Full Text of HB4090 103rd General Assembly
HB4090ham003 103RD GENERAL ASSEMBLY | Rep. Suzanne M. Ness Filed: 4/15/2024 | | 10300HB4090ham003 | | LRB103 32446 JRC 72317 a |
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| 1 | | AMENDMENT TO HOUSE BILL 4090
| 2 | | AMENDMENT NO. ______. Amend House Bill 4090, AS AMENDED, | 3 | | by replacing everything after the enacting clause with the | 4 | | following: | 5 | | "Section 5. The Common Interest Community Association Act | 6 | | is amended by changing Section 1-45 as follows: | 7 | | (765 ILCS 160/1-45) | 8 | | Sec. 1-45. Finances. | 9 | | (a) Each member shall receive through a prescribed | 10 | | delivery method, at least 30 days but not more than 60 days | 11 | | prior to the adoption thereof by the board, a copy of the | 12 | | proposed annual budget together with an indication of which | 13 | | portions are intended for reserves, capital expenditures or | 14 | | repairs or payment of real estate taxes. | 15 | | (b) The board shall provide all members with a reasonably | 16 | | detailed summary of the receipts, common expenses, and |
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| 1 | | reserves for the preceding budget year. The board shall (i) | 2 | | make available for review to all members an itemized | 3 | | accounting of the common expenses for the preceding year | 4 | | actually incurred or paid, together with an indication of | 5 | | which portions were for reserves, capital expenditures or | 6 | | repairs or payment of real estate taxes and with a tabulation | 7 | | of the amounts collected pursuant to the budget or assessment, | 8 | | and showing the net excess or deficit of income over | 9 | | expenditures plus reserves or (ii) provide a consolidated | 10 | | annual independent audit report of the financial status of all | 11 | | fund accounts within the association. | 12 | | (c) If an adopted budget or any separate assessment | 13 | | adopted by the board would result in the sum of all regular and | 14 | | separate assessments payable in the current fiscal year | 15 | | exceeding 115% of the sum of all regular and separate | 16 | | assessments payable during the preceding fiscal year, the | 17 | | common interest community association, upon written petition | 18 | | by members with 20% of the votes of the association delivered | 19 | | to the board within 14 days of the board action, shall call a | 20 | | meeting of the members within 30 days of the date of delivery | 21 | | of the petition to consider the budget or separate assessment; | 22 | | unless a majority of the total votes of the members are cast at | 23 | | the meeting to reject the budget or separate assessment, it | 24 | | shall be deemed ratified. | 25 | | (d) If total common expenses exceed the total amount of | 26 | | the approved and adopted budget, the common interest community |
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| 1 | | association shall disclose this variance to all its members | 2 | | and specifically identify the subsequent assessments needed to | 3 | | offset this variance in future budgets. | 4 | | (e) Separate assessments for expenditures relating to | 5 | | emergencies or mandated by law may be adopted by the board | 6 | | without being subject to member approval or the provisions of | 7 | | subsection (c) or (f) of this Section. As used herein, | 8 | | "emergency" means a danger to or a compromise of the | 9 | | structural integrity of the common areas or any of the common | 10 | | facilities of the common interest community. "Emergency" also | 11 | | includes a danger to the life, health or safety of the | 12 | | membership. | 13 | | (f) Assessments for additions and alterations to the | 14 | | common areas or to association-owned property not included in | 15 | | the adopted annual budget, shall be separately assessed and | 16 | | are subject to approval of a simple majority of the total | 17 | | members at a meeting called for that purpose. | 18 | | (g) The board may adopt separate assessments payable over | 19 | | more than one fiscal year. With respect to multi-year | 20 | | assessments not governed by subsections (e) and (f) of this | 21 | | Section, the entire amount of the multi-year assessment shall | 22 | | be deemed considered and authorized in the first fiscal year | 23 | | in which the assessment is approved. | 24 | | (h) The board of a common interest community association | 25 | | shall have the authority to establish and maintain a system of | 26 | | master metering of public utility services to collect payments |
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| 1 | | in conjunction therewith, subject to the requirements of | 2 | | Section 1.5 of the Residential Property Utility Service the | 3 | | Tenant Utility Payment Disclosure Act. | 4 | | (i) An association subject to this Act that consists of | 5 | | 100 or more units shall use generally accepted accounting | 6 | | principles in fulfilling any accounting obligations under this | 7 | | Act. | 8 | | (Source: P.A. 100-292, eff. 1-1-18 .) | 9 | | Section 10. The Condominium Property Act is amended by | 10 | | changing Sections 18 and 18.5 as follows: | 11 | | (765 ILCS 605/18) (from Ch. 30, par. 318) | 12 | | Sec. 18. Contents of bylaws. The bylaws shall provide for | 13 | | at least the following: | 14 | | (a)(1) The election from among the unit owners of a | 15 | | board of managers, the number of persons constituting such | 16 | | board, and that the terms of at least one-third of the | 17 | | members of the board shall expire annually and that all | 18 | | members of the board shall be elected at large; if there | 19 | | are multiple owners of a single unit, only one of the | 20 | | multiple owners shall be eligible to serve as a member of | 21 | | the board at any one time. A declaration first submitting | 22 | | property to the provisions of this Act, in accordance with | 23 | | Section 3 after the effective date of this amendatory Act | 24 | | of the 102nd General Assembly, or an amendment to the |
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| 1 | | condominium instruments adopted in accordance with Section | 2 | | 27 after the effective date of this amendatory Act of the | 3 | | 102nd General Assembly, may provide that a majority of the | 4 | | board of managers, or such lesser number as may be | 5 | | specified in the declaration, must be comprised of unit | 6 | | owners occupying their unit as their primary residence; | 7 | | provided that the condominium instruments may not require | 8 | | that more than a majority of the board shall be comprised | 9 | | of unit owners who occupy their unit as their principal | 10 | | residence; | 11 | | (2) the powers and duties of the board; | 12 | | (3) the compensation, if any, of the members of the | 13 | | board; | 14 | | (4) the method of removal from office of members of | 15 | | the board; | 16 | | (5) that the board may engage the services of a | 17 | | manager or managing agent; | 18 | | (6) that each unit owner shall receive, at least 25 | 19 | | days prior to the adoption thereof by the board of | 20 | | managers, a copy of the proposed annual budget together | 21 | | with an indication of which portions are intended for | 22 | | reserves, capital expenditures or repairs or payment of | 23 | | real estate taxes; | 24 | | (7) that the board of managers shall annually supply | 25 | | to all unit owners an itemized accounting of the common | 26 | | expenses for the preceding year actually incurred or paid, |
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| 1 | | together with an indication of which portions were for | 2 | | reserves, capital expenditures or repairs or payment of | 3 | | real estate taxes and with a tabulation of the amounts | 4 | | collected pursuant to the budget or assessment, and | 5 | | showing the net excess or deficit of income over | 6 | | expenditures plus reserves; | 7 | | (8)(i) that each unit owner shall receive notice, in | 8 | | the same manner as is provided in this Act for membership | 9 | | meetings, of any meeting of the board of managers | 10 | | concerning the adoption of the proposed annual budget and | 11 | | regular assessments pursuant thereto or to adopt a | 12 | | separate (special) assessment, (ii) that except as | 13 | | provided in subsection (iv) below, if an adopted budget or | 14 | | any separate assessment adopted by the board would result | 15 | | in the sum of all regular and separate assessments payable | 16 | | in the current fiscal year exceeding 115% of the sum of all | 17 | | regular and separate assessments payable during the | 18 | | preceding fiscal year, the board of managers, upon written | 19 | | petition by unit owners with 20 percent of the votes of the | 20 | | association delivered to the board within 21 days of the | 21 | | board action, shall call a meeting of the unit owners | 22 | | within 30 days of the date of delivery of the petition to | 23 | | consider the budget or separate assessment; unless a | 24 | | majority of the total votes of the unit owners are cast at | 25 | | the meeting to reject the budget or separate assessment, | 26 | | it is ratified, (iii) that any common expense not set |
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| 1 | | forth in the budget or any increase in assessments over | 2 | | the amount adopted in the budget shall be separately | 3 | | assessed against all unit owners, (iv) that separate | 4 | | assessments for expenditures relating to emergencies or | 5 | | mandated by law may be adopted by the board of managers | 6 | | without being subject to unit owner approval or the | 7 | | provisions of item (ii) above or item (v) below. As used | 8 | | herein, "emergency" means an immediate danger to the | 9 | | structural integrity of the common elements or to the | 10 | | life, health, safety or property of the unit owners, (v) | 11 | | that assessments for additions and alterations to the | 12 | | common elements or to association-owned property not | 13 | | included in the adopted annual budget, shall be separately | 14 | | assessed and are subject to approval of two-thirds of the | 15 | | total votes of all unit owners, (vi) that the board of | 16 | | managers may adopt separate assessments payable over more | 17 | | than one fiscal year. With respect to multi-year | 18 | | assessments not governed by items (iv) and (v), the entire | 19 | | amount of the multi-year assessment shall be deemed | 20 | | considered and authorized in the first fiscal year in | 21 | | which the assessment is approved; | 22 | | (9)(A) that every meeting of the board of managers | 23 | | shall be open to any unit owner, except that the board may | 24 | | close any portion of a noticed meeting or meet separately | 25 | | from a noticed meeting to: (i) discuss litigation when an | 26 | | action against or on behalf of the particular association |
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| 1 | | has been filed and is pending in a court or administrative | 2 | | tribunal, or when the board of managers finds that such an | 3 | | action is probable or imminent, (ii) discuss the | 4 | | appointment, employment, engagement, or dismissal of an | 5 | | employee, independent contractor, agent, or other provider | 6 | | of goods and services, (iii) interview a potential | 7 | | employee, independent contractor, agent, or other provider | 8 | | of goods and services, (iv) discuss violations of rules | 9 | | and regulations of the association, (v) discuss a unit | 10 | | owner's unpaid share of common expenses, or (vi) consult | 11 | | with the association's legal counsel; that any vote on | 12 | | these matters shall take place at a meeting of the board of | 13 | | managers or portion thereof open to any unit owner; | 14 | | (B) that board members may participate in and act at | 15 | | any meeting of the board of managers in person, by | 16 | | telephonic means, or by use of any acceptable | 17 | | technological means whereby all persons participating in | 18 | | the meeting can communicate with each other; that | 19 | | participation constitutes attendance and presence in | 20 | | person at the meeting; | 21 | | (C) that any unit owner may record the proceedings at | 22 | | meetings of the board of managers or portions thereof | 23 | | required to be open by this Act by tape, film or other | 24 | | means, and that the board may prescribe reasonable rules | 25 | | and regulations to govern the right to make such | 26 | | recordings; |
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| 1 | | (D) that notice of every meeting of the board of | 2 | | managers shall be given to every board member at least 48 | 3 | | hours prior thereto, unless the board member waives notice | 4 | | of the meeting pursuant to subsection (a) of Section 18.8; | 5 | | and | 6 | | (E) that notice of every meeting of the board of | 7 | | managers shall be posted in entranceways, elevators, or | 8 | | other conspicuous places in the condominium at least 48 | 9 | | hours prior to the meeting of the board of managers except | 10 | | where there is no common entranceway for 7 or more units, | 11 | | the board of managers may designate one or more locations | 12 | | in the proximity of these units where the notices of | 13 | | meetings shall be posted; that notice of every meeting of | 14 | | the board of managers shall also be given at least 48 hours | 15 | | prior to the meeting, or such longer notice as this Act may | 16 | | separately require, to: (i) each unit owner who has | 17 | | provided the association with written authorization to | 18 | | conduct business by acceptable technological means, and | 19 | | (ii) to the extent that the condominium instruments of an | 20 | | association require, to each other unit owner, as required | 21 | | by subsection (f) of Section 18.8, by mail or delivery, | 22 | | and that no other notice of a meeting of the board of | 23 | | managers need be given to any unit owner; | 24 | | (10) that the board shall meet at least 4 times | 25 | | annually; | 26 | | (11) that no member of the board or officer shall be |
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| 1 | | elected for a term of more than 2 years, but that officers | 2 | | and board members may succeed themselves; | 3 | | (12) the designation of an officer to mail and receive | 4 | | all notices and execute amendments to condominium | 5 | | instruments as provided for in this Act and in the | 6 | | condominium instruments; | 7 | | (13) the method of filling vacancies on the board | 8 | | which shall include authority for the remaining members of | 9 | | the board to fill the vacancy by two-thirds vote until the | 10 | | next annual meeting of unit owners or for a period | 11 | | terminating no later than 30 days following the filing of | 12 | | a petition signed by unit owners holding 20% of the votes | 13 | | of the association requesting a meeting of the unit owners | 14 | | to fill the vacancy for the balance of the term, and that a | 15 | | meeting of the unit owners shall be called for purposes of | 16 | | filling a vacancy on the board no later than 30 days | 17 | | following the filing of a petition signed by unit owners | 18 | | holding 20% of the votes of the association requesting | 19 | | such a meeting, and the method of filling vacancies among | 20 | | the officers that shall include the authority for the | 21 | | members of the board to fill the vacancy for the unexpired | 22 | | portion of the term; | 23 | | (14) what percentage of the board of managers, if | 24 | | other than a majority, shall constitute a quorum; | 25 | | (15) provisions concerning notice of board meetings to | 26 | | members of the board; |
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| 1 | | (16) the board of managers may not enter into a | 2 | | contract with a current board member or with a corporation | 3 | | or partnership in which a board member or a member of the | 4 | | board member's immediate family has 25% or more interest, | 5 | | unless notice of intent to enter the contract is given to | 6 | | unit owners within 20 days after a decision is made to | 7 | | enter into the contract and the unit owners are afforded | 8 | | an opportunity by filing a petition, signed by 20% of the | 9 | | unit owners, for an election to approve or disapprove the | 10 | | contract; such petition shall be filed within 30 days | 11 | | after such notice and such election shall be held within | 12 | | 30 days after filing the petition; for purposes of this | 13 | | subsection, a board member's immediate family means the | 14 | | board member's spouse, parents, and children; | 15 | | (17) that the board of managers may disseminate to | 16 | | unit owners biographical and background information about | 17 | | candidates for election to the board if (i) reasonable | 18 | | efforts to identify all candidates are made and all | 19 | | candidates are given an opportunity to include | 20 | | biographical and background information in the information | 21 | | to be disseminated; and (ii) the board does not express a | 22 | | preference in favor of any candidate; | 23 | | (18) any proxy distributed for board elections by the | 24 | | board of managers gives unit owners the opportunity to | 25 | | designate any person as the proxy holder, and gives the | 26 | | unit owner the opportunity to express a preference for any |
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| 1 | | of the known candidates for the board or to write in a | 2 | | name; | 3 | | (19) that special meetings of the board of managers | 4 | | can be called by the president or 25% of the members of the | 5 | | board; | 6 | | (20) that the board of managers may establish and | 7 | | maintain a system of master metering of public utility | 8 | | services and collect payments in connection therewith, | 9 | | subject to the requirements of Section 1.5 of the | 10 | | Residential Property Utility Service the Tenant Utility | 11 | | Payment 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 | 14 | | emergency, as that term is defined in subdivision | 15 | | (a)(8)(iv) of this Section; that the board shall give | 16 | | notice to the unit owners of: (i) the occurrence of the | 17 | | emergency event within 7 business days after the emergency | 18 | | event, and (ii) the general description of the actions | 19 | | taken to address the event within 7 days after the | 20 | | emergency event. | 21 | | The intent of the provisions of Public Act 99-472 | 22 | | adding this paragraph (21) is to empower and support | 23 | | boards to act in emergencies. | 24 | | (b)(1) What percentage of the unit owners, if other | 25 | | than 20%, shall constitute a quorum provided that, for | 26 | | condominiums with 20 or more units, the percentage of unit |
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| 1 | | owners constituting a quorum shall be 20% unless the unit | 2 | | owners holding a majority of the percentage interest in | 3 | | the association provide for a higher percentage, provided | 4 | | that in voting on amendments to the association's bylaws, | 5 | | a unit owner who is in arrears on the unit owner's regular | 6 | | or separate assessments for 60 days or more, shall not be | 7 | | counted for purposes of determining if a quorum is | 8 | | present, but that unit owner retains the right to vote on | 9 | | amendments to the association's bylaws; | 10 | | (2) that the association shall have one class of | 11 | | membership; | 12 | | (3) that the members shall hold an annual meeting, one | 13 | | of the purposes of which shall be to elect members of the | 14 | | board of managers; | 15 | | (4) the method of calling meetings of the unit owners; | 16 | | (5) that special meetings of the members can be called | 17 | | by the president, board of managers, or by 20% of unit | 18 | | owners; | 19 | | (6) that written notice of any membership meeting | 20 | | shall be mailed or delivered giving members no less than | 21 | | 10 and no more than 30 days notice of the time, place and | 22 | | purpose of such meeting except that notice may be sent, to | 23 | | the extent the condominium instruments or rules adopted | 24 | | thereunder expressly so provide, by electronic | 25 | | transmission consented to by the unit owner to whom the | 26 | | notice is given, provided the director and officer or his |
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| 1 | | agent certifies in writing to the delivery by electronic | 2 | | transmission; | 3 | | (7) that voting shall be on a percentage basis, and | 4 | | that the percentage vote to which each unit is entitled is | 5 | | the percentage interest of the undivided ownership of the | 6 | | common elements appurtenant thereto, provided that the | 7 | | bylaws may provide for approval by unit owners in | 8 | | connection with matters where the requisite approval on a | 9 | | percentage basis is not specified in this Act, on the | 10 | | basis of one vote per unit; | 11 | | (8) that, where there is more than one owner of a unit, | 12 | | if only one of the multiple owners is present at a meeting | 13 | | of the association, he is entitled to cast all the votes | 14 | | allocated to that unit, if more than one of the multiple | 15 | | owners are present, the votes allocated to that unit may | 16 | | be cast only in accordance with the agreement of a | 17 | | majority in interest of the multiple owners, unless the | 18 | | declaration expressly provides otherwise, that there is | 19 | | majority agreement if any one of the multiple owners cast | 20 | | the votes allocated to that unit without protest being | 21 | | made promptly to the person presiding over the meeting by | 22 | | any of the other owners of the unit; | 23 | | (9)(A) except as provided in subparagraph (B) of this | 24 | | paragraph (9) in connection with board elections, that a | 25 | | unit owner may vote by proxy executed in writing by the | 26 | | unit owner or by his duly authorized attorney in fact; |
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| 1 | | that the proxy must bear the date of execution and, unless | 2 | | the condominium instruments or the written proxy itself | 3 | | provide otherwise, is invalid after 11 months from the | 4 | | date of its execution; to the extent the condominium | 5 | | instruments or rules adopted thereunder expressly so | 6 | | provide, a vote or proxy may be submitted by electronic | 7 | | transmission, provided that any such electronic | 8 | | transmission shall either set forth or be submitted with | 9 | | information from which it can be determined that the | 10 | | electronic transmission was authorized by the unit owner | 11 | | or the unit owner's proxy; | 12 | | (B) 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 subsection, unit owners may | 15 | | not vote by proxy in board elections, but may vote only (i) | 16 | | by submitting an association-issued ballot in person at | 17 | | the election meeting or (ii) by submitting an | 18 | | association-issued ballot to the association or its | 19 | | designated agent by mail or other means of delivery | 20 | | specified in the declaration, bylaws, or rule; that the | 21 | | ballots shall be mailed or otherwise distributed to unit | 22 | | owners not less than 10 and not more than 30 days before | 23 | | the election meeting, and the board shall give unit owners | 24 | | not less than 21 days' prior written notice of the | 25 | | deadline for inclusion of a candidate's name on the | 26 | | ballots; that the deadline shall be no more than 7 days |
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| 1 | | before the ballots are mailed or otherwise distributed to | 2 | | unit owners; that every such ballot must include the names | 3 | | of all candidates who have given the board or its | 4 | | authorized agent timely written notice of their candidacy | 5 | | and must give the person casting the ballot the | 6 | | opportunity to cast votes for candidates whose names do | 7 | | not appear on the ballot; that a ballot received by the | 8 | | association or its designated agent after the close of | 9 | | voting shall not be counted; that a unit owner who submits | 10 | | a ballot by mail or other means of delivery specified in | 11 | | the declaration, bylaws, or rule may request and cast a | 12 | | ballot in person at the election meeting, and thereby void | 13 | | any ballot previously submitted by that unit owner; | 14 | | (B-5) 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 subparagraph, unit owners | 17 | | may not vote by proxy in board elections, but may vote only | 18 | | (i) by submitting an association-issued ballot in person | 19 | | at the election meeting; or (ii) by any acceptable | 20 | | technological means as defined in Section 2 of this Act; | 21 | | instructions regarding the use of electronic means for | 22 | | voting shall be distributed to all unit owners not less | 23 | | than 10 and not more than 30 days before the election | 24 | | meeting, and the board shall give unit owners not less | 25 | | than 21 days' prior written notice of the deadline for | 26 | | inclusion of a candidate's name on the ballots; the |
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| 1 | | deadline shall be no more than 7 days before the | 2 | | instructions for voting using electronic or acceptable | 3 | | technological means is distributed to unit owners; every | 4 | | instruction notice must include the names of all | 5 | | candidates who have given the board or its authorized | 6 | | agent timely written notice of their candidacy and must | 7 | | give the person voting through electronic or acceptable | 8 | | technological means the opportunity to cast votes for | 9 | | candidates whose names do not appear on the ballot; a unit | 10 | | owner who submits a vote using electronic or acceptable | 11 | | technological means may request and cast a ballot in | 12 | | person at the election meeting, thereby voiding any vote | 13 | | previously submitted by that unit owner; | 14 | | (C) that if a written petition by unit owners with at | 15 | | least 20% of the votes of the association is delivered to | 16 | | the board within 30 days after the board's approval of a | 17 | | rule adopted pursuant to subparagraph (B) or subparagraph | 18 | | (B-5) of this paragraph (9), the board shall call a | 19 | | meeting of the unit owners within 30 days after the date of | 20 | | delivery of the petition; that unless a majority of the | 21 | | total votes of the unit owners are cast at the meeting to | 22 | | reject the rule, the rule is ratified; | 23 | | (D) that votes cast by ballot under subparagraph (B) | 24 | | or electronic or acceptable technological means under | 25 | | subparagraph (B-5) of this paragraph (9) are valid for the | 26 | | purpose of establishing a quorum; |
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| 1 | | (10) that the association may, upon adoption of the | 2 | | appropriate rules by the board of managers, conduct | 3 | | elections by secret ballot whereby the voting ballot is | 4 | | marked only with the percentage interest for the unit and | 5 | | the vote itself, provided that the board further adopt | 6 | | rules to verify the status of the unit owner issuing a | 7 | | proxy or casting a ballot; and further, that a candidate | 8 | | for election to the board of managers or such candidate's | 9 | | representative shall have the right to be present at the | 10 | | counting of ballots at such election; | 11 | | (11) that in the event of a resale of a condominium | 12 | | unit the purchaser of a unit from a seller other than the | 13 | | developer pursuant to an installment sales contract for | 14 | | purchase shall during such times as he or she resides in | 15 | | the unit be counted toward a quorum for purposes of | 16 | | election of members of the board of managers at any | 17 | | meeting of the unit owners called for purposes of electing | 18 | | members of the board, shall have the right to vote for the | 19 | | election of members of the board of managers and to be | 20 | | elected to and serve on the board of managers unless the | 21 | | seller expressly retains in writing any or all of such | 22 | | rights. In no event may the seller and purchaser both be | 23 | | counted toward a quorum, be permitted to vote for a | 24 | | particular office or be elected and serve on the board. | 25 | | Satisfactory evidence of the installment sales contract | 26 | | shall be made available to the association or its agents. |
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| 1 | | For purposes of this subsection, "installment sales | 2 | | contract" shall have the same meaning as set forth in | 3 | | Section 5 of the Installment Sales Contract Act and | 4 | | Section 1(e) of the Dwelling Unit Installment Contract | 5 | | Act; | 6 | | (12) the method by which matters subject to the | 7 | | approval of unit owners set forth in this Act, or in the | 8 | | condominium instruments, will be submitted to the unit | 9 | | owners at special membership meetings called for such | 10 | | purposes; and | 11 | | (13) that matters subject to the affirmative vote of | 12 | | not less than 2/3 of the votes of unit owners at a meeting | 13 | | duly called for that purpose, shall include, but not be | 14 | | limited to: | 15 | | (i) merger or consolidation of the association; | 16 | | (ii) sale, lease, exchange, or other disposition | 17 | | (excluding the mortgage or pledge) of all, or | 18 | | substantially all of the property and assets of the | 19 | | association; and | 20 | | (iii) the purchase or sale of land or of units on | 21 | | behalf of all unit owners. | 22 | | (c) Election of a president from among the board of | 23 | | managers, who shall preside over the meetings of the board | 24 | | of managers and of the unit owners. | 25 | | (d) Election of a secretary from among the board of | 26 | | managers, who shall keep the minutes of all meetings of |
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| 1 | | the board of managers and of the unit owners and who shall, | 2 | | in general, perform all the duties incident to the office | 3 | | of secretary. | 4 | | (e) Election of a treasurer from among the board of | 5 | | managers, who shall keep the financial records and books | 6 | | of account. | 7 | | (f) Maintenance, repair and replacement of the common | 8 | | elements and payments therefor, including the method of | 9 | | approving payment vouchers. | 10 | | (g) An association with 30 or more units shall obtain | 11 | | and maintain fidelity insurance covering persons who | 12 | | control or disburse funds of the association for the | 13 | | maximum amount of coverage available to protect funds in | 14 | | the custody or control of the association plus the | 15 | | association reserve fund. All management companies which | 16 | | are responsible for the funds held or administered by the | 17 | | association shall maintain and furnish to the association | 18 | | a fidelity bond for the maximum amount of coverage | 19 | | available to protect funds in the custody of the | 20 | | management company at any time. The association shall bear | 21 | | the cost of the fidelity insurance and fidelity bond, | 22 | | unless otherwise provided by contract between the | 23 | | association and a management company. The association | 24 | | shall be the direct obligee of any such fidelity bond. A | 25 | | management company holding reserve funds of an association | 26 | | shall at all times maintain a separate account for each |
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| 1 | | association, provided, however, that for investment | 2 | | purposes, the Board of Managers of an association may | 3 | | authorize a management company to maintain the | 4 | | association's reserve funds in a single interest bearing | 5 | | account with similar funds of other associations. The | 6 | | management company shall at all times maintain records | 7 | | identifying all moneys of each association in such | 8 | | investment account. The management company may hold all | 9 | | operating funds of associations which it manages in a | 10 | | single operating account but shall at all times maintain | 11 | | records identifying all moneys of each association in such | 12 | | operating account. Such operating and reserve funds held | 13 | | by the management company for the association shall not be | 14 | | subject to attachment by any creditor of the management | 15 | | company. | 16 | | For the purpose of this subsection, a management | 17 | | company shall be defined as a person, partnership, | 18 | | corporation, or other legal entity entitled to transact | 19 | | business on behalf of others, acting on behalf of or as an | 20 | | agent for a unit owner, unit owners or association of unit | 21 | | owners for the purpose of carrying out the duties, | 22 | | responsibilities, and other obligations necessary for the | 23 | | day to day operation and management of any property | 24 | | subject to this Act. For purposes of this subsection, the | 25 | | term "fiduciary insurance coverage" shall be defined as | 26 | | both a fidelity bond and directors and officers liability |
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| 1 | | coverage, the fidelity bond in the full amount of | 2 | | association funds and association reserves that will be in | 3 | | the custody of the association, and the directors and | 4 | | officers liability coverage at a level as shall be | 5 | | determined to be reasonable by the board of managers, if | 6 | | not otherwise established by the declaration or by laws. | 7 | | Until one year after September 21, 1985 (the effective | 8 | | date of Public Act 84-722), if a condominium association | 9 | | has reserves plus assessments in excess of $250,000 and | 10 | | cannot reasonably obtain 100% fidelity bond coverage for | 11 | | such amount, then it must obtain a fidelity bond coverage | 12 | | of $250,000. | 13 | | (h) Method of estimating the amount of the annual | 14 | | budget, and the manner of assessing and collecting from | 15 | | the unit owners their respective shares of such estimated | 16 | | expenses, and of any other expenses lawfully agreed upon. | 17 | | (i) That upon 10 days notice to the manager or board of | 18 | | managers and payment of a reasonable fee, any unit owner | 19 | | shall be furnished a statement of his account setting | 20 | | forth the amount of any unpaid assessments or other | 21 | | charges due and owing from such owner. | 22 | | (j) Designation and removal of personnel necessary for | 23 | | the maintenance, repair and replacement of the common | 24 | | elements. | 25 | | (k) Such restrictions on and requirements respecting | 26 | | the use and maintenance of the units and the use of the |
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| 1 | | common elements, not set forth in the declaration, as are | 2 | | designed to prevent unreasonable interference with the use | 3 | | of their respective units and of the common elements by | 4 | | the several unit owners. | 5 | | (l) Method of adopting and of amending administrative | 6 | | rules and regulations governing the operation and use of | 7 | | the common elements. | 8 | | (m) The percentage of votes required to modify or | 9 | | amend the bylaws, but each one of the particulars set | 10 | | forth in this section shall always be embodied in the | 11 | | bylaws. | 12 | | (n)(i) The provisions of this Act, the declaration, | 13 | | bylaws, other condominium instruments, and rules and | 14 | | regulations that relate to the use of the individual unit | 15 | | or the common elements shall be applicable to any person | 16 | | leasing a unit and shall be deemed to be incorporated in | 17 | | any lease executed or renewed on or after August 30, 1984 | 18 | | (the effective date of Public Act 83-1271). | 19 | | (ii) With regard to any lease entered into subsequent | 20 | | to July 1, 1990 (the effective date of Public Act 86-991), | 21 | | the unit owner leasing the unit shall deliver a copy of the | 22 | | signed lease to the board or if the lease is oral, a | 23 | | memorandum of the lease, not later than the date of | 24 | | occupancy or 10 days after the lease is signed, whichever | 25 | | occurs first. In addition to any other remedies, by filing | 26 | | an action jointly against the tenant and the unit owner, |
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| 1 | | an association may seek to enjoin a tenant from occupying | 2 | | a unit or seek to evict a tenant under the provisions of | 3 | | Article IX of the Code of Civil Procedure for failure of | 4 | | the lessor-owner to comply with the leasing requirements | 5 | | prescribed by this Section or by the declaration, bylaws, | 6 | | and rules and regulations. The board of managers may | 7 | | proceed directly against a tenant, at law or in equity, or | 8 | | under the provisions of Article IX of the Code of Civil | 9 | | Procedure, for any other breach by tenant of any | 10 | | covenants, rules, regulations or bylaws. | 11 | | (o) The association shall have no authority to forbear | 12 | | the payment of assessments by any unit owner. | 13 | | (p) That when 30% or fewer of the units, by number, | 14 | | possess over 50% in the aggregate of the votes in the | 15 | | association, any percentage vote of members specified | 16 | | herein or in the condominium instruments shall require the | 17 | | specified percentage by number of units rather than by | 18 | | percentage of interest in the common elements allocated to | 19 | | units that would otherwise be applicable and garage units | 20 | | or storage units, or both, shall have, in total, no more | 21 | | votes than their aggregate percentage of ownership in the | 22 | | common elements; this shall mean that if garage units or | 23 | | storage units, or both, are to be given a vote, or portion | 24 | | of a vote, that the association must add the total number | 25 | | of votes cast of garage units, storage units, or both, and | 26 | | divide the total by the number of garage units, storage |
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| 1 | | units, or both, and multiply by the aggregate percentage | 2 | | of ownership of garage units and storage units to | 3 | | determine the vote, or portion of a vote, that garage | 4 | | units or storage units, or both, have. For purposes of | 5 | | this subsection (p), when making a determination of | 6 | | whether 30% or fewer of the units, by number, possess over | 7 | | 50% in the aggregate of the votes in the association, a | 8 | | unit shall not include a garage unit or a storage unit. | 9 | | (q) That a unit owner may not assign, delegate, | 10 | | transfer, surrender, or avoid the duties, | 11 | | responsibilities, and liabilities of a unit owner under | 12 | | this Act, the condominium instruments, or the rules and | 13 | | regulations of the Association; and that such an attempted | 14 | | assignment, delegation, transfer, surrender, or avoidance | 15 | | shall be deemed void. | 16 | | The provisions of this Section are applicable to all | 17 | | condominium instruments recorded under this Act. Any portion | 18 | | of a condominium instrument which contains provisions contrary | 19 | | to these provisions shall be void as against public policy and | 20 | | ineffective. Any such instrument which fails to contain the | 21 | | provisions required by this Section shall be deemed to | 22 | | incorporate such provisions by operation of law. | 23 | | (Source: P.A. 102-162, eff. 1-1-22 .) | 24 | | (765 ILCS 605/18.5) (from Ch. 30, par. 318.5) | 25 | | Sec. 18.5. Master Associations. |
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| 1 | | (a) If the declaration, other condominium instrument, or | 2 | | other duly recorded covenants provide that any of the powers | 3 | | of the unit owners associations are to be exercised by or may | 4 | | be delegated to a nonprofit corporation or unincorporated | 5 | | association that exercises those or other powers on behalf of | 6 | | one or more condominiums, or for the benefit of the unit owners | 7 | | of one or more condominiums, such corporation or association | 8 | | shall be a master association. | 9 | | (b) There shall be included in the declaration, other | 10 | | condominium instruments, or other duly recorded covenants | 11 | | establishing the powers and duties of the master association | 12 | | the provisions set forth in subsections (c) through (h). | 13 | | In interpreting subsections (c) through (h), the courts | 14 | | should interpret these provisions so that they are interpreted | 15 | | consistently with the similar parallel provisions found in | 16 | | other parts of this Act. | 17 | | (c) Meetings and finances. | 18 | | (1) Each unit owner of a condominium subject to the | 19 | | authority of the board of the master association shall | 20 | | receive, at least 30 days prior to the adoption thereof by | 21 | | the board of the master association, a copy of the | 22 | | proposed annual budget. | 23 | | (2) The board of the master association shall annually | 24 | | supply to all unit owners of condominiums subject to the | 25 | | authority of the board of the master association an | 26 | | itemized accounting of the common expenses for the |
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| 1 | | preceding year actually incurred or paid, together with a | 2 | | tabulation of the amounts collected pursuant to the budget | 3 | | or assessment, and showing the net excess or deficit of | 4 | | income over expenditures plus reserves. | 5 | | (3) Each unit owner of a condominium subject to the | 6 | | authority of the board of the master association shall | 7 | | receive written notice mailed or delivered no less than 10 | 8 | | and no more than 30 days prior to any meeting of the board | 9 | | of the master association concerning the adoption of the | 10 | | proposed annual budget or any increase in the budget, or | 11 | | establishment of an assessment. | 12 | | (4) Meetings of the board of the master association | 13 | | shall be open to any unit owner in a condominium subject to | 14 | | the authority of the board of the master association, | 15 | | except for the portion of any meeting held: | 16 | | (A) to discuss litigation when an action against | 17 | | or on behalf of the particular master association has | 18 | | been filed and is pending in a court or administrative | 19 | | tribunal, or when the board of the master association | 20 | | finds that such an action is probable or imminent, | 21 | | (B) to consider information regarding appointment, | 22 | | employment or dismissal of an employee, or | 23 | | (C) to discuss violations of rules and regulations | 24 | | of the master association or unpaid common expenses | 25 | | owed to the master association. | 26 | | Any vote on these matters shall be taken at a meeting or |
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| 1 | | portion thereof open to any unit owner of a condominium | 2 | | subject to the authority of the master association. | 3 | | Any unit owner may record the proceedings at meetings | 4 | | required to be open by this Act by tape, film or other | 5 | | means; the board may prescribe reasonable rules and | 6 | | regulations to govern the right to make such recordings. | 7 | | Notice of meetings shall be mailed or delivered at least | 8 | | 48 hours prior thereto, unless a written waiver of such | 9 | | notice is signed by the persons entitled to notice before | 10 | | the meeting is convened. Copies of notices of meetings of | 11 | | the board of the master association shall be posted in | 12 | | entranceways, elevators, or other conspicuous places in | 13 | | the condominium at least 48 hours prior to the meeting of | 14 | | the board of the master association. Where there is no | 15 | | common entranceway for 7 or more units, the board of the | 16 | | master association may designate one or more locations in | 17 | | the proximity of these units where the notices of meetings | 18 | | shall be posted. | 19 | | (5) If the declaration provides for election by unit | 20 | | owners of members of the board of directors in the event of | 21 | | a resale of a unit in the master association, the | 22 | | purchaser of a unit from a seller other than the developer | 23 | | pursuant to an installment sales contract for purchase | 24 | | shall, during such times as he or she resides in the unit, | 25 | | be counted toward a quorum for purposes of election of | 26 | | members of the board of directors at any meeting of the |
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| 1 | | unit owners called for purposes of electing members of the | 2 | | board, and shall have the right to vote for the election of | 3 | | members of the board of directors and to be elected to and | 4 | | serve on the board of directors unless the seller | 5 | | expressly retains in writing any or all of those rights. | 6 | | In no event may the seller and purchaser both be counted | 7 | | toward a quorum, be permitted to vote for a particular | 8 | | office, or be elected and serve on the board. Satisfactory | 9 | | evidence of the installment sales contract shall be made | 10 | | available to the association or its agents. For purposes | 11 | | of this subsection, "installment sales contract" shall | 12 | | have the same meaning as set forth in Section 5 of the | 13 | | Installment Sales Contract Act and subsection (e) of | 14 | | Section 1 of the Dwelling Unit Installment Contract Act. | 15 | | (6) The board of the master association shall have the | 16 | | authority to establish and maintain a system of master | 17 | | metering of public utility services and to collect | 18 | | payments in connection therewith, subject to the | 19 | | requirements of Section 1.5 of the Residential Property | 20 | | Utility Service the Tenant Utility Payment Disclosure Act. | 21 | | (7) The board of the master association or a common | 22 | | interest community association shall have the power, after | 23 | | notice and an opportunity to be heard, to levy and collect | 24 | | reasonable fines from members for violations of the | 25 | | declaration, bylaws, and rules and regulations of the | 26 | | master association or the common interest community |
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| 1 | | association. Nothing contained in this subdivision (7) | 2 | | shall give rise to a statutory lien for unpaid fines. | 3 | | (8) Other than attorney's fees, no fees pertaining to | 4 | | the collection of a unit owner's financial obligation to | 5 | | the Association, including fees charged by a manager or | 6 | | managing agent, shall be added to and deemed a part of an | 7 | | owner's respective share of the common expenses unless: | 8 | | (i) the managing agent fees relate to the costs to collect | 9 | | common expenses for the Association; (ii) the fees are set | 10 | | forth in a contract between the managing agent and the | 11 | | Association; and (iii) the authority to add the management | 12 | | fees to an owner's respective share of the common expenses | 13 | | is specifically stated in the declaration or bylaws of the | 14 | | Association. | 15 | | (d) Records. | 16 | | (1) The board of the master association shall maintain | 17 | | the following records of the association and make them | 18 | | available for examination and copying at convenient hours | 19 | | of weekdays by any unit owners in a condominium subject to | 20 | | the authority of the board or their mortgagees and their | 21 | | duly authorized agents or attorneys: | 22 | | (i) Copies of the recorded declaration, other | 23 | | condominium instruments, other duly recorded covenants | 24 | | and bylaws and any amendments, articles of | 25 | | incorporation of the master association, annual | 26 | | reports and any rules and regulations adopted by the |
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| 1 | | master association or its board shall be available. | 2 | | Prior to the organization of the master association, | 3 | | the developer shall maintain and make available the | 4 | | records set forth in this subdivision (d)(1) for | 5 | | examination and copying. | 6 | | (ii) Detailed and accurate records in | 7 | | chronological order of the receipts and expenditures | 8 | | affecting the common areas, specifying and itemizing | 9 | | the maintenance and repair expenses of the common | 10 | | areas and any other expenses incurred, and copies of | 11 | | all contracts, leases, or other agreements entered | 12 | | into by the master association, shall be maintained. | 13 | | (iii) The minutes of all meetings of the master | 14 | | association and the board of the master association | 15 | | shall be maintained for not less than 7 years. | 16 | | (iv) Ballots and proxies related thereto, if any, | 17 | | for any election held for the board of the master | 18 | | association and for any other matters voted on by the | 19 | | unit owners shall be maintained for not less than one | 20 | | year. | 21 | | (v) Such other records of the master association | 22 | | as are available for inspection by members of a | 23 | | not-for-profit corporation pursuant to Section 107.75 | 24 | | of the General Not For Profit Corporation Act of 1986 | 25 | | shall be maintained. | 26 | | (vi) With respect to units owned by a land trust, |
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| 1 | | if a trustee designates in writing a person to cast | 2 | | votes on behalf of the unit owner, the designation | 3 | | shall remain in effect until a subsequent document is | 4 | | filed with the association. | 5 | | (2) Where a request for records under this subsection | 6 | | is made in writing to the board of managers or its agent, | 7 | | failure to provide the requested record or to respond | 8 | | within 30 days shall be deemed a denial by the board of | 9 | | directors. | 10 | | (3) A reasonable fee may be charged by the master | 11 | | association or its board for the cost of copying. | 12 | | (4) If the board of directors fails to provide records | 13 | | properly requested under subdivision (d)(1) within the | 14 | | time period provided in subdivision (d)(2), the unit owner | 15 | | may seek appropriate relief, including an award of | 16 | | attorney's fees and costs. | 17 | | (e) The board of directors shall have standing and | 18 | | capacity to act in a representative capacity in relation to | 19 | | matters involving the common areas of the master association | 20 | | or more than one unit, on behalf of the unit owners as their | 21 | | interests may appear. | 22 | | (f) Administration of property prior to election of the | 23 | | initial board of directors. | 24 | | (1) Until the election, by the unit owners or the | 25 | | boards of managers of the underlying condominium | 26 | | associations, of the initial board of directors of a |
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| 1 | | master association whose declaration is recorded on or | 2 | | after August 10, 1990, the same rights, titles, powers, | 3 | | privileges, trusts, duties and obligations that are vested | 4 | | in or imposed upon the board of directors by this Act or in | 5 | | the declaration or other duly recorded covenant shall be | 6 | | held and performed by the developer. | 7 | | (2) The election of the initial board of directors of | 8 | | a master association whose declaration is recorded on or | 9 | | after August 10, 1990, by the unit owners or the boards of | 10 | | managers of the underlying condominium associations, shall | 11 | | be held not later than 60 days after the conveyance by the | 12 | | developer of 75% of the units, or 3 years after the | 13 | | recording of the declaration, whichever is earlier. The | 14 | | developer shall give at least 21 days notice of the | 15 | | meeting to elect the initial board of directors and shall | 16 | | upon request provide to any unit owner, within 3 working | 17 | | days of the request, the names, addresses, and weighted | 18 | | vote of each unit owner entitled to vote at the meeting. | 19 | | Any unit owner shall upon receipt of the request be | 20 | | provided with the same information, within 10 days of the | 21 | | request, with respect to each subsequent meeting to elect | 22 | | members of the board of directors. | 23 | | (3) If the initial board of directors of a master | 24 | | association whose declaration is recorded on or after | 25 | | August 10, 1990 is not elected by the unit owners or the | 26 | | members of the underlying condominium association board of |
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| 1 | | managers at the time established in subdivision (f)(2), | 2 | | the developer shall continue in office for a period of 30 | 3 | | days, whereupon written notice of his resignation shall be | 4 | | sent to all of the unit owners or members of the underlying | 5 | | condominium board of managers entitled to vote at an | 6 | | election for members of the board of directors. | 7 | | (4) Within 60 days following the election of a | 8 | | majority of the board of directors, other than the | 9 | | developer, by unit owners, the developer shall deliver to | 10 | | the board of directors: | 11 | | (i) All original documents as recorded or filed | 12 | | pertaining to the property, its administration, and | 13 | | the association, such as the declaration, articles of | 14 | | incorporation, other instruments, annual reports, | 15 | | minutes, rules and regulations, and contracts, leases, | 16 | | or other agreements entered into by the association. | 17 | | If any original documents are unavailable, a copy may | 18 | | be provided if certified by affidavit of the | 19 | | developer, or an officer or agent of the developer, as | 20 | | being a complete copy of the actual document recorded | 21 | | or filed. | 22 | | (ii) A detailed accounting by the developer, | 23 | | setting forth the source and nature of receipts and | 24 | | expenditures in connection with the management, | 25 | | maintenance and operation of the property, copies of | 26 | | all insurance policies, and a list of any loans or |
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| 1 | | advances to the association which are outstanding. | 2 | | (iii) Association funds, which shall have been at | 3 | | all times segregated from any other moneys of the | 4 | | developer. | 5 | | (iv) A schedule of all real or personal property, | 6 | | equipment and fixtures belonging to the association, | 7 | | including documents transferring the property, | 8 | | warranties, if any, for all real and personal property | 9 | | and equipment, deeds, title insurance policies, and | 10 | | all tax bills. | 11 | | (v) A list of all litigation, administrative | 12 | | action and arbitrations involving the association, any | 13 | | notices of governmental bodies involving actions taken | 14 | | or which may be taken concerning the association, | 15 | | engineering and architectural drawings and | 16 | | specifications as approved by any governmental | 17 | | authority, all other documents filed with any other | 18 | | governmental authority, all governmental certificates, | 19 | | correspondence involving enforcement of any | 20 | | association requirements, copies of any documents | 21 | | relating to disputes involving unit owners, and | 22 | | originals of all documents relating to everything | 23 | | listed in this subparagraph. | 24 | | (vi) If the developer fails to fully comply with | 25 | | this paragraph (4) within the 60 days provided and | 26 | | fails to fully comply within 10 days of written demand |
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| 1 | | mailed by registered or certified mail to his or her | 2 | | last known address, the board may bring an action to | 3 | | compel compliance with this paragraph (4). If the | 4 | | court finds that any of the required deliveries were | 5 | | not made within the required period, the board shall | 6 | | be entitled to recover its reasonable attorneys' fees | 7 | | and costs incurred from and after the date of | 8 | | expiration of the 10 day demand. | 9 | | (5) With respect to any master association whose | 10 | | declaration is recorded on or after August 10, 1990, any | 11 | | contract, lease, or other agreement made prior to the | 12 | | election of a majority of the board of directors other | 13 | | than the developer by or on behalf of unit owners or | 14 | | underlying condominium associations, the association or | 15 | | the board of directors, which extends for a period of more | 16 | | than 2 years from the recording of the declaration, shall | 17 | | be subject to cancellation by more than 1/2 of the votes of | 18 | | the unit owners, other than the developer, cast at a | 19 | | special meeting of members called for that purpose during | 20 | | a period of 90 days prior to the expiration of the 2 year | 21 | | period if the board of managers is elected by the unit | 22 | | owners, otherwise by more than 1/2 of the underlying | 23 | | condominium board of managers. At least 60 days prior to | 24 | | the expiration of the 2 year period, the board of | 25 | | directors, or, if the board is still under developer | 26 | | control, then the board of managers or the developer shall |
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| 1 | | send notice to every unit owner or underlying condominium | 2 | | board of managers, notifying them of this provision, of | 3 | | what contracts, leases and other agreements are affected, | 4 | | and of the procedure for calling a meeting of the unit | 5 | | owners or for action by the underlying condominium board | 6 | | of managers for the purpose of acting to terminate such | 7 | | contracts, leases or other agreements. During the 90 day | 8 | | period the other party to the contract, lease, or other | 9 | | agreement shall also have the right of cancellation. | 10 | | (6) The statute of limitations for any actions in law | 11 | | or equity which the master association may bring shall not | 12 | | begin to run until the unit owners or underlying | 13 | | condominium board of managers have elected a majority of | 14 | | the members of the board of directors. | 15 | | (g) In the event of any resale of a unit in a master | 16 | | association by a unit owner other than the developer, the | 17 | | owner shall obtain from the board of directors and shall make | 18 | | available for inspection to the prospective purchaser, upon | 19 | | demand, the following: | 20 | | (1) A copy of the declaration, other instruments and | 21 | | any rules and regulations. | 22 | | (2) A statement of any liens, including a statement of | 23 | | the account of the unit setting forth the amounts of | 24 | | unpaid assessments and other charges due and owing. | 25 | | (3) A statement of any capital expenditures | 26 | | anticipated by the association within the current or |
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| 1 | | succeeding 2 fiscal years. | 2 | | (4) A statement of the status and amount of any | 3 | | reserve for replacement fund and any portion of such fund | 4 | | earmarked for any specified project by the board of | 5 | | directors. | 6 | | (5) A copy of the statement of financial condition of | 7 | | the association for the last fiscal year for which such a | 8 | | statement is available. | 9 | | (6) A statement of the status of any pending suits or | 10 | | judgments in which the association is a party. | 11 | | (7) A statement setting forth what insurance coverage | 12 | | is provided for all unit owners by the association. | 13 | | (8) A statement that any improvements or alterations | 14 | | made to the unit, or any part of the common areas assigned | 15 | | thereto, by the prior unit owner are in good faith | 16 | | believed to be in compliance with the declaration of the | 17 | | master association. | 18 | | The principal officer of the unit owner's association or | 19 | | such other officer as is specifically designated shall furnish | 20 | | the above information when requested to do so in writing, | 21 | | within 30 days of receiving the request. | 22 | | A reasonable fee covering the direct out-of-pocket cost of | 23 | | copying and providing such information may be charged by the | 24 | | association or its board of directors to the unit seller for | 25 | | providing the information. | 26 | | (g-1) The purchaser of a unit of a common interest |
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| 1 | | community at a judicial foreclosure sale, other than a | 2 | | mortgagee, who takes possession of a unit of a common interest | 3 | | community pursuant to a court order or a purchaser who | 4 | | acquires title from a mortgagee shall have the duty to pay the | 5 | | proportionate share, if any, of the common expenses for the | 6 | | unit that would have become due in the absence of any | 7 | | assessment acceleration during the 6 months immediately | 8 | | preceding institution of an action to enforce the collection | 9 | | of assessments and the court costs incurred by the association | 10 | | in an action to enforce the collection that remain unpaid by | 11 | | the owner during whose possession the assessments accrued. If | 12 | | the outstanding assessments and the court costs incurred by | 13 | | the association in an action to enforce the collection are | 14 | | paid at any time during any action to enforce the collection of | 15 | | assessments, the purchaser shall have no obligation to pay any | 16 | | assessments that accrued before he or she acquired title. The | 17 | | notice of sale of a unit of a common interest community under | 18 | | subsection (c) of Section 15-1507 of the Code of Civil | 19 | | Procedure shall state that the purchaser of the unit other | 20 | | than a mortgagee shall pay the assessments and court costs | 21 | | required by this subsection (g-1). | 22 | | (h) Errors and omissions. | 23 | | (1) If there is an omission or error in the | 24 | | declaration or other instrument of the master association, | 25 | | the master association may correct the error or omission | 26 | | by an amendment to the declaration or other instrument, as |
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| 1 | | may be required to conform it to this Act, to any other | 2 | | applicable statute, or to the declaration. The amendment | 3 | | shall be adopted by vote of two-thirds of the members of | 4 | | the board of directors or by a majority vote of the unit | 5 | | owners at a meeting called for that purpose, unless the | 6 | | Act or the declaration of the master association | 7 | | specifically provides for greater percentages or different | 8 | | procedures. | 9 | | (2) If, through a scrivener's error, a unit has not | 10 | | been designated as owning an appropriate undivided share | 11 | | of the common areas or does not bear an appropriate share | 12 | | of the common expenses, or if all of the common expenses or | 13 | | all of the common elements in the condominium have not | 14 | | been distributed in the declaration, so that the sum total | 15 | | of the shares of common areas which have been distributed | 16 | | or the sum total of the shares of the common expenses fail | 17 | | to equal 100%, or if it appears that more than 100% of the | 18 | | common elements or common expenses have been distributed, | 19 | | the error may be corrected by operation of law by filing an | 20 | | amendment to the declaration, approved by vote of | 21 | | two-thirds of the members of the board of directors or a | 22 | | majority vote of the unit owners at a meeting called for | 23 | | that purpose, which proportionately adjusts all percentage | 24 | | interests so that the total is equal to 100%, unless the | 25 | | declaration specifically provides for a different | 26 | | procedure or different percentage vote by the owners of |
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| 1 | | the units and the owners of mortgages thereon affected by | 2 | | modification being made in the undivided interest in the | 3 | | common areas, the number of votes in the unit owners | 4 | | association or the liability for common expenses | 5 | | appertaining to the unit. | 6 | | (3) If an omission or error or a scrivener's error in | 7 | | the declaration or other instrument is corrected by vote | 8 | | of two-thirds of the members of the board of directors | 9 | | pursuant to the authority established in subdivisions | 10 | | (h)(1) or (h)(2) of this Section, the board, upon written | 11 | | petition by unit owners with 20% of the votes of the | 12 | | association or resolutions adopted by the board of | 13 | | managers or board of directors of the condominium and | 14 | | common interest community associations which select 20% of | 15 | | the members of the board of directors of the master | 16 | | association, whichever is applicable, received within 30 | 17 | | days of the board action, shall call a meeting of the unit | 18 | | owners or the boards of the condominium and common | 19 | | interest community associations which select members of | 20 | | the board of directors of the master association within 30 | 21 | | days of the filing of the petition or receipt of the | 22 | | condominium and common interest community association | 23 | | resolution to consider the board action. Unless a majority | 24 | | of the votes of the unit owners of the association are cast | 25 | | at the meeting to reject the action, or board of managers | 26 | | or board of directors of condominium and common interest |
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| 1 | | community associations which select over 50% of the | 2 | | members of the board of the master association adopt | 3 | | resolutions prior to the meeting rejecting the action of | 4 | | the board of directors of the master association, it is | 5 | | ratified whether or not a quorum is present. | 6 | | (4) The procedures for amendments set forth in this | 7 | | subsection (h) cannot be used if such an amendment would | 8 | | materially or adversely affect property rights of the unit | 9 | | owners unless the affected unit owners consent in writing. | 10 | | This Section does not restrict the powers of the | 11 | | association to otherwise amend the declaration, bylaws, or | 12 | | other condominium instruments, but authorizes a simple | 13 | | process of amendment requiring a lesser vote for the | 14 | | purpose of correcting defects, errors, or omissions when | 15 | | the property rights of the unit owners are not materially | 16 | | or adversely affected. | 17 | | (5) If there is an omission or error in the | 18 | | declaration or other instruments that may not be corrected | 19 | | by an amendment procedure set forth in subdivision (h)(1) | 20 | | or (h)(2) of this Section, then the circuit court in the | 21 | | county in which the master association is located shall | 22 | | have jurisdiction to hear a petition of one or more of the | 23 | | unit owners thereon or of the association, to correct the | 24 | | error or omission, and the action may be a class action. | 25 | | The court may require that one or more methods of | 26 | | correcting the error or omission be submitted to the unit |
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| 1 | | owners to determine the most acceptable correction. All | 2 | | unit owners in the association must be joined as parties | 3 | | to the action. Service of process on owners may be by | 4 | | publication, but the plaintiff shall furnish all unit | 5 | | owners not personally served with process with copies of | 6 | | the petition and final judgment of the court by certified | 7 | | mail, return receipt requested, at their last known | 8 | | address. | 9 | | (6) Nothing contained in this Section shall be | 10 | | construed to invalidate any provision of a declaration | 11 | | authorizing the developer to amend an instrument prior to | 12 | | the latest date on which the initial membership meeting of | 13 | | the unit owners must be held, whether or not it has | 14 | | actually been held, to bring the instrument into | 15 | | compliance with the legal requirements of the Federal | 16 | | National Mortgage Association, the Federal Home Loan | 17 | | Mortgage Corporation, the Federal Housing Administration, | 18 | | the United States Veterans Administration or their | 19 | | respective successors and assigns. | 20 | | (i) The provisions of subsections (c) through (h) are | 21 | | applicable to all declarations, other condominium instruments, | 22 | | and other duly recorded covenants establishing the powers and | 23 | | duties of the master association recorded under this Act. Any | 24 | | portion of a declaration, other condominium instrument, or | 25 | | other duly recorded covenant establishing the powers and | 26 | | duties of a master association which contains provisions |
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| 1 | | contrary to the provisions of subsection (c) through (h) shall | 2 | | be void as against public policy and ineffective. Any | 3 | | declaration, other condominium instrument, or other duly | 4 | | recorded covenant establishing the powers and duties of the | 5 | | master association which fails to contain the provisions | 6 | | required by subsections (c) through (h) shall be deemed to | 7 | | incorporate such provisions by operation of law. | 8 | | (j) (Blank). | 9 | | (Source: P.A. 100-416, eff. 1-1-18 .) | 10 | | Section 15. The Rental Property Utility Service Act is | 11 | | amended by changing the title of the Act and Section 0.01 and | 12 | | by adding Section 1.5 as follows: | 13 | | (765 ILCS 735/Act title) | 14 | | An Act concerning residential providing remedies for | 15 | | lessees in relation to the failure of lessors to pay for | 16 | | utility services. | 17 | | (765 ILCS 735/0.01) (from Ch. 80, par. 61) | 18 | | Sec. 0.01. Short title. This Act may be cited as the | 19 | | Residential Rental Property Utility Service Act. | 20 | | (Source: P.A. 86-1324.) | 21 | | (765 ILCS 735/1.5 new) | 22 | | Sec. 1.5. Payment for master metered public utility |
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| 1 | | services. | 2 | | (a) No landlord may demand payment for master metered | 3 | | public utility services pursuant to a lease provision | 4 | | providing for tenant payment of a proportionate share of | 5 | | public utility service without the landlord first providing | 6 | | the tenant with a copy in writing either as part of the lease | 7 | | or another written agreement of the formula used by the | 8 | | landlord for allocating the public utility payments among the | 9 | | tenants. The total of payments under the formula for the | 10 | | building as a whole for a billing period may not exceed the sum | 11 | | demanded by the public utility. The formula shall include all | 12 | | those that use that public utility service and may reflect | 13 | | variations in apartment size or usage. The landlord shall also | 14 | | make available to the tenant upon request a copy of the public | 15 | | utility bill for any billing period for which payment is | 16 | | demanded. Nothing herein shall preclude a landlord from | 17 | | leasing property to a tenant, including the cost of utilities, | 18 | | for a rental which does not segregate or allocate the cost of | 19 | | the utilities. | 20 | | (b) No condominium or common interest community | 21 | | association may demand payment for master metered public | 22 | | utility services from a unit owner of a proportionate share | 23 | | for public utility service without the condominium or common | 24 | | interest community association first providing the unit owner | 25 | | with a copy in writing of the formula used by the association | 26 | | for allocating the public utility payments among the unit |
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| 1 | | owners. The total of payments under the formula for the | 2 | | association as a whole for the annual budgeted billing period | 3 | | may not exceed the sum demanded by the public utility, | 4 | | however, the board of directors of the association may direct | 5 | | that any payments received by the association in excess of | 6 | | actual utility bills be applied to other budgeted items having | 7 | | a deficit, or be applied to the association's reserve fund, or | 8 | | be credited to the account of the unit owners for the following | 9 | | year's budget. The formula shall include all those that use | 10 | | that public utility service and may reflect, but is not | 11 | | limited to, percent interest, unit size, or usage. The | 12 | | condominium or common interest community association shall | 13 | | also make available to the unit owner upon request a copy of | 14 | | the public utility bill for any billing period for which | 15 | | payment is demanded. A condominium association shall have the | 16 | | right to establish and maintain a system of master metering of | 17 | | public utility services pursuant to Sections 18 and 18.5 of | 18 | | the Condominium Property Act. A common interest community | 19 | | association shall have the right to establish and maintain a | 20 | | system of master metering of public utility services pursuant | 21 | | to Section 1-45 of the Common Interest Community Association | 22 | | Act. Nothing in this Act shall be construed as giving a common | 23 | | interest community association the right to establish a system | 24 | | of master metering or submetering of public utility services. | 25 | | (c) A municipality may request a copy in writing of the | 26 | | formula used by the landlord or condominium or common interest |
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| 1 | | community association for allocating the public utility | 2 | | payments among the unit owners. The landlord or condominium or | 3 | | common interest community association shall respond within 30 | 4 | | calendar days of receiving the municipality's request. | 5 | | (d) Treble damages available to residential tenants under | 6 | | Section 1.3 of this Act are not applicable to alleged | 7 | | violations of this Section. | 8 | | (765 ILCS 740/Act rep.) | 9 | | Section 20. The Tenant Utility Payment Disclosure Act is | 10 | | repealed.". |
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