Full Text of HB2401 100th General Assembly
HB2401eng 100TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning civil law.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Common Interest Community Association Act is | 5 | | amended by changing Section 1-30 as follows: | 6 | | (765 ILCS 160/1-30)
| 7 | | Sec. 1-30. Board duties and obligations; records. | 8 | | (a) The board shall meet at least 4 times annually. | 9 | | (b) A common interest community association may not enter | 10 | | into a contract with a current board member, or with a | 11 | | corporation, limited liability company, or partnership in | 12 | | which a board member or a member of his or her immediate family | 13 | | has 25% or more interest, unless notice of intent to enter into | 14 | | the contract is given to members within 20 days after a | 15 | | decision is made to enter into the contract and the members are | 16 | | afforded an opportunity by filing a petition, signed by 20% of | 17 | | the membership, for an election to approve or disapprove the | 18 | | contract; such petition shall be filed within 20 days after | 19 | | such notice and such election shall be held within 30 days | 20 | | after filing the petition. For purposes of this subsection, a | 21 | | board member's immediate family means the board member's | 22 | | spouse, parents, siblings, and children. | 23 | | (c) The bylaws or operating agreement shall provide for the |
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| 1 | | maintenance, repair, and replacement of the common areas and | 2 | | payments therefor, including the method of approving payment | 3 | | vouchers. | 4 | | (d) (Blank). | 5 | | (e) The association may engage the services of a manager or | 6 | | management company. | 7 | | (f) The association shall have one class of voting | 8 | | membership unless the declaration, bylaws, or operating | 9 | | agreement provide otherwise; however, this subsection (f) | 10 | | shall not be construed to limit the operation of subsection (c) | 11 | | of Section 1-20 of this Act. | 12 | | (g) The board shall have the power, after notice and an | 13 | | opportunity to be heard, to levy and collect reasonable fines | 14 | | from members or unit owners for violations of the declaration, | 15 | | bylaws, operating agreement, and rules and regulations of the | 16 | | common interest community association. | 17 | | (h) Other than attorney's fees and court or arbitration | 18 | | costs, no fees pertaining to the collection of a member's or | 19 | | unit owner's financial obligation to the association, | 20 | | including fees charged by a manager or managing agent, shall be | 21 | | added to and deemed a part of a member's or unit owner's | 22 | | respective share of the common expenses unless: (i) the | 23 | | managing agent fees relate to the costs to collect common | 24 | | expenses for the association; (ii) the fees are set forth in a | 25 | | contract between the managing agent and the association; and | 26 | | (iii) the authority to add the management fees to a member's or |
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| 1 | | unit owner's respective share of the common expenses is | 2 | | specifically stated in the declaration, bylaws, or operating | 3 | | agreement of the association. | 4 | | (i) Board records. | 5 | | (1) The board shall maintain the following records of | 6 | | the association and make them available for examination and | 7 | | copying at convenient hours of weekdays by any member or | 8 | | unit owner in a common interest community subject to the | 9 | | authority of the board, their mortgagees, and their duly | 10 | | authorized agents or attorneys: | 11 | | (i) Copies of the recorded declaration, other | 12 | | community instruments, other duly recorded covenants | 13 | | and bylaws and any amendments, articles of | 14 | | incorporation, articles of organization, annual | 15 | | reports, and any rules and regulations adopted by the | 16 | | board shall be available. Prior to the organization of | 17 | | the board, the developer shall maintain and make | 18 | | available the records set forth in this paragraph (i) | 19 | | for examination and copying. | 20 | | (ii) Detailed and accurate records in | 21 | | chronological order of the receipts and expenditures | 22 | | affecting the common areas, specifying and itemizing | 23 | | the maintenance and repair expenses of the common areas | 24 | | and any other expenses incurred, and copies of all | 25 | | contracts, leases, or other agreements entered into by | 26 | | the board shall be maintained. |
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| 1 | | (iii) The minutes of all meetings of the board | 2 | | which shall be maintained for not less than 7 years. | 3 | | (iv) With a written statement of a proper purpose, | 4 | | ballots and proxies related thereto, if any, for any | 5 | | election held for the board and for any other matters | 6 | | voted on by the members, which shall be maintained for | 7 | | not less than one year. | 8 | | (v) With a written statement of a proper purpose, | 9 | | such other records of the board as are available for | 10 | | inspection by members of a not-for-profit corporation | 11 | | pursuant to Section 107.75 of the General Not For | 12 | | Profit Corporation Act of 1986 shall be maintained. | 13 | | (vi) With respect to units owned by a land trust, a | 14 | | living trust, or other legal entity, the trustee, | 15 | | officer, or manager of the entity may designate, in | 16 | | writing, a person to cast votes on behalf of the member | 17 | | or unit owner and a designation shall remain in effect | 18 | | until a subsequent document is filed with the | 19 | | association. | 20 | | (2) Where a request for records under this subsection | 21 | | is made in writing to the board or its agent, failure to | 22 | | provide the requested record or to respond within 30 days | 23 | | shall be deemed a denial by the board. | 24 | | (3) A reasonable fee may be charged by the board for | 25 | | the cost of retrieving and copying records properly | 26 | | requested. |
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| 1 | | (4) If the board fails to provide records properly | 2 | | requested under paragraph (1) of this subsection (i) within | 3 | | the time period provided in that paragraph (1), the member | 4 | | may seek appropriate relief and shall be entitled to an | 5 | | award of reasonable attorney's fees and costs if the member | 6 | | prevails and the court finds that such failure is due to | 7 | | the acts or omissions of the board of managers or the board | 8 | | of directors. | 9 | | (j) The board shall have standing and capacity to act in a | 10 | | representative capacity in relation to matters involving the | 11 | | common areas or more than one unit, on behalf of the members or | 12 | | unit owners as their interests may appear.
| 13 | | (Source: P.A. 98-232, eff. 1-1-14; 98-241, eff. 8-9-13; 98-756, | 14 | | eff. 7-16-14; 99-41, eff. 7-14-15.) | 15 | | Section 10. The Condominium Property Act is amended by | 16 | | changing Sections 15 and 18 as follows:
| 17 | | (765 ILCS 605/15) (from Ch. 30, par. 315)
| 18 | | Sec. 15. Sale of property.
| 19 | | (a) Unless a greater percentage is provided for in the | 20 | | declaration or
bylaws, and notwithstanding the provisions of | 21 | | Sections 13 and 14 hereof,
a majority of the unit owners if | 22 | | where the property contains 2 units, or not
less than 66 2/3% | 23 | | if where the property contains 3 three units, or and not less
| 24 | | than 75% if where the property contains at least 4 but not more |
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| 1 | | than 6 units, or not less than 85% if the property contains 7 | 2 | | or more units, 4 or more units may, by affirmative
vote at a | 3 | | meeting of unit owners duly called for such purpose, elect to
| 4 | | sell the property. Such action shall be binding upon all unit | 5 | | owners, and
it shall thereupon become the duty of every unit | 6 | | owner to execute and
deliver such instruments and to perform | 7 | | all acts as in manner and form may
be necessary to effect such | 8 | | sale, provided, however, that any unit owner
who did not vote | 9 | | in favor of such action and who has filed written
objection | 10 | | thereto with the manager or board of managers within 20 days
| 11 | | after the date of the meeting at which such sale was approved | 12 | | shall be
entitled to receive from the proceeds of such sale an | 13 | | amount equivalent to
the value of his interest, as determined | 14 | | by a fair appraisal, less the
amount of any unpaid assessments | 15 | | or charges due and owing from such unit
owner.
| 16 | | (b) If there is a disagreement as to the value of the
| 17 | | interest of a unit owner who did not vote in favor of the sale | 18 | | of the
property, that unit owner shall have a right to | 19 | | designate an expert in
appraisal or property valuation to | 20 | | represent him, in which case, the
prospective purchaser of the | 21 | | property shall designate an expert in
appraisal or property | 22 | | valuation to represent him, and both of these experts
shall | 23 | | mutually designate a third expert in appraisal or property | 24 | | valuation.
The 3 experts shall constitute a panel to determine | 25 | | by vote of at least 2
of the members of the panel, the value of | 26 | | that unit owner's interest in
the property.
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| 1 | | (Source: P.A. 86-1156.)
| 2 | | (765 ILCS 605/18) (from Ch. 30, par. 318)
| 3 | | Sec. 18. Contents of bylaws. The bylaws shall provide for | 4 | | at least
the following:
| 5 | | (a)(1) The election from among the unit owners of a | 6 | | board of managers,
the number of persons constituting such | 7 | | board, and that the terms of at
least one-third of the | 8 | | members of the board shall expire annually and that
all | 9 | | members of the board shall be elected at large; if there | 10 | | are multiple owners of a single unit, only one of the | 11 | | multiple
owners shall be eligible to serve as a member of | 12 | | the board at any one time;
| 13 | | (2) the powers and duties of the board;
| 14 | | (3) the compensation, if any, of the members of the | 15 | | board;
| 16 | | (4) the method of removal from office of members of the | 17 | | board;
| 18 | | (5) that the board may engage the services of a manager | 19 | | or managing agent;
| 20 | | (6) that each unit owner shall receive, at least 25 | 21 | | days prior to the
adoption thereof by the board of | 22 | | managers, a copy of the proposed annual
budget together | 23 | | with an indication of which portions are intended for
| 24 | | reserves, capital expenditures or repairs or payment of | 25 | | real estate taxes;
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| 1 | | (7) that the board of managers shall annually supply to
| 2 | | all unit owners an itemized accounting of the common | 3 | | expenses
for the preceding year actually incurred or paid, | 4 | | together
with an indication of which portions were for | 5 | | reserves, capital
expenditures or repairs or payment of | 6 | | real estate taxes and
with a tabulation of the amounts | 7 | | collected pursuant to the
budget or assessment, and showing | 8 | | the net excess or
deficit of income over expenditures plus | 9 | | reserves;
| 10 | | (8)(i) that each unit owner shall receive notice, in | 11 | | the same manner
as is provided in this Act for membership | 12 | | meetings, of any meeting of the
board of managers | 13 | | concerning the adoption of the proposed annual budget and
| 14 | | regular assessments pursuant thereto or to adopt a separate | 15 | | (special)
assessment, (ii) that except as provided in | 16 | | subsection (iv) below, if an
adopted
budget or any separate | 17 | | assessment adopted by the board would result in the
sum of | 18 | | all regular and separate assessments payable in the current | 19 | | fiscal year
exceeding 115% of the sum of all regular and | 20 | | separate
assessments payable during the
preceding fiscal | 21 | | year, the
board of managers, upon written petition by unit | 22 | | owners with 20 percent of
the votes of the association | 23 | | delivered to the board within 14
days of the board action,
| 24 | | shall call a meeting of the unit owners within 30 days of | 25 | | the date of
delivery of the petition to consider the budget | 26 | | or separate
assessment; unless a
majority of
the total |
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| 1 | | votes of the unit owners are cast at the meeting to reject | 2 | | the
budget or separate assessment,
it is ratified, (iii) | 3 | | that any common expense not set forth in the budget or
any | 4 | | increase in assessments over the amount adopted in the | 5 | | budget shall be
separately assessed against all unit | 6 | | owners, (iv) that separate assessments for
expenditures | 7 | | relating to emergencies or mandated by law may be adopted | 8 | | by the
board of managers without being subject to unit | 9 | | owner approval or the
provisions of item (ii) above or item | 10 | | (v) below. As used
herein, "emergency" means an immediate | 11 | | danger to the structural integrity of
the
common elements | 12 | | or to the life, health, safety or property of the unit | 13 | | owners,
(v) that assessments
for additions and alterations | 14 | | to the common elements or to association-owned
property not | 15 | | included in the adopted annual budget, shall be separately
| 16 | | assessed and are subject to approval of two-thirds of the | 17 | | total votes of all
unit owners, (vi) that the board of | 18 | | managers may adopt separate assessments
payable over more | 19 | | than one fiscal year. With respect to multi-year | 20 | | assessments
not governed by items (iv) and (v), the entire | 21 | | amount of the multi-year
assessment shall be deemed | 22 | | considered and authorized in the first fiscal year
in which | 23 | | the assessment is approved;
| 24 | | (9)(A) that every meeting of the board of managers | 25 | | shall be open to any unit
owner, except that the board may | 26 | | close any portion of a noticed meeting or meet separately |
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| 1 | | from a noticed meeting to: (i) discuss litigation
when an | 2 | | action against or on behalf of the particular association | 3 | | has been
filed and is pending in a court or administrative | 4 | | tribunal,
or when the board of managers finds that such an | 5 | | action is probable
or imminent, (ii) discuss the | 6 | | appointment, employment, engagement,
or dismissal of an | 7 | | employee, independent contractor, agent, or other provider | 8 | | of goods and services, (iii) interview a potential | 9 | | employee, independent contractor, agent, or other provider | 10 | | of goods and services, (iv) discuss violations of rules and
| 11 | | regulations of the association, (v) discuss a unit owner's | 12 | | unpaid share of common
expenses, or (vi) consult with the | 13 | | association's legal counsel; that any vote on these matters | 14 | | shall take place at a meeting of the board of managers or
| 15 | | portion thereof open to any unit owner; | 16 | | (B) that board members may participate in and act at | 17 | | any meeting of the board of managers in person, by | 18 | | telephonic means, or by use of any acceptable technological | 19 | | means whereby all persons participating in the meeting can | 20 | | communicate with each other; that participation | 21 | | constitutes attendance and presence in person at the | 22 | | meeting; | 23 | | (C) that any unit owner may record the
proceedings at | 24 | | meetings of the board of managers or portions thereof | 25 | | required to be open by this
Act by tape, film or other | 26 | | means, and that the board may prescribe reasonable
rules |
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| 1 | | and regulations to govern the right to make such | 2 | | recordings; | 3 | | (D) that
notice of every meeting of the board of | 4 | | managers shall be given to every board member at least 48 | 5 | | hours
prior thereto, unless the board member waives notice | 6 | | of the meeting pursuant to subsection (a) of Section 18.8; | 7 | | and | 8 | | (E) that notice of every meeting
of the board of | 9 | | managers shall be posted in entranceways,
elevators, or | 10 | | other conspicuous places in the condominium at least 48 | 11 | | hours
prior to the meeting of the board of managers except | 12 | | where there is no
common entranceway for 7 or more units, | 13 | | the board of managers may designate
one or more locations | 14 | | in the proximity of these units where the notices of
| 15 | | meetings shall be posted; that notice of every meeting of | 16 | | the board of managers shall also be given at least 48 hours | 17 | | prior to the meeting, or such longer notice as this Act may | 18 | | separately require, to: (i) each unit owner who has | 19 | | provided the association with written authorization to | 20 | | conduct business by acceptable technological means, and | 21 | | (ii) to the extent that the condominium instruments of an | 22 | | association require, to each other unit owner, as required | 23 | | by subsection (f) of Section 18.8, by mail or delivery, and | 24 | | that no other notice of a meeting of the board of managers | 25 | | need be given to any unit owner;
| 26 | | (10) that the board shall meet at least 4 times |
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| 1 | | annually;
| 2 | | (11) that no member of the board or officer shall be | 3 | | elected for a term
of more than 2 years, but that officers | 4 | | and board members may succeed
themselves;
| 5 | | (12) the designation of an officer to mail and receive | 6 | | all notices and
execute amendments to condominium | 7 | | instruments as provided for in this Act
and in the | 8 | | condominium instruments;
| 9 | | (13) the method of filling vacancies on the board
which | 10 | | shall include authority for the remaining members of the | 11 | | board to
fill the vacancy by two-thirds vote until the next | 12 | | annual meeting of unit
owners or for a period terminating | 13 | | no later than 30 days following the
filing of a petition | 14 | | signed by unit owners holding 20% of the votes of the
| 15 | | association requesting a meeting of the unit owners to fill | 16 | | the vacancy for
the balance of the term, and that a meeting | 17 | | of the unit owners shall be
called for purposes of filling | 18 | | a vacancy on the board no later than 30 days
following the | 19 | | filing of a petition signed by unit owners holding 20% of | 20 | | the
votes of the association requesting such a meeting, and | 21 | | the method of filling
vacancies among the officers that | 22 | | shall include the authority for the members
of the board to | 23 | | fill the vacancy for the unexpired portion of the term;
| 24 | | (14) what percentage of the board of managers, if other | 25 | | than a majority,
shall constitute a quorum;
| 26 | | (15) provisions concerning notice of board meetings to |
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| 1 | | members of the
board;
| 2 | | (16) the board of managers may not enter into a | 3 | | contract with a
current board member
or with a corporation | 4 | | or partnership in which a board
member or a member of the | 5 | | board member's immediate family has 25% or
more interest, | 6 | | unless notice of intent to enter the
contract is given to | 7 | | unit owners within 20 days after a decision is made
to | 8 | | enter into the contract and the unit owners are
afforded an | 9 | | opportunity by filing a petition, signed by 20% of the unit
| 10 | | owners, for an election to approve or disapprove the | 11 | | contract;
such petition shall be filed within 20 days after | 12 | | such notice and such
election shall be held within 30 days | 13 | | after filing the petition; for purposes
of this subsection, | 14 | | a board member's immediate family means the board member's
| 15 | | spouse, parents, and children;
| 16 | | (17) that the board of managers may disseminate
to unit | 17 | | owners biographical and background information about | 18 | | candidates for
election to the board if (i) reasonable | 19 | | efforts to identify all candidates are
made and all | 20 | | candidates are given an opportunity to include | 21 | | biographical and
background information in the information | 22 | | to be disseminated; and (ii) the
board does not express a | 23 | | preference in favor of any candidate;
| 24 | | (18) any proxy distributed for board elections
by the | 25 | | board of managers gives unit owners the
opportunity to | 26 | | designate any person as the proxy holder, and gives the |
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| 1 | | unit
owner the opportunity to express a preference for any | 2 | | of the known
candidates for the board or to write in a | 3 | | name;
| 4 | | (19) that special meetings of the board of managers can | 5 | | be called by
the president or 25% of the members of the | 6 | | board;
| 7 | | (20) that the board of managers may establish
and | 8 | | maintain a system of master metering of public utility | 9 | | services and
collect payments in connection therewith, | 10 | | subject to the requirements of the
Tenant Utility Payment | 11 | | Disclosure Act; and
| 12 | | (21) that the board may ratify and confirm actions of | 13 | | the
members of the board taken in response to an emergency, | 14 | | as that
term is defined in subdivision (a)(8)(iv) of this | 15 | | Section; that
the board shall give notice to the unit | 16 | | owners of: (i) the
occurrence of the emergency event within | 17 | | 7 business days after
the emergency event, and (ii) the | 18 | | general description of the
actions taken to address the | 19 | | event within 7 days after the
emergency event. | 20 | | The intent of the provisions of Public Act 99-472 | 21 | | adding this paragraph (21) is to empower and support boards | 22 | | to act in
emergencies. | 23 | | (b)(1) What percentage of the unit owners, if other | 24 | | than 20%, shall
constitute a quorum provided that, for | 25 | | condominiums with 20 or more units,
the percentage of unit | 26 | | owners constituting a quorum shall be 20% unless the
unit |
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| 1 | | owners holding a majority of the percentage interest in the
| 2 | | association provide for a higher percentage, provided that | 3 | | in voting on amendments to the association's bylaws, a unit | 4 | | owner who is in arrears on the unit owner's regular or | 5 | | separate assessments for 60 days or more, shall not be | 6 | | counted for purposes of determining if a quorum is present, | 7 | | but that unit owner retains the right to vote on amendments | 8 | | to the association's bylaws;
| 9 | | (2) that the association shall have one class of voting | 10 | | membership;
| 11 | | (3) that the members shall hold an annual meeting, one | 12 | | of the purposes
of which shall be to elect members of the | 13 | | board of managers;
| 14 | | (4) the method of calling meetings of the unit owners;
| 15 | | (5) that special meetings of the members can be called | 16 | | by the president,
board of managers, or by 20% of unit | 17 | | owners;
| 18 | | (6) that written notice of any membership meeting shall | 19 | | be mailed
or delivered giving members no less than 10 and | 20 | | no more than 30 days
notice of the time, place and purpose | 21 | | of such meeting except that notice may be sent, to the | 22 | | extent the condominium instruments or rules adopted | 23 | | thereunder expressly so provide, by electronic | 24 | | transmission consented to by the unit owner to whom the | 25 | | notice is given, provided the director and officer or his | 26 | | agent certifies in writing to the delivery by electronic |
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| 1 | | transmission;
| 2 | | (7) that voting shall be on a percentage basis, and | 3 | | that the percentage
vote to which each unit is entitled is | 4 | | the percentage interest of the
undivided ownership of the | 5 | | common elements appurtenant thereto, provided
that the | 6 | | bylaws may provide for approval by unit owners in | 7 | | connection with
matters where the requisite approval on a | 8 | | percentage basis is not specified
in this Act, on the basis | 9 | | of one vote per unit;
| 10 | | (8) that, where there is more than one owner of a unit, | 11 | | if only one
of the multiple owners is present at a meeting | 12 | | of the association, he is
entitled to cast all the votes | 13 | | allocated to that unit, if more than one of
the multiple | 14 | | owners are present, the votes allocated to that unit may be
| 15 | | cast only in accordance with the agreement of a majority in | 16 | | interest of the
multiple owners, unless the declaration | 17 | | expressly provides otherwise, that
there is majority | 18 | | agreement if any one of the multiple owners cast the
votes | 19 | | allocated to that unit without protest being made promptly | 20 | | to the
person presiding over the meeting by any of the | 21 | | other owners of the unit;
| 22 | | (9)(A) except as provided in subparagraph (B) of this | 23 | | paragraph (9) in
connection with board elections, that
a | 24 | | unit owner may vote by proxy executed in writing by the | 25 | | unit
owner or by his duly authorized attorney in fact; that | 26 | | the proxy must bear the date of
execution
and, unless the |
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| 1 | | condominium instruments or the written proxy itself | 2 | | provide
otherwise, is
invalid after 11 months from the date | 3 | | of its execution; to the extent the condominium instruments | 4 | | or rules adopted thereunder expressly so provide, a vote or | 5 | | proxy may be submitted by electronic transmission, | 6 | | provided that any such electronic transmission shall | 7 | | either set forth or be submitted with information from | 8 | | which it can be determined that the electronic transmission | 9 | | was authorized by the unit owner or the unit owner's proxy;
| 10 | | (B) that if a rule adopted at least 120 days before a | 11 | | board election
or the
declaration or bylaws provide for | 12 | | balloting as set forth in this subsection,
unit
owners may | 13 | | not vote by proxy in board elections, but may vote only (i) | 14 | | by
submitting an association-issued ballot in person at the | 15 | | election meeting or
(ii) by
submitting an | 16 | | association-issued ballot to the association or its | 17 | | designated
agent
by mail or other means of delivery | 18 | | specified in the declaration, bylaws, or
rule; that
the | 19 | | ballots shall be mailed or otherwise distributed to unit | 20 | | owners not less
than 10
and not more than 30 days before | 21 | | the election meeting, and the board shall give
unit owners | 22 | | not less than 21 days' prior written notice of the deadline | 23 | | for
inclusion of a candidate's name on the ballots; that | 24 | | the deadline shall be no
more
than 7 days before the | 25 | | ballots are mailed or otherwise distributed to unit
owners; | 26 | | that
every such ballot must include the names of all |
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| 1 | | candidates who have given the
board or its authorized agent | 2 | | timely written notice of their candidacy and must
give the | 3 | | person casting the ballot the opportunity to cast votes for | 4 | | candidates
whose names do not appear on the ballot; that a | 5 | | ballot received by the
association
or
its designated agent | 6 | | after the close of voting shall not be counted; that a
unit
| 7 | | owner
who submits a ballot by mail or other means of | 8 | | delivery specified in the
declaration, bylaws, or rule may | 9 | | request and cast a ballot in person at the
election
| 10 | | meeting, and thereby void any ballot previously submitted | 11 | | by that unit owner; | 12 | | (B-5) that if a rule adopted at least 120 days before a | 13 | | board election or the declaration or bylaws provide for | 14 | | balloting as set forth in this subparagraph, unit owners | 15 | | may not vote by proxy in board elections, but may vote only | 16 | | (i) by submitting an association-issued ballot in person at | 17 | | the election meeting; or (ii) by any acceptable | 18 | | technological means as defined in Section 2 of this Act; | 19 | | instructions regarding the use of electronic means for | 20 | | voting shall be distributed to all unit owners not less | 21 | | than 10 and not more than 30 days before the election | 22 | | meeting, and the board shall give unit owners not less than | 23 | | 21 days' prior written notice of the deadline for inclusion | 24 | | of a candidate's name on the ballots; the deadline shall be | 25 | | no more than 7 days before the instructions for voting | 26 | | using electronic or acceptable technological means is |
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| 1 | | distributed to unit owners; every instruction notice must | 2 | | include the names of all candidates who have given the | 3 | | board or its authorized agent timely written notice of | 4 | | their candidacy and must give the person voting through | 5 | | electronic or acceptable technological means the | 6 | | opportunity to cast votes for candidates whose names do not | 7 | | appear on the ballot; a unit owner who submits a vote using | 8 | | electronic or acceptable technological means may request | 9 | | and cast a ballot in person at the election meeting, | 10 | | thereby voiding any vote previously submitted by that unit | 11 | | owner;
| 12 | | (C) that if a written petition by unit owners with at | 13 | | least 20% of the
votes of
the association is delivered to | 14 | | the board within 14 days after the board's
approval
of a | 15 | | rule adopted pursuant to subparagraph (B) or subparagraph | 16 | | (B-5) of this paragraph (9), the board
shall call a meeting | 17 | | of the unit owners within 30 days after the date of
| 18 | | delivery of
the petition; that unless a majority of the | 19 | | total votes of the unit owners are
cast
at the
meeting to | 20 | | reject the rule, the rule is ratified;
| 21 | | (D) that votes cast by ballot under subparagraph (B) or | 22 | | electronic or acceptable technological means under | 23 | | subparagraph (B-5) of this paragraph (9) are valid for the | 24 | | purpose of establishing a quorum; | 25 | | (10) that the association may, upon adoption of the | 26 | | appropriate rules by
the board of managers, conduct |
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| 1 | | elections by secret ballot whereby the voting
ballot is | 2 | | marked only with the percentage interest for the unit and | 3 | | the vote
itself, provided that the board further adopt | 4 | | rules to verify the status of the
unit owner issuing a | 5 | | proxy or casting a ballot; and further, that a candidate
| 6 | | for election to the board of managers or such
candidate's | 7 | | representative shall have the right to be present at the
| 8 | | counting of ballots at such election;
| 9 | | (11) that in the event of a resale of a condominium | 10 | | unit the purchaser
of a unit from a seller other than the | 11 | | developer pursuant to an installment
contract for purchase | 12 | | shall during such times as he or she resides in the
unit be | 13 | | counted toward a quorum for purposes of election of members | 14 | | of the
board of managers at any meeting of the unit owners | 15 | | called for purposes of
electing members of the board, shall | 16 | | have the right to vote for the
election of members of the | 17 | | board of managers and to be elected to and serve
on the | 18 | | board of managers unless the seller expressly retains in | 19 | | writing any
or all of such rights. In no event may the | 20 | | seller and purchaser both be
counted toward a quorum, be | 21 | | permitted to vote for a particular office or be
elected and | 22 | | serve on the board. Satisfactory evidence of the | 23 | | installment contract
shall be made available to the | 24 | | association or its agents. For
purposes of this subsection, | 25 | | "installment contract" shall have the same
meaning as set | 26 | | forth in Section 1(e) of the Dwelling Unit Installment |
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| 1 | | Contract Act;
| 2 | | (12) the method by which matters subject to the | 3 | | approval of unit owners
set forth in this Act, or in the | 4 | | condominium instruments, will be
submitted to the unit | 5 | | owners at special membership meetings called for such
| 6 | | purposes; and
| 7 | | (13) that matters subject to the affirmative vote of | 8 | | not less than 2/3
of the votes of unit owners at a meeting | 9 | | duly called for that purpose,
shall include, but not be | 10 | | limited to:
| 11 | | (i) merger or consolidation of the association;
| 12 | | (ii) sale, lease, exchange, or other disposition | 13 | | (excluding the mortgage
or pledge) of all, or | 14 | | substantially all of the property and assets of the
| 15 | | association; and
| 16 | | (iii) the purchase or sale of land or of units on | 17 | | behalf of all unit owners.
| 18 | | (c) Election of a president from among the board of | 19 | | managers, who shall
preside over the meetings of the board | 20 | | of managers and of the unit owners.
| 21 | | (d) Election of a secretary from among the board of | 22 | | managers, who shall
keep the minutes of all meetings
of the | 23 | | board of managers and of the unit owners and who shall, in | 24 | | general,
perform all the duties incident to the office of | 25 | | secretary.
| 26 | | (e) Election of a treasurer from among the board of |
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| 1 | | managers, who shall
keep the financial records and
books of | 2 | | account.
| 3 | | (f) Maintenance, repair and replacement of the common | 4 | | elements and
payments therefor, including the method of | 5 | | approving payment vouchers.
| 6 | | (g) An association with 30 or more units shall obtain | 7 | | and maintain
fidelity insurance covering persons who | 8 | | control or disburse funds of the
association for the | 9 | | maximum amount of coverage available to protect funds
in | 10 | | the custody or control of the association plus the | 11 | | association reserve
fund. All management companies which | 12 | | are responsible for the funds held or
administered by the | 13 | | association shall maintain and furnish to the
association a | 14 | | fidelity bond for the maximum amount of coverage available | 15 | | to
protect funds in the custody of the management company | 16 | | at any time. The
association shall bear the cost of the | 17 | | fidelity insurance and fidelity
bond, unless otherwise | 18 | | provided by contract between the association and a
| 19 | | management company. The association shall be the direct | 20 | | obligee of any
such fidelity bond. A management company | 21 | | holding reserve funds of an
association shall at all times | 22 | | maintain a separate account for each
association, | 23 | | provided, however, that for investment purposes, the Board | 24 | | of
Managers of an association may authorize a management | 25 | | company to maintain
the association's reserve funds in a | 26 | | single interest bearing account with
similar funds of other |
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| 1 | | associations. The management company shall at all
times | 2 | | maintain records identifying all moneys of each | 3 | | association in such
investment account. The management | 4 | | company may hold all operating funds of
associations which | 5 | | it manages in a single operating account but shall at
all | 6 | | times maintain records identifying all moneys of each | 7 | | association in
such operating account. Such operating and | 8 | | reserve funds held by the
management company for the | 9 | | association shall not be subject to attachment
by any | 10 | | creditor of the management company.
| 11 | | For the purpose of this subsection, a management | 12 | | company shall be
defined as a person, partnership, | 13 | | corporation, or other legal entity
entitled to transact | 14 | | business on behalf of others, acting on behalf of or
as an | 15 | | agent for a unit owner, unit owners or association of unit | 16 | | owners for
the purpose of carrying out the duties, | 17 | | responsibilities, and other
obligations necessary for the | 18 | | day to day operation and management of any
property subject | 19 | | to this Act. For purposes of this subsection, the term
| 20 | | "fiduciary insurance coverage" shall be defined as both a | 21 | | fidelity bond and
directors and officers liability | 22 | | coverage, the fidelity bond in the full
amount of | 23 | | association funds and association reserves that will be in | 24 | | the
custody of the association, and the directors and | 25 | | officers liability
coverage at a level as shall be | 26 | | determined to be reasonable by the board of
managers, if |
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| 1 | | not otherwise established by the declaration or by laws.
| 2 | | Until one year after September 21, 1985 (the effective | 3 | | date of Public Act 84-722),
if a condominium association | 4 | | has reserves plus assessments in excess of
$250,000 and | 5 | | cannot reasonably obtain 100% fidelity bond coverage for | 6 | | such
amount, then it must obtain a fidelity bond coverage | 7 | | of $250,000.
| 8 | | (h) Method of estimating the amount of the annual | 9 | | budget, and the manner
of assessing and collecting from the | 10 | | unit owners their respective shares of
such estimated | 11 | | expenses, and of any other expenses lawfully agreed upon.
| 12 | | (i) That upon 10 days notice to the manager or board of | 13 | | managers and
payment of a reasonable fee, any unit owner | 14 | | shall be furnished a statement
of his account setting forth | 15 | | the amount of any unpaid assessments or other
charges due | 16 | | and owing from such owner.
| 17 | | (j) Designation and removal of personnel necessary for | 18 | | the maintenance,
repair and replacement of the common | 19 | | elements.
| 20 | | (k) Such restrictions on and requirements respecting | 21 | | the use and
maintenance of the units and the use of the | 22 | | common elements, not set forth
in the declaration, as are | 23 | | designed to prevent unreasonable interference
with the use | 24 | | of their respective units and of the common elements by the
| 25 | | several unit owners.
| 26 | | (l) Method of adopting and of amending administrative |
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| 1 | | rules and
regulations governing the operation and use of | 2 | | the common elements.
| 3 | | (m) The percentage of votes required to modify or amend | 4 | | the bylaws, but
each one of the particulars set forth in | 5 | | this section shall always be
embodied in the bylaws.
| 6 | | (n)(i) The provisions of this Act, the declaration, | 7 | | bylaws, other
condominium instruments, and rules and | 8 | | regulations that relate to the use
of the individual unit | 9 | | or the common elements shall be applicable to
any person | 10 | | leasing a unit and shall be deemed to be incorporated in | 11 | | any
lease executed or renewed on or after August 30, 1984 | 12 | | (the effective date of Public Act 83-1271). | 13 | | (ii) With regard to any lease entered into subsequent | 14 | | to July 1, 1990 (the
effective date of Public Act 86-991), | 15 | | the unit owner leasing the
unit shall deliver a copy of the | 16 | | signed lease to the board or if the
lease is oral, a | 17 | | memorandum of the lease, not later than the date of
| 18 | | occupancy or 10 days after the lease is signed, whichever | 19 | | occurs first. In
addition to any other remedies, by filing | 20 | | an action jointly against the
tenant and the unit owner, an | 21 | | association may seek to enjoin a tenant from
occupying a | 22 | | unit or seek to evict a tenant under the provisions of | 23 | | Article
IX of the Code of Civil Procedure for failure of | 24 | | the lessor-owner to
comply with the leasing requirements | 25 | | prescribed by
this Section or by the declaration, bylaws, | 26 | | and
rules and regulations. The board of managers may |
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| 1 | | proceed directly against a
tenant, at law or in equity, or | 2 | | under the provisions of Article IX of the
Code of Civil | 3 | | Procedure, for any other breach by tenant of any
covenants, | 4 | | rules, regulations or bylaws.
| 5 | | (o) The association shall have no authority to forbear | 6 | | the payment
of assessments by any unit owner.
| 7 | | (p) That when 30% or fewer of the units, by number,
| 8 | | possess over 50% in the aggregate of the votes in the | 9 | | association,
any percentage vote of members specified | 10 | | herein or in the condominium
instruments shall require the | 11 | | specified percentage by number of units
rather than by | 12 | | percentage of interest in the common elements allocated
to | 13 | | units that would otherwise be applicable and garage units | 14 | | or storage units, or both, shall have, in total, no more | 15 | | votes than their aggregate percentage of ownership in the | 16 | | common elements; this shall mean that if garage units or | 17 | | storage units, or both, are to be given a vote, or portion | 18 | | of a vote, that the association must add the total number | 19 | | of votes cast of garage units, storage units, or both, and | 20 | | divide the total by the number of garage units, storage | 21 | | units, or both, and multiply by the aggregate percentage of | 22 | | ownership of garage units and storage units to determine | 23 | | the vote, or portion of a vote, that garage units or | 24 | | storage units, or both, have. For purposes of this | 25 | | subsection (p), when making a determination of whether 30% | 26 | | or fewer of the units, by number, possess over 50% in the |
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| 1 | | aggregate of the votes in the association, a unit shall not | 2 | | include a garage unit or a storage unit.
| 3 | | (q) That a unit owner may not assign, delegate, | 4 | | transfer, surrender, or
avoid the duties, | 5 | | responsibilities, and liabilities of a unit owner under | 6 | | this
Act, the condominium instruments, or the rules and | 7 | | regulations of the
Association; and that such an attempted | 8 | | assignment, delegation, transfer,
surrender, or avoidance | 9 | | shall be deemed void.
| 10 | | The provisions of this Section are applicable to all | 11 | | condominium
instruments recorded under this Act. Any portion of | 12 | | a condominium
instrument which contains provisions contrary to | 13 | | these provisions shall be
void as against public policy and | 14 | | ineffective. Any such instrument which
fails to contain the | 15 | | provisions required by this Section shall be deemed to
| 16 | | incorporate such provisions by operation of law.
| 17 | | (Source: P.A. 98-1042, eff. 1-1-15; 99-472, eff. 6-1-16; | 18 | | 99-567, eff. 1-1-17; 99-642, eff. 7-28-16 .)
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