Sen. William R. Haine

Filed: 3/2/2016

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 2354

2    AMENDMENT NO. ______. Amend Senate Bill 2354 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Common Interest Community Association Act
5is amended 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

 

 

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1    board of directors may be elected at the annual meeting.
2        (3) Special meetings of the board may be called by the
3    president, by 25% of the members of the board, or by any
4    other method that is prescribed in the community
5    instruments. Special meetings of the membership may be
6    called by the president, the board, 20% of the membership,
7    or any other method that is prescribed in the community
8    instruments.
9        (4) Except to the extent otherwise provided by this
10    Act, the board shall give the members notice of all board
11    meetings at least 48 hours prior to the meeting by sending
12    notice by using a prescribed delivery method or by posting
13    copies of notices of meetings in entranceways, elevators,
14    or other conspicuous places in the common areas of the
15    common interest community at least 48 hours prior to the
16    meeting except where there is no common entranceway for 7
17    or more units, the board may designate one or more
18    locations in the proximity of these units where the notices
19    of meetings shall be posted. The board shall give members
20    notice of any board meeting, through a prescribed delivery
21    method, concerning the adoption of (i) the proposed annual
22    budget, (ii) regular assessments, or (iii) a separate or
23    special assessment within 10 to 60 days prior to the
24    meeting, unless otherwise provided in Section 1-45 (a) or
25    any other provision of this Act.
26        (5) Meetings of the board shall be open to any unit

 

 

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1    owner, except that the board may close any portion of a
2    noticed meeting or meet separately from a noticed meeting:
3    for the portion of any meeting held (i) to discuss
4    litigation when an action against or on behalf of the
5    particular association has been filed and is pending in a
6    court or administrative tribunal, or when the common
7    interest community association finds that such an action is
8    probable or imminent, (ii) to discuss consider third party
9    contracts or information regarding appointment,
10    employment, engagement, or dismissal of an employee,
11    independent contractor, agent, or other provider of goods
12    and services, (iii) to interview a potential employee,
13    independent contractor, agent, or other provider of goods
14    and services, (iv) , or (iii) to discuss violations of rules
15    and regulations of the association, (v) to discuss or a
16    member's or unit owner's unpaid share of common expenses,
17    or (vi) to consult with the association's legal counsel.
18    Any vote on these matters shall be taken at a meeting or
19    portion thereof open to any member.
20        (6) The board must reserve a portion of the meeting of
21    the board for comments by members; provided, however, the
22    duration and meeting order for the member comment period is
23    within the sole discretion of the board.
24(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11;
2597-1090, eff. 8-24-12.)
 

 

 

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1    Section 10. The Condominium Property Act is amended by
2changing Section 18 as follows:
 
3    (765 ILCS 605/18)  (from Ch. 30, par. 318)
4    (Text of Section before amendment by P.A. 99-472)
5    Sec. 18. Contents of bylaws. The bylaws shall provide for
6at least the following:
7    (a)(1) The election from among the unit owners of a board
8of managers, the number of persons constituting such board, and
9that the terms of at least one-third of the members of the
10board shall expire annually and that all members of the board
11shall be elected at large; if . If there are multiple owners of
12a single unit, only one of the multiple owners shall be
13eligible to serve as a member of the board at any one time; .
14    (2) the powers and duties of the board;
15    (3) the compensation, if any, of the members of the board;
16    (4) the method of removal from office of members of the
17board;
18    (5) that the board may engage the services of a manager or
19managing agent;
20    (6) that each unit owner shall receive, at least 30 days
21prior to the adoption thereof by the board of managers, a copy
22of the proposed annual budget together with an indication of
23which portions are intended for reserves, capital expenditures
24or repairs or payment of real estate taxes;
25    (7) that the board of managers shall annually supply to all

 

 

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1unit owners an itemized accounting of the common expenses for
2the preceding year actually incurred or paid, together with an
3indication of which portions were for reserves, capital
4expenditures or repairs or payment of real estate taxes and
5with a tabulation of the amounts collected pursuant to the
6budget or assessment, and showing the net excess or deficit of
7income over expenditures plus reserves;
8    (8)(i) that each unit owner shall receive notice, in the
9same manner as is provided in this Act for membership meetings,
10of any meeting of the board of managers concerning the adoption
11of the proposed annual budget and regular assessments pursuant
12thereto or to adopt a separate (special) assessment, (ii) that
13except as provided in subsection (iv) below, if an adopted
14budget or any separate assessment adopted by the board would
15result in the sum of all regular and separate assessments
16payable in the current fiscal year exceeding 115% of the sum of
17all regular and separate assessments payable during the
18preceding fiscal year, the board of managers, upon written
19petition by unit owners with 20 percent of the votes of the
20association delivered to the board within 14 days of the board
21action, shall call a meeting of the unit owners within 30 days
22of the date of delivery of the petition to consider the budget
23or separate assessment; unless a majority of the total votes of
24the unit owners are cast at the meeting to reject the budget or
25separate assessment, it is ratified, (iii) that any common
26expense not set forth in the budget or any increase in

 

 

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1assessments over the amount adopted in the budget shall be
2separately assessed against all unit owners, (iv) that separate
3assessments for expenditures relating to emergencies or
4mandated by law may be adopted by the board of managers without
5being subject to unit owner approval or the provisions of item
6(ii) above or item (v) below. As used herein, "emergency" means
7an immediate danger to the structural integrity of the common
8elements or to the life, health, safety or property of the unit
9owners, (v) that assessments for additions and alterations to
10the common elements or to association-owned property not
11included in the adopted annual budget, shall be separately
12assessed and are subject to approval of two-thirds of the total
13votes of all unit owners, (vi) that the board of managers may
14adopt separate assessments payable over more than one fiscal
15year. With respect to multi-year assessments not governed by
16items (iv) and (v), the entire amount of the multi-year
17assessment shall be deemed considered and authorized in the
18first fiscal year in which the assessment is approved;
19    (9) that meetings of the board of managers shall be open to
20any unit owner, except for the portion of any meeting held (i)
21to discuss litigation when an action against or on behalf of
22the particular association has been filed and is pending in a
23court or administrative tribunal, or when the board of managers
24finds that such an action is probable or imminent, (ii) to
25consider information regarding appointment, employment or
26dismissal of an employee, or (iii) to discuss violations of

 

 

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1rules and regulations of the association or a unit owner's
2unpaid share of common expenses; that any vote on these matters
3shall be taken at a meeting or portion thereof open to any unit
4owner; that any unit owner may record the proceedings at
5meetings or portions thereof required to be open by this Act by
6tape, film or other means; that the board may prescribe
7reasonable rules and regulations to govern the right to make
8such recordings, that notice of such meetings shall be mailed
9or delivered at least 48 hours prior thereto, unless a written
10waiver of such notice is signed by the person or persons
11entitled to such notice pursuant to the declaration, bylaws,
12other condominium instrument, or provision of law other than
13this subsection before the meeting is convened, and that copies
14of notices of meetings of the board of managers shall be posted
15in entranceways, elevators, or other conspicuous places in the
16condominium at least 48 hours prior to the meeting of the board
17of managers except where there is no common entranceway for 7
18or more units, the board of managers may designate one or more
19locations in the proximity of these units where the notices of
20meetings shall be posted;
21    (10) that the board shall meet at least 4 times annually;
22    (11) that no member of the board or officer shall be
23elected for a term of more than 2 years, but that officers and
24board members may succeed themselves;
25    (12) the designation of an officer to mail and receive all
26notices and execute amendments to condominium instruments as

 

 

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

 

 

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

 

 

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1    (b)(1) What percentage of the unit owners, if other than
220%, shall constitute a quorum provided that, for condominiums
3with 20 or more units, the percentage of unit owners
4constituting a quorum shall be 20% unless the unit owners
5holding a majority of the percentage interest in the
6association provide for a higher percentage, provided that in
7voting on amendments to the association's bylaws, a unit owner
8who is in arrears on the unit owner's regular or separate
9assessments for 60 days or more, shall not be counted for
10purposes of determining if a quorum is present, but that unit
11owner retains the right to vote on amendments to the
12association's bylaws;
13    (2) that the association shall have one class of
14membership;
15    (3) that the members shall hold an annual meeting, one of
16the purposes of which shall be to elect members of the board of
17managers;
18    (4) the method of calling meetings of the unit owners;
19    (5) that special meetings of the members can be called by
20the president, board of managers, or by 20% of unit owners;
21    (6) that written notice of any membership meeting shall be
22mailed or delivered giving members no less than 10 and no more
23than 30 days notice of the time, place and purpose of such
24meeting except that notice may be sent, to the extent the
25condominium instruments or rules adopted thereunder expressly
26so provide, by electronic transmission consented to by the unit

 

 

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

 

 

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

 

 

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

 

 

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1and must give the person voting through electronic or
2acceptable technological means the opportunity to cast votes
3for candidates whose names do not appear on the ballot; a unit
4owner who submits a vote using electronic or acceptable
5technological means may request and cast a ballot in person at
6the election meeting, thereby voiding any vote previously
7submitted by that unit owner;
8    (C) that if a written petition by unit owners with at least
920% of the votes of the association is delivered to the board
10within 14 days after the board's approval of a rule adopted
11pursuant to subparagraph (B) or subparagraph (B-5) of this
12paragraph (9), the board shall call a meeting of the unit
13owners within 30 days after the date of delivery of the
14petition; that unless a majority of the total votes of the unit
15owners are cast at the meeting to reject the rule, the rule is
16ratified;
17    (D) that votes cast by ballot under subparagraph (B) or
18electronic or acceptable technological means under
19subparagraph (B-5) of this paragraph (9) are valid for the
20purpose of establishing a quorum;
21    (10) that the association may, upon adoption of the
22appropriate rules by the board of managers, conduct elections
23by secret ballot whereby the voting ballot is marked only with
24the percentage interest for the unit and the vote itself,
25provided that the board further adopt rules to verify the
26status of the unit owner issuing a proxy or casting a ballot;

 

 

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

 

 

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1membership meetings called for such purposes; and
2    (13) that matters subject to the affirmative vote of not
3less than 2/3 of the votes of unit owners at a meeting duly
4called for that purpose, shall include, but not be limited to:
5        (i) merger or consolidation of the association;
6        (ii) sale, lease, exchange, or other disposition
7    (excluding the mortgage or pledge) of all, or substantially
8    all of the property and assets of the association; and
9        (iii) the purchase or sale of land or of units on
10    behalf of all unit owners.
11    (c) Election of a president from among the board of
12managers, who shall preside over the meetings of the board of
13managers and of the unit owners.
14    (d) Election of a secretary from among the board of
15managers, who shall keep the minutes of all meetings of the
16board of managers and of the unit owners and who shall, in
17general, perform all the duties incident to the office of
18secretary.
19    (e) Election of a treasurer from among the board of
20managers, who shall keep the financial records and books of
21account.
22    (f) Maintenance, repair and replacement of the common
23elements and payments therefor, including the method of
24approving payment vouchers.
25    (g) An association with 30 or more units shall obtain and
26maintain fidelity insurance covering persons who control or

 

 

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1disburse funds of the association for the maximum amount of
2coverage available to protect funds in the custody or control
3of the association plus the association reserve fund. All
4management companies which are responsible for the funds held
5or administered by the association shall maintain and furnish
6to the association a fidelity bond for the maximum amount of
7coverage available to protect funds in the custody of the
8management company at any time. The association shall bear the
9cost of the fidelity insurance and fidelity bond, unless
10otherwise provided by contract between the association and a
11management company. The association shall be the direct obligee
12of any such fidelity bond. A management company holding reserve
13funds of an association shall at all times maintain a separate
14account for each association, provided, however, that for
15investment purposes, the Board of Managers of an association
16may authorize a management company to maintain the
17association's reserve funds in a single interest bearing
18account with similar funds of other associations. The
19management company shall at all times maintain records
20identifying all moneys of each association in such investment
21account. The management company may hold all operating funds of
22associations which it manages in a single operating account but
23shall at all times maintain records identifying all moneys of
24each association in such operating account. Such operating and
25reserve funds held by the management company for the
26association shall not be subject to attachment by any creditor

 

 

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

 

 

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1other expenses lawfully agreed upon.
2    (i) That upon 10 days notice to the manager or board of
3managers and payment of a reasonable fee, any unit owner shall
4be furnished a statement of his account setting forth the
5amount of any unpaid assessments or other charges due and owing
6from such owner.
7    (j) Designation and removal of personnel necessary for the
8maintenance, repair and replacement of the common elements.
9    (k) Such restrictions on and requirements respecting the
10use and maintenance of the units and the use of the common
11elements, not set forth in the declaration, as are designed to
12prevent unreasonable interference with the use of their
13respective units and of the common elements by the several unit
14owners.
15    (l) Method of adopting and of amending administrative rules
16and regulations governing the operation and use of the common
17elements.
18    (m) The percentage of votes required to modify or amend the
19bylaws, but each one of the particulars set forth in this
20section shall always be embodied in the bylaws.
21    (n)(i) The provisions of this Act, the declaration, bylaws,
22other condominium instruments, and rules and regulations that
23relate to the use of the individual unit or the common elements
24shall be applicable to any person leasing a unit and shall be
25deemed to be incorporated in any lease executed or renewed on
26or after August 30, 1984 (the effective date of Public Act

 

 

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183-1271) this amendatory Act of 1984.
2    (ii) With regard to any lease entered into subsequent to
3July 1, 1990 (the effective date of Public Act 86-991) this
4amendatory Act of 1989, the unit owner leasing the unit shall
5deliver a copy of the signed lease to the board or if the lease
6is oral, a memorandum of the lease, not later than the date of
7occupancy or 10 days after the lease is signed, whichever
8occurs first. In addition to any other remedies, by filing an
9action jointly against the tenant and the unit owner, an
10association may seek to enjoin a tenant from occupying a unit
11or seek to evict a tenant under the provisions of Article IX of
12the Code of Civil Procedure for failure of the lessor-owner to
13comply with the leasing requirements prescribed by this Section
14or by the declaration, bylaws, and rules and regulations. The
15board of managers may proceed directly against a tenant, at law
16or in equity, or under the provisions of Article IX of the Code
17of Civil Procedure, for any other breach by tenant of any
18covenants, rules, regulations or bylaws.
19    (o) The association shall have no authority to forbear the
20payment of assessments by any unit owner.
21    (p) That when 30% or fewer of the units, by number, possess
22over 50% in the aggregate of the votes in the association, any
23percentage vote of members specified herein or in the
24condominium instruments shall require the specified percentage
25by number of units rather than by percentage of interest in the
26common elements allocated to units that would otherwise be

 

 

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

 

 

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1provisions required by this Section shall be deemed to
2incorporate such provisions by operation of law.
3(Source: P.A. 98-1042, eff. 1-1-15; revised 10-19-15.)
 
4    (Text of Section after amendment by P.A. 99-472)
5    Sec. 18. Contents of bylaws. The bylaws shall provide for
6at least the following:
7    (a)(1) The election from among the unit owners of a board
8of managers, the number of persons constituting such board, and
9that the terms of at least one-third of the members of the
10board shall expire annually and that all members of the board
11shall be elected at large; if . If there are multiple owners of
12a single unit, only one of the multiple owners shall be
13eligible to serve as a member of the board at any one time; .
14    (2) the powers and duties of the board;
15    (3) the compensation, if any, of the members of the board;
16    (4) the method of removal from office of members of the
17board;
18    (5) that the board may engage the services of a manager or
19managing agent;
20    (6) that each unit owner shall receive, at least 25 days
21prior to the adoption thereof by the board of managers, a copy
22of the proposed annual budget together with an indication of
23which portions are intended for reserves, capital expenditures
24or repairs or payment of real estate taxes;
25    (7) that the board of managers shall annually supply to all

 

 

09900SB2354sam001- 23 -LRB099 16668 HEP 45384 a

1unit owners an itemized accounting of the common expenses for
2the preceding year actually incurred or paid, together with an
3indication of which portions were for reserves, capital
4expenditures or repairs or payment of real estate taxes and
5with a tabulation of the amounts collected pursuant to the
6budget or assessment, and showing the net excess or deficit of
7income over expenditures plus reserves;
8    (8)(i) that each unit owner shall receive notice, in the
9same manner as is provided in this Act for membership meetings,
10of any meeting of the board of managers concerning the adoption
11of the proposed annual budget and regular assessments pursuant
12thereto or to adopt a separate (special) assessment, (ii) that
13except as provided in subsection (iv) below, if an adopted
14budget or any separate assessment adopted by the board would
15result in the sum of all regular and separate assessments
16payable in the current fiscal year exceeding 115% of the sum of
17all regular and separate assessments payable during the
18preceding fiscal year, the board of managers, upon written
19petition by unit owners with 20 percent of the votes of the
20association delivered to the board within 14 days of the board
21action, shall call a meeting of the unit owners within 30 days
22of the date of delivery of the petition to consider the budget
23or separate assessment; unless a majority of the total votes of
24the unit owners are cast at the meeting to reject the budget or
25separate assessment, it is ratified, (iii) that any common
26expense not set forth in the budget or any increase in

 

 

09900SB2354sam001- 24 -LRB099 16668 HEP 45384 a

1assessments over the amount adopted in the budget shall be
2separately assessed against all unit owners, (iv) that separate
3assessments for expenditures relating to emergencies or
4mandated by law may be adopted by the board of managers without
5being subject to unit owner approval or the provisions of item
6(ii) above or item (v) below. As used herein, "emergency" means
7an immediate danger to the structural integrity of the common
8elements or to the life, health, safety or property of the unit
9owners, (v) that assessments for additions and alterations to
10the common elements or to association-owned property not
11included in the adopted annual budget, shall be separately
12assessed and are subject to approval of two-thirds of the total
13votes of all unit owners, (vi) that the board of managers may
14adopt separate assessments payable over more than one fiscal
15year. With respect to multi-year assessments not governed by
16items (iv) and (v), the entire amount of the multi-year
17assessment shall be deemed considered and authorized in the
18first fiscal year in which the assessment is approved;
19    (9)(A) that every meeting of the board of managers shall be
20open to any unit owner, except that the board may close any
21portion of a noticed meeting or meet separately from a noticed
22meeting for the portion of any meeting held to discuss or
23consider information relating to: (i) discuss litigation when
24an action against or on behalf of the particular association
25has been filed and is pending in a court or administrative
26tribunal, or when the board of managers finds that such an

 

 

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1action is probable or imminent, (ii) discuss the appointment,
2employment, engagement, or dismissal of an employee,
3independent contractor, agent, or other provider of goods and
4services, (iii) interview a potential employee, independent
5contractor, agent, or other provider of goods and services,
6(iv) discuss , (iii) violations of rules and regulations of the
7association, (v) discuss or (iv) a unit owner's unpaid share of
8common expenses, or (vi) consult with the association's legal
9counsel; that any vote on these matters discussed or considered
10in closed session shall take place at a meeting of the board of
11managers or portion thereof open to any unit owner;
12    (B) that board members may participate in and act at any
13meeting of the board of managers in person, by telephonic
14means, or by use of any acceptable technological means whereby
15all persons participating in the meeting can communicate with
16each other; that participation constitutes attendance and
17presence in person at the meeting;
18    (C) that any unit owner may record the proceedings at
19meetings of the board of managers or portions thereof required
20to be open by this Act by tape, film or other means, and that
21the board may prescribe reasonable rules and regulations to
22govern the right to make such recordings;
23    (D) that notice of every meeting of the board of managers
24shall be given to every board member at least 48 hours prior
25thereto, unless the board member waives notice of the meeting
26pursuant to subsection (a) of Section 18.8; and

 

 

09900SB2354sam001- 26 -LRB099 16668 HEP 45384 a

1    (E) that notice of every meeting of the board of managers
2shall be posted in entranceways, elevators, or other
3conspicuous places in the condominium at least 48 hours prior
4to the meeting of the board of managers except where there is
5no common entranceway for 7 or more units, the board of
6managers may designate one or more locations in the proximity
7of these units where the notices of meetings shall be posted;
8that notice of every meeting of the board of managers shall
9also be given at least 48 hours prior to the meeting, or such
10longer notice as this Act may separately require, to: (i) each
11unit owner who has provided the association with written
12authorization to conduct business by acceptable technological
13means, and (ii) to the extent that the condominium instruments
14of an association require, to each other unit owner, as
15required by subsection (f) of Section 18.8, by mail or
16delivery, and that no other notice of a meeting of the board of
17managers need be given to any unit owner;
18    (10) that the board shall meet at least 4 times annually;
19    (11) that no member of the board or officer shall be
20elected for a term of more than 2 years, but that officers and
21board members may succeed themselves;
22    (12) the designation of an officer to mail and receive all
23notices and execute amendments to condominium instruments as
24provided for in this Act and in the condominium instruments;
25    (13) the method of filling vacancies on the board which
26shall include authority for the remaining members of the board

 

 

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

 

 

09900SB2354sam001- 28 -LRB099 16668 HEP 45384 a

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

 

 

09900SB2354sam001- 29 -LRB099 16668 HEP 45384 a

1the board shall give notice to the unit owners of: (i) the
2occurrence of the emergency event within 7 business days after
3the emergency event, and (ii) the general description of the
4actions taken to address the event within 7 days after the
5emergency event.
6    The intent of the provisions of Public Act 99-472 this
7amendatory Act of the 99th General Assembly adding this
8paragraph (21) is to empower and support boards to act in
9emergencies.
10    (b)(1) What percentage of the unit owners, if other than
1120%, shall constitute a quorum provided that, for condominiums
12with 20 or more units, the percentage of unit owners
13constituting a quorum shall be 20% unless the unit owners
14holding a majority of the percentage interest in the
15association provide for a higher percentage, provided that in
16voting on amendments to the association's bylaws, a unit owner
17who is in arrears on the unit owner's regular or separate
18assessments for 60 days or more, shall not be counted for
19purposes of determining if a quorum is present, but that unit
20owner retains the right to vote on amendments to the
21association's bylaws;
22    (2) that the association shall have one class of
23membership;
24    (3) that the members shall hold an annual meeting, one of
25the purposes of which shall be to elect members of the board of
26managers;

 

 

09900SB2354sam001- 30 -LRB099 16668 HEP 45384 a

1    (4) the method of calling meetings of the unit owners;
2    (5) that special meetings of the members can be called by
3the president, board of managers, or by 20% of unit owners;
4    (6) that written notice of any membership meeting shall be
5mailed or delivered giving members no less than 10 and no more
6than 30 days notice of the time, place and purpose of such
7meeting except that notice may be sent, to the extent the
8condominium instruments or rules adopted thereunder expressly
9so provide, by electronic transmission consented to by the unit
10owner to whom the notice is given, provided the director and
11officer or his agent certifies in writing to the delivery by
12electronic transmission;
13    (7) that voting shall be on a percentage basis, and that
14the percentage vote to which each unit is entitled is the
15percentage interest of the undivided ownership of the common
16elements appurtenant thereto, provided that the bylaws may
17provide for approval by unit owners in connection with matters
18where the requisite approval on a percentage basis is not
19specified in this Act, on the basis of one vote per unit;
20    (8) that, where there is more than one owner of a unit, if
21only one of the multiple owners is present at a meeting of the
22association, he is entitled to cast all the votes allocated to
23that unit, if more than one of the multiple owners are present,
24the votes allocated to that unit may be cast only in accordance
25with the agreement of a majority in interest of the multiple
26owners, unless the declaration expressly provides otherwise,

 

 

09900SB2354sam001- 31 -LRB099 16668 HEP 45384 a

1that there is majority agreement if any one of the multiple
2owners cast the votes allocated to that unit without protest
3being made promptly to the person presiding over the meeting by
4any of the other owners of the unit;
5    (9)(A) except as provided in subparagraph (B) of this
6paragraph (9) in connection with board elections, that a unit
7owner may vote by proxy executed in writing by the unit owner
8or by his duly authorized attorney in fact; that the proxy must
9bear the date of execution and, unless the condominium
10instruments or the written proxy itself provide otherwise, is
11invalid after 11 months from the date of its execution; to the
12extent the condominium instruments or rules adopted thereunder
13expressly so provide, a vote or proxy may be submitted by
14electronic transmission, provided that any such electronic
15transmission shall either set forth or be submitted with
16information from which it can be determined that the electronic
17transmission was authorized by the unit owner or the unit
18owner's proxy;
19    (B) that if a rule adopted at least 120 days before a board
20election or the declaration or bylaws provide for balloting as
21set forth in this subsection, unit owners may not vote by proxy
22in board elections, but may vote only (i) by submitting an
23association-issued ballot in person at the election meeting or
24(ii) by submitting an association-issued ballot to the
25association or its designated agent by mail or other means of
26delivery specified in the declaration, bylaws, or rule; that

 

 

09900SB2354sam001- 32 -LRB099 16668 HEP 45384 a

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

 

 

09900SB2354sam001- 33 -LRB099 16668 HEP 45384 a

1unit owners not less than 10 and not more than 30 days before
2the election meeting, and the board shall give unit owners not
3less than 21 days' prior written notice of the deadline for
4inclusion of a candidate's name on the ballots; the deadline
5shall be no more than 7 days before the instructions for voting
6using electronic or acceptable technological means is
7distributed to unit owners; every instruction notice must
8include the names of all candidates who have given the board or
9its authorized agent timely written notice of their candidacy
10and must give the person voting through electronic or
11acceptable technological means the opportunity to cast votes
12for candidates whose names do not appear on the ballot; a unit
13owner who submits a vote using electronic or acceptable
14technological means may request and cast a ballot in person at
15the election meeting, thereby voiding any vote previously
16submitted by that unit owner;
17    (C) that if a written petition by unit owners with at least
1820% of the votes of the association is delivered to the board
19within 14 days after the board's approval of a rule adopted
20pursuant to subparagraph (B) or subparagraph (B-5) of this
21paragraph (9), the board shall call a meeting of the unit
22owners within 30 days after the date of delivery of the
23petition; that unless a majority of the total votes of the unit
24owners are cast at the meeting to reject the rule, the rule is
25ratified;
26    (D) that votes cast by ballot under subparagraph (B) or

 

 

09900SB2354sam001- 34 -LRB099 16668 HEP 45384 a

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

 

 

09900SB2354sam001- 35 -LRB099 16668 HEP 45384 a

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

 

 

09900SB2354sam001- 36 -LRB099 16668 HEP 45384 a

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

 

 

09900SB2354sam001- 37 -LRB099 16668 HEP 45384 a

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

 

 

09900SB2354sam001- 38 -LRB099 16668 HEP 45384 a

1    Until one year after September 21, 1985 (the effective date
2of Public Act 84-722) this amendatory Act of 1985, if a
3condominium association has reserves plus assessments in
4excess of $250,000 and cannot reasonably obtain 100% fidelity
5bond coverage for such amount, then it must obtain a fidelity
6bond coverage of $250,000.
7    (h) Method of estimating the amount of the annual budget,
8and the manner of assessing and collecting from the unit owners
9their respective shares of such estimated expenses, and of any
10other expenses lawfully agreed upon.
11    (i) That upon 10 days notice to the manager or board of
12managers and payment of a reasonable fee, any unit owner shall
13be furnished a statement of his account setting forth the
14amount of any unpaid assessments or other charges due and owing
15from such owner.
16    (j) Designation and removal of personnel necessary for the
17maintenance, repair and replacement of the common elements.
18    (k) Such restrictions on and requirements respecting the
19use and maintenance of the units and the use of the common
20elements, not set forth in the declaration, as are designed to
21prevent unreasonable interference with the use of their
22respective units and of the common elements by the several unit
23owners.
24    (l) Method of adopting and of amending administrative rules
25and regulations governing the operation and use of the common
26elements.

 

 

09900SB2354sam001- 39 -LRB099 16668 HEP 45384 a

1    (m) The percentage of votes required to modify or amend the
2bylaws, but each one of the particulars set forth in this
3section shall always be embodied in the bylaws.
4    (n)(i) The provisions of this Act, the declaration, bylaws,
5other condominium instruments, and rules and regulations that
6relate to the use of the individual unit or the common elements
7shall be applicable to any person leasing a unit and shall be
8deemed to be incorporated in any lease executed or renewed on
9or after August 30, 1984 (the effective date of Public Act
1083-1271) this amendatory Act of 1984.
11    (ii) With regard to any lease entered into subsequent to
12July 1, 1990 (the effective date of Public Act 86-991) this
13amendatory Act of 1989, the unit owner leasing the unit shall
14deliver a copy of the signed lease to the board or if the lease
15is oral, a memorandum of the lease, not later than the date of
16occupancy or 10 days after the lease is signed, whichever
17occurs first. In addition to any other remedies, by filing an
18action jointly against the tenant and the unit owner, an
19association may seek to enjoin a tenant from occupying a unit
20or seek to evict a tenant under the provisions of Article IX of
21the Code of Civil Procedure for failure of the lessor-owner to
22comply with the leasing requirements prescribed by this Section
23or by the declaration, bylaws, and rules and regulations. The
24board of managers may proceed directly against a tenant, at law
25or in equity, or under the provisions of Article IX of the Code
26of Civil Procedure, for any other breach by tenant of any

 

 

09900SB2354sam001- 40 -LRB099 16668 HEP 45384 a

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

 

 

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1liabilities of a unit owner under this Act, the condominium
2instruments, or the rules and regulations of the Association;
3and that such an attempted assignment, delegation, transfer,
4surrender, or avoidance shall be deemed void.
5    The provisions of this Section are applicable to all
6condominium instruments recorded under this Act. Any portion of
7a condominium instrument which contains provisions contrary to
8these provisions shall be void as against public policy and
9ineffective. Any such instrument which fails to contain the
10provisions required by this Section shall be deemed to
11incorporate such provisions by operation of law.
12(Source: P.A. 98-1042, eff. 1-1-15; 99-472, eff. 6-1-16;
13revised 10-19-15.)
 
14    Section 95. No acceleration or delay. Where this Act makes
15changes in a statute that is represented in this Act by text
16that is not yet or no longer in effect (for example, a Section
17represented by multiple versions), the use of that text does
18not accelerate or delay the taking effect of (i) the changes
19made by this Act or (ii) provisions derived from any other
20Public Act.".