Illinois General Assembly - Full Text of HB5783
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Full Text of HB5783  94th General Assembly

HB5783 94TH GENERAL ASSEMBLY


 


 
94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB5783

 

Introduced 04/25/06, by Rep. Harry Osterman

 

SYNOPSIS AS INTRODUCED:
 
765 ILCS 605/30   from Ch. 30, par. 330

    Amends the Condominium Property Act. Provides as to a conversion condominium that a tenant who vacated a unit in a building within 18 months of the real estate becoming a conversion condominium and who did not receive a notice of intent to submit the real estate to the Act must be awarded damages of $10,000 plus reasonable attorney's fees and costs. Provides that a non-profit housing organization suing for an aggrieved party may also recover compensation for diversion of mission necessary for filing the action.


LRB094 20381 AJO 58531 b

 

 

A BILL FOR

 

HB5783 LRB094 20381 AJO 58531 b

1     AN ACT concerning property.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Condominium Property Act is amended by
5 changing Section 30 as follows:
 
6     (765 ILCS 605/30)  (from Ch. 30, par. 330)
7     Sec. 30. Conversion condominiums; notice; recording.
8     (a) No real estate may be submitted to the provisions of
9 the Act as a conversion condominium unless (i) a notice of
10 intent to submit the real estate to this Act (notice of intent)
11 has been given to all persons who were tenants of the building
12 located on the real estate on the date the notice is given.
13 Such notice shall be given at least 30 days, and not more than
14 1 year prior to the recording of the declaration which submits
15 the real estate to this Act; and (ii) the developer executes
16 and acknowledges a certificate which shall be attached to and
17 made a part of the declaration and which provides that the
18 developer, prior to the execution by him or his agent of any
19 agreement for the sale of a unit, has given a copy of the
20 notice of intent to all persons who were tenants of the
21 building located on the real estate on the date the notice of
22 intent was given. Any tenant who vacated a unit in a building
23 on real estate that became a conversion condominium within 18
24 months before the real estate is submitted to the provisions of
25 this Act or before the developer or his or her agent executed
26 any agreement for the sale of a unit, without receiving a
27 notice of intent defined in this Section, shall be awarded
28 damages of $10,000 plus reasonable attorney's fees and costs. A
29 non-profit housing organization, suing on behalf of an
30 aggrieved party, may also recover compensation for diversion of
31 mission necessary for filing the action.
32     Any developer of a conversion condominium must, upon

 

 

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1 issuing the notice of intent, publish and deliver along with
2 such notice of intent, a schedule of selling prices for all
3 units subject to the condominium instruments and offer to sell
4 such unit to the current tenants, except for units to be
5 vacated for rehabilitation subsequent to such notice of intent.
6 Such offer shall not expire earlier than 30 days after receipt
7 of the offer by the current tenant, unless the tenant notifies
8 the developer in writing of his election not to purchase the
9 condominium unit.
10     Any tenant who was a tenant as of the date of the notice of
11 intent and whose tenancy expires (other than for cause) prior
12 to the expiration of 120 days from the date on which a copy of
13 the notice of intent was given to the tenant shall have the
14 right to extend his tenancy on the same terms and conditions
15 and for the same rental until the expiration of such 120 day
16 period by the giving of written notice thereof to the developer
17 within 30 days of the date upon which a copy of the notice of
18 intent was given to the tenant by the developer.
19     Each lessee in a conversion condominium shall be informed
20 by the developer at the time the notice of intent is given
21 whether his tenancy will be renewed or terminated upon its
22 expiration. If the tenancy is to be renewed, the tenant shall
23 be informed of all charges, rental or otherwise, in connection
24 with the new tenancy and the length of the term of occupancy
25 proposed in conjunction therewith.
26     For a period of 120 days following his receipt of the
27 notice of intent, any tenant who was a tenant on the date the
28 notice of intent was given shall be given the right to purchase
29 his unit on substantially the same terms and conditions as set
30 forth in a duly executed contract to purchase the unit, which
31 contract shall conspicuously disclose the existence of, and
32 shall be subject to, the right of first refusal. The tenant may
33 exercise the right of first refusal by giving notice thereof to
34 the developer prior to the expiration of 30 days from the
35 giving of notice by the developer to the tenant of the
36 execution of the contract to purchase the unit. The tenant may

 

 

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1 exercise such right of first refusal within 30 days from the
2 giving of notice by the developer of the execution of a
3 contract to purchase the unit, notwithstanding the expiration
4 of the 120 day period following the tenant's receipt of the
5 notice of intent, if such contract was executed prior to the
6 expiration of the 120 day period. The recording of the deed
7 conveying the unit to the purchaser which contains a statement
8 to the effect that the tenant of the unit either waived or
9 failed to exercise the right of first refusal or option or had
10 no right of first refusal or option with respect to the unit
11 shall extinguish any legal or equitable right or interest to
12 the possession or acquisition of the unit which the tenant may
13 have or claim with respect to the unit arising out of the right
14 of first refusal or option provided for in this Section. The
15 foregoing provision shall not affect any claim which the tenant
16 may have against the landlord for damages arising out of the
17 right of first refusal provided for in this Section.
18     During the 30 day period after the giving of notice of an
19 executed contract in which the tenant may exercise the right of
20 first refusal, the developer shall grant to such tenant access
21 to any portion of the building to inspect any of its features
22 or systems and access to any reports, warranties, or other
23 documents in the possession of the developer which reasonably
24 pertain to the condition of the building. Such access shall be
25 subject to reasonable limitations, including as to hours. The
26 refusal of the developer to grant such access is a business
27 offense punishable by a fine of $500. Each refusal to an
28 individual lessee who is a potential purchaser is a separate
29 violation.
30     Any notice provided for in this Section shall be deemed
31 given when a written notice is delivered in person or mailed,
32 certified or registered mail, return receipt requested to the
33 party who is being given the notice.
34     Prior to their initial sale, units offered for sale in a
35 conversion condominium and occupied by a tenant at the time of
36 the offer shall be shown to prospective purchasers only a

 

 

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1 reasonable number of times and at appropriate hours. Units may
2 only be shown to prospective purchasers during the last 90 days
3 of any expiring tenancy.
4     Any provision in any lease or other rental agreement, or
5 any termination of occupancy on account of condominium
6 conversion, not authorized herein, or contrary to or waiving
7 the foregoing provisions, shall be deemed to be void as against
8 public policy.
9     Nothing in this Section shall affect any provision in any
10 lease or rental agreement in effect before this Act becomes
11 law.
12     (b) Nothing in this amendatory Act of 1978 shall be
13 construed to imply that there was previously a requirement to
14 record the notice provided for in subsection (a).
15 (Source: P.A. 88-417.)