Illinois General Assembly - Full Text of HB2641
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Full Text of HB2641  99th General Assembly

HB2641eng 99TH GENERAL ASSEMBLY

  
  
  

 


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

 

 

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1of the proposed annual budget together with an indication of
2which portions are intended for reserves, capital expenditures
3or repairs or payment of real estate taxes;
4    (7) that the board of managers shall annually supply to all
5unit owners an itemized accounting of the common expenses for
6the preceding year actually incurred or paid, together with an
7indication of which portions were for reserves, capital
8expenditures or repairs or payment of real estate taxes and
9with a tabulation of the amounts collected pursuant to the
10budget or assessment, and showing the net excess or deficit of
11income over expenditures plus reserves;
12    (8)(i) that each unit owner shall receive notice, in the
13same manner as is provided in this Act for membership meetings,
14of any meeting of the board of managers concerning the adoption
15of the proposed annual budget and regular assessments pursuant
16thereto or to adopt a separate (special) assessment, (ii) that
17except as provided in subsection (iv) below, if an adopted
18budget or any separate assessment adopted by the board would
19result in the sum of all regular and separate assessments
20payable in the current fiscal year exceeding 115% of the sum of
21all regular and separate assessments payable during the
22preceding fiscal year, the board of managers, upon written
23petition by unit owners with 20 percent of the votes of the
24association delivered to the board within 14 days of the board
25action, shall call a meeting of the unit owners within 30 days
26of the date of delivery of the petition to consider the budget

 

 

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

 

 

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1court or administrative tribunal, or when the board of managers
2finds that such an action is probable or imminent, (ii) to
3consider information regarding appointment, employment or
4dismissal of an employee, or (iii) to discuss violations of
5rules and regulations of the association or a unit owner's
6unpaid share of common expenses; that any vote on these matters
7shall be taken at a meeting or portion thereof open to any unit
8owner; that any unit owner may record the proceedings at
9meetings or portions thereof required to be open by this Act by
10tape, film or other means; that the board may prescribe
11reasonable rules and regulations to govern the right to make
12such recordings, that notice of such meetings shall be mailed
13or delivered at least 48 hours prior thereto, unless a written
14waiver of such notice is signed by the person or persons
15entitled to such notice pursuant to the declaration, bylaws,
16other condominium instrument, or provision of law other than
17this subsection before the meeting is convened, and that copies
18of notices of meetings of the board of managers shall be posted
19in entranceways, elevators, or other conspicuous places in the
20condominium at least 48 hours prior to the meeting of the board
21of managers except where there is no common entranceway for 7
22or more units, the board of managers may designate one or more
23locations in the proximity of these units where the notices of
24meetings shall be posted;
25    (10) that the board shall meet at least 4 times annually;
26    (11) that no member of the board or officer shall be

 

 

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1elected for a term of more than 2 years, but that officers and
2board members may succeed themselves;
3    (12) the designation of an officer to mail and receive all
4notices and execute amendments to condominium instruments as
5provided for in this Act and in the condominium instruments;
6    (13) the method of filling vacancies on the board which
7shall include authority for the remaining members of the board
8to fill the vacancy by two-thirds vote until the next annual
9meeting of unit owners or for a period terminating no later
10than 30 days following the filing of a petition signed by unit
11owners holding 20% of the votes of the association requesting a
12meeting of the unit owners to fill the vacancy for the balance
13of the term, and that a meeting of the unit owners shall be
14called for purposes of filling a vacancy on the board no later
15than 30 days following the filing of a petition signed by unit
16owners holding 20% of the votes of the association requesting
17such a meeting, and the method of filling vacancies among the
18officers that shall include the authority for the members of
19the board to fill the vacancy for the unexpired portion of the
20term;
21    (14) what percentage of the board of managers, if other
22than a majority, shall constitute a quorum;
23    (15) provisions concerning notice of board meetings to
24members of the board;
25    (16) the board of managers may not enter into a contract
26with a current board member or with a corporation or

 

 

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1partnership in which a board member or a member of the board
2member's immediate family has 25% or more interest, unless
3notice of intent to enter the contract is given to unit owners
4within 20 days after a decision is made to enter into the
5contract and the unit owners are afforded an opportunity by
6filing a petition, signed by 20% of the unit owners, for an
7election to approve or disapprove the contract; such petition
8shall be filed within 20 days after such notice and such
9election shall be held within 30 days after filing the
10petition; for purposes of this subsection, a board member's
11immediate family means the board member's spouse, parents, and
12children;
13    (17) that the board of managers may disseminate to unit
14owners biographical and background information about
15candidates for election to the board if (i) reasonable efforts
16to identify all candidates are made and all candidates are
17given an opportunity to include biographical and background
18information in the information to be disseminated; and (ii) the
19board does not express a preference in favor of any candidate;
20    (18) any proxy distributed for board elections by the board
21of managers gives unit owners the opportunity to designate any
22person as the proxy holder, and gives the unit owner the
23opportunity to express a preference for any of the known
24candidates for the board or to write in a name;
25    (19) that special meetings of the board of managers can be
26called by the president or 25% of the members of the board; and

 

 

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1    (20) that the board of managers may establish and maintain
2a system of master metering of public utility services and
3collect payments in connection therewith, subject to the
4requirements of the Tenant Utility Payment Disclosure Act; and .
5    (21) that the board may ratify and confirm actions of the
6members of the board taken in response to an emergency, as that
7term is defined in subdivision (a)(8)(iv) of this Section, if
8it had the right to authorize the actions in advance; that the
9board may not ratify and confirm any actions done in violation
10of this Act, other laws, or the condominium instruments, except
11that the board may subsequently ratify and confirm emergency
12actions authorized by one or more board members, regardless of
13whether a quorum of the board was present to vote to authorize
14the actions or proper prior notice of board action otherwise
15required by this Act, other laws, or the condominium
16instruments was given; that the board shall give notice to the
17unit owners of: (i) the occurrence of the emergency event
18within 2 business days after the emergency event, and (ii) the
19general description of the actions taken to address the event
20within 7 days after the emergency event; that a board vote to
21ratify and confirm the emergency actions must be held within 30
22days after the emergency event, at either a regular or special
23board meeting; that the notice of the meeting shall
24specifically state that a vote of the board will be held at the
25meeting to ratify and confirm the emergency actions taken.
26    (b)(1) What percentage of the unit owners, if other than

 

 

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120%, shall constitute a quorum provided that, for condominiums
2with 20 or more units, the percentage of unit owners
3constituting a quorum shall be 20% unless the unit owners
4holding a majority of the percentage interest in the
5association provide for a higher percentage, provided that in
6voting on amendments to the association's bylaws, a unit owner
7who is in arrears on the unit owner's regular or separate
8assessments for 60 days or more, shall not be counted for
9purposes of determining if a quorum is present, but that unit
10owner retains the right to vote on amendments to the
11association's bylaws;
12    (2) that the association shall have one class of
13membership;
14    (3) that the members shall hold an annual meeting, one of
15the purposes of which shall be to elect members of the board of
16managers;
17    (4) the method of calling meetings of the unit owners;
18    (5) that special meetings of the members can be called by
19the president, board of managers, or by 20% of unit owners;
20    (6) that written notice of any membership meeting shall be
21mailed or delivered giving members no less than 10 and no more
22than 30 days notice of the time, place and purpose of such
23meeting except that notice may be sent, to the extent the
24condominium instruments or rules adopted thereunder expressly
25so provide, by electronic transmission consented to by the unit
26owner to whom the notice is given, provided the director and

 

 

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

 

 

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

 

 

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

 

 

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1acceptable technological means the opportunity to cast votes
2for candidates whose names do not appear on the ballot; a unit
3owner who submits a vote using electronic or acceptable
4technological means may request and cast a ballot in person at
5the election meeting, thereby voiding any vote previously
6submitted by that unit owner;
7    (C) that if a written petition by unit owners with at least
820% of the votes of the association is delivered to the board
9within 14 days after the board's approval of a rule adopted
10pursuant to subparagraph (B) or subparagraph (B-5) of this
11paragraph (9), the board shall call a meeting of the unit
12owners within 30 days after the date of delivery of the
13petition; that unless a majority of the total votes of the unit
14owners are cast at the meeting to reject the rule, the rule is
15ratified;
16    (D) that votes cast by ballot under subparagraph (B) or
17electronic or acceptable technological means under
18subparagraph (B-5) of this paragraph (9) are valid for the
19purpose of establishing a quorum;
20    (10) that the association may, upon adoption of the
21appropriate rules by the board of managers, conduct elections
22by secret ballot whereby the voting ballot is marked only with
23the percentage interest for the unit and the vote itself,
24provided that the board further adopt rules to verify the
25status of the unit owner issuing a proxy or casting a ballot;
26and further, that a candidate for election to the board of

 

 

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1managers or such candidate's representative shall have the
2right to be present at the counting of ballots at such
3election;
4    (11) that in the event of a resale of a condominium unit
5the purchaser of a unit from a seller other than the developer
6pursuant to an installment contract for purchase shall during
7such times as he or she resides in the unit be counted toward a
8quorum for purposes of election of members of the board of
9managers at any meeting of the unit owners called for purposes
10of electing members of the board, shall have the right to vote
11for the election of members of the board of managers and to be
12elected to and serve on the board of managers unless the seller
13expressly retains in writing any or all of such rights. In no
14event may the seller and purchaser both be counted toward a
15quorum, be permitted to vote for a particular office or be
16elected and serve on the board. Satisfactory evidence of the
17installment contact shall be made available to the association
18or its agents. For purposes of this subsection, "installment
19contact" shall have the same meaning as set forth in Section 1
20(e) of "An Act relating to installment contracts to sell
21dwelling structures", approved August 11, 1967, as amended;
22    (12) the method by which matters subject to the approval of
23unit owners set forth in this Act, or in the condominium
24instruments, will be submitted to the unit owners at special
25membership meetings called for such purposes; and
26    (13) that matters subject to the affirmative vote of not

 

 

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

 

 

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

 

 

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1shall be defined as a person, partnership, corporation, or
2other legal entity entitled to transact business on behalf of
3others, acting on behalf of or as an agent for a unit owner,
4unit owners or association of unit owners for the purpose of
5carrying out the duties, responsibilities, and other
6obligations necessary for the day to day operation and
7management of any property subject to this Act. For purposes of
8this subsection, the term "fiduciary insurance coverage" shall
9be defined as both a fidelity bond and directors and officers
10liability coverage, the fidelity bond in the full amount of
11association funds and association reserves that will be in the
12custody of the association, and the directors and officers
13liability coverage at a level as shall be determined to be
14reasonable by the board of managers, if not otherwise
15established by the declaration or by laws.
16    Until one year after the effective date of this amendatory
17Act of 1985, if a condominium association has reserves plus
18assessments in excess of $250,000 and cannot reasonably obtain
19100% fidelity bond coverage for such amount, then it must
20obtain a fidelity bond coverage of $250,000.
21    (h) Method of estimating the amount of the annual budget,
22and the manner of assessing and collecting from the unit owners
23their respective shares of such estimated expenses, and of any
24other expenses lawfully agreed upon.
25    (i) That upon 10 days notice to the manager or board of
26managers and payment of a reasonable fee, any unit owner shall

 

 

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1be furnished a statement of his account setting forth the
2amount of any unpaid assessments or other charges due and owing
3from such owner.
4    (j) Designation and removal of personnel necessary for the
5maintenance, repair and replacement of the common elements.
6    (k) Such restrictions on and requirements respecting the
7use and maintenance of the units and the use of the common
8elements, not set forth in the declaration, as are designed to
9prevent unreasonable interference with the use of their
10respective units and of the common elements by the several unit
11owners.
12    (l) Method of adopting and of amending administrative rules
13and regulations governing the operation and use of the common
14elements.
15    (m) The percentage of votes required to modify or amend the
16bylaws, but each one of the particulars set forth in this
17section shall always be embodied in the bylaws.
18    (n)(i) The provisions of this Act, the declaration, bylaws,
19other condominium instruments, and rules and regulations that
20relate to the use of the individual unit or the common elements
21shall be applicable to any person leasing a unit and shall be
22deemed to be incorporated in any lease executed or renewed on
23or after the effective date of this amendatory Act of 1984.
24(ii) With regard to any lease entered into subsequent to the
25effective date of this amendatory Act of 1989, the unit owner
26leasing the unit shall deliver a copy of the signed lease to

 

 

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

 

 

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