 months from the date of its execution; to the
22extent the condominium instruments or rules adopted thereunder
23expressly so provide, a vote or proxy may be submitted by
24electronic transmission, provided that any such electronic
25transmission shall either set forth or be submitted with
26information from which it can be determined that the electronic

 

 

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1transmission was authorized by the unit owner or the unit
2owner's proxy;
3    (B) that if a rule adopted at least 120 days before a board
4election or the declaration or bylaws provide for balloting as
5set forth in this subsection, unit owners may not vote by proxy
6in board elections, but may vote only (i) by submitting an
7association-issued ballot in person at the election meeting or
8(ii) by submitting an association-issued ballot to the
9association or its designated agent by mail or other means of
10delivery specified in the declaration, bylaws, or rule; that
11the ballots shall be mailed or otherwise distributed to unit
12owners not less than 10 and not more than 30 days before the
13election meeting, and the board shall give unit owners not less
14than 21 days' prior written notice of the deadline for
15inclusion of a candidate's name on the ballots; that the
16deadline shall be no more than 7 days before the ballots are
17mailed or otherwise distributed to unit owners; that every such
18ballot must include the names of all candidates who have given
19the board or its authorized agent timely written notice of
20their candidacy and must give the person casting the ballot the
21opportunity to cast votes for candidates whose names do not
22appear on the ballot; that a ballot received by the association
23or its designated agent after the close of voting shall not be
24counted; that a unit owner who submits a ballot by mail or
25other means of delivery specified in the declaration, bylaws,
26or rule may request and cast a ballot in person at the election

 

 

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1meeting, and thereby void any ballot previously submitted by
2that unit owner;
3    (B-5) that if a rule adopted at least 120 days before a
4board election or the declaration or bylaws provide for
5balloting as set forth in this subparagraph, unit owners may
6not vote by proxy in board elections, but may vote only (i) by
7submitting an association-issued ballot in person at the
8election meeting; or (ii) by any acceptable technological means
9as defined in Section 2 of this Act; instructions regarding the
10use of electronic means for voting shall be distributed to all
11unit owners not less than 10 and not more than 30 days before
12the election meeting, and the board shall give unit owners not
13less than 21 days' prior written notice of the deadline for
14inclusion of a candidate's name on the ballots; the deadline
15shall be no more than 7 days before the instructions for voting
16using electronic or acceptable technological means is
17distributed to unit owners; every instruction notice must
18include the names of all candidates who have given the board or
19its authorized agent timely written notice of their candidacy
20and must give the person voting through electronic or
21acceptable technological means the opportunity to cast votes
22for candidates whose names do not appear on the ballot; a unit
23owner who submits a vote using electronic or acceptable
24technological means may request and cast a ballot in person at
25the election meeting, thereby voiding any vote previously
26submitted by that unit owner;

 

 

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1    (C) that if a written petition by unit owners with at least
220% of the votes of the association is delivered to the board
3within 14 days after the board's approval of a rule adopted
4pursuant to subparagraph (B) or subparagraph (B-5) of this
5paragraph (9), the board shall call a meeting of the unit
6owners within 30 days after the date of delivery of the
7petition; that unless a majority of the total votes of the unit
8owners are cast at the meeting to reject the rule, the rule is
9ratified;
10    (D) that votes cast by ballot under subparagraph (B) or
11electronic or acceptable technological means under
12subparagraph (B-5) of this paragraph (9) are valid for the
13purpose of establishing a quorum;
14    (10) that the association may, upon adoption of the
15appropriate rules by the board of managers, conduct elections
16by secret ballot whereby the voting ballot is marked only with
17the percentage interest for the unit and the vote itself,
18provided that the board further adopt rules to verify the
19status of the unit owner issuing a proxy or casting a ballot;
20and further, that a candidate for election to the board of
21managers or such candidate's representative shall have the
22right to be present at the counting of ballots at such
23election;
24    (11) that in the event of a resale of a condominium unit
25the purchaser of a unit from a seller other than the developer
26pursuant to an installment contract for purchase shall during

 

 

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1such times as he or she resides in the unit be counted toward a
2quorum for purposes of election of members of the board of
3managers at any meeting of the unit owners called for purposes
4of electing members of the board, shall have the right to vote
5for the election of members of the board of managers and to be
6elected to and serve on the board of managers unless the seller
7expressly retains in writing any or all of such rights. In no
8event may the seller and purchaser both be counted toward a
9quorum, be permitted to vote for a particular office or be
10elected and serve on the board. Satisfactory evidence of the
11installment contract contact shall be made available to the
12association or its agents. For purposes of this subsection,
13"installment contract" contact" shall have the same meaning as
14set forth in Section 1 (e) of the Dwelling Unit Installment
15Contract Act "An Act relating to installment contracts to sell
16dwelling structures", approved August 11, 1967, as amended;
17    (12) the method by which matters subject to the approval of
18unit owners set forth in this Act, or in the condominium
19instruments, will be submitted to the unit owners at special
20membership meetings called for such purposes; and
21    (13) that matters subject to the affirmative vote of not
22less than 2/3 of the votes of unit owners at a meeting duly
23called for that purpose, shall include, but not be limited to:
24        (i) merger or consolidation of the association;
25        (ii) sale, lease, exchange, or other disposition
26    (excluding the mortgage or pledge) of all, or substantially

 

 

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1    all of the property and assets of the association; and
2        (iii) the purchase or sale of land or of units on
3    behalf of all unit owners.
4    (c) Election of a president from among the board of
5managers, who shall preside over the meetings of the board of
6managers and of the unit owners.
7    (d) Election of a secretary from among the board of
8managers, who shall keep the minutes of all meetings of the
9board of managers and of the unit owners and who shall, in
10general, perform all the duties incident to the office of
11secretary.
12    (e) Election of a treasurer from among the board of
13managers, who shall keep the financial records and books of
14account.
15    (f) Maintenance, repair and replacement of the common
16elements and payments therefor, including the method of
17approving payment vouchers.
18    (g) An association with 30 or more units shall obtain and
19maintain fidelity insurance covering persons who control or
20disburse funds of the association for the maximum amount of
21coverage available to protect funds in the custody or control
22of the association plus the association reserve fund. All
23management companies which are responsible for the funds held
24or administered by the association shall maintain and furnish
25to the association a fidelity bond for the maximum amount of
26coverage available to protect funds in the custody of the

 

 

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

 

 

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1obligations necessary for the day to day operation and
2management of any property subject to this Act. For purposes of
3this subsection, the term "fiduciary insurance coverage" shall
4be defined as both a fidelity bond and directors and officers
5liability coverage, the fidelity bond in the full amount of
6association funds and association reserves that will be in the
7custody of the association, and the directors and officers
8liability coverage at a level as shall be determined to be
9reasonable by the board of managers, if not otherwise
10established by the declaration or by laws.
11    Until one year after September 21, 1985 (the effective date
12of Public Act 84-722) this amendatory Act of 1985, if a
13condominium association has reserves plus assessments in
14excess of $250,000 and cannot reasonably obtain 100% fidelity
15bond coverage for such amount, then it must obtain a fidelity
16bond coverage of $250,000.
17    (h) Method of estimating the amount of the annual budget,
18and the manner of assessing and collecting from the unit owners
19their respective shares of such estimated expenses, and of any
20other expenses lawfully agreed upon.
21    (i) That upon 10 days notice to the manager or board of
22managers and payment of a reasonable fee, any unit owner shall
23be furnished a statement of his account setting forth the
24amount of any unpaid assessments or other charges due and owing
25from such owner.
26    (j) Designation and removal of personnel necessary for the

 

 

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1maintenance, repair and replacement of the common elements.
2    (k) Such restrictions on and requirements respecting the
3use and maintenance of the units and the use of the common
4elements, not set forth in the declaration, as are designed to
5prevent unreasonable interference with the use of their
6respective units and of the common elements by the several unit
7owners.
8    (l) Method of adopting and of amending administrative rules
9and regulations governing the operation and use of the common
10elements.
11    (m) The percentage of votes required to modify or amend the
12bylaws, but each one of the particulars set forth in this
13section shall always be embodied in the bylaws.
14    (n)(i) The provisions of this Act, the declaration, bylaws,
15other condominium instruments, and rules and regulations that
16relate to the use of the individual unit or the common elements
17shall be applicable to any person leasing a unit and shall be
18deemed to be incorporated in any lease executed or renewed on
19or after August 30, 1984 (the effective date of Public Act
2083-1271) this amendatory Act of 1984.
21    (ii) With regard to any lease entered into subsequent to
22July 1, 1990 (the effective date of Public Act 86-991) this
23amendatory Act of 1989, the unit owner leasing the unit shall
24deliver a copy of the signed lease to the board or if the lease
25is oral, a memorandum of the lease, not later than the date of
26occupancy or 10 days after the lease is signed, whichever

 

 

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1occurs first. In addition to any other remedies, by filing an
2action jointly against the tenant and the unit owner, an
3association may seek to enjoin a tenant from occupying a unit
4or seek to evict a tenant under the provisions of Article IX of
5the Code of Civil Procedure for failure of the lessor-owner to
6comply with the leasing requirements prescribed by this Section
7or by the declaration, bylaws, and rules and regulations. The
8board of managers may proceed directly against a tenant, at law
9or in equity, or under the provisions of Article IX of the Code
10of Civil Procedure, for any other breach by tenant of any
11covenants, rules, regulations or bylaws.
12    (o) The association shall have no authority to forbear the
13payment of assessments by any unit owner.
14    (p) That when 30% or fewer of the units, by number, possess
15over 50% in the aggregate of the votes in the association, any
16percentage vote of members specified herein or in the
17condominium instruments shall require the specified percentage
18by number of units rather than by percentage of interest in the
19common elements allocated to units that would otherwise be
20applicable and garage units or storage units, or both, shall
21have, in total, no more votes than their aggregate percentage
22of ownership in the common elements; this shall mean that if
23garage units or storage units, or both, are to be given a vote,
24or portion of a vote, that the association must add the total
25number of votes cast of garage units, storage units, or both,
26and divide the total by the number of garage units, storage

 

 

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1units, or both, and multiply by the aggregate percentage of
2ownership of garage units and storage units to determine the
3vote, or portion of a vote, that garage units or storage units,
4or both, have. For purposes of this subsection (p), when making
5a determination of whether 30% or fewer of the units, by
6number, possess over 50% in the aggregate of the votes in the
7association, a unit shall not include a garage unit or a
8storage unit.
9    (q) That a unit owner may not assign, delegate, transfer,
10surrender, or avoid the duties, responsibilities, and
11liabilities of a unit owner under this Act, the condominium
12instruments, or the rules and regulations of the Association;
13and that such an attempted assignment, delegation, transfer,
14surrender, or avoidance shall be deemed void.
15    The provisions of this Section are applicable to all
16condominium instruments recorded under this Act. Any portion of
17a condominium instrument which contains provisions contrary to
18these provisions shall be void as against public policy and
19ineffective. Any such instrument which fails to contain the
20provisions required by this Section shall be deemed to
21incorporate such provisions by operation of law.
22(Source: P.A. 98-1042, eff. 1-1-15; revised 10-19-15.)
 
23    (Text of Section after amendment by P.A. 99-472)
24    Sec. 18. Contents of bylaws. The bylaws shall provide for
25at least the following:

 

 

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1    (a)(1) The election from among the unit owners of a board
2of managers, the number of persons constituting such board, and
3that the terms of at least one-third of the members of the
4board shall expire annually and that all members of the board
5shall be elected at large; if . If there are multiple owners of
6a single unit, only one of the multiple owners shall be
7eligible to serve as a member of the board at any one time; .
8    (2) the powers and duties of the board;
9    (3) the compensation, if any, of the members of the board;
10    (4) the method of removal from office of members of the
11board;
12    (5) that the board may engage the services of a manager or
13managing agent;
14    (6) that each unit owner shall receive, at least 25 days
15prior to the adoption thereof by the board of managers, a copy
16of the proposed annual budget together with an indication of
17which portions are intended for reserves, capital expenditures
18or repairs or payment of real estate taxes;
19    (7) that the board of managers shall annually supply to all
20unit owners an itemized accounting of the common expenses for
21the preceding year actually incurred or paid, together with an
22indication of which portions were for reserves, capital
23expenditures or repairs or payment of real estate taxes and
24with a tabulation of the amounts collected pursuant to the
25budget or assessment, and showing the net excess or deficit of
26income over expenditures plus reserves;

 

 

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

 

 

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1elements or to the life, health, safety or property of the unit
2owners, (v) that assessments for additions and alterations to
3the common elements or to association-owned property not
4included in the adopted annual budget, shall be separately
5assessed and are subject to approval of two-thirds of the total
6votes of all unit owners, (vi) that the board of managers may
7adopt separate assessments payable over more than one fiscal
8year. With respect to multi-year assessments not governed by
9items (iv) and (v), the entire amount of the multi-year
10assessment shall be deemed considered and authorized in the
11first fiscal year in which the assessment is approved;
12    (9)(A) that every meeting of the board of managers shall be
13open to any unit owner, except that the board may close any
14portion of a noticed meeting or meet separately from a noticed
15meeting for the portion of any meeting held to discuss or
16consider information relating to: (i) discuss litigation when
17an action against or on behalf of the particular association
18has been filed and is pending in a court or administrative
19tribunal, or when the board of managers finds that such an
20action is probable or imminent, (ii) discuss the appointment,
21employment, engagement, or dismissal of an employee,
22independent contractor, agent, or other provider of goods and
23services, (iii) interview a potential employee, independent
24contractor, agent, or other provider of goods and services,
25(iv) discuss , (iii) violations of rules and regulations of the
26association, (v) discuss or (iv) a unit owner's unpaid share of

 

 

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1common expenses, or (vi) consult with the association's legal
2counsel; that any vote on these matters discussed or considered
3in closed session shall take place at a meeting of the board of
4managers or portion thereof open to any unit owner;
5    (B) that board members may participate in and act at any
6meeting of the board of managers in person, by telephonic
7means, or by use of any acceptable technological means whereby
8all persons participating in the meeting can communicate with
9each other; that participation constitutes attendance and
10presence in person at the meeting;
11    (C) that any unit owner may record the proceedings at
12meetings of the board of managers or portions thereof required
13to be open by this Act by tape, film or other means, and that
14the board may prescribe reasonable rules and regulations to
15govern the right to make such recordings;
16    (D) that notice of every meeting of the board of managers
17shall be given to every board member at least 48 hours prior
18thereto, unless the board member waives notice of the meeting
19pursuant to subsection (a) of Section 18.8; and
20    (E) that notice of every meeting of the board of managers
21shall be posted in entranceways, elevators, or other
22conspicuous places in the condominium at least 48 hours prior
23to the meeting of the board of managers except where there is
24no common entranceway for 7 or more units, the board of
25managers may designate one or more locations in the proximity
26of these units where the notices of meetings shall be posted;

 

 

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1that notice of every meeting of the board of managers shall
2also be given at least 48 hours prior to the meeting, or such
3longer notice as this Act may separately require, to: (i) each
4unit owner who has provided the association with written
5authorization to conduct business by acceptable technological
6means, and (ii) to the extent that the condominium instruments
7of an association require, to each other unit owner, as
8required by subsection (f) of Section 18.8, by mail or
9delivery, and that no other notice of a meeting of the board of
10managers need be given to any unit owner;
11    (10) that the board shall meet at least 4 times annually;
12    (11) that no member of the board or officer shall be
13elected for a term of more than 2 years, but that officers and
14board members may succeed themselves;
15    (12) the designation of an officer to mail and receive all
16notices and execute amendments to condominium instruments as
17provided for in this Act and in the condominium instruments;
18    (13) the method of filling vacancies on the board which
19shall include authority for the remaining members of the board
20to fill the vacancy by two-thirds vote until the next annual
21meeting of unit owners or for a period terminating no later
22than 30 days following the filing of a petition signed by unit
23owners holding 20% of the votes of the association requesting a
24meeting of the unit owners to fill the vacancy for the balance
25of the term, and that a meeting of the unit owners shall be
26called for purposes of filling a vacancy on the board no later

 

 

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1than 30 days following the filing of a petition signed by unit
2owners holding 20% of the votes of the association requesting
3such a meeting, and the method of filling vacancies among the
4officers that shall include the authority for the members of
5the board to fill the vacancy for the unexpired portion of the
6term;
7    (14) what percentage of the board of managers, if other
8than a majority, shall constitute a quorum;
9    (15) provisions concerning notice of board meetings to
10members of the board;
11    (16) the board of managers may not enter into a contract
12with a current board member or with a corporation or
13partnership in which a board member or a member of the board
14member's immediate family has 25% or more interest, unless
15notice of intent to enter the contract is given to unit owners
16within 20 days after a decision is made to enter into the
17contract and the unit owners are afforded an opportunity by
18filing a petition, signed by 20% of the unit owners, for an
19election to approve or disapprove the contract; such petition
20shall be filed within 20 days after such notice and such
21election shall be held within 30 days after filing the
22petition; for purposes of this subsection, a board member's
23immediate family means the board member's spouse, parents, and
24children;
25    (17) that the board of managers may disseminate to unit
26owners biographical and background information about

 

 

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1candidates for election to the board if (i) reasonable efforts
2to identify all candidates are made and all candidates are
3given an opportunity to include biographical and background
4information in the information to be disseminated; and (ii) the
5board does not express a preference in favor of any candidate;
6    (18) any proxy distributed for board elections by the board
7of managers gives unit owners the opportunity to designate any
8person as the proxy holder, and gives the unit owner the
9opportunity to express a preference for any of the known
10candidates for the board or to write in a name;
11    (19) that special meetings of the board of managers can be
12called by the president or 25% of the members of the board;
13    (20) that the board of managers may establish and maintain
14a system of master metering of public utility services and
15collect payments in connection therewith, subject to the
16requirements of the Tenant Utility Payment Disclosure Act; and
17    (21) that the board may ratify and confirm actions of the
18members of the board taken in response to an emergency, as that
19term is defined in subdivision (a)(8)(iv) of this Section; that
20the board shall give notice to the unit owners of: (i) the
21occurrence of the emergency event within 7 business days after
22the emergency event, and (ii) the general description of the
23actions taken to address the event within 7 days after the
24emergency event.
25    The intent of the provisions of Public Act 99-472 this
26amendatory Act of the 99th General Assembly adding this

 

 

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1paragraph (21) is to empower and support boards to act in
2emergencies.
3    (b)(1) What percentage of the unit owners, if other than
420%, shall constitute a quorum provided that, for condominiums
5with 20 or more units, the percentage of unit owners
6constituting a quorum shall be 20% unless the unit owners
7holding a majority of the percentage interest in the
8association provide for a higher percentage, provided that in
9voting on amendments to the association's bylaws, a unit owner
10who is in arrears on the unit owner's regular or separate
11assessments for 60 days or more, shall not be counted for
12purposes of determining if a quorum is present, but that unit
13owner retains the right to vote on amendments to the
14association's bylaws;
15    (2) that the association shall have one class of
16membership;
17    (3) that the members shall hold an annual meeting, one of
18the purposes of which shall be to elect members of the board of
19managers;
20    (4) the method of calling meetings of the unit owners;
21    (5) that special meetings of the members can be called by
22the president, board of managers, or by 20% of unit owners;
23    (6) that written notice of any membership meeting shall be
24mailed or delivered giving members no less than 10 and no more
25than 30 days notice of the time, place and purpose of such
26meeting except that notice may be sent, to the extent the

 

 

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

 

 

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1or by his duly authorized attorney in fact; that the proxy must
2bear the date of execution and, unless the condominium
3instruments or the written proxy itself provide otherwise, is
4invalid after 11 months from the date of its execution; to the
5extent the condominium instruments or rules adopted thereunder
6expressly so provide, a vote or proxy may be submitted by
7electronic transmission, provided that any such electronic
8transmission shall either set forth or be submitted with
9information from which it can be determined that the electronic
10transmission was authorized by the unit owner or the unit
11owner's proxy;
12    (B) that if a rule adopted at least 120 days before a board
13election or the declaration or bylaws provide for balloting as
14set forth in this subsection, unit owners may not vote by proxy
15in board elections, but may vote only (i) by submitting an
16association-issued ballot in person at the election meeting or
17(ii) by submitting an association-issued ballot to the
18association or its designated agent by mail or other means of
19delivery specified in the declaration, bylaws, or rule; that
20the ballots shall be mailed or otherwise distributed to unit
21owners not less than 10 and not more than 30 days before the
22election meeting, and the board shall give unit owners not less
23than 21 days' prior written notice of the deadline for
24inclusion of a candidate's name on the ballots; that the
25deadline shall be no more than 7 days before the ballots are
26mailed or otherwise distributed to unit owners; that every such

 

 

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1ballot must include the names of all candidates who have given
2the board or its authorized agent timely written notice of
3their candidacy and must give the person casting the ballot the
4opportunity to cast votes for candidates whose names do not
5appear on the ballot; that a ballot received by the association
6or its designated agent after the close of voting shall not be
7counted; that a unit owner who submits a ballot by mail or
8other means of delivery specified in the declaration, bylaws,
9or rule may request and cast a ballot in person at the election
10meeting, and thereby void any ballot previously submitted by
11that unit owner;
12    (B-5) that if a rule adopted at least 120 days before a
13board election or the declaration or bylaws provide for
14balloting as set forth in this subparagraph, unit owners may
15not vote by proxy in board elections, but may vote only (i) by
16submitting an association-issued ballot in person at the
17election meeting; or (ii) by any acceptable technological means
18as defined in Section 2 of this Act; instructions regarding the
19use of electronic means for voting shall be distributed to all
20unit owners not less than 10 and not more than 30 days before
21the election meeting, and the board shall give unit owners not
22less than 21 days' prior written notice of the deadline for
23inclusion of a candidate's name on the ballots; the deadline
24shall be no more than 7 days before the instructions for voting
25using electronic or acceptable technological means is
26distributed to unit owners; every instruction notice must

 

 

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1include the names of all candidates who have given the board or
2its authorized agent timely written notice of their candidacy
3and must give the person voting through electronic or
4acceptable technological means the opportunity to cast votes
5for candidates whose names do not appear on the ballot; a unit
6owner who submits a vote using electronic or acceptable
7technological means may request and cast a ballot in person at
8the election meeting, thereby voiding any vote previously
9submitted by that unit owner;
10    (C) that if a written petition by unit owners with at least
1120% of the votes of the association is delivered to the board
12within 14 days after the board's approval of a rule adopted
13pursuant to subparagraph (B) or subparagraph (B-5) of this
14paragraph (9), the board shall call a meeting of the unit
15owners within 30 days after the date of delivery of the
16petition; that unless a majority of the total votes of the unit
17owners are cast at the meeting to reject the rule, the rule is
18ratified;
19    (D) that votes cast by ballot under subparagraph (B) or
20electronic or acceptable technological means under
21subparagraph (B-5) of this paragraph (9) are valid for the
22purpose of establishing a quorum;
23    (10) that the association may, upon adoption of the
24appropriate rules by the board of managers, conduct elections
25by secret ballot whereby the voting ballot is marked only with
26the percentage interest for the unit and the vote itself,

 

 

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1provided that the board further adopt rules to verify the
2status of the unit owner issuing a proxy or casting a ballot;
3and further, that a candidate for election to the board of
4managers or such candidate's representative shall have the
5right to be present at the counting of ballots at such
6election;
7    (11) that in the event of a resale of a condominium unit
8the purchaser of a unit from a seller other than the developer
9pursuant to an installment contract for purchase shall during
10such times as he or she resides in the unit be counted toward a
11quorum for purposes of election of members of the board of
12managers at any meeting of the unit owners called for purposes
13of electing members of the board, shall have the right to vote
14for the election of members of the board of managers and to be
15elected to and serve on the board of managers unless the seller
16expressly retains in writing any or all of such rights. In no
17event may the seller and purchaser both be counted toward a
18quorum, be permitted to vote for a particular office or be
19elected and serve on the board. Satisfactory evidence of the
20installment contract contact shall be made available to the
21association or its agents. For purposes of this subsection,
22"installment contract" contact" shall have the same meaning as
23set forth in Section 1 (e) of the Dwelling Unit Installment
24Contract Act "An Act relating to installment contracts to sell
25dwelling structures", approved August 11, 1967, as amended;
26    (12) the method by which matters subject to the approval of

 

 

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1unit owners set forth in this Act, or in the condominium
2instruments, will be submitted to the unit owners at special
3membership meetings called for such purposes; and
4    (13) that matters subject to the affirmative vote of not
5less than 2/3 of the votes of unit owners at a meeting duly
6called for that purpose, shall include, but not be limited to:
7        (i) merger or consolidation of the association;
8        (ii) sale, lease, exchange, or other disposition
9    (excluding the mortgage or pledge) of all, or substantially
10    all of the property and assets of the association; and
11        (iii) the purchase or sale of land or of units on
12    behalf of all unit owners.
13    (c) Election of a president from among the board of
14managers, who shall preside over the meetings of the board of
15managers and of the unit owners.
16    (d) Election of a secretary from among the board of
17managers, who shall keep the minutes of all meetings of the
18board of managers and of the unit owners and who shall, in
19general, perform all the duties incident to the office of
20secretary.
21    (e) Election of a treasurer from among the board of
22managers, who shall keep the financial records and books of
23account.
24    (f) Maintenance, repair and replacement of the common
25elements and payments therefor, including the method of
26approving payment vouchers.

 

 

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1    (g) An association with 30 or more units shall obtain and
2maintain fidelity insurance covering persons who control or
3disburse funds of the association for the maximum amount of
4coverage available to protect funds in the custody or control
5of the association plus the association reserve fund. All
6management companies which are responsible for the funds held
7or administered by the association shall maintain and furnish
8to the association a fidelity bond for the maximum amount of
9coverage available to protect funds in the custody of the
10management company at any time. The association shall bear the
11cost of the fidelity insurance and fidelity bond, unless
12otherwise provided by contract between the association and a
13management company. The association shall be the direct obligee
14of any such fidelity bond. A management company holding reserve
15funds of an association shall at all times maintain a separate
16account for each association, provided, however, that for
17investment purposes, the Board of Managers of an association
18may authorize a management company to maintain the
19association's reserve funds in a single interest bearing
20account with similar funds of other associations. The
21management company shall at all times maintain records
22identifying all moneys of each association in such investment
23account. The management company may hold all operating funds of
24associations which it manages in a single operating account but
25shall at all times maintain records identifying all moneys of
26each association in such operating account. Such operating and

 

 

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1reserve funds held by the management company for the
2association shall not be subject to attachment by any creditor
3of the management company.
4    For the purpose of this subsection, a management company
5shall be defined as a person, partnership, corporation, or
6other legal entity entitled to transact business on behalf of
7others, acting on behalf of or as an agent for a unit owner,
8unit owners or association of unit owners for the purpose of
9carrying out the duties, responsibilities, and other
10obligations necessary for the day to day operation and
11management of any property subject to this Act. For purposes of
12this subsection, the term "fiduciary insurance coverage" shall
13be defined as both a fidelity bond and directors and officers
14liability coverage, the fidelity bond in the full amount of
15association funds and association reserves that will be in the
16custody of the association, and the directors and officers
17liability coverage at a level as shall be determined to be
18reasonable by the board of managers, if not otherwise
19established by the declaration or by laws.
20    Until one year after September 21, 1985 (the effective date
21of Public Act 84-722) this amendatory Act of 1985, if a
22condominium association has reserves plus assessments in
23excess of $250,000 and cannot reasonably obtain 100% fidelity
24bond coverage for such amount, then it must obtain a fidelity
25bond coverage of $250,000.
26    (h) Method of estimating the amount of the annual budget,

 

 

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1and the manner of assessing and collecting from the unit owners
2their respective shares of such estimated expenses, and of any
3other expenses lawfully agreed upon.
4    (i) That upon 10 days notice to the manager or board of
5managers and payment of a reasonable fee, any unit owner shall
6be furnished a statement of his account setting forth the
7amount of any unpaid assessments or other charges due and owing
8from such owner.
9    (j) Designation and removal of personnel necessary for the
10maintenance, repair and replacement of the common elements.
11    (k) Such restrictions on and requirements respecting the
12use and maintenance of the units and the use of the common
13elements, not set forth in the declaration, as are designed to
14prevent unreasonable interference with the use of their
15respective units and of the common elements by the several unit
16owners.
17    (l) Method of adopting and of amending administrative rules
18and regulations governing the operation and use of the common
19elements.
20    (m) The percentage of votes required to modify or amend the
21bylaws, but each one of the particulars set forth in this
22section shall always be embodied in the bylaws.
23    (n)(i) The provisions of this Act, the declaration, bylaws,
24other condominium instruments, and rules and regulations that
25relate to the use of the individual unit or the common elements
26shall be applicable to any person leasing a unit and shall be

 

 

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1deemed to be incorporated in any lease executed or renewed on
2or after August 30, 1984 (the effective date of Public Act
383-1271) this amendatory Act of 1984.
4    (ii) With regard to any lease entered into subsequent to
5July 1, 1990 (the effective date of Public Act 86-991) this
6amendatory Act of 1989, the unit owner leasing the unit shall
7deliver a copy of the signed lease to the board or if the lease
8is oral, a memorandum of the lease, not later than the date of
9occupancy or 10 days after the lease is signed, whichever
10occurs first. In addition to any other remedies, by filing an
11action jointly against the tenant and the unit owner, an
12association may seek to enjoin a tenant from occupying a unit
13or seek to evict a tenant under the provisions of Article IX of
14the Code of Civil Procedure for failure of the lessor-owner to
15comply with the leasing requirements prescribed by this Section
16or by the declaration, bylaws, and rules and regulations. The
17board of managers may proceed directly against a tenant, at law
18or in equity, or under the provisions of Article IX of the Code
19of Civil Procedure, for any other breach by tenant of any
20covenants, rules, regulations or bylaws.
21    (o) The association shall have no authority to forbear the
22payment of assessments by any unit owner.
23    (p) That when 30% or fewer of the units, by number, possess
24over 50% in the aggregate of the votes in the association, any
25percentage vote of members specified herein or in the
26condominium instruments shall require the specified percentage

 

 

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1by number of units rather than by percentage of interest in the
2common elements allocated to units that would otherwise be
3applicable and garage units or storage units, or both, shall
4have, in total, no more votes than their aggregate percentage
5of ownership in the common elements; this shall mean that if
6garage units or storage units, or both, are to be given a vote,
7or portion of a vote, that the association must add the total
8number of votes cast of garage units, storage units, or both,
9and divide the total by the number of garage units, storage
10units, or both, and multiply by the aggregate percentage of
11ownership of garage units and storage units to determine the
12vote, or portion of a vote, that garage units or storage units,
13or both, have. For purposes of this subsection (p), when making
14a determination of whether 30% or fewer of the units, by
15number, possess over 50% in the aggregate of the votes in the
16association, a unit shall not include a garage unit or a
17storage unit.
18    (q) That a unit owner may not assign, delegate, transfer,
19surrender, or avoid the duties, responsibilities, and
20liabilities of a unit owner under this Act, the condominium
21instruments, or the rules and regulations of the Association;
22and that such an attempted assignment, delegation, transfer,
23surrender, or avoidance shall be deemed void.
24    The provisions of this Section are applicable to all
25condominium instruments recorded under this Act. Any portion of
26a condominium instrument which contains provisions contrary to

 

 

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1these provisions shall be void as against public policy and
2ineffective. Any such instrument which fails to contain the
3provisions required by this Section shall be deemed to
4incorporate such provisions by operation of law.
5(Source: P.A. 98-1042, eff. 1-1-15; 99-472, eff. 6-1-16;
6revised 10-19-15.)
 
7    Section 95. No acceleration or delay. Where this Act makes
8changes in a statute that is represented in this Act by text
9that is not yet or no longer in effect (for example, a Section
10represented by multiple versions), the use of that text does
11not accelerate or delay the taking effect of (i) the changes
12made by this Act or (ii) provisions derived from any other
13Public Act.