Full Text of SB1651 97th General Assembly
SB1651enr 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning civil law.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Common Interest Community Association Act is | 5 | | amended by changing Sections 1-5, 1-15, 1-20, 1-25, 1-30, 1-35, | 6 | | 1-40, 1-45, 1-55, 1-60, and 1-75 and by adding Section 1-80 as | 7 | | follows: | 8 | | (765 ILCS 160/1-5)
| 9 | | Sec. 1-5. Definitions. As used in this Act, unless the | 10 | | context otherwise requires: | 11 | | "Association" or "common interest community association" | 12 | | means the association of all the unit owners of a common | 13 | | interest community, acting pursuant to bylaws through its duly | 14 | | elected board of managers or board of directors. | 15 | | "Board" means a common interest community association's | 16 | | board of managers or board of directors, whichever is | 17 | | applicable. | 18 | | "Board member" or "member of the board" means a member of | 19 | | the board of managers or the board of directors, whichever is | 20 | | applicable. | 21 | | "Board of directors" means, for a common interest community | 22 | | that has been incorporated as an Illinois not-for-profit | 23 | | corporation, the group of people elected by the unit owners of |
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| 1 | | a common interest community as the governing body to exercise | 2 | | for the unit owners of the common interest community | 3 | | association all powers, duties, and authority vested in the | 4 | | board of directors under this Act and the common interest | 5 | | community association's declaration and bylaws. | 6 | | "Board of managers" means, for a common interest community | 7 | | that is an unincorporated association, the group of people | 8 | | elected by the unit owners of a common interest community as | 9 | | the governing body to exercise for the unit owners of the | 10 | | common interest community association all powers, duties, and | 11 | | authority vested in the board of managers under this Act and | 12 | | the common interest community association's declaration and | 13 | | bylaws. | 14 | | "Building" means all structures, attached or unattached, | 15 | | containing one or more units. | 16 | | "Common areas" means the portion of the property other than | 17 | | a unit. | 18 | | "Common expenses" means the proposed or actual expenses | 19 | | affecting the property, including reserves, if any, lawfully | 20 | | assessed by the common interest community association. | 21 | | "Common interest community" means real estate other than a | 22 | | condominium or cooperative with respect to which any person by | 23 | | virtue of his or her ownership of a partial interest or a unit | 24 | | therein is obligated to pay for the maintenance, improvement, | 25 | | insurance premiums or real estate taxes of common areas | 26 | | described in a declaration which is administered by an |
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| 1 | | association. "Common interest community" may include, but not | 2 | | be limited to, an attached or detached townhome, villa, or | 3 | | single-family home , or master association . A "common interest | 4 | | community" does not include a master association. | 5 | | "Community instruments" means all documents and authorized | 6 | | amendments thereto recorded by a developer or common interest | 7 | | community association, including, but not limited to, the | 8 | | declaration, bylaws, plat of survey, and rules and regulations. | 9 | | "Declaration" means any duly recorded instruments, however | 10 | | designated, that have created a common interest community and | 11 | | any duly recorded amendments to those instruments. | 12 | | "Developer" means any person who submits property legally | 13 | | or equitably owned in fee simple by the person to the | 14 | | provisions of this Act, or any person who offers units legally | 15 | | or equitably owned in fee simple by the person for sale in the | 16 | | ordinary course of such person's business, including any | 17 | | successor to such person's entire interest in the property | 18 | | other than the purchaser of an individual unit. | 19 | | "Developer control" means such control at a time prior to | 20 | | the election of the board of the common interest community | 21 | | association by a majority of the unit owners other than the | 22 | | developer. | 23 | | "Majority" or "majority of the unit owners" means the | 24 | | owners of more than 50% in the aggregate in interest of the | 25 | | undivided ownership of the common elements. Any specified | 26 | | percentage of the unit owners means such percentage in the |
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| 1 | | aggregate in interest of such undivided ownership. "Majority" | 2 | | or "majority of the members of the board of the common interest | 3 | | community association" means more than 50% of the total number | 4 | | of persons constituting such board pursuant to the bylaws. Any | 5 | | specified percentage of the members of the common interest | 6 | | community association means that percentage of the total number | 7 | | of persons constituting such board pursuant to the bylaws. | 8 | | "Management company" or "community association manager" | 9 | | means a person, partnership, corporation, or other legal entity | 10 | | entitled to transact business on behalf of others, acting on | 11 | | behalf of or as an agent for an association for the purpose of | 12 | | carrying out the duties, responsibilities, and other | 13 | | obligations necessary for the day to day operation and | 14 | | management of any property subject to this Act.
| 15 | | "Master association" means a common interest community | 16 | | association that exercises its powers on behalf of one or more | 17 | | condominium or other common interest community associations or | 18 | | for the benefit of unit owners in such associations. | 19 | | "Meeting of the board" or "board meeting" means any | 20 | | gathering of a quorum of the members of the board of the common | 21 | | interest community association held for the purpose of | 22 | | conducting board business. | 23 | | "Member" means the person or entity designated as an owner | 24 | | and entitled to one vote as defined by the community | 25 | | instruments. | 26 | | "Membership" means the collective group of members |
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| 1 | | entitled to vote as defined by the community instruments. | 2 | | "Parcel" means the lot or lots or tract or tracts of land | 3 | | described in the declaration as part of a common interest | 4 | | community. | 5 | | "Person" means a natural individual, corporation, | 6 | | partnership, trustee, or other legal entity capable of holding | 7 | | title to real property. | 8 | | "Plat" means a plat or plats of survey of the parcel and of | 9 | | all units in the common interest community, which may consist | 10 | | of a three-dimensional horizontal and vertical delineation of | 11 | | all such units, structures, easements, and common areas on the | 12 | | property. | 13 | | "Prescribed delivery method" means mailing, delivering, | 14 | | posting in an association publication that is routinely mailed | 15 | | to all unit owners, or any other delivery method that is | 16 | | approved in writing by the unit owner and authorized by the | 17 | | community instruments. | 18 | | "Property" means all the land, property, and space | 19 | | comprising the parcel, all improvements and structures | 20 | | erected, constructed or contained therein or thereon, | 21 | | including any building and all easements, rights, and | 22 | | appurtenances belonging thereto, and all fixtures and | 23 | | equipment intended for the mutual use, benefit, or enjoyment of | 24 | | the unit owners, under the authority or control of a common | 25 | | interest community association. | 26 | | "Purchaser" means any person or persons, other than the |
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| 1 | | developer, who purchase a unit in a bona fide transaction for | 2 | | value. | 3 | | "Record" means to record in the office of the recorder of | 4 | | the county wherein the property is located. | 5 | | "Reserves" means those sums paid by unit owners which are | 6 | | separately maintained by the common interest community | 7 | | association for purposes specified by the declaration and | 8 | | bylaws of the common interest community association. | 9 | | "Unit" means a part of the property designed and intended | 10 | | for any type of independent use. | 11 | | "Unit owner" means the person or persons whose estates or | 12 | | interests, individually or collectively, aggregate fee simple | 13 | | absolute ownership of a unit.
| 14 | | (Source: P.A. 96-1400, eff. 7-29-10.) | 15 | | (765 ILCS 160/1-15)
| 16 | | Sec. 1-15. Construction, interpretation, and validity of | 17 | | community instruments. | 18 | | (a) Except to the extent otherwise provided by the | 19 | | declaration or other community instruments, the terms defined | 20 | | in Section 1-5 of this Act shall be deemed to have the meaning | 21 | | specified therein unless the context otherwise requires. | 22 | | (b) All provisions of the declaration, bylaws, and other | 23 | | community instruments are severable. | 24 | | (c) A provision in the declaration limiting ownership, | 25 | | rental, or occupancy of a unit to a person 55 years of age or |
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| 1 | | older shall be valid and deemed not to be in violation of | 2 | | Article 3 of the Illinois Human Rights Act provided that the | 3 | | person or the immediate family of a person owning, renting, or | 4 | | lawfully occupying such unit prior to the recording of the | 5 | | initial declaration shall not be deemed to be in violation of | 6 | | such age restriction so long as they continue to own or reside | 7 | | in such unit.
| 8 | | (d) Every common interest community association shall | 9 | | define a member and its relationship to the units or unit | 10 | | owners in its community instruments. | 11 | | (Source: P.A. 96-1400, eff. 7-29-10.) | 12 | | (765 ILCS 160/1-20)
| 13 | | Sec. 1-20. Amendments to the declaration or bylaws. | 14 | | (a) The administration of every property shall be governed | 15 | | by the declaration and bylaws, which may either be embodied in | 16 | | the declaration or in a separate instrument, a true copy of | 17 | | which shall be appended to and recorded with the declaration. | 18 | | No modification or amendment of the declaration or bylaws shall | 19 | | be valid unless the same is set forth in an amendment thereof | 20 | | and such amendment is duly recorded. An amendment of the | 21 | | declaration or bylaws shall be deemed effective upon | 22 | | recordation, unless the amendment sets forth a different | 23 | | effective date. | 24 | | (b) Unless otherwise provided by this Act, amendments to | 25 | | community instruments authorized to be recorded shall be |
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| 1 | | executed and recorded by the president of the board or such | 2 | | other officer authorized by the common interest community | 3 | | association or the community instruments declaration . | 4 | | (c) If an association that currently permits leasing amends | 5 | | its declaration, bylaws, or rules and regulations to prohibit | 6 | | leasing, nothing in this Act or the declarations, bylaws, rules | 7 | | and regulations of an association shall prohibit a unit owner | 8 | | incorporated under 26 USC 501(c)(3) which is leasing a unit at | 9 | | the time of the prohibition from continuing to do so until such | 10 | | time that the unit owner voluntarily sells the unit; and no | 11 | | special fine, fee, dues, or penalty shall be assessed against | 12 | | the unit owner for leasing its unit.
| 13 | | (Source: P.A. 96-1400, eff. 7-29-10.) | 14 | | (765 ILCS 160/1-25)
| 15 | | Sec. 1-25. Board of managers, board of directors, duties, | 16 | | elections, and voting. | 17 | | (a) There shall be an annual election of the board of | 18 | | managers or board of directors from among the membership unit | 19 | | owners of a common interest community association. | 20 | | (b) (Blank). The terms of at least one-third of the members | 21 | | of the board shall expire annually and all members of the board | 22 | | shall be elected at large. | 23 | | (c) The members of the board shall serve without | 24 | | compensation, unless the community instruments indicate | 25 | | otherwise. |
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| 1 | | (d) No member of the board or officer shall be elected for | 2 | | a term of more than 3 years, but officers and board members may | 3 | | succeed themselves. | 4 | | (e) If there is a vacancy on the board, the remaining | 5 | | members of the board may fill the vacancy by a two-thirds vote | 6 | | of the remaining board members until the next annual meeting of | 7 | | the membership unit owners or until members unit owners holding | 8 | | 20% of the votes of the association request a meeting of the | 9 | | members unit owners to fill the vacancy for the balance of the | 10 | | term. A meeting of the members unit owners shall be called for | 11 | | purposes of filling a vacancy on the board no later than 30 | 12 | | days following the filing of a petition signed by membership | 13 | | unit owners holding 20% of the votes of the association | 14 | | requesting such a meeting. | 15 | | (f) There shall be an election of a: | 16 | | (1) president from among the members of the board, who | 17 | | shall preside over the meetings of the board and of the | 18 | | membership unit owners ; | 19 | | (2) secretary from among the members of the board, who | 20 | | shall keep the minutes of all meetings of the board and of | 21 | | the membership unit owners and who shall, in general, | 22 | | perform all the duties incident to the office of secretary; | 23 | | and | 24 | | (3) treasurer from among the members of the board, who | 25 | | shall keep the financial records and books of account. | 26 | | (g) If no election is held to elect board members within |
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| 1 | | the time period specified in the bylaws, or within a reasonable | 2 | | amount of time thereafter not to exceed 90 days, then 20% of | 3 | | the members unit owners may bring an action to compel | 4 | | compliance with the election requirements specified in the | 5 | | bylaws. If the court finds that an election was not held to | 6 | | elect members of the board within the required period due to | 7 | | the bad faith acts or omissions of the board of managers or the | 8 | | board of directors, the unit owners shall be entitled to | 9 | | recover their reasonable attorney's fees and costs from the | 10 | | association. If the relevant notice requirements have been met | 11 | | and an election is not held solely due to a lack of a quorum, | 12 | | then this subsection (g) does not apply. | 13 | | (h) Where there is more than one owner of a unit and there | 14 | | is only one member vote associated with that unit , if only one | 15 | | of the multiple owners is present at a meeting of the | 16 | | membership association , he or she is entitled to cast the | 17 | | member vote associated with that unit all the votes allocated | 18 | | to that unit . | 19 | | (h-5) A member unit owner may vote: | 20 | | (1) by proxy executed in writing by the member unit | 21 | | owner or by his or her duly authorized attorney in fact, | 22 | | provided, however, that the proxy bears the date of | 23 | | execution. Unless the community instruments or the written | 24 | | proxy itself provide otherwise, proxies will not be valid | 25 | | for more than 11 months after the date of its execution; or | 26 | | (2) by submitting an association-issued ballot in |
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| 1 | | person at the election meeting; or | 2 | | (3) by submitting an association-issued ballot to the | 3 | | association or its designated agent by mail or other means | 4 | | of delivery specified in the declaration or bylaws. | 5 | | (i) The association may, upon adoption of the appropriate | 6 | | rules by the board, conduct elections by secret ballot , | 7 | | distributed by the association, whereby the voting ballot is | 8 | | marked only with the voting interest for the member unit and | 9 | | the vote itself, provided that the association shall further | 10 | | adopt rules to verify the status of the member unit owner | 11 | | issuing a proxy or casting a ballot. A candidate for election | 12 | | to the board or such candidate's representative shall have the | 13 | | right to be present at the counting of ballots at such | 14 | | election. | 15 | | (j) Upon proof of purchase, the The purchaser of a unit | 16 | | from a seller other than the developer pursuant to an | 17 | | installment contract for purchase shall, during such times as | 18 | | he or she resides in the unit, be counted toward a quorum for | 19 | | purposes of election of members of the board at any meeting of | 20 | | the membership unit owners called for purposes of electing | 21 | | members of the board, shall have the right to vote for the | 22 | | election of members of the board of the common interest | 23 | | community association and to be elected to and serve on the | 24 | | board unless the seller expressly retains in writing any or all | 25 | | of such rights.
| 26 | | (Source: P.A. 96-1400, eff. 7-29-10.) |
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| 1 | | (765 ILCS 160/1-30)
| 2 | | Sec. 1-30. Board duties and obligations; records. | 3 | | (a) The board shall meet at least 4 times annually. | 4 | | (b) A member of the board of the common interest community | 5 | | association may not enter into a contract with a current board | 6 | | member, or with a corporation or partnership in which a board | 7 | | member or a member of his or her immediate family has 25% or | 8 | | more interest, unless notice of intent to enter into the | 9 | | contract is given to unit owners within 20 days after a | 10 | | decision is made to enter into the contract and the unit owners | 11 | | are afforded an opportunity by filing a petition, signed by 20% | 12 | | of the membership unit owners , for an election to approve or | 13 | | disapprove the contract; such petition shall be filed within 20 | 14 | | days 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 board | 17 | | member's spouse, parents, and children. | 18 | | (c) The bylaws shall provide for the maintenance, repair, | 19 | | and replacement of the common areas and payments therefor, | 20 | | including the method of approving payment vouchers. | 21 | | (d) (Blank). | 22 | | (e) The association may engage the services of a manager or | 23 | | management company. | 24 | | (f) The association shall have one class of membership | 25 | | unless the declaration or bylaws provide otherwise; however, |
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| 1 | | this subsection (f) shall not be construed to limit the | 2 | | operation of subsection (c) of Section 1-20 of this Act. | 3 | | (g) The board shall have the power, after notice and an | 4 | | opportunity to be heard, to levy and collect reasonable fines | 5 | | from unit owners for violations of the declaration, bylaws, and | 6 | | rules and regulations of the common interest community | 7 | | association. | 8 | | (h) Other than attorney's fees and court costs , no fees | 9 | | pertaining to the collection of a unit owner's financial | 10 | | obligation to the association, including fees charged by a | 11 | | manager or managing agent, shall be added to and deemed a part | 12 | | of a unit owner's respective share of the common expenses | 13 | | unless: (i) the managing agent fees relate to the costs to | 14 | | collect common expenses for the association; (ii) the fees are | 15 | | set forth in a contract between the managing agent and the | 16 | | association; and (iii) the authority to add the management fees | 17 | | to a unit owner's respective share of the common expenses is | 18 | | specifically stated in the declaration or bylaws of the | 19 | | association. | 20 | | (i) Board records. | 21 | | (1) The board shall maintain the following records of | 22 | | the association and make them available for examination and | 23 | | copying at convenient hours of weekdays by any unit owner | 24 | | in a common interest community subject to the authority of | 25 | | the board, their mortgagees, and their duly authorized | 26 | | agents or attorneys: |
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| 1 | | (i) Copies of the recorded declaration, other | 2 | | community instruments, other duly recorded covenants | 3 | | and bylaws and any amendments, articles of | 4 | | incorporation, annual reports, and any rules and | 5 | | regulations adopted by the board shall be available. | 6 | | Prior to the organization of the board, the developer | 7 | | shall maintain and make available the records set forth | 8 | | in this paragraph (i) for examination and copying. | 9 | | (ii) Detailed and accurate records in | 10 | | chronological order of the receipts and expenditures | 11 | | affecting the common areas, specifying and itemizing | 12 | | the maintenance and repair expenses of the common areas | 13 | | and any other expenses incurred, and copies of all | 14 | | contracts, leases, or other agreements entered into by | 15 | | the board shall be maintained. | 16 | | (iii) The minutes of all meetings of the board | 17 | | which shall be maintained for not less than 7 years. | 18 | | (iv) With a written statement of a proper purpose, | 19 | | ballots and proxies related thereto, if any, for any | 20 | | election held for the board and for any other matters | 21 | | voted on by the unit owners, which shall be maintained | 22 | | for not less than one year. | 23 | | (v) With a written statement of a proper purpose, | 24 | | such other records of the board as are available for | 25 | | inspection by members of a not-for-profit corporation | 26 | | pursuant to Section 107.75 of the General Not For |
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| 1 | | Profit Corporation Act of 1986 shall be maintained. | 2 | | (vi) With respect to units owned by a land trust, a | 3 | | living trust, or other legal entity, the trustee, | 4 | | officer, or manager of the entity may designate, in | 5 | | writing, a person to cast votes on behalf of the unit | 6 | | owner and a designation shall remain in effect until a | 7 | | subsequent document is filed with the association. | 8 | | (2) Where a request for records under this subsection | 9 | | is made in writing to the board or its agent, failure to | 10 | | provide the requested record or to respond within 30 days | 11 | | shall be deemed a denial by the board. | 12 | | (3) A reasonable fee may be charged by the board for | 13 | | the cost of retrieving and copying records properly | 14 | | requested. | 15 | | (4) If the board fails to provide records properly | 16 | | requested under paragraph (1) of this subsection (i) within | 17 | | the time period provided in that paragraph (1), the unit | 18 | | owner may seek appropriate relief and shall be entitled to | 19 | | an award of reasonable attorney's fees and costs if the | 20 | | unit owner prevails and the court finds that such failure | 21 | | is due to the acts or omissions of the board of managers or | 22 | | the board of directors. | 23 | | (j) The board shall have standing and capacity to act in a | 24 | | representative capacity in relation to matters involving the | 25 | | common areas or more than one unit, on behalf of the unit | 26 | | owners as their interests may appear.
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| 1 | | (Source: P.A. 96-1400, eff. 7-29-10.) | 2 | | (765 ILCS 160/1-35)
| 3 | | Sec. 1-35. Unit owner powers, duties, and obligations. | 4 | | (a) The provisions of this Act, the declaration, bylaws, | 5 | | other community instruments, and rules and regulations that | 6 | | relate to the use of an individual unit or the common areas | 7 | | shall be applicable to any person leasing a unit and shall be | 8 | | deemed to be incorporated in any lease executed or renewed on | 9 | | or after the effective date of this Act. With regard to any | 10 | | lease entered into subsequent to the effective date of this | 11 | | Act, the unit owner leasing the unit shall deliver a copy of | 12 | | the signed lease to the association or if the lease is oral, a | 13 | | memorandum of the lease, not later than the date of occupancy | 14 | | or 10 days after the lease is signed, whichever occurs first. | 15 | | (b) If there are multiple owners of a single unit, only one | 16 | | of the multiple owners shall be eligible to serve as a member | 17 | | of the board at any one time. | 18 | | (c) Two-thirds of the membership unit owners may remove a | 19 | | board member as a director at a duly duty called special | 20 | | meeting of the unit owners . | 21 | | (d) In the event of any resale of a unit in a common | 22 | | interest community association by a unit owner other than the | 23 | | developer, the board shall make available for inspection to the | 24 | | prospective purchaser, upon demand, the following:
| 25 | | (1) A copy of the declaration, other instruments, and |
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| 1 | | any rules and regulations.
| 2 | | (2) A statement of any liens, including a statement of | 3 | | the account of the unit setting forth the amounts of unpaid | 4 | | assessments and other charges due and owing.
| 5 | | (3) A statement of any capital expenditures | 6 | | anticipated by the association within the current or | 7 | | succeeding 2 fiscal years.
| 8 | | (4) A statement of the status and amount of any reserve | 9 | | or for replacement fund and any other fund specifically | 10 | | designated for association projects portion of such fund | 11 | | earmarked for any specified project by the board .
| 12 | | (5) A copy of the statement of financial condition of | 13 | | the association for the last fiscal year for which such a | 14 | | statement is available.
| 15 | | (6) A statement of the status of any pending suits or | 16 | | judgments in which the association is a party.
| 17 | | (7) A statement setting forth what insurance coverage | 18 | | is provided for all unit owners by the association.
| 19 | | (8) A statement that any improvements or alterations | 20 | | made to the unit, or any part of the common areas assigned | 21 | | thereto, by the prior unit owner are in good faith believed | 22 | | to be in compliance with the declaration of the | 23 | | association.
| 24 | | The principal officer of the board or such other officer as | 25 | | is specifically designated shall furnish the above information | 26 | | within 30 days after receiving a written request for such |
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| 1 | | information. | 2 | | A reasonable fee covering the direct out-of-pocket cost of | 3 | | copying and providing such information may be charged by the | 4 | | association or the board to the unit seller for providing the | 5 | | information.
| 6 | | (Source: P.A. 96-1400, eff. 7-29-10.) | 7 | | (765 ILCS 160/1-40)
| 8 | | Sec. 1-40. Meetings. | 9 | | (a) Notice Written notice of any membership meeting shall | 10 | | be given detailing the time, place, and purpose of such meeting | 11 | | mailed or delivered giving members no less than 10 and no more | 12 | | than 30 days prior to the meeting through a prescribed delivery | 13 | | method notice of the time, place, and purpose of such meeting . | 14 | | (b) Meetings. | 15 | | (1) Twenty percent of the membership unit owners shall | 16 | | constitute a quorum, unless the community instruments | 17 | | indicate a lesser amount otherwise . | 18 | | (2) The membership unit owners shall hold an annual | 19 | | meeting , one of the purposes of which shall be to elect | 20 | | members of the board of managers or board of directors of | 21 | | the common interest community association . The board of | 22 | | directors may be elected at the annual meeting. | 23 | | (3) Special meetings of the board may be called by the | 24 | | president , by or 25% of the members of the board , or by any | 25 | | other method that is prescribed in the community |
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| 1 | | instruments . Special meetings of the membership unit | 2 | | owners may be called by the president, the board, or by 20% | 3 | | of the membership, or any other method that is prescribed | 4 | | in the community instruments unit owners . | 5 | | (4) Except to the extent otherwise provided by this | 6 | | Act, the board shall give the unit owners notice of all | 7 | | board meetings at least 48 hours prior to the meeting by | 8 | | sending notice by using a prescribed delivery method mail, | 9 | | personal delivery, or by posting copies of notices of | 10 | | meetings in entranceways, elevators, or other conspicuous | 11 | | places in the common areas of the common interest community | 12 | | at least 48 hours prior to the meeting except where there | 13 | | is no common entranceway for 7 or more units, the board may | 14 | | designate one or more locations in the proximity of these | 15 | | units where the notices of meetings shall be posted. The | 16 | | board shall give unit owners , by mail or personal delivery, | 17 | | notice of any board meeting , through a prescribed delivery | 18 | | method, concerning the adoption of (i) the proposed annual | 19 | | budget, (ii) regular assessments, or (iii) a separate or | 20 | | special assessment within 10 to 60 30 days prior to the | 21 | | meeting, unless otherwise provided in Section 1-45 (a) or | 22 | | any other provision of this Act. | 23 | | (5) Meetings of the board shall be open to any unit | 24 | | owner, except for the portion of any meeting held (i) to | 25 | | discuss litigation when an action against or on behalf of | 26 | | the particular association has been filed and is pending in |
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| 1 | | a court or administrative tribunal, or when the common | 2 | | interest community association finds that such an action is | 3 | | probable or imminent, (ii) to consider third party | 4 | | contracts or information regarding appointment, | 5 | | employment, or dismissal of an employee, or (iii) to | 6 | | discuss violations of rules and regulations of the | 7 | | association or a unit owner's unpaid share of common | 8 | | expenses. Any vote on these matters shall be taken at a | 9 | | meeting or portion thereof open to any unit owner. | 10 | | (6) The board must reserve a portion of the meeting of | 11 | | the board for comments by unit owners; provided, however, | 12 | | the duration and meeting order for the unit owner comment | 13 | | period is within the sole discretion of the board.
| 14 | | (Source: P.A. 96-1400, eff. 7-29-10.) | 15 | | (765 ILCS 160/1-45)
| 16 | | Sec. 1-45. Finances. | 17 | | (a) Each unit owner shall receive through a prescribed | 18 | | delivery method , at least 30 days but not more than 60 days | 19 | | prior to the adoption thereof by the board, a copy of the | 20 | | proposed annual budget together with an indication of which | 21 | | portions are intended for reserves, capital expenditures or | 22 | | repairs or payment of real estate taxes. | 23 | | (b) The board shall provide all unit owners with a | 24 | | reasonably detailed summary of the receipts, common expenses, | 25 | | and reserves for the preceding budget year. The board shall (i) |
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| 1 | | make available for review annually supply to all unit owners an | 2 | | itemized accounting of the common expenses for the preceding | 3 | | year actually incurred or paid, together with an indication of | 4 | | which portions were for reserves, capital expenditures or | 5 | | repairs or payment of real estate taxes and with a tabulation | 6 | | of the amounts collected pursuant to the budget or assessment, | 7 | | and showing the net excess or deficit of income over | 8 | | expenditures plus reserves or (ii) provide a consolidated | 9 | | annual independent audit report of the financial status of all | 10 | | fund accounts within the association . | 11 | | (c) If an adopted budget or any separate assessment adopted | 12 | | by the board would result in the sum of all regular and | 13 | | separate assessments payable in the current fiscal year | 14 | | exceeding 115% of the sum of all regular and separate | 15 | | assessments payable during the preceding fiscal year, the | 16 | | common interest community association, upon written petition | 17 | | by unit owners with 20% of the votes of the association | 18 | | delivered to the board within 14 days of the board action, | 19 | | shall call a meeting of the unit owners within 30 days of the | 20 | | date of delivery of the petition to consider the budget or | 21 | | separate assessment; unless a majority of the total votes of | 22 | | the unit owners are cast at the meeting to reject the budget or | 23 | | separate assessment, it shall be deemed ratified. | 24 | | (d) Any common expense not set forth in the budget or any | 25 | | increase in assessments over the amount adopted in the budget | 26 | | shall be separately assessed against all unit owners. |
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| 1 | | (e) Separate assessments for expenditures relating to | 2 | | emergencies or mandated by law may be adopted by the board | 3 | | without being subject to unit owner approval or the provisions | 4 | | of subsection (c) or (f) of this Section. As used herein, | 5 | | "emergency" means an immediate danger to the structural | 6 | | integrity of the common areas or to the life, health, safety, | 7 | | or property of the unit owners. | 8 | | (f) Assessments for additions and alterations to the common | 9 | | areas or to association-owned property not included in the | 10 | | adopted annual budget, shall be separately assessed and are | 11 | | subject to approval of two-thirds of the total members at a | 12 | | meeting called for that purpose votes of all unit owners . | 13 | | (g) The board may adopt separate assessments payable over | 14 | | more than one fiscal year. With respect to multi-year | 15 | | assessments not governed by subsections (e) and (f) of this | 16 | | Section, the entire amount of the multi-year assessment shall | 17 | | be deemed considered and authorized in the first fiscal year in | 18 | | which the assessment is approved. | 19 | | (h) The board of a common interest community association | 20 | | shall have the authority to establish and maintain a system of | 21 | | master metering of public utility services to collect payments | 22 | | in conjunction therewith, subject to the requirements of the | 23 | | Tenant Utility Payment Disclosure Act.
| 24 | | (Source: P.A. 96-1400, eff. 7-29-10.) | 25 | | (765 ILCS 160/1-55)
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| 1 | | Sec. 1-55. Fidelity insurance. An association with 30 or | 2 | | more units shall obtain and maintain fidelity insurance | 3 | | covering persons who control or disburse funds of the | 4 | | association for the maximum amount of coverage that is | 5 | | commercially available or reasonably required available to | 6 | | protect funds in the custody or control of the association plus | 7 | | the association reserve fund . All management companies which | 8 | | are responsible for the funds held or administered by the | 9 | | association shall maintain and furnish to the association a | 10 | | fidelity bond for the maximum amount of coverage that is | 11 | | commercially available or reasonably required available to | 12 | | protect funds in the custody of the management company at any | 13 | | time. The association shall bear the cost of the fidelity | 14 | | insurance and fidelity bond, unless otherwise provided by | 15 | | contract between the association and a management company.
| 16 | | (Source: P.A. 96-1400, eff. 7-29-10.) | 17 | | (765 ILCS 160/1-60)
| 18 | | Sec. 1-60. Errors and omissions. | 19 | | (a) If there is an omission or error in the declaration or | 20 | | other instrument of the association, the association may | 21 | | correct the error or omission by an amendment to the | 22 | | declaration or other instrument, as may be required to conform | 23 | | it to this Act, to any other applicable statute, or to the | 24 | | declaration. The amendment shall be adopted by vote of | 25 | | two-thirds of the members of the board of directors or by a |
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| 1 | | majority vote of the members unit owners at a meeting called | 2 | | for that purpose, unless the Act or the declaration of the | 3 | | association specifically provides for greater percentages or | 4 | | different procedures. | 5 | | (b) If, through a scrivener's error, a unit has not been | 6 | | designated as owning an appropriate undivided share of the | 7 | | common areas or does not bear an appropriate share of the | 8 | | common expenses, or if all of the common expenses or all of the | 9 | | common elements have not been distributed in the declaration, | 10 | | so that the sum total of the shares of common areas which have | 11 | | been distributed or the sum total of the shares of the common | 12 | | expenses fail to equal 100%, or if it appears that more than | 13 | | 100% of the common elements or common expenses have been | 14 | | distributed, the error may be corrected by operation of law by | 15 | | filing an amendment to the declaration, approved by vote of | 16 | | two-thirds of the members of the board or a majority vote of | 17 | | the members unit owners at a meeting called for that purpose, | 18 | | which proportionately adjusts all percentage interests so that | 19 | | the total is equal to 100%, unless the declaration specifically | 20 | | provides for a different procedure or different percentage vote | 21 | | by the owners of the units and the owners of mortgages thereon | 22 | | affected by modification being made in the undivided interest | 23 | | in the common areas, the number of votes in the association or | 24 | | the liability for common expenses appertaining to the unit.
| 25 | | (c) If a scrivener's error in the declaration or other | 26 | | instrument is corrected by vote of two-thirds of the members of |
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| 1 | | the board pursuant to the authority established in subsection | 2 | | (a) or subsection (b), the board, upon written petition by | 3 | | members unit owners with 20% of the votes of the association | 4 | | received within 30 days of the board action, shall call a | 5 | | meeting of the members unit owners within 30 days of the filing | 6 | | of the petition to consider the board action. Unless a majority | 7 | | of the votes of the members unit owners of the association are | 8 | | cast at the meeting to reject the action, it is ratified | 9 | | whether or not a quorum is present.
| 10 | | (d) Nothing contained in this Section shall be construed to | 11 | | invalidate any provision of a declaration authorizing the | 12 | | developer to amend an instrument prior to the latest date on | 13 | | which the initial membership meeting of the unit owners must be | 14 | | held, whether or not it has actually been held, to bring the | 15 | | instrument into compliance with the legal requirements of the | 16 | | Federal National Mortgage Association, the Federal Home Loan | 17 | | Mortgage Corporation, the Federal Housing Administration, the | 18 | | United States Department of Veterans Affairs, or their | 19 | | respective successors and assigns.
| 20 | | (Source: P.A. 96-1400, eff. 7-29-10.) | 21 | | (765 ILCS 160/1-75)
| 22 | | Sec. 1-75. Exemptions for small community interest | 23 | | communities. | 24 | | (a) A common interest community association organized | 25 | | under the General Not for Profit Corporation Act of 1986 and |
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| 1 | | having either (i) 10 units or less or (ii) annual budgeted | 2 | | assessments of $100,000 or less shall be exempt from this Act | 3 | | unless the association affirmatively elects to be covered by | 4 | | this Act by a majority of its directors or members and unit | 5 | | owners . | 6 | | (b) Common interest community associations which in their | 7 | | declaration, bylaws, or other governing documents provide that | 8 | | the association may not use the courts or an arbitration | 9 | | process to collect or enforce assessments, fines, or similar | 10 | | levies and common interest community associations (i) of 10 | 11 | | units or less or (ii) having annual budgeted assessments of | 12 | | $50,000 or less shall be exempt from subsection (a) of Section | 13 | | 1-30, subsections (a) and (b) of Section 1-40, and Section 1-55 | 14 | | but shall be required to provide notice of meetings to unit | 15 | | owners in a manner and at a time that will allow unit owners to | 16 | | participate in those meetings.
| 17 | | (Source: P.A. 96-1400, eff. 7-29-10.) | 18 | | (765 ILCS 160/1-80 new) | 19 | | Sec. 1-80. Compliance. A common interest community | 20 | | association shall be in full compliance with the provisions of | 21 | | this Act no later than January 1, 2012. | 22 | | Section 10. The Condominium Property Act is amended by | 23 | | changing Section 18.5 as follows:
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| 1 | | (765 ILCS 605/18.5) (from Ch. 30, par. 318.5)
| 2 | | Sec. 18.5. Master Associations.
| 3 | | (a) If the declaration, other condominium instrument, or | 4 | | other duly
recorded covenants provide that any of the powers of | 5 | | the unit owners
associations are to be exercised by or may be | 6 | | delegated to a nonprofit
corporation or unincorporated | 7 | | association that exercises
those or other powers on behalf of | 8 | | one or more condominiums, or for the
benefit of the unit owners | 9 | | of one or more condominiums, such
corporation or association | 10 | | shall be a master association.
| 11 | | (b) There shall be included in the declaration, other
| 12 | | condominium instruments, or other duly recorded covenants | 13 | | establishing
the powers and duties of the master association | 14 | | the provisions set forth in
subsections (c) through (h).
| 15 | | In interpreting subsections (c) through (h), the courts | 16 | | should
interpret these provisions so that they are interpreted | 17 | | consistently with
the similar parallel provisions found in | 18 | | other parts of this Act.
| 19 | | (c) Meetings and finances.
| 20 | | (1) Each unit owner of a condominium subject to the | 21 | | authority of
the board of the master association shall | 22 | | receive, at least 30 days prior
to the adoption thereof by | 23 | | the board of the master association, a copy of
the proposed | 24 | | annual budget.
| 25 | | (2) The board of the master association shall annually | 26 | | supply to
all unit owners of condominiums subject to the |
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| 1 | | authority of the board
of the master association an | 2 | | itemized accounting of the common
expenses for the | 3 | | preceding year actually incurred or paid, together with a
| 4 | | tabulation of the amounts collected pursuant to the budget | 5 | | or assessment,
and showing the net excess or deficit of | 6 | | income over expenditures plus
reserves.
| 7 | | (3) Each unit owner of a condominium subject to the | 8 | | authority of
the board of the master association shall | 9 | | receive written notice mailed
or delivered no less than 10 | 10 | | and no more than 30 days prior to any meeting
of the board | 11 | | of the master association concerning the adoption of the | 12 | | proposed
annual budget or any increase in the budget, or | 13 | | establishment of an
assessment.
| 14 | | (4) Meetings of the board of the master association | 15 | | shall be open
to any unit owner in a condominium subject to | 16 | | the authority of the board
of the master association, | 17 | | except for the portion of any meeting held:
| 18 | | (A) to discuss litigation when an action against or | 19 | | on behalf of the
particular master association has been | 20 | | filed and is pending in a court or
administrative | 21 | | tribunal, or when the board of the master association | 22 | | finds
that such an action is probable or imminent,
| 23 | | (B) to consider information regarding appointment, | 24 | | employment or
dismissal of an employee, or
| 25 | | (C) to discuss violations of rules and regulations | 26 | | of the master
association or unpaid common expenses |
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| 1 | | owed to the master association.
| 2 | | Any vote on these matters shall be taken at a meeting or | 3 | | portion thereof
open to any unit owner of a condominium | 4 | | subject to the authority of the
master association.
| 5 | | Any unit owner may record the proceedings at meetings | 6 | | required
to be open by this Act by tape, film or other | 7 | | means; the board may
prescribe reasonable rules and | 8 | | regulations to govern the right to make such
recordings. | 9 | | Notice of meetings shall be mailed or delivered at least 48
| 10 | | hours prior thereto, unless a written waiver of such notice | 11 | | is signed by
the persons entitled to notice before the | 12 | | meeting is convened. Copies of
notices of meetings of the | 13 | | board of the master association shall be posted
in | 14 | | entranceways, elevators, or other conspicuous places in | 15 | | the condominium
at least 48 hours prior to the meeting of | 16 | | the board of the master
association. Where there is no | 17 | | common entranceway for 7 or more units, the
board of the | 18 | | master association may designate one or more locations in | 19 | | the
proximity of these units where the notices of meetings | 20 | | shall be posted.
| 21 | | (5) If the declaration provides for election by unit | 22 | | owners of members
of the board of directors in the event of | 23 | | a resale of a unit in the master
association, the purchaser | 24 | | of a unit from a seller other than the developer
pursuant | 25 | | to an installment contract for purchase shall, during such
| 26 | | times as he or she resides in the unit, be counted toward a |
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| 1 | | quorum for
purposes of election of members of the board of | 2 | | directors at any
meeting of the unit owners called for | 3 | | purposes of electing members of the
board, and shall have | 4 | | the right to vote for the election of members of
the board | 5 | | of directors and to be elected to and serve on the board of
| 6 | | directors unless the seller expressly retains in writing
| 7 | | any or all of those rights. In no event may the seller and
| 8 | | purchaser both be counted toward a quorum, be permitted to | 9 | | vote for a
particular office, or be elected and serve on | 10 | | the board. Satisfactory
evidence of the installment | 11 | | contract shall be made available to the
association or its | 12 | | agents. For purposes of this subsection, "installment
| 13 | | contract" shall have the same meaning as set forth in | 14 | | subsection (e) of
Section 1 of the Dwelling Unit | 15 | | Installment Contract Act.
| 16 | | (6) The board of the master association shall have the | 17 | | authority to
establish and maintain a system of master | 18 | | metering of public utility
services and to collect payments | 19 | | in connection therewith, subject to the
requirements of the | 20 | | 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: (i) | 8 | | 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 areas | 10 | | and any
other expenses incurred, and copies of all | 11 | | contracts, leases, or other
agreements entered into by | 12 | | 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 as | 22 | | 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 capacity | 18 | | to act in
a representative capacity in relation to matters | 19 | | involving the common areas
of the master association or more | 20 | | than one unit, on behalf of the unit
owners as their interests | 21 | | 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 master |
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| 1 | | association whose declaration is recorded on
or after | 2 | | 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 a | 8 | | 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 meeting | 15 | | to elect the initial board of directors and
shall upon | 16 | | request provide to any unit owner, within 3 working days of | 17 | | the
request, the names, addresses, and weighted vote of | 18 | | each unit owner entitled to vote at the
meeting. Any unit | 19 | | owner shall upon receipt of the request be provided with
| 20 | | the same
information, within 10 days of the request, with | 21 | | respect to
each
subsequent meeting to elect members of the | 22 | | 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), the
| 2 | | developer shall continue in office for a period of 30 days, | 3 | | whereupon
written notice of his resignation shall be sent | 4 | | 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 majority | 8 | | of the board
of directors, other than the developer, by | 9 | | unit owners, the developer shall
deliver to the board of | 10 | | 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. If | 17 | | any original documents are
unavailable, a copy may be | 18 | | provided if certified by affidavit of the
developer, or | 19 | | an officer or agent of the developer, as being a | 20 | | complete
copy of the actual document recorded or filed.
| 21 | | (ii) A detailed accounting by the developer, | 22 | | setting forth the
source and nature of receipts and | 23 | | expenditures in connection with the
management, | 24 | | maintenance and operation of the property, copies
of | 25 | | all insurance policies, and a list of any loans or | 26 | | advances to the
association which are outstanding.
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| 1 | | (iii) Association funds, which shall have been at | 2 | | all times
segregated from any other moneys of the | 3 | | developer.
| 4 | | (iv) A schedule of all real or personal property, | 5 | | equipment and
fixtures belonging to the association, | 6 | | including documents transferring the
property, | 7 | | warranties, if any, for all real and personal property | 8 | | and
equipment, deeds, title insurance policies, and | 9 | | all tax bills.
| 10 | | (v) A list of all litigation, administrative | 11 | | action and arbitrations
involving the association, any | 12 | | notices of governmental bodies involving
actions taken | 13 | | or which may be taken concerning the association, | 14 | | engineering and
architectural drawings and | 15 | | specifications as approved by any governmental
| 16 | | authority, all other documents filed with any other | 17 | | governmental authority,
all governmental certificates, | 18 | | correspondence involving enforcement of any
| 19 | | association requirements, copies of any documents | 20 | | relating to disputes
involving unit owners, and | 21 | | originals of all documents relating to
everything | 22 | | listed in this subparagraph.
| 23 | | (vi) If the developer fails to fully comply with | 24 | | this paragraph (4)
within
the 60 days
provided and | 25 | | fails to fully comply within 10 days of written demand | 26 | | mailed by
registered
or certified mail to his or her |
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| 1 | | last known address, the board may bring an
action to
| 2 | | compel compliance with this paragraph (4).
If the court | 3 | | finds that any of the
required
deliveries were not made | 4 | | within the required period, the board shall be
entitled | 5 | | to recover
its reasonable attorneys' fees and costs | 6 | | incurred from and after the date of
expiration of
the | 7 | | 10 day demand.
| 8 | | (5) With respect to any master association whose | 9 | | declaration is
recorded on or after August 10, 1990, any | 10 | | contract, lease, or other
agreement made prior to the | 11 | | election of a majority of the board of
directors other than | 12 | | the developer by or on behalf of unit owners or
underlying | 13 | | condominium associations, the association or the board of
| 14 | | directors, which extends for a period of more than 2 years | 15 | | from the
recording of the declaration, shall be subject to | 16 | | cancellation by more than
1/2 of the votes of the unit | 17 | | owners, other than the developer, cast at a
special meeting | 18 | | of members called for that purpose during a period of 90
| 19 | | days prior to the expiration of the 2 year period if the | 20 | | board of managers
is elected by the unit owners, otherwise | 21 | | by more than 1/2 of the underlying
condominium board of | 22 | | managers. At least 60 days prior to the expiration of
the 2 | 23 | | year period, the board of directors, or, if the board is | 24 | | still under
developer control, then the board of managers | 25 | | or the developer shall send
notice to every unit owner or | 26 | | underlying condominium board of managers,
notifying them |
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| 1 | | of this provision, of what contracts, leases and other
| 2 | | agreements are affected, and of the procedure for calling a | 3 | | meeting of the
unit owners or for action by the underlying | 4 | | condominium board of managers
for the purpose of acting to | 5 | | terminate such contracts, leases or other
agreements. | 6 | | During the 90 day period the other party to the contract,
| 7 | | lease, or other agreement shall also have the right of | 8 | | cancellation.
| 9 | | (6) The statute of limitations for any actions in law | 10 | | or equity which
the master association may bring shall not | 11 | | begin to run until the unit
owners or underlying | 12 | | condominium board of managers have elected a majority
of | 13 | | the members of the board of directors.
| 14 | | (g) In the event of any resale of a unit in a master | 15 | | association by a unit
owner other than the developer, the owner | 16 | | shall obtain from
the board of directors and shall make | 17 | | available for inspection to the
prospective purchaser, upon | 18 | | demand, the following:
| 19 | | (1) A copy of the declaration, other instruments and | 20 | | any rules and
regulations.
| 21 | | (2) A statement of any liens, including a statement of | 22 | | the account of
the unit setting forth the amounts of unpaid | 23 | | assessments and other charges
due and owing.
| 24 | | (3) A statement of any capital expenditures | 25 | | anticipated by the
association within the current or | 26 | | succeeding 2 fiscal years.
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| 1 | | (4) A statement of the status and amount of any reserve | 2 | | for
replacement fund and any portion of such fund earmarked | 3 | | for any specified
project by the board of directors.
| 4 | | (5) A copy of the statement of financial condition of | 5 | | the association
for the last fiscal year for which such a | 6 | | statement is available.
| 7 | | (6) A statement of the status of any pending suits or | 8 | | judgments in which
the association is a party.
| 9 | | (7) A statement setting forth what insurance coverage | 10 | | is provided for
all unit owners by the association.
| 11 | | (8) A statement that any improvements or alterations | 12 | | made to the unit,
or any part of the common areas assigned | 13 | | thereto, by the prior unit owner
are in good faith believed | 14 | | to be in compliance with the declaration of the
master | 15 | | association.
| 16 | | The principal officer of the unit owner's association or | 17 | | such
other officer as is specifically designated shall furnish | 18 | | the above
information when requested to do so in writing, | 19 | | within
30 days of receiving the request.
| 20 | | A reasonable fee covering the direct out-of-pocket cost of | 21 | | copying
and providing such information may be charged
by the | 22 | | association or its board of directors to the unit
seller for | 23 | | providing the information.
| 24 | | (g-1) The purchaser of a unit of a common interest | 25 | | community at a judicial foreclosure sale, other than a | 26 | | mortgagee, who takes possession of a unit of a common interest |
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| 1 | | community pursuant to a court order or a purchaser who acquires | 2 | | title from a mortgagee shall have the duty to pay the | 3 | | proportionate share, if any, of the common expenses for the | 4 | | unit that would have become due in the absence of any | 5 | | assessment acceleration during the 6 months immediately | 6 | | preceding institution of an action to enforce the collection of | 7 | | assessments, and that remain unpaid by the owner during whose | 8 | | possession the assessments accrued. If the outstanding | 9 | | assessments are paid at any time during any action to enforce | 10 | | the collection of assessments, the purchaser shall have no | 11 | | obligation to pay any assessments that accrued before he or she | 12 | | acquired title. The notice of sale of a unit of a common | 13 | | interest community under subsection (c) of Section 15-1507 of | 14 | | the Code of Civil Procedure shall state that the purchaser of | 15 | | the unit other than a mortgagee shall pay the assessments | 16 | | required by this subsection (g-1).
| 17 | | (h) Errors and omissions.
| 18 | | (1) If there is an omission or error in the declaration | 19 | | or other
instrument of the master association, the master | 20 | | association may correct
the error or omission by an | 21 | | amendment to the declaration or other
instrument, as may be | 22 | | required to conform it to this Act, to any other
applicable | 23 | | statute, or to the declaration. The amendment shall be | 24 | | adopted
by vote of two-thirds of the members of the board | 25 | | of directors or by a
majority vote of the unit owners at a | 26 | | meeting called for that purpose,
unless the Act or the |
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| 1 | | declaration of the master association specifically
| 2 | | provides for greater percentages or different procedures.
| 3 | | (2) If, through a scrivener's error, a unit has not | 4 | | been
designated as owning an appropriate undivided share of | 5 | | the common areas
or does not bear an appropriate share of | 6 | | the common expenses, or if
all of the common expenses or | 7 | | all of the common elements in
the condominium have not been | 8 | | distributed in the declaration, so that the
sum total of | 9 | | the shares of common areas which have been distributed or | 10 | | the
sum total of the shares of the common expenses fail to | 11 | | equal 100%, or if it
appears that more than 100% of the | 12 | | common elements or common expenses have
been distributed, | 13 | | the error may be corrected by operation of law by filing
an | 14 | | amendment to the declaration, approved by vote of | 15 | | two-thirds of the
members of the board of directors or a | 16 | | majority vote of the unit owners at
a meeting called for | 17 | | that purpose, which proportionately
adjusts all percentage | 18 | | interests so that the total is equal to 100%,
unless the | 19 | | declaration specifically provides for a different | 20 | | procedure or
different percentage vote by the owners of the | 21 | | units and the owners of
mortgages thereon affected by | 22 | | modification being made in the undivided
interest in the | 23 | | common areas, the number of votes in the unit owners
| 24 | | association or the liability for common expenses | 25 | | appertaining to the unit.
| 26 | | (3) If an omission or error or a scrivener's error in |
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| 1 | | the
declaration or other instrument is corrected by vote of | 2 | | two-thirds of
the members of the board of directors | 3 | | pursuant to the authority established
in subdivisions | 4 | | (h)(1) or (h)(2) of this Section, the board, upon
written | 5 | | petition by unit owners with 20% of the votes of the | 6 | | association or
resolutions adopted by the board of managers | 7 | | or board of directors of the
condominium and common | 8 | | interest community associations which select 20% of
the | 9 | | members of the board of directors of the master | 10 | | association, whichever
is applicable, received within 30 | 11 | | days of the board action, shall call a
meeting of the unit | 12 | | owners or the boards of the condominium and common
interest | 13 | | community associations which select members of the board of
| 14 | | directors of the master association within 30 days of the | 15 | | filing of the
petition or receipt of the condominium and | 16 | | common interest community
association resolution to | 17 | | consider the board action. Unless a majority of
the votes | 18 | | of the unit owners of the association are cast at the | 19 | | meeting to
reject the action, or board of managers or board | 20 | | of directors of
condominium and common interest community | 21 | | associations which select over
50% of the members of the | 22 | | board of the master association adopt resolutions
prior to | 23 | | the meeting rejecting the action of the board of directors | 24 | | of the
master association, it is ratified whether or not a | 25 | | quorum is present.
| 26 | | (4) The procedures for amendments set forth in this |
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| 1 | | subsection (h)
cannot be used if such an amendment would | 2 | | materially or adversely affect
property rights of the unit | 3 | | owners unless the affected unit owners consent
in writing. | 4 | | This Section does not restrict the powers of the | 5 | | association
to otherwise amend the declaration, bylaws, or | 6 | | other condominium
instruments, but authorizes a simple | 7 | | process of amendment requiring a
lesser vote for the | 8 | | purpose of correcting defects, errors, or omissions
when | 9 | | the property rights of the unit owners are not materially | 10 | | or adversely
affected.
| 11 | | (5) If there is an omission or error in the declaration | 12 | | or other
instruments that may not be corrected by an | 13 | | amendment procedure
set forth in subdivision (h)(1) or | 14 | | (h)(2) of this Section, then
the circuit court in the | 15 | | county in which the master
association is located shall | 16 | | have jurisdiction to hear a petition of one or
more of the | 17 | | unit owners thereon or of the association, to correct the | 18 | | error
or omission, and the action may be a class action. | 19 | | The court may require
that one or more methods of | 20 | | correcting the error or omission be submitted
to the unit | 21 | | owners to determine the most acceptable correction. All | 22 | | unit
owners in the association must be joined as parties to | 23 | | the action. Service
of process on owners may be by | 24 | | publication, but the plaintiff shall furnish
all unit | 25 | | owners not personally served with process with copies of | 26 | | the
petition and final judgment of the court by certified |
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| 1 | | mail, return receipt
requested, at their last known | 2 | | address.
| 3 | | (6) Nothing contained in this Section shall be | 4 | | construed to invalidate
any provision of a declaration | 5 | | authorizing the developer to amend
an instrument prior to | 6 | | the latest date on which the initial
membership meeting of | 7 | | the unit owners must be held, whether or not it has
| 8 | | actually been held, to bring the instrument into compliance | 9 | | with the legal
requirements of the Federal National | 10 | | Mortgage Association, the Federal Home
Loan Mortgage | 11 | | Corporation, the Federal Housing Administration, the | 12 | | United
States Veterans Administration or their respective | 13 | | successors and assigns.
| 14 | | (i) The provisions of subsections (c) through (h) are | 15 | | applicable
to all declarations, other condominium instruments, | 16 | | and other
duly recorded covenants establishing the powers and | 17 | | duties of the master
association recorded under this Act. Any | 18 | | portion of a declaration,
other condominium instrument, or | 19 | | other duly recorded covenant establishing
the powers and duties | 20 | | of a master association which contains provisions
contrary to | 21 | | the provisions of subsection (c) through (h) shall be void as
| 22 | | against public policy and ineffective. Any declaration, other | 23 | | condominium
instrument, or other duly recorded covenant | 24 | | establishing the powers and
duties of the master association | 25 | | which fails to contain the provisions
required by subsections | 26 | | (c) through (h) shall be deemed to incorporate such
provisions |
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| 1 | | by operation of law.
| 2 | | (j) (Blank). The provisions of subsections (c) through (h) | 3 | | are applicable to
all common interest community associations | 4 | | and their unit owners for common
interest community | 5 | | associations which are subject to the provisions of Section
| 6 | | 9-102(a)(8) of the Code of Civil Procedure. For purposes of | 7 | | this
subsection, the terms "common interest community" and | 8 | | "unit owners"
shall have the same meaning as set forth in | 9 | | Section 9-102(c) of the Code of
Civil Procedure.
| 10 | | (Source: P.A. 96-1045, eff. 7-14-10.)
| 11 | | Section 999. Effective date. This Act takes effect upon | 12 | | becoming law.
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