Full Text of HB4560 97th General Assembly
HB4560ham001 97TH GENERAL ASSEMBLY | Rep. André M. Thapedi Filed: 2/21/2012
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| 1 | | AMENDMENT TO HOUSE BILL 4560
| 2 | | AMENDMENT NO. ______. Amend House Bill 4560 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Common Interest Community Association Act | 5 | | is amended by changing Section 1-45 as follows: | 6 | | (765 ILCS 160/1-45)
| 7 | | Sec. 1-45. Finances. | 8 | | (a) Each unit owner shall receive through a prescribed | 9 | | delivery method, at least 30 days but not more than 60 days | 10 | | prior to the adoption thereof by the board, a copy of the | 11 | | proposed annual budget together with an indication of which | 12 | | portions are intended for reserves, capital expenditures or | 13 | | repairs or payment of real estate taxes. | 14 | | (b) The board shall provide all unit owners with a | 15 | | reasonably detailed summary of the receipts, common expenses, | 16 | | and reserves for the preceding budget year. The board shall (i) |
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| 1 | | make available for review to all unit owners an itemized | 2 | | accounting of the common expenses for the preceding year | 3 | | actually incurred or paid, together with an indication of which | 4 | | portions were for reserves, capital expenditures or repairs or | 5 | | payment of real estate taxes and with a tabulation of the | 6 | | amounts collected pursuant to the budget or assessment, and | 7 | | showing the net excess or deficit of income over expenditures | 8 | | plus reserves or (ii) provide a consolidated annual independent | 9 | | audit report of the financial status of all fund accounts | 10 | | within the association. | 11 | | (c) If an adopted budget or any separate assessment adopted | 12 | | by the board would result in the sum of all regular and | 13 | | separate assessments payable in the current fiscal year | 14 | | exceeding 115% of the sum of all regular and separate | 15 | | assessments payable during the preceding fiscal year, the | 16 | | common interest community association, upon written petition | 17 | | by unit owners with 20% of the votes of the association | 18 | | delivered to the board within 14 days of the board action, | 19 | | shall call a meeting of the unit owners within 30 days of the | 20 | | date of delivery of the petition to consider the budget or | 21 | | separate assessment; unless a majority of the total votes of | 22 | | the unit owners are cast at the meeting to reject the budget or | 23 | | separate assessment, it shall be deemed ratified. | 24 | | (d) Any common expense not set forth in the budget or any | 25 | | increase in assessments over the amount adopted in the budget | 26 | | shall be separately assessed against all unit owners. |
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| 1 | | (e) Separate assessments for expenditures relating to | 2 | | emergencies or mandated by law may be adopted by the board | 3 | | without being subject to unit owner approval or the provisions | 4 | | of subsection (c) or (f) of this Section. As used herein, | 5 | | "emergency" means an immediate danger to the structural | 6 | | integrity of the common areas or to the life, health, safety, | 7 | | or property of the unit owners. | 8 | | (f) Assessments for additions and alterations to the common | 9 | | areas or to association-owned property not included in the | 10 | | adopted annual budget, shall be separately assessed and are | 11 | | subject to approval of two-thirds of the total members at a | 12 | | meeting called for that purpose. | 13 | | (g) The board may adopt separate assessments payable over | 14 | | more than one fiscal year. With respect to multi-year | 15 | | assessments not governed by subsections (e) and (f) of this | 16 | | Section, the entire amount of the multi-year assessment shall | 17 | | be deemed considered and authorized in the first fiscal year in | 18 | | which the assessment is approved. | 19 | | (h) The board of a common interest community association | 20 | | shall have the authority to establish and maintain a system of | 21 | | master metering of public utility services to collect payments | 22 | | in conjunction therewith, subject to the requirements of the | 23 | | Tenant Utility Payment Disclosure Act.
| 24 | | (i) Notwithstanding any other provision of this Act, the | 25 | | purchaser of a unit of a common interest community at a | 26 | | judicial foreclosure sale, other than a mortgagee, who takes |
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| 1 | | title to a unit of a common interest community pursuant to a | 2 | | court order or a purchaser who acquires title from a mortgagee | 3 | | following a judicial foreclosure sale or pursuant to a deed in | 4 | | lieu of foreclosure shall have the duty to pay the | 5 | | proportionate share, if any, of the common expenses for the | 6 | | unit, attorneys' fees levied pursuant to subsection (k), and | 7 | | other charges related to the common expenses, that would have | 8 | | become due in the absence of any acceleration during the 12 | 9 | | months immediately preceding a judicial foreclosure sale or | 10 | | delivery of a deed in lieu of foreclosure. If the 12 months of | 11 | | common expenses, related attorneys' fees, and other charges are | 12 | | paid at any time, the purchaser, other than the mortgagee, | 13 | | shall have no obligation to pay any common expenses, related | 14 | | attorneys' fees, and other charges that accrued before he or | 15 | | she acquired title. | 16 | | The notice of sale of a unit of a common interest community | 17 | | under subsection (c) of Section 15-1507 of the Code of Civil | 18 | | Procedure shall state that the purchaser of the unit other than | 19 | | a mortgagee shall pay the common expenses, including but not | 20 | | limited to attorneys' fees levied pursuant to subsection (k), | 21 | | required by this Section. | 22 | | The statement of assessment account issued by the | 23 | | association to a unit owner and the disclosure statement issued | 24 | | to a prospective purchaser under paragraph (2) of subsection | 25 | | (d) of Section 1-35 shall state the amount of common expenses, | 26 | | if any, including but not limited to attorneys' fees levied |
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| 1 | | pursuant to subsection (k), required by this Section. | 2 | | (j) In the event of any default by any unit owner or his or | 3 | | her tenant, invitee, or guest in the performance of the unit | 4 | | owner's obligations under this Act or under the declaration, | 5 | | the bylaws, or the rules and regulations of the board of | 6 | | managers, the board of managers or its agents shall have such | 7 | | rights and remedies as provided in this Act or the common | 8 | | interest community's instruments, including the right to | 9 | | maintain an action for possession against the defaulting unit | 10 | | owner or his or her tenant for the benefit of all the other | 11 | | unit owners in the manner prescribed by Article IX of the Code | 12 | | of Civil Procedure. | 13 | | (k) Any attorneys' fees incurred by the common interest | 14 | | community arising out of a default by any unit owner or his or | 15 | | her tenant, invitee, or guest in the performance of any of the | 16 | | provisions of the common interest community's instruments or | 17 | | rules and regulations, or any applicable statute or ordinance, | 18 | | shall be added to, and deemed a part of, his or her respective | 19 | | share of the common expense. | 20 | | (l) The board of a common interest community association | 21 | | shall have the authority to impose charges for the late payment | 22 | | of a unit owner's share of the common expenses, or any other | 23 | | expenses lawfully agreed upon. | 24 | | (Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.) | 25 | | Section 10. The Condominium Property Act is amended by |
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| 1 | | changing Sections 9 and 18.5 as follows:
| 2 | | (765 ILCS 605/9) (from Ch. 30, par. 309)
| 3 | | Sec. 9. Sharing of expenses - Lien for nonpayment.
| 4 | | (a) All common expenses incurred or accrued prior to the | 5 | | first conveyance
of a unit shall be paid by the developer, and | 6 | | during this period no common
expense assessment shall be | 7 | | payable to the association. It shall be the duty
of each unit | 8 | | owner including the developer to pay his proportionate share of
| 9 | | the common expenses commencing with the first conveyance. The | 10 | | proportionate
share shall be in the same ratio as his | 11 | | percentage of ownership in the common
elements set forth in the | 12 | | declaration.
| 13 | | (b) The condominium instruments may provide that common | 14 | | expenses for
insurance premiums be assessed on a basis | 15 | | reflecting increased charges for
coverage on certain units.
| 16 | | (c) Budget and reserves.
| 17 | | (1) The board of managers shall prepare and distribute | 18 | | to
all unit owners a detailed proposed annual budget, | 19 | | setting forth with
particularity all anticipated common | 20 | | expenses by category as well as all
anticipated assessments | 21 | | and other income. The initial budget and common
expense | 22 | | assessment based thereon shall be adopted prior to the
| 23 | | conveyance of any unit. The budget shall also set forth | 24 | | each unit owner's
proposed common expense assessment.
| 25 | | (2) All budgets adopted by a board of managers on or |
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| 1 | | after July 1, 1990
shall provide for reasonable reserves | 2 | | for capital expenditures and deferred
maintenance for | 3 | | repair or replacement of the common elements. To determine
| 4 | | the amount of reserves appropriate for an association, the | 5 | | board of
managers shall take into consideration the | 6 | | following: (i) the repair and
replacement cost, and the | 7 | | estimated useful life, of the property which the
| 8 | | association is obligated to maintain, including but not | 9 | | limited to
structural and mechanical components, surfaces | 10 | | of the buildings and common
elements, and energy systems | 11 | | and equipment; (ii) the current and
anticipated return on | 12 | | investment of association funds; (iii) any
independent | 13 | | professional reserve study which the association may | 14 | | obtain;
(iv) the financial impact on unit owners, and the | 15 | | market value of the
condominium units, of any assessment | 16 | | increase needed to fund reserves; and
(v) the ability of | 17 | | the association to obtain financing or refinancing.
| 18 | | (3) Notwithstanding the provisions of this subsection | 19 | | (c), an
association without a reserve requirement in its | 20 | | condominium
instruments may elect to waive in whole or in | 21 | | part the reserve requirements
of this Section by a vote of | 22 | | 2/3 of the total votes of the association.
Any association | 23 | | having elected under this paragraph (3) to waive the
| 24 | | provisions of subsection (c) may by a vote of 2/3 of the | 25 | | total votes of the
association elect to again be governed | 26 | | by the requirements of subsection (c).
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| 1 | | (4) In the event that an association elects to waive | 2 | | all or part of
the reserve requirements of this Section, | 3 | | that fact must be
disclosed after the meeting at which the | 4 | | waiver occurs by the
association in the financial | 5 | | statements of the association and, highlighted
in bold | 6 | | print, in the response to any request of a prospective | 7 | | purchaser
for the information prescribed under Section | 8 | | 22.1; and no member of the
board of managers or the | 9 | | managing agent of the association shall be liable,
and no | 10 | | cause of action may be brought for damages against these | 11 | | parties,
for the lack or inadequacy of reserve funds in the | 12 | | association budget.
| 13 | | (d) (Blank).
| 14 | | (e) The condominium instruments may provide for the | 15 | | assessment,
in connection with expenditures for the limited | 16 | | common elements, of only those
units to which the limited | 17 | | common elements are assigned.
| 18 | | (f) Payment of any assessment shall be in amounts and at | 19 | | times
determined by the board of managers.
| 20 | | (g) Lien.
| 21 | | (1) If any unit owner shall fail or refuse to make any | 22 | | payment of
the common expenses or the amount of any unpaid | 23 | | fine when due, the
amount thereof together with any | 24 | | interest, late charges, reasonable
attorney fees incurred | 25 | | enforcing the covenants of the condominium
instruments, | 26 | | rules and regulations of the board of managers, or any |
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| 1 | | applicable
statute or ordinance, and costs of collections | 2 | | shall constitute a lien on the
interest of the unit owner | 3 | | in the property prior to all other
liens and encumbrances, | 4 | | recorded or unrecorded, except only (a) taxes,
special | 5 | | assessments and special taxes theretofore or thereafter | 6 | | levied by
any political subdivision or municipal | 7 | | corporation of this State and other
State or federal taxes | 8 | | which by law are a lien on the interest of the
unit owner | 9 | | prior to preexisting recorded encumbrances thereon and
(b) | 10 | | encumbrances on the interest of the unit owner recorded
| 11 | | prior to the date of such failure or refusal which by law | 12 | | would be a lien
thereon prior to subsequently recorded | 13 | | encumbrances. Any action
brought to extinguish the lien of | 14 | | the association shall include the
association as a party.
| 15 | | (2) With respect to encumbrances executed prior to | 16 | | August 30, 1984 or
encumbrances executed subsequent to | 17 | | August 30, 1984 which are neither
bonafide first mortgages | 18 | | nor trust deeds and which encumbrances contain a
statement | 19 | | of a mailing address in the State of Illinois where notice | 20 | | may be
mailed to the encumbrancer thereunder, if and | 21 | | whenever and as often as the
manager or board of managers | 22 | | shall send, by United States certified or
registered mail, | 23 | | return receipt requested, to any such encumbrancer at the
| 24 | | mailing address set forth in the recorded encumbrance a | 25 | | statement of the
amounts and due dates of the unpaid common | 26 | | expenses with respect to the
encumbered unit, then, unless |
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| 1 | | otherwise provided in the declaration or bylaws,
the prior | 2 | | recorded encumbrance shall be subject to the lien of all | 3 | | unpaid
common expenses with respect to the unit which | 4 | | become due and payable within a
period of 90 days after the | 5 | | date of mailing of each such notice.
| 6 | | (3) The purchaser of a condominium unit at a judicial
| 7 | | foreclosure sale, or a mortgagee who receives title to a | 8 | | unit by deed in
lieu of foreclosure or judgment by common | 9 | | law strict foreclosure or
otherwise takes possession | 10 | | pursuant to court order under the Illinois
Mortgage | 11 | | Foreclosure Law, shall have the duty to pay the unit's
| 12 | | proportionate share of the common expenses for the unit | 13 | | assessed from and
after the first day of the month after | 14 | | the date of the judicial foreclosure
sale, delivery of the | 15 | | deed in lieu of foreclosure, entry of a judgment in
common | 16 | | law strict foreclosure, or taking of possession pursuant to | 17 | | such
court order. Such payment confirms the extinguishment | 18 | | of any lien created
pursuant to paragraph (1) or (2) of | 19 | | this subsection (g) by virtue of the
failure or refusal of | 20 | | a prior unit owner to make payment of common
expenses, | 21 | | where the judicial foreclosure sale has been confirmed by | 22 | | order
of the court, a deed in lieu thereof has been | 23 | | accepted by the lender, or a
consent judgment has been | 24 | | entered by the court.
| 25 | | (4) Notwithstanding any other provision of this Act, | 26 | | the The purchaser of a condominium unit at a judicial |
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| 1 | | foreclosure sale, other than a mortgagee, who takes title | 2 | | to possession of a condominium unit pursuant to a court | 3 | | order or a purchaser who acquires title from a mortgagee | 4 | | following a judicial foreclosure sale or pursuant to a deed | 5 | | in lieu of foreclosure shall have the duty to pay the | 6 | | proportionate share, if any, of the common expenses for the | 7 | | unit , attorneys' fees levied pursuant to subsection (b) of | 8 | | Section 9.2, and other charges related to the common | 9 | | expenses, that which would have become due in the absence | 10 | | of any assessment acceleration during the 12 6 months | 11 | | immediately preceding a judicial foreclosure sale or | 12 | | delivery of a deed in lieu of foreclosure institution of an | 13 | | action to enforce the collection of assessments, and which | 14 | | remain unpaid by the owner during whose possession the | 15 | | assessments accrued . If the 12 months of common expenses, | 16 | | related attorneys' fees, and other charges outstanding | 17 | | assessments are paid at any time during any action to | 18 | | enforce the collection of assessments , the purchaser , | 19 | | other than the mortgagee, shall have no obligation to pay | 20 | | any common expenses, related attorneys' fees, and other | 21 | | charges that assessments which accrued before he or she | 22 | | acquired title.
| 23 | | (5) The notice of sale of a condominium unit under | 24 | | subsection (c) of Section 15-1507 of the Code of Civil | 25 | | Procedure shall state that the purchaser of the unit other | 26 | | than a mortgagee shall pay the common expenses, including |
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| 1 | | but not limited to attorneys' fees levied pursuant to | 2 | | subsection (b) of Section 9.2, required by subdivision | 3 | | (g)(4) assessments and the legal fees required by | 4 | | subdivisions (g)(1) and (g)(4) of Section 9 of this Act. | 5 | | The statement of assessment account issued by the | 6 | | association to a unit owner under subsection (i) of Section | 7 | | 18 of this Act, and the disclosure statement issued to a | 8 | | prospective purchaser under Section 22.1 of this Act, shall | 9 | | state the amount of common expenses the assessments and the | 10 | | legal fees , if any, including but not limited to attorneys' | 11 | | fees levied pursuant to subsection (b) of Section 9.2 of | 12 | | this Act, required by subdivisions (g)(1) and (g)(4) of | 13 | | Section 9 of this Act.
| 14 | | (h) A lien for common expenses shall be in favor of the | 15 | | members of the
board of managers and their successors in office | 16 | | and shall be for the
benefit of all other unit owners. Notice | 17 | | of the lien may be recorded by
the board of managers, or if the | 18 | | developer is the manager or has a majority
of seats on the | 19 | | board of managers and the manager or board of managers
fails to | 20 | | do so, any unit owner may record notice of the lien. Upon the
| 21 | | recording of such notice the lien may be foreclosed by an | 22 | | action brought in
the name of the board of managers in the same | 23 | | manner as a mortgage of real
property.
| 24 | | (i) Unless otherwise provided in the declaration, the | 25 | | members
of the board of managers and their successors in | 26 | | office, acting on behalf
of the other unit owners, shall have |
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| 1 | | the power to bid on the
interest so foreclosed at the | 2 | | foreclosure sale, and to acquire and
hold, lease, mortgage and | 3 | | convey it.
| 4 | | (j) Any encumbrancer may from time to time request in | 5 | | writing a written
statement from the manager or board of | 6 | | managers setting forth the unpaid
common expenses with respect | 7 | | to the unit covered by his encumbrance.
Unless the request is | 8 | | complied with within 20 days, all unpaid common
expenses which | 9 | | become due prior to the date of the making of such request
| 10 | | shall be subordinate to the lien of the encumbrance. Any | 11 | | encumbrancer
holding a lien on a unit may pay any unpaid common | 12 | | expenses payable with
respect to the unit, and upon payment the | 13 | | encumbrancer shall have a lien on
the unit for the amounts paid | 14 | | at the same rank as the lien of his encumbrance.
| 15 | | (k) Nothing in Public Act 83-1271 is intended to change the | 16 | | lien
priorities of any encumbrance created prior to August 30, | 17 | | 1984.
| 18 | | (Source: P.A. 94-1049, eff. 1-1-07.)
| 19 | | (765 ILCS 605/18.5) (from Ch. 30, par. 318.5)
| 20 | | Sec. 18.5. Master Associations.
| 21 | | (a) If the declaration, other condominium instrument, or | 22 | | other duly
recorded covenants provide that any of the powers of | 23 | | the unit owners
associations are to be exercised by or may be | 24 | | delegated to a nonprofit
corporation or unincorporated | 25 | | association that exercises
those or other powers on behalf of |
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| 1 | | one or more condominiums, or for the
benefit of the unit owners | 2 | | of one or more condominiums, such
corporation or association | 3 | | shall be a master association.
| 4 | | (b) There shall be included in the declaration, other
| 5 | | condominium instruments, or other duly recorded covenants | 6 | | establishing
the powers and duties of the master association | 7 | | the provisions set forth in
subsections (c) through (h).
| 8 | | In interpreting subsections (c) through (h), the courts | 9 | | should
interpret these provisions so that they are interpreted | 10 | | consistently with
the similar parallel provisions found in | 11 | | other parts of this Act.
| 12 | | (c) Meetings and finances.
| 13 | | (1) Each unit owner of a condominium subject to the | 14 | | authority of
the board of the master association shall | 15 | | receive, at least 30 days prior
to the adoption thereof by | 16 | | the board of the master association, a copy of
the proposed | 17 | | annual budget.
| 18 | | (2) The board of the master association shall annually | 19 | | supply to
all unit owners of condominiums subject to the | 20 | | authority of the board
of the master association an | 21 | | itemized accounting of the common
expenses for the | 22 | | preceding year actually incurred or paid, together with a
| 23 | | tabulation of the amounts collected pursuant to the budget | 24 | | or assessment,
and showing the net excess or deficit of | 25 | | income over expenditures plus
reserves.
| 26 | | (3) Each unit owner of a condominium subject to the |
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| 1 | | authority of
the board of the master association shall | 2 | | receive written notice mailed
or delivered no less than 10 | 3 | | and no more than 30 days prior to any meeting
of the board | 4 | | of the master association concerning the adoption of the | 5 | | proposed
annual budget or any increase in the budget, or | 6 | | establishment of an
assessment.
| 7 | | (4) Meetings of the board of the master association | 8 | | shall be open
to any unit owner in a condominium subject to | 9 | | the authority of the board
of the master association, | 10 | | except for the portion of any meeting held:
| 11 | | (A) to discuss litigation when an action against or | 12 | | on behalf of the
particular master association has been | 13 | | filed and is pending in a court or
administrative | 14 | | tribunal, or when the board of the master association | 15 | | finds
that such an action is probable or imminent,
| 16 | | (B) to consider information regarding appointment, | 17 | | employment or
dismissal of an employee, or
| 18 | | (C) to discuss violations of rules and regulations | 19 | | of the master
association or unpaid common expenses | 20 | | owed to the master association.
| 21 | | Any vote on these matters shall be taken at a meeting or | 22 | | portion thereof
open to any unit owner of a condominium | 23 | | subject to the authority of the
master association.
| 24 | | Any unit owner may record the proceedings at meetings | 25 | | required
to be open by this Act by tape, film or other | 26 | | means; the board may
prescribe reasonable rules and |
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| 1 | | regulations to govern the right to make such
recordings. | 2 | | Notice of meetings shall be mailed or delivered at least 48
| 3 | | hours prior thereto, unless a written waiver of such notice | 4 | | is signed by
the persons entitled to notice before the | 5 | | meeting is convened. Copies of
notices of meetings of the | 6 | | board of the master association shall be posted
in | 7 | | entranceways, elevators, or other conspicuous places in | 8 | | the condominium
at least 48 hours prior to the meeting of | 9 | | the board of the master
association. Where there is no | 10 | | common entranceway for 7 or more units, the
board of the | 11 | | master association may designate one or more locations in | 12 | | the
proximity of these units where the notices of meetings | 13 | | shall be posted.
| 14 | | (5) If the declaration provides for election by unit | 15 | | owners of members
of the board of directors in the event of | 16 | | a resale of a unit in the master
association, the purchaser | 17 | | of a unit from a seller other than the developer
pursuant | 18 | | to an installment contract for purchase shall, during such
| 19 | | times as he or she resides in the unit, be counted toward a | 20 | | quorum for
purposes of election of members of the board of | 21 | | directors at any
meeting of the unit owners called for | 22 | | purposes of electing members of the
board, and shall have | 23 | | the right to vote for the election of members of
the board | 24 | | of directors and to be elected to and serve on the board of
| 25 | | directors unless the seller expressly retains in writing
| 26 | | any or all of those rights. In no event may the seller and
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| 1 | | purchaser both be counted toward a quorum, be permitted to | 2 | | vote for a
particular office, or be elected and serve on | 3 | | the board. Satisfactory
evidence of the installment | 4 | | contract shall be made available to the
association or its | 5 | | agents. For purposes of this subsection, "installment
| 6 | | contract" shall have the same meaning as set forth in | 7 | | subsection (e) of
Section 1 of the Dwelling Unit | 8 | | Installment Contract Act.
| 9 | | (6) The board of the master association shall have the | 10 | | authority to
establish and maintain a system of master | 11 | | metering of public utility
services and to collect payments | 12 | | in connection therewith, subject to the
requirements of the | 13 | | Tenant Utility Payment Disclosure Act.
| 14 | | (7) The board of the master association or a common | 15 | | interest community
association shall have the power, after | 16 | | notice and an opportunity to be heard,
to levy and collect | 17 | | reasonable fines from members for violations of the
| 18 | | declaration, bylaws, and rules and regulations of the | 19 | | master association or
the common interest community | 20 | | association. Nothing contained in this
subdivision (7) | 21 | | shall give rise to a statutory lien for unpaid fines.
| 22 | | (8) Other than attorney's fees, no fees pertaining to | 23 | | the collection of a unit owner's financial obligation to | 24 | | the Association, including fees charged by a manager or | 25 | | managing agent, shall be added to and deemed a part of an | 26 | | owner's respective share of the common expenses unless: (i) |
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| 1 | | the managing agent fees relate to the costs to collect | 2 | | common expenses for the Association; (ii) the fees are set | 3 | | forth in a contract between the managing agent and the | 4 | | Association; and (iii) the authority to add the management | 5 | | fees to an owner's respective share of the common expenses | 6 | | is specifically stated in the declaration or bylaws of the | 7 | | Association. | 8 | | (9) The board of the master association shall have the | 9 | | authority to impose charges for the late payment of a unit | 10 | | owner's share of the common expenses, or any other expenses | 11 | | lawfully agreed upon. | 12 | | (d) Records.
| 13 | | (1) The board of the master association shall maintain | 14 | | the following
records of the association and make them | 15 | | available for examination and
copying at convenient hours | 16 | | of weekdays by any unit owners in a condominium
subject to | 17 | | the authority of the board or their mortgagees and their | 18 | | duly
authorized agents or attorneys:
| 19 | | (i) Copies of the recorded declaration, other | 20 | | condominium instruments,
other duly recorded covenants | 21 | | and bylaws and any amendments, articles of
| 22 | | incorporation of the master association, annual | 23 | | reports and any rules and
regulations adopted by the | 24 | | master association or its board shall
be available. | 25 | | Prior to the organization of the master association, | 26 | | the
developer shall maintain and make available the |
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| 1 | | records set forth in this
subdivision (d)(1) for | 2 | | examination and copying.
| 3 | | (ii) Detailed and accurate records in | 4 | | chronological order of the
receipts and expenditures | 5 | | affecting the common areas, specifying and
itemizing | 6 | | the maintenance and repair expenses of the common areas | 7 | | and any
other expenses incurred, and copies of all | 8 | | contracts, leases, or other
agreements entered into by | 9 | | the master association, shall be maintained.
| 10 | | (iii) The minutes of all meetings of the master | 11 | | association and the
board of the master association | 12 | | shall be maintained for not less than 7 years.
| 13 | | (iv) Ballots and proxies related thereto, if any, | 14 | | for any election
held for the board of the master | 15 | | association and for any other matters
voted on by the | 16 | | unit owners shall be maintained for
not less than one | 17 | | year.
| 18 | | (v) Such other records of the master association as | 19 | | are available
for inspection by members of a | 20 | | not-for-profit corporation pursuant to
Section 107.75 | 21 | | of the General Not For Profit Corporation Act of 1986 | 22 | | shall
be maintained.
| 23 | | (vi) With respect to units owned by a land trust, | 24 | | if a trustee
designates in writing a person to cast | 25 | | votes on behalf of the unit
owner, the designation | 26 | | shall remain in effect until a subsequent document
is |
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| 1 | | filed with the association.
| 2 | | (2) Where a request for records under this subsection | 3 | | is made in writing
to the board of managers or its agent, | 4 | | failure to provide the requested
record or to respond | 5 | | within 30 days shall be deemed a denial by the board
of | 6 | | directors.
| 7 | | (3) A reasonable fee may be charged by the master | 8 | | association or its
board for the cost of copying.
| 9 | | (4) If the board of directors fails to provide records | 10 | | properly
requested under subdivision (d)(1) within the
| 11 | | time period provided in subdivision (d)(2), the
unit owner | 12 | | may seek appropriate relief, including an award of
| 13 | | attorney's fees and costs.
| 14 | | (e) The board of directors shall have standing and capacity | 15 | | to act in
a representative capacity in relation to matters | 16 | | involving the common areas
of the master association or more | 17 | | than one unit, on behalf of the unit
owners as their interests | 18 | | may appear.
| 19 | | (f) Administration of property prior to election of the | 20 | | initial board
of directors.
| 21 | | (1) Until the election, by the unit owners or the | 22 | | boards of
managers of the underlying condominium | 23 | | associations, of the initial board
of directors of a master | 24 | | association whose declaration is recorded on
or after | 25 | | August 10, 1990, the same rights, titles, powers, | 26 | | privileges,
trusts, duties and obligations that are vested |
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| 1 | | in or imposed upon the board
of directors by this Act or in | 2 | | the declaration or other duly recorded
covenant shall be | 3 | | held and performed by the developer.
| 4 | | (2) The election of the initial board of directors of a | 5 | | master
association whose declaration is recorded on or | 6 | | after August 10, 1990, by
the unit owners or the boards of | 7 | | managers of the underlying condominium
associations, shall | 8 | | be held not later than 60 days after the conveyance by
the | 9 | | developer of 75% of the units, or 3 years after the | 10 | | recording of the
declaration, whichever is earlier. The | 11 | | developer shall give at least 21
days notice of the meeting | 12 | | to elect the initial board of directors and
shall upon | 13 | | request provide to any unit owner, within 3 working days of | 14 | | the
request, the names, addresses, and weighted vote of | 15 | | each unit owner entitled to vote at the
meeting. Any unit | 16 | | owner shall upon receipt of the request be provided with
| 17 | | the same
information, within 10 days of the request, with | 18 | | respect to
each
subsequent meeting to elect members of the | 19 | | board of directors.
| 20 | | (3) If the initial board of directors of a master | 21 | | association
whose declaration is recorded on or after | 22 | | August 10, 1990 is not elected by
the unit owners or the | 23 | | members of the underlying condominium association
board of | 24 | | managers at the time established in subdivision (f)(2), the
| 25 | | developer shall continue in office for a period of 30 days, | 26 | | whereupon
written notice of his resignation shall be sent |
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| 1 | | to all of the unit owners
or members of the underlying | 2 | | condominium board of managers entitled to vote
at an | 3 | | election for members of the board of directors.
| 4 | | (4) Within 60 days following the election of a majority | 5 | | of the board
of directors, other than the developer, by | 6 | | unit owners, the developer shall
deliver to the board of | 7 | | directors:
| 8 | | (i) All original documents as recorded or filed | 9 | | pertaining to the
property, its administration, and | 10 | | the association, such as the declaration,
articles of | 11 | | incorporation, other instruments, annual reports, | 12 | | minutes,
rules and regulations, and contracts, leases, | 13 | | or other
agreements entered into by the association. If | 14 | | any original documents are
unavailable, a copy may be | 15 | | provided if certified by affidavit of the
developer, or | 16 | | an officer or agent of the developer, as being a | 17 | | complete
copy of the actual document recorded or filed.
| 18 | | (ii) A detailed accounting by the developer, | 19 | | setting forth the
source and nature of receipts and | 20 | | expenditures in connection with the
management, | 21 | | maintenance and operation of the property, copies
of | 22 | | all insurance policies, and a list of any loans or | 23 | | advances to the
association which are outstanding.
| 24 | | (iii) Association funds, which shall have been at | 25 | | all times
segregated from any other moneys of the | 26 | | developer.
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| 1 | | (iv) A schedule of all real or personal property, | 2 | | equipment and
fixtures belonging to the association, | 3 | | including documents transferring the
property, | 4 | | warranties, if any, for all real and personal property | 5 | | and
equipment, deeds, title insurance policies, and | 6 | | all tax bills.
| 7 | | (v) A list of all litigation, administrative | 8 | | action and arbitrations
involving the association, any | 9 | | notices of governmental bodies involving
actions taken | 10 | | or which may be taken concerning the association, | 11 | | engineering and
architectural drawings and | 12 | | specifications as approved by any governmental
| 13 | | authority, all other documents filed with any other | 14 | | governmental authority,
all governmental certificates, | 15 | | correspondence involving enforcement of any
| 16 | | association requirements, copies of any documents | 17 | | relating to disputes
involving unit owners, and | 18 | | originals of all documents relating to
everything | 19 | | listed in this subparagraph.
| 20 | | (vi) If the developer fails to fully comply with | 21 | | this paragraph (4)
within
the 60 days
provided and | 22 | | fails to fully comply within 10 days of written demand | 23 | | mailed by
registered
or certified mail to his or her | 24 | | last known address, the board may bring an
action to
| 25 | | compel compliance with this paragraph (4).
If the court | 26 | | finds that any of the
required
deliveries were not made |
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| 1 | | within the required period, the board shall be
entitled | 2 | | to recover
its reasonable attorneys' fees and costs | 3 | | incurred from and after the date of
expiration of
the | 4 | | 10 day demand.
| 5 | | (5) With respect to any master association whose | 6 | | declaration is
recorded on or after August 10, 1990, any | 7 | | contract, lease, or other
agreement made prior to the | 8 | | election of a majority of the board of
directors other than | 9 | | the developer by or on behalf of unit owners or
underlying | 10 | | condominium associations, the association or the board of
| 11 | | directors, which extends for a period of more than 2 years | 12 | | from the
recording of the declaration, shall be subject to | 13 | | cancellation by more than
1/2 of the votes of the unit | 14 | | owners, other than the developer, cast at a
special meeting | 15 | | of members called for that purpose during a period of 90
| 16 | | days prior to the expiration of the 2 year period if the | 17 | | board of managers
is elected by the unit owners, otherwise | 18 | | by more than 1/2 of the underlying
condominium board of | 19 | | managers. At least 60 days prior to the expiration of
the 2 | 20 | | year period, the board of directors, or, if the board is | 21 | | still under
developer control, then the board of managers | 22 | | or the developer shall send
notice to every unit owner or | 23 | | underlying condominium board of managers,
notifying them | 24 | | of this provision, of what contracts, leases and other
| 25 | | agreements are affected, and of the procedure for calling a | 26 | | meeting of the
unit owners or for action by the underlying |
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| 1 | | condominium board of managers
for the purpose of acting to | 2 | | terminate such contracts, leases or other
agreements. | 3 | | During the 90 day period the other party to the contract,
| 4 | | lease, or other agreement shall also have the right of | 5 | | cancellation.
| 6 | | (6) The statute of limitations for any actions in law | 7 | | or equity which
the master association may bring shall not | 8 | | begin to run until the unit
owners or underlying | 9 | | condominium board of managers have elected a majority
of | 10 | | the members of the board of directors.
| 11 | | (g) In the event of any resale of a unit in a master | 12 | | association by a unit
owner other than the developer, the owner | 13 | | shall obtain from
the board of directors and shall make | 14 | | available for inspection to the
prospective purchaser, upon | 15 | | demand, the following:
| 16 | | (1) A copy of the declaration, other instruments and | 17 | | any rules and
regulations.
| 18 | | (2) A statement of any liens, including a statement of | 19 | | the account of
the unit setting forth the amounts of unpaid | 20 | | assessments and other charges
due and owing.
| 21 | | (3) A statement of any capital expenditures | 22 | | anticipated by the
association within the current or | 23 | | succeeding 2 fiscal years.
| 24 | | (4) A statement of the status and amount of any reserve | 25 | | for
replacement fund and any portion of such fund earmarked | 26 | | for any specified
project by the board of directors.
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| 1 | | (5) A copy of the statement of financial condition of | 2 | | the association
for the last fiscal year for which such a | 3 | | statement is available.
| 4 | | (6) A statement of the status of any pending suits or | 5 | | judgments in which
the association is a party.
| 6 | | (7) A statement setting forth what insurance coverage | 7 | | is provided for
all unit owners by the association.
| 8 | | (8) A statement that any improvements or alterations | 9 | | made to the unit,
or any part of the common areas assigned | 10 | | thereto, by the prior unit owner
are in good faith believed | 11 | | to be in compliance with the declaration of the
master | 12 | | association.
| 13 | | The principal officer of the unit owner's association or | 14 | | such
other officer as is specifically designated shall furnish | 15 | | the above
information when requested to do so in writing, | 16 | | within
30 days of receiving the request.
| 17 | | A reasonable fee covering the direct out-of-pocket cost of | 18 | | copying
and providing such information may be charged
by the | 19 | | association or its board of directors to the unit
seller for | 20 | | providing the information.
| 21 | | (g-1) Notwithstanding any other provision of this Act, the | 22 | | The purchaser of a unit of a master association common interest | 23 | | community at a judicial foreclosure sale, other than a | 24 | | mortgagee, who takes title to possession of a unit of a master | 25 | | association common interest community pursuant to a court order | 26 | | or a purchaser who acquires title from a mortgagee following a |
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| 1 | | judicial foreclosure sale or conveyance of a unit pursuant to a | 2 | | deed in lieu of foreclosure shall have the duty to pay the | 3 | | proportionate share, if any, of the common expenses for the | 4 | | unit , including but not limited to attorneys levied pursuant to | 5 | | subsection (b) of Section 9.2 of this Act, that would have | 6 | | become due in the absence of any assessment acceleration during | 7 | | the 12 6 months immediately preceding a judicial foreclosure | 8 | | sale or execution of deed in lieu of foreclosure institution of | 9 | | an action to enforce the collection of assessments and the | 10 | | court costs incurred by the association in an action to enforce | 11 | | the collection that remain unpaid by the owner during whose | 12 | | possession the assessments accrued . If the 12 months of common | 13 | | expenses outstanding assessments and the court costs incurred | 14 | | by the association in an action to enforce the collection are | 15 | | paid at any time during any action to enforce the collection of | 16 | | assessments , the purchaser , other than the mortgagee, shall | 17 | | have no obligation to pay any common expense assessments that | 18 | | accrued before he or she acquired title. The notice of sale of | 19 | | a unit of a master association common interest community under | 20 | | subsection (c) of Section 15-1507 of the Code of Civil | 21 | | Procedure shall state that the purchaser of the unit other than | 22 | | a mortgagee shall pay the common expenses, including but not | 23 | | limited to attorneys' fees levied pursuant to subsection (b) of | 24 | | Section 9.2 of this Act, assessments and court costs required | 25 | | by this subsection (g-1).
| 26 | | (h) Errors and omissions.
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| 1 | | (1) If there is an omission or error in the declaration | 2 | | or other
instrument of the master association, the master | 3 | | association may correct
the error or omission by an | 4 | | amendment to the declaration or other
instrument, as may be | 5 | | required to conform it to this Act, to any other
applicable | 6 | | statute, or to the declaration. The amendment shall be | 7 | | adopted
by vote of two-thirds of the members of the board | 8 | | of directors or by a
majority vote of the unit owners at a | 9 | | meeting called for that purpose,
unless the Act or the | 10 | | declaration of the master association specifically
| 11 | | provides for greater percentages or different procedures.
| 12 | | (2) If, through a scrivener's error, a unit has not | 13 | | been
designated as owning an appropriate undivided share of | 14 | | the common areas
or does not bear an appropriate share of | 15 | | the common expenses, or if
all of the common expenses or | 16 | | all of the common elements in
the condominium have not been | 17 | | distributed in the declaration, so that the
sum total of | 18 | | the shares of common areas which have been distributed or | 19 | | the
sum total of the shares of the common expenses fail to | 20 | | equal 100%, or if it
appears that more than 100% of the | 21 | | common elements or common expenses have
been distributed, | 22 | | the error may be corrected by operation of law by filing
an | 23 | | amendment to the declaration, approved by vote of | 24 | | two-thirds of the
members of the board of directors or a | 25 | | majority vote of the unit owners at
a meeting called for | 26 | | that purpose, which proportionately
adjusts all percentage |
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| 1 | | interests so that the total is equal to 100%,
unless the | 2 | | declaration specifically provides for a different | 3 | | procedure or
different percentage vote by the owners of the | 4 | | units and the owners of
mortgages thereon affected by | 5 | | modification being made in the undivided
interest in the | 6 | | common areas, the number of votes in the unit owners
| 7 | | association or the liability for common expenses | 8 | | appertaining to the unit.
| 9 | | (3) If an omission or error or a scrivener's error in | 10 | | the
declaration or other instrument is corrected by vote of | 11 | | two-thirds of
the members of the board of directors | 12 | | pursuant to the authority established
in subdivisions | 13 | | (h)(1) or (h)(2) of this Section, the board, upon
written | 14 | | petition by unit owners with 20% of the votes of the | 15 | | association or
resolutions adopted by the board of managers | 16 | | or board of directors of the
condominium and common | 17 | | interest community associations which select 20% of
the | 18 | | members of the board of directors of the master | 19 | | association, whichever
is applicable, received within 30 | 20 | | days of the board action, shall call a
meeting of the unit | 21 | | owners or the boards of the condominium and common
interest | 22 | | community associations which select members of the board of
| 23 | | directors of the master association within 30 days of the | 24 | | filing of the
petition or receipt of the condominium and | 25 | | common interest community
association resolution to | 26 | | consider the board action. Unless a majority of
the votes |
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| 1 | | of the unit owners of the association are cast at the | 2 | | meeting to
reject the action, or board of managers or board | 3 | | of directors of
condominium and common interest community | 4 | | associations which select over
50% of the members of the | 5 | | board of the master association adopt resolutions
prior to | 6 | | the meeting rejecting the action of the board of directors | 7 | | of the
master association, it is ratified whether or not a | 8 | | quorum is present.
| 9 | | (4) The procedures for amendments set forth in this | 10 | | subsection (h)
cannot be used if such an amendment would | 11 | | materially or adversely affect
property rights of the unit | 12 | | owners unless the affected unit owners consent
in writing. | 13 | | This Section does not restrict the powers of the | 14 | | association
to otherwise amend the declaration, bylaws, or | 15 | | other condominium
instruments, but authorizes a simple | 16 | | process of amendment requiring a
lesser vote for the | 17 | | purpose of correcting defects, errors, or omissions
when | 18 | | the property rights of the unit owners are not materially | 19 | | or adversely
affected.
| 20 | | (5) If there is an omission or error in the declaration | 21 | | or other
instruments that may not be corrected by an | 22 | | amendment procedure
set forth in subdivision (h)(1) or | 23 | | (h)(2) of this Section, then
the circuit court in the | 24 | | county in which the master
association is located shall | 25 | | have jurisdiction to hear a petition of one or
more of the | 26 | | unit owners thereon or of the association, to correct the |
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| 1 | | error
or omission, and the action may be a class action. | 2 | | The court may require
that one or more methods of | 3 | | correcting the error or omission be submitted
to the unit | 4 | | owners to determine the most acceptable correction. All | 5 | | unit
owners in the association must be joined as parties to | 6 | | the action. Service
of process on owners may be by | 7 | | publication, but the plaintiff shall furnish
all unit | 8 | | owners not personally served with process with copies of | 9 | | the
petition and final judgment of the court by certified | 10 | | mail, return receipt
requested, at their last known | 11 | | address.
| 12 | | (6) Nothing contained in this Section shall be | 13 | | construed to invalidate
any provision of a declaration | 14 | | authorizing the developer to amend
an instrument prior to | 15 | | the latest date on which the initial
membership meeting of | 16 | | the unit owners must be held, whether or not it has
| 17 | | actually been held, to bring the instrument into compliance | 18 | | with the legal
requirements of the Federal National | 19 | | Mortgage Association, the Federal Home
Loan Mortgage | 20 | | Corporation, the Federal Housing Administration, the | 21 | | United
States Veterans Administration or their respective | 22 | | successors and assigns.
| 23 | | (i) The provisions of subsections (c) through (h) are | 24 | | applicable
to all declarations, other condominium instruments, | 25 | | and other
duly recorded covenants establishing the powers and | 26 | | duties of the master
association recorded under this Act. Any |
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| 1 | | portion of a declaration,
other condominium instrument, or | 2 | | other duly recorded covenant establishing
the powers and duties | 3 | | of a master association which contains provisions
contrary to | 4 | | the provisions of subsection (c) through (h) shall be void as
| 5 | | against public policy and ineffective. Any declaration, other | 6 | | condominium
instrument, or other duly recorded covenant | 7 | | establishing the powers and
duties of the master association | 8 | | which fails to contain the provisions
required by subsections | 9 | | (c) through (h) shall be deemed to incorporate such
provisions | 10 | | by operation of law.
| 11 | | (j) (Blank).
| 12 | | (Source: P.A. 96-1045, eff. 7-14-10; 97-535, eff. 1-1-12; | 13 | | 97-605, eff. 8-26-11; revised 10-4-11.)
| 14 | | Section 99. Effective date. This Act takes effect July 1, | 15 | | 2012.".
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