Illinois General Assembly - Full Text of SB0528
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Full Text of SB0528  95th General Assembly



State of Illinois
2007 and 2008


Introduced 2/8/2007, by Sen. John J. Cullerton


765 ILCS 605/18   from Ch. 30, par. 318

    Amends the Condominium Property Act. Provides that where the Act addresses the minimum voting requirements for taking action by a condominium owner's association in which 30% or less of the condominium units possess 50% or more of the association votes, a unit for the purpose of voting on matters before the Association by virtue of the Act or in the condominium instruments, shall not include a garage or a storage unit.

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SB0528 LRB095 03634 AJO 23657 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 18 as follows:
6     (765 ILCS 605/18)  (from Ch. 30, par. 318)
7     Sec. 18. Contents of bylaws. The bylaws shall provide for
8 at least the following:
9     (a) (1) The election from among the unit owners of a board
10     of managers, the number of persons constituting such board,
11     and that the terms of at least one-third of the members of
12     the board shall expire annually and that all members of the
13     board shall be elected at large. If there are multiple
14     owners of a single unit, only one of the multiple owners
15     shall be eligible to serve as a member of the board at any
16     one time.
17         (2) the powers and duties of the board;
18         (3) the compensation, if any, of the members of the
19     board;
20         (4) the method of removal from office of members of the
21     board;
22         (5) that the board may engage the services of a manager
23     or managing agent;



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



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1     year, the board of managers, upon written petition by unit
2     owners with 20 percent of the votes of the association
3     delivered to the board within 14 days of the board action,
4     shall call a meeting of the unit owners within 30 days of
5     the date of delivery of the petition to consider the budget
6     or separate assessment; unless a majority of the total
7     votes of the unit owners are cast at the meeting to reject
8     the budget or separate assessment, it is ratified, (iii)
9     that any common expense not set forth in the budget or any
10     increase in assessments over the amount adopted in the
11     budget shall be separately assessed against all unit
12     owners, (iv) that separate assessments for expenditures
13     relating to emergencies or mandated by law may be adopted
14     by the board of managers without being subject to unit
15     owner approval or the provisions of item (ii) above or item
16     (v) below. As used herein, "emergency" means an immediate
17     danger to the structural integrity of the common elements
18     or to the life, health, safety or property of the unit
19     owners, (v) that assessments for additions and alterations
20     to the common elements or to association-owned property not
21     included in the adopted annual budget, shall be separately
22     assessed and are subject to approval of two-thirds of the
23     total votes of all unit owners, (vi) that the board of
24     managers may adopt separate assessments payable over more
25     than one fiscal year. With respect to multi-year
26     assessments not governed by items (iv) and (v), the entire



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1     amount of the multi-year assessment shall be deemed
2     considered and authorized in the first fiscal year in which
3     the assessment is approved;
4         (9) that meetings of the board of managers shall be
5     open to any unit owner, except for the portion of any
6     meeting held (i) to discuss litigation when an action
7     against or on behalf of the particular association has been
8     filed and is pending in a court or administrative tribunal,
9     or when the board of managers finds that such an action is
10     probable or imminent, (ii) to consider information
11     regarding appointment, employment or dismissal of an
12     employee, or (iii) to discuss violations of rules and
13     regulations of the association or a unit owner's unpaid
14     share of common expenses; that any vote on these matters
15     shall be taken at a meeting or portion thereof open to any
16     unit owner; that any unit owner may record the proceedings
17     at meetings or portions thereof required to be open by this
18     Act by tape, film or other means; that the board may
19     prescribe reasonable rules and regulations to govern the
20     right to make such recordings, that notice of such meetings
21     shall be mailed or delivered at least 48 hours prior
22     thereto, unless a written waiver of such notice is signed
23     by the person or persons entitled to such notice pursuant
24     to the declaration, bylaws, other condominium instrument,
25     or provision of law other than this subsection before the
26     meeting is convened, and that copies of notices of meetings



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



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



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1     efforts to identify all candidates are made and all
2     candidates are given an opportunity to include
3     biographical and background information in the information
4     to be disseminated; and (ii) the board does not express a
5     preference in favor of any candidate;
6         (18) any proxy distributed for board elections by the
7     board of managers gives unit owners the opportunity to
8     designate any person as the proxy holder, and gives the
9     unit owner the opportunity to express a preference for any
10     of the known candidates for the board or to write in a
11     name;
12         (19) that special meetings of the board of managers can
13     be called by the president or 25% of the members of the
14     board; and
15         (20) that the board of managers may establish and
16     maintain a system of master metering of public utility
17     services and collect payments in connection therewith,
18     subject to the requirements of the Tenant Utility Payment
19     Disclosure Act.
20     (b) (1) What percentage of the unit owners, if other than
21     20%, shall constitute a quorum provided that, for
22     condominiums with 20 or more units, the percentage of unit
23     owners constituting a quorum shall be 20% unless the unit
24     owners holding a majority of the percentage interest in the
25     association provide for a higher percentage;
26         (2) that the association shall have one class of



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1     membership;
2         (3) that the members shall hold an annual meeting, one
3     of the purposes of which shall be to elect members of the
4     board of managers;
5         (4) the method of calling meetings of the unit owners;
6         (5) that special meetings of the members can be called
7     by the president, board of managers, or by 20% of unit
8     owners;
9         (6) that written notice of any membership meeting shall
10     be mailed or delivered giving members no less than 10 and
11     no more than 30 days notice of the time, place and purpose
12     of such meeting;
13         (7) that voting shall be on a percentage basis, and
14     that the percentage vote to which each unit is entitled is
15     the percentage interest of the undivided ownership of the
16     common elements appurtenant thereto, provided that the
17     bylaws may provide for approval by unit owners in
18     connection with matters where the requisite approval on a
19     percentage basis is not specified in this Act, on the basis
20     of one vote per unit;
21         (8) that, where there is more than one owner of a unit,
22     if only one of the multiple owners is present at a meeting
23     of the association, he is entitled to cast all the votes
24     allocated to that unit, if more than one of the multiple
25     owners are present, the votes allocated to that unit may be
26     cast only in accordance with the agreement of a majority in



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1     interest of the multiple owners, unless the declaration
2     expressly provides otherwise, that there is majority
3     agreement if any one of the multiple owners cast the votes
4     allocated to that unit without protest being made promptly
5     to the person presiding over the meeting by any of the
6     other owners of the unit;
7         (9)(A) that unless the Articles of Incorporation or the
8     bylaws otherwise provide, and except as provided in
9     subparagraph (B) of this paragraph (9) in connection with
10     board elections, a unit owner may vote by proxy executed in
11     writing by the unit owner or by his duly authorized
12     attorney in fact; that the proxy must bear the date of
13     execution and, unless the condominium instruments or the
14     written proxy itself provide otherwise, is invalid after 11
15     months from the date of its execution;
16         (B) that if a rule adopted at least 120 days before a
17     board election or the declaration or bylaws provide for
18     balloting as set forth in this subsection, unit owners may
19     not vote by proxy in board elections, but may vote only (i)
20     by submitting an association-issued ballot in person at the
21     election meeting or (ii) by submitting an
22     association-issued ballot to the association or its
23     designated agent by mail or other means of delivery
24     specified in the declaration, bylaws, or rule; that the
25     ballots shall be mailed or otherwise distributed to unit
26     owners not less than 10 and not more than 30 days before



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



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



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1     "installment contact" shall have the same meaning as set
2     forth in Section 1 (e) of "An Act relating to installment
3     contracts to sell dwelling structures", approved August
4     11, 1967, as amended;
5         (12) the method by which matters subject to the
6     approval of unit owners set forth in this Act, or in the
7     condominium instruments, will be submitted to the unit
8     owners at special membership meetings called for such
9     purposes; and
10         (13) that matters subject to the affirmative vote of
11     not less than 2/3 of the votes of unit owners at a meeting
12     duly called for that purpose, shall include, but not be
13     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
17         substantially all of the property and assets of the
18         association; and
19             (iii) the purchase or sale of land or of units on
20         behalf of all unit owners.
21     (c) Election of a president from among the board of
22 managers, who shall preside over the meetings of the board of
23 managers and of the unit owners.
24     (d) Election of a secretary from among the board of
25 managers, who shall keep the minutes of all meetings of the
26 board of managers and of the unit owners and who shall, in



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



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



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



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



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1     (o) The association shall have no authority to forbear the
2 payment of assessments by any unit owner.
3     (p) That when 30% or fewer of the units, by number, possess
4 over 50% in the aggregate of the votes in the association, any
5 percentage vote of members specified herein or in the
6 condominium instruments shall require the specified percentage
7 by number of units rather than by percentage of interest in the
8 common elements allocated to units that would otherwise be
9 applicable. For purposes of this subsection (p), when making a
10 determination of whether 30% or fewer of the units, by number,
11 possess over 50% in the aggregate of the votes in the
12 association, a unit shall not include a garage unit or a
13 storage unit.
14     (q) That a unit owner may not assign, delegate, transfer,
15 surrender, or avoid the duties, responsibilities, and
16 liabilities of a unit owner under this Act, the condominium
17 instruments, or the rules and regulations of the Association;
18 and that such an attempted assignment, delegation, transfer,
19 surrender, or avoidance shall be deemed void.
20     The provisions of this Section are applicable to all
21 condominium instruments recorded under this Act. Any portion of
22 a condominium instrument which contains provisions contrary to
23 these provisions shall be void as against public policy and
24 ineffective. Any such instrument which fails to contain the
25 provisions required by this Section shall be deemed to
26 incorporate such provisions by operation of law.



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1 (Source: P.A. 93-243, eff. 1-1-04.)