Full Text of SB0636 102nd General Assembly
SB0636sam001 102ND GENERAL ASSEMBLY | Sen. Laura M. Murphy Filed: 4/9/2021
| | 10200SB0636sam001 | | LRB102 11509 LNS 24989 a |
|
| 1 | | AMENDMENT TO SENATE BILL 636
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 636 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Condominium Property Act is amended by | 5 | | changing Section 18 as follows:
| 6 | | (765 ILCS 605/18) (from Ch. 30, par. 318)
| 7 | | Sec. 18. Contents of bylaws. The bylaws shall provide for | 8 | | at least
the following:
| 9 | | (a)(1) The election from among the unit owners of a | 10 | | board of managers, the number of persons constituting such | 11 | | board, and that the terms of at
least one-third of the | 12 | | members of the board shall expire annually and that
all | 13 | | members of the board shall be elected at large; if there | 14 | | are multiple owners of a single unit, only one of the | 15 | | multiple
owners shall be eligible to serve as a member of | 16 | | the board at any one time . A declaration first submitting |
| | | 10200SB0636sam001 | - 2 - | LRB102 11509 LNS 24989 a |
|
| 1 | | property to the provisions of this Act, in accordance with | 2 | | Section 3 after the effective date of this amendatory Act | 3 | | of the 102nd General Assembly, or an amendment to the | 4 | | condominium instruments adopted in accordance with Section | 5 | | 27 after the effective date of this amendatory Act of the | 6 | | 102nd General Assembly, may provide that a majority of the | 7 | | board of managers, or such lesser number as may be | 8 | | specified in the declaration, must be comprised of unit | 9 | | owners occupying their unit as their primary residence; | 10 | | provided that the condominium instruments may not require | 11 | | that more than a majority of the board shall be comprised | 12 | | of unit owners who occupy their unit as their principal | 13 | | residence ;
| 14 | | (2) the powers and duties of the board;
| 15 | | (3) the compensation, if any, of the members of the | 16 | | board;
| 17 | | (4) the method of removal from office of members of | 18 | | the board;
| 19 | | (5) that the board may engage the services of a | 20 | | manager or managing agent;
| 21 | | (6) that each unit owner shall receive, at least 25 | 22 | | days prior to the
adoption thereof by the board of | 23 | | managers, a copy of the proposed annual
budget together | 24 | | with an indication of which portions are intended for
| 25 | | reserves, capital expenditures or repairs or payment of | 26 | | real estate taxes;
|
| | | 10200SB0636sam001 | - 3 - | LRB102 11509 LNS 24989 a |
|
| 1 | | (7) that the board of managers shall annually supply | 2 | | to
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 | 8 | | showing the net excess or
deficit of income over | 9 | | expenditures plus 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 | 15 | | separate (special)
assessment, (ii) that except as | 16 | | provided in subsection (iv) below, if an
adopted
budget or | 17 | | any separate assessment adopted by the board would result | 18 | | in the
sum of all regular and separate assessments payable | 19 | | in the current fiscal year
exceeding 115% of the sum of all | 20 | | regular and separate
assessments payable during the
| 21 | | preceding fiscal year, the
board of managers, upon written | 22 | | petition by unit owners with 20 percent of
the votes of the | 23 | | association delivered to the board within 21
days of the | 24 | | board action,
shall call a meeting of the unit owners | 25 | | within 30 days of the date of
delivery of the petition to | 26 | | consider the budget or separate
assessment; unless a
|
| | | 10200SB0636sam001 | - 4 - | LRB102 11509 LNS 24989 a |
|
| 1 | | majority of
the total votes of the unit owners are cast at | 2 | | the meeting to reject the
budget or separate assessment,
| 3 | | it is ratified, (iii) that any common expense not set | 4 | | forth in the budget or
any increase in assessments over | 5 | | the amount adopted in the budget shall be
separately | 6 | | assessed against all unit owners, (iv) that separate | 7 | | assessments for
expenditures relating to emergencies or | 8 | | mandated by law may be adopted by the
board of managers | 9 | | without being subject to unit owner approval or the
| 10 | | provisions of item (ii) above or item (v) below. As used
| 11 | | herein, "emergency" means an immediate danger to the | 12 | | structural integrity of
the
common elements or to the | 13 | | life, health, safety or property of the unit owners,
(v) | 14 | | that assessments
for additions and alterations to the | 15 | | common elements or to association-owned
property not | 16 | | included in the adopted annual budget, shall be separately
| 17 | | assessed and are subject to approval of two-thirds of the | 18 | | total votes of all
unit owners, (vi) that the board of | 19 | | managers may adopt separate assessments
payable over more | 20 | | than one fiscal year. With respect to multi-year | 21 | | assessments
not governed by items (iv) and (v), the entire | 22 | | amount of the multi-year
assessment shall be deemed | 23 | | considered and authorized in the first fiscal year
in | 24 | | which the assessment is approved;
| 25 | | (9)(A) that every meeting of the board of managers | 26 | | shall be open to any unit
owner, except that the board may |
| | | 10200SB0636sam001 | - 5 - | LRB102 11509 LNS 24989 a |
|
| 1 | | close any portion of a noticed meeting or meet separately | 2 | | from a noticed meeting to: (i) discuss litigation
when an | 3 | | action against or on behalf of the particular association | 4 | | has been
filed and is pending in a court or administrative | 5 | | tribunal,
or when the board of managers finds that such an | 6 | | action is probable
or imminent, (ii) discuss the | 7 | | appointment, employment, engagement,
or dismissal of an | 8 | | employee, independent contractor, agent, or other provider | 9 | | of goods and services, (iii) interview a potential | 10 | | employee, independent contractor, agent, or other provider | 11 | | of goods and services, (iv) discuss violations of rules | 12 | | and
regulations of the association, (v) discuss a unit | 13 | | owner's unpaid share of common
expenses, or (vi) consult | 14 | | with the association's legal counsel; that any vote on | 15 | | these matters shall take place at a meeting of the board of | 16 | | managers or
portion thereof open to any unit owner; | 17 | | (B) that board members may participate in and act at | 18 | | any meeting of the board of managers in person, by | 19 | | telephonic means, or by use of any acceptable | 20 | | technological means whereby all persons participating in | 21 | | the meeting can communicate with each other; that | 22 | | participation constitutes attendance and presence in | 23 | | person at the meeting; | 24 | | (C) that any unit owner may record the
proceedings at | 25 | | meetings of the board of managers or portions thereof | 26 | | required to be open by this
Act by tape, film or other |
| | | 10200SB0636sam001 | - 6 - | LRB102 11509 LNS 24989 a |
|
| 1 | | means, and that the board may prescribe reasonable
rules | 2 | | and regulations to govern the right to make such | 3 | | recordings; | 4 | | (D) that
notice of every meeting of the board of | 5 | | managers shall be given to every board member at least 48 | 6 | | hours
prior thereto, unless the board member waives notice | 7 | | of the meeting pursuant to subsection (a) of Section 18.8; | 8 | | and | 9 | | (E) that notice of every meeting
of the board of | 10 | | managers shall be posted in entranceways,
elevators, or | 11 | | other conspicuous places in the condominium at least 48 | 12 | | hours
prior to the meeting of the board of managers except | 13 | | where there is no
common entranceway for 7 or more units, | 14 | | the board of managers may designate
one or more locations | 15 | | in the proximity of these units where the notices of
| 16 | | meetings shall be posted; that notice of every meeting of | 17 | | the board of managers shall also be given at least 48 hours | 18 | | prior to the meeting, or such longer notice as this Act may | 19 | | separately require, to: (i) each unit owner who has | 20 | | provided the association with written authorization to | 21 | | conduct business by acceptable technological means, and | 22 | | (ii) to the extent that the condominium instruments of an | 23 | | association require, to each other unit owner, as required | 24 | | by subsection (f) of Section 18.8, by mail or delivery, | 25 | | and that no other notice of a meeting of the board of | 26 | | managers need be given to any unit owner;
|
| | | 10200SB0636sam001 | - 7 - | LRB102 11509 LNS 24989 a |
|
| 1 | | (10) that the board shall meet at least 4 times | 2 | | annually;
| 3 | | (11) that no member of the board or officer shall be | 4 | | elected for a term
of more than 2 years, but that officers | 5 | | and board members may succeed
themselves;
| 6 | | (12) the designation of an officer to mail and receive | 7 | | all notices and
execute amendments to condominium | 8 | | instruments as provided for in this Act
and in the | 9 | | condominium instruments;
| 10 | | (13) the method of filling vacancies on the board
| 11 | | which shall include authority for the remaining members of | 12 | | the board to
fill the vacancy by two-thirds vote until the | 13 | | next annual meeting of unit
owners or for a period | 14 | | terminating no later than 30 days following the
filing of | 15 | | a petition signed by unit owners holding 20% of the votes | 16 | | of the
association requesting a meeting of the unit owners | 17 | | to fill the vacancy for
the balance of the term, and that a | 18 | | meeting of the unit owners shall be
called for purposes of | 19 | | filling a vacancy on the board no later than 30 days
| 20 | | following the filing of a petition signed by unit owners | 21 | | holding 20% of the
votes of the association requesting | 22 | | such a meeting, and the method of filling
vacancies among | 23 | | the officers that shall include the authority for the | 24 | | members
of the board to fill the vacancy for the unexpired | 25 | | portion of the term;
| 26 | | (14) what percentage of the board of managers, if |
| | | 10200SB0636sam001 | - 8 - | LRB102 11509 LNS 24989 a |
|
| 1 | | other than a majority,
shall constitute a quorum;
| 2 | | (15) provisions concerning notice of board meetings to | 3 | | members of the
board;
| 4 | | (16) the board of managers may not enter into a | 5 | | contract with a
current board member
or with a corporation | 6 | | or partnership in which a board
member or a member of the | 7 | | board member's immediate family has 25% or
more interest, | 8 | | unless notice of intent to enter the
contract is given to | 9 | | unit owners within 20 days after a decision is made
to | 10 | | enter into the contract and the unit owners are
afforded | 11 | | an opportunity by filing a petition, signed by 20% of the | 12 | | unit
owners, for an election to approve or disapprove the | 13 | | contract;
such petition shall be filed within 30 days | 14 | | after such notice and such
election shall be held within | 15 | | 30 days after filing the petition; for purposes
of this | 16 | | subsection, a board member's immediate family means the | 17 | | board member's
spouse, parents, and children;
| 18 | | (17) that the board of managers may disseminate
to | 19 | | unit owners biographical and background information about | 20 | | candidates for
election to the board if (i) reasonable | 21 | | efforts to identify all candidates are
made and all | 22 | | candidates are given an opportunity to include | 23 | | biographical and
background information in the information | 24 | | to be disseminated; and (ii) the
board does not express a | 25 | | preference in favor of any candidate;
| 26 | | (18) any proxy distributed for board elections
by the |
| | | 10200SB0636sam001 | - 9 - | LRB102 11509 LNS 24989 a |
|
| 1 | | board of managers gives unit owners the
opportunity to | 2 | | designate any person as the proxy holder, and gives the | 3 | | unit
owner the opportunity to express a preference for any | 4 | | of the known
candidates for the board or to write in a | 5 | | name;
| 6 | | (19) that special meetings of the board of managers | 7 | | can be called by
the president or 25% of the members of the | 8 | | board;
| 9 | | (20) that the board of managers may establish
and | 10 | | maintain a system of master metering of public utility | 11 | | services and
collect payments in connection therewith, | 12 | | subject to the requirements of the
Tenant Utility Payment | 13 | | Disclosure Act; and
| 14 | | (21) that the board may ratify and confirm actions of | 15 | | the
members of the board taken in response to an | 16 | | emergency, as that
term is defined in subdivision | 17 | | (a)(8)(iv) of this Section; that
the board shall give | 18 | | notice to the unit owners of: (i) the
occurrence of the | 19 | | emergency event within 7 business days after
the emergency | 20 | | event, and (ii) the general description of the
actions | 21 | | taken to address the event within 7 days after the
| 22 | | emergency event. | 23 | | The intent of the provisions of Public Act 99-472 | 24 | | adding this paragraph (21) is to empower and support | 25 | | boards to act in
emergencies. | 26 | | (b)(1) What percentage of the unit owners, if other |
| | | 10200SB0636sam001 | - 10 - | LRB102 11509 LNS 24989 a |
|
| 1 | | than 20%, shall
constitute a quorum provided that, for | 2 | | condominiums with 20 or more units,
the percentage of unit | 3 | | owners constituting a quorum shall be 20% unless the
unit | 4 | | owners holding a majority of the percentage interest in | 5 | | the
association provide for a higher percentage, provided | 6 | | that in voting on amendments to the association's bylaws, | 7 | | a unit owner who is in arrears on the unit owner's regular | 8 | | or separate assessments for 60 days or more, shall not be | 9 | | counted for purposes of determining if a quorum is | 10 | | present, but that unit owner retains the right to vote on | 11 | | amendments to the association's bylaws;
| 12 | | (2) that the association shall have one class of | 13 | | membership;
| 14 | | (3) that the members shall hold an annual meeting, one | 15 | | of the purposes
of which shall be to elect members of the | 16 | | board of managers;
| 17 | | (4) the method of calling meetings of the unit owners;
| 18 | | (5) that special meetings of the members can be called | 19 | | by the president,
board of managers, or by 20% of unit | 20 | | owners;
| 21 | | (6) that written notice of any membership meeting | 22 | | shall be mailed
or delivered giving members no less than | 23 | | 10 and no more than 30 days
notice of the time, place and | 24 | | purpose of such meeting except that notice may be sent, to | 25 | | the extent the condominium instruments or rules adopted | 26 | | thereunder expressly so provide, by electronic |
| | | 10200SB0636sam001 | - 11 - | LRB102 11509 LNS 24989 a |
|
| 1 | | transmission consented to by the unit owner to whom the | 2 | | notice is given, provided the director and officer or his | 3 | | agent certifies in writing to the delivery by electronic | 4 | | transmission;
| 5 | | (7) that voting shall be on a percentage basis, and | 6 | | that the percentage
vote to which each unit is entitled is | 7 | | the percentage interest of the
undivided ownership of the | 8 | | common elements appurtenant thereto, provided
that the | 9 | | bylaws may provide for approval by unit owners in | 10 | | connection with
matters where the requisite approval on a | 11 | | percentage basis is not specified
in this Act, on the | 12 | | basis of one vote per unit;
| 13 | | (8) that, where there is more than one owner of a unit, | 14 | | if only one
of the multiple owners is present at a meeting | 15 | | of the association, he is
entitled to cast all the votes | 16 | | allocated to that unit, if more than one of
the multiple | 17 | | owners are present, the votes allocated to that unit may | 18 | | be
cast only in accordance with the agreement of a | 19 | | majority in interest of the
multiple owners, unless the | 20 | | declaration expressly provides otherwise, that
there is | 21 | | majority agreement if any one of the multiple owners cast | 22 | | the
votes allocated to that unit without protest being | 23 | | made promptly to the
person presiding over the meeting by | 24 | | any of the other owners of the unit;
| 25 | | (9)(A) except as provided in subparagraph (B) of this | 26 | | paragraph (9) in
connection with board elections, that
a |
| | | 10200SB0636sam001 | - 12 - | LRB102 11509 LNS 24989 a |
|
| 1 | | unit owner may vote by proxy executed in writing by the | 2 | | unit
owner or by his duly authorized attorney in fact; | 3 | | that the proxy must bear the date of
execution
and, unless | 4 | | the condominium instruments or the written proxy itself | 5 | | provide
otherwise, is
invalid after 11 months from the | 6 | | date of its execution; to the extent the condominium | 7 | | instruments or rules adopted thereunder expressly so | 8 | | provide, a vote or proxy may be submitted by electronic | 9 | | transmission, provided that any such electronic | 10 | | transmission shall either set forth or be submitted with | 11 | | information from which it can be determined that the | 12 | | electronic transmission was authorized by the unit owner | 13 | | or the unit owner's proxy;
| 14 | | (B) that if a rule adopted at least 120 days before a | 15 | | board election
or the
declaration or bylaws provide for | 16 | | balloting as set forth in this subsection,
unit
owners may | 17 | | not vote by proxy in board elections, but may vote only (i) | 18 | | by
submitting an association-issued ballot in person at | 19 | | the election meeting or
(ii) by
submitting an | 20 | | association-issued ballot to the association or its | 21 | | designated
agent
by mail or other means of delivery | 22 | | specified in the declaration, bylaws, or
rule; that
the | 23 | | ballots shall be mailed or otherwise distributed to unit | 24 | | owners not less
than 10
and not more than 30 days before | 25 | | the election meeting, and the board shall give
unit owners | 26 | | not less than 21 days' prior written notice of the |
| | | 10200SB0636sam001 | - 13 - | LRB102 11509 LNS 24989 a |
|
| 1 | | deadline for
inclusion of a candidate's name on the | 2 | | ballots; that the deadline shall be no
more
than 7 days | 3 | | before the ballots are mailed or otherwise distributed to | 4 | | unit
owners; that
every such ballot must include the names | 5 | | of all candidates who have given the
board or its | 6 | | authorized agent timely written notice of their candidacy | 7 | | and must
give the person casting the ballot the | 8 | | opportunity to cast votes for candidates
whose names do | 9 | | not appear on the ballot; that a ballot received by the
| 10 | | association
or
its designated agent after the close of | 11 | | voting shall not be counted; that a
unit
owner
who submits | 12 | | a ballot by mail or other means of delivery specified in | 13 | | the
declaration, bylaws, or rule may request and cast a | 14 | | ballot in person at the
election
meeting, and thereby void | 15 | | any ballot previously submitted by that unit owner; | 16 | | (B-5) that if a rule adopted at least 120 days before a | 17 | | board election or the declaration or bylaws provide for | 18 | | balloting as set forth in this subparagraph, unit owners | 19 | | may not vote by proxy in board elections, but may vote only | 20 | | (i) by submitting an association-issued ballot in person | 21 | | at the election meeting; or (ii) by any acceptable | 22 | | technological means as defined in Section 2 of this Act; | 23 | | instructions regarding the use of electronic means for | 24 | | voting shall be distributed to all unit owners not less | 25 | | than 10 and not more than 30 days before the election | 26 | | meeting, and the board shall give unit owners not less |
| | | 10200SB0636sam001 | - 14 - | LRB102 11509 LNS 24989 a |
|
| 1 | | than 21 days' prior written notice of the deadline for | 2 | | inclusion of a candidate's name on the ballots; the | 3 | | deadline shall be no more than 7 days before the | 4 | | instructions for voting using electronic or acceptable | 5 | | technological means is distributed to unit owners; every | 6 | | instruction notice must include the names of all | 7 | | candidates who have given the board or its authorized | 8 | | agent timely written notice of their candidacy and must | 9 | | give the person voting through electronic or acceptable | 10 | | technological means the opportunity to cast votes for | 11 | | candidates whose names do not appear on the ballot; a unit | 12 | | owner who submits a vote using electronic or acceptable | 13 | | technological means may request and cast a ballot in | 14 | | person at the election meeting, thereby voiding any vote | 15 | | previously submitted by that unit owner;
| 16 | | (C) that if a written petition by unit owners with at | 17 | | least 20% of the
votes of
the association is delivered to | 18 | | the board within 30 days after the board's
approval
of a | 19 | | rule adopted pursuant to subparagraph (B) or subparagraph | 20 | | (B-5) of this paragraph (9), the board
shall call a | 21 | | meeting of the unit owners within 30 days after the date of
| 22 | | delivery of
the petition; that unless a majority of the | 23 | | total votes of the unit owners are
cast
at the
meeting to | 24 | | reject the rule, the rule is ratified;
| 25 | | (D) that votes cast by ballot under subparagraph (B) | 26 | | or electronic or acceptable technological means under |
| | | 10200SB0636sam001 | - 15 - | LRB102 11509 LNS 24989 a |
|
| 1 | | subparagraph (B-5) of this paragraph (9) are valid for the | 2 | | purpose of establishing a quorum; | 3 | | (10) that the association may, upon adoption of the | 4 | | appropriate rules by
the board of managers, conduct | 5 | | elections by secret ballot whereby the voting
ballot is | 6 | | marked only with the percentage interest for the unit and | 7 | | the vote
itself, provided that the board further adopt | 8 | | rules to verify the status of the
unit owner issuing a | 9 | | proxy or casting a ballot; and further, that a candidate
| 10 | | for election to the board of managers or such
candidate's | 11 | | representative shall have the right to be present at the
| 12 | | counting of ballots at such election;
| 13 | | (11) that in the event of a resale of a condominium | 14 | | unit the purchaser
of a unit from a seller other than the | 15 | | developer pursuant to an installment sales
contract for | 16 | | purchase shall during such times as he or she resides in | 17 | | the
unit be counted toward a quorum for purposes of | 18 | | election of members of the
board of managers at any | 19 | | meeting of the unit owners called for purposes of
electing | 20 | | members of the board, shall have the right to vote for the
| 21 | | election of members of the board of managers and to be | 22 | | elected to and serve
on the board of managers unless the | 23 | | seller expressly retains in writing any
or all of such | 24 | | rights. In no event may the seller and purchaser both be
| 25 | | counted toward a quorum, be permitted to vote for a | 26 | | particular office or be
elected and serve on the board. |
| | | 10200SB0636sam001 | - 16 - | LRB102 11509 LNS 24989 a |
|
| 1 | | Satisfactory evidence of the installment sales contract
| 2 | | shall be made available to the association or its agents. | 3 | | For
purposes of this subsection, "installment sales | 4 | | contract" shall have the same
meaning as set forth in | 5 | | Section 5 of the Installment Sales Contract Act and | 6 | | Section 1(e) of the Dwelling Unit Installment Contract | 7 | | Act;
| 8 | | (12) the method by which matters subject to the | 9 | | approval of unit owners
set forth in this Act, or in the | 10 | | condominium instruments, will be
submitted to the unit | 11 | | owners at special membership meetings called for such
| 12 | | purposes; and
| 13 | | (13) that matters subject to the affirmative vote of | 14 | | not less than 2/3
of the votes of unit owners at a meeting | 15 | | duly called for that purpose,
shall include, but not be | 16 | | limited to:
| 17 | | (i) merger or consolidation of the association;
| 18 | | (ii) sale, lease, exchange, or other disposition | 19 | | (excluding the mortgage
or pledge) of all, or | 20 | | substantially all of the property and assets of the
| 21 | | association; and
| 22 | | (iii) the purchase or sale of land or of units on | 23 | | behalf of all unit owners.
| 24 | | (c) Election of a president from among the board of | 25 | | managers, who shall
preside over the meetings of the board | 26 | | of managers and of the unit owners.
|
| | | 10200SB0636sam001 | - 17 - | LRB102 11509 LNS 24989 a |
|
| 1 | | (d) Election of a secretary from among the board of | 2 | | managers, who shall
keep the minutes of all meetings
of | 3 | | the board of managers and of the unit owners and who shall, | 4 | | in general,
perform all the duties incident to the office | 5 | | of secretary.
| 6 | | (e) Election of a treasurer from among the board of | 7 | | managers, who shall
keep the financial records and
books | 8 | | of account.
| 9 | | (f) Maintenance, repair and replacement of the common | 10 | | elements and
payments therefor, including the method of | 11 | | approving payment vouchers.
| 12 | | (g) An association with 30 or more units shall obtain | 13 | | and maintain
fidelity insurance covering persons who | 14 | | control or disburse funds of the
association for the | 15 | | maximum amount of coverage available to protect funds
in | 16 | | the custody or control of the association plus the | 17 | | association reserve
fund. All management companies which | 18 | | are responsible for the funds held or
administered by the | 19 | | association shall maintain and furnish to the
association | 20 | | a fidelity bond for the maximum amount of coverage | 21 | | available to
protect funds in the custody of the | 22 | | management company at any time. The
association shall bear | 23 | | the cost of the fidelity insurance and fidelity
bond, | 24 | | unless otherwise provided by contract between the | 25 | | association and a
management company. The association | 26 | | shall be the direct obligee of any
such fidelity bond. A |
| | | 10200SB0636sam001 | - 18 - | LRB102 11509 LNS 24989 a |
|
| 1 | | management company holding reserve funds of an
association | 2 | | shall at all times maintain a separate account for each
| 3 | | association, provided, however, that for investment | 4 | | purposes, the Board of
Managers of an association may | 5 | | authorize a management company to maintain
the | 6 | | association's reserve funds in a single interest bearing | 7 | | account with
similar funds of other associations. The | 8 | | management company shall at all
times maintain records | 9 | | identifying all moneys of each association in such
| 10 | | investment account. The management company may hold all | 11 | | operating funds of
associations which it manages in a | 12 | | single operating account but shall at
all times maintain | 13 | | records identifying all moneys of each association in
such | 14 | | operating account. Such operating and reserve funds held | 15 | | by the
management company for the association shall not be | 16 | | subject to attachment
by any creditor of the management | 17 | | company.
| 18 | | For the purpose of this subsection, a management | 19 | | company shall be
defined as a person, partnership, | 20 | | corporation, or other legal entity
entitled to transact | 21 | | business on behalf of others, acting on behalf of or
as an | 22 | | agent for a unit owner, unit owners or association of unit | 23 | | owners for
the purpose of carrying out the duties, | 24 | | responsibilities, and other
obligations necessary for the | 25 | | day to day operation and management of any
property | 26 | | subject to this Act. For purposes of this subsection, the |
| | | 10200SB0636sam001 | - 19 - | LRB102 11509 LNS 24989 a |
|
| 1 | | term
"fiduciary insurance coverage" shall be defined as | 2 | | both a fidelity bond and
directors and officers liability | 3 | | coverage, the fidelity bond in the full
amount of | 4 | | association funds and association reserves that will be in | 5 | | the
custody of the association, and the directors and | 6 | | officers liability
coverage at a level as shall be | 7 | | determined to be reasonable by the board of
managers, if | 8 | | not otherwise established by the declaration or by laws.
| 9 | | Until one year after September 21, 1985 (the effective | 10 | | date of Public Act 84-722),
if a condominium association | 11 | | has reserves plus assessments in excess of
$250,000 and | 12 | | cannot reasonably obtain 100% fidelity bond coverage for | 13 | | such
amount, then it must obtain a fidelity bond coverage | 14 | | of $250,000.
| 15 | | (h) Method of estimating the amount of the annual | 16 | | budget, and the manner
of assessing and collecting from | 17 | | the unit owners their respective shares of
such estimated | 18 | | expenses, and of any other expenses lawfully agreed upon.
| 19 | | (i) That upon 10 days notice to the manager or board of | 20 | | managers and
payment of a reasonable fee, any unit owner | 21 | | shall be furnished a statement
of his account setting | 22 | | forth the amount of any unpaid assessments or other
| 23 | | charges due and owing from such owner.
| 24 | | (j) Designation and removal of personnel necessary for | 25 | | the maintenance,
repair and replacement of the common | 26 | | elements.
|
| | | 10200SB0636sam001 | - 20 - | LRB102 11509 LNS 24989 a |
|
| 1 | | (k) Such restrictions on and requirements respecting | 2 | | the use and
maintenance of the units and the use of the | 3 | | common elements, not set forth
in the declaration, as are | 4 | | designed to prevent unreasonable interference
with the use | 5 | | of their respective units and of the common elements by | 6 | | the
several unit owners.
| 7 | | (l) Method of adopting and of amending administrative | 8 | | rules and
regulations governing the operation and use of | 9 | | the common elements.
| 10 | | (m) The percentage of votes required to modify or | 11 | | amend the bylaws, but
each one of the particulars set | 12 | | forth in this section shall always be
embodied in the | 13 | | bylaws.
| 14 | | (n)(i) The provisions of this Act, the declaration, | 15 | | bylaws, other
condominium instruments, and rules and | 16 | | regulations that relate to the use
of the individual unit | 17 | | or the common elements shall be applicable to
any person | 18 | | leasing a unit and shall be deemed to be incorporated in | 19 | | any
lease executed or renewed on or after August 30, 1984 | 20 | | (the effective date of Public Act 83-1271). | 21 | | (ii) With regard to any lease entered into subsequent | 22 | | to July 1, 1990 (the
effective date of Public Act 86-991), | 23 | | the unit owner leasing the
unit shall deliver a copy of the | 24 | | signed lease to the board or if the
lease is oral, a | 25 | | memorandum of the lease, not later than the date of
| 26 | | occupancy or 10 days after the lease is signed, whichever |
| | | 10200SB0636sam001 | - 21 - | LRB102 11509 LNS 24989 a |
|
| 1 | | occurs first. In
addition to any other remedies, by filing | 2 | | an action jointly against the
tenant and the unit owner, | 3 | | an association may seek to enjoin a tenant from
occupying | 4 | | a unit or seek to evict a tenant under the provisions of | 5 | | Article
IX of the Code of Civil Procedure for failure of | 6 | | the lessor-owner to
comply with the leasing requirements | 7 | | prescribed by
this Section or by the declaration, bylaws, | 8 | | and
rules and regulations. The board of managers may | 9 | | proceed directly against a
tenant, at law or in equity, or | 10 | | under the provisions of Article IX of the
Code of Civil | 11 | | Procedure, for any other breach by tenant of any
| 12 | | covenants, rules, regulations or bylaws.
| 13 | | (o) The association shall have no authority to forbear | 14 | | the payment
of assessments by any unit owner.
| 15 | | (p) That when 30% or fewer of the units, by number,
| 16 | | possess over 50% in the aggregate of the votes in the | 17 | | association,
any percentage vote of members specified | 18 | | herein or in the condominium
instruments shall require the | 19 | | specified percentage by number of units
rather than by | 20 | | percentage of interest in the common elements allocated
to | 21 | | units that would otherwise be applicable and garage units | 22 | | or storage units, or both, shall have, in total, no more | 23 | | votes than their aggregate percentage of ownership in the | 24 | | common elements; this shall mean that if garage units or | 25 | | storage units, or both, are to be given a vote, or portion | 26 | | of a vote, that the association must add the total number |
| | | 10200SB0636sam001 | - 22 - | LRB102 11509 LNS 24989 a |
|
| 1 | | of votes cast of garage units, storage units, or both, and | 2 | | divide the total by the number of garage units, storage | 3 | | units, or both, and multiply by the aggregate percentage | 4 | | of ownership of garage units and storage units to | 5 | | determine the vote, or portion of a vote, that garage | 6 | | units or storage units, or both, have. For purposes of | 7 | | this subsection (p), when making a determination of | 8 | | whether 30% or fewer of the units, by number, possess over | 9 | | 50% in the aggregate of the votes in the association, a | 10 | | unit shall not include a garage unit or a storage unit.
| 11 | | (q) That a unit owner may not assign, delegate, | 12 | | transfer, surrender, or
avoid the duties, | 13 | | responsibilities, and liabilities of a unit owner under | 14 | | this
Act, the condominium instruments, or the rules and | 15 | | regulations of the
Association; and that such an attempted | 16 | | assignment, delegation, transfer,
surrender, or avoidance | 17 | | shall be deemed void.
| 18 | | The provisions of this Section are applicable to all | 19 | | condominium
instruments recorded under this Act. Any portion | 20 | | of a condominium
instrument which contains provisions contrary | 21 | | to these provisions shall be
void as against public policy and | 22 | | ineffective. Any such instrument which
fails to contain the | 23 | | provisions required by this Section shall be deemed to
| 24 | | incorporate such provisions by operation of law.
| 25 | | (Source: P.A. 99-472, eff. 6-1-16; 99-567, eff. 1-1-17; | 26 | | 99-642, eff. 7-28-16; 100-292, eff. 1-1-18; 100-416, eff. |
| | | 10200SB0636sam001 | - 23 - | LRB102 11509 LNS 24989 a |
|
| 1 | | 1-1-18; 100-863, eff. 8-14-18 .)".
|
|