Full Text of HB2721 101st General Assembly
HB2721 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB2721 Introduced , by Rep. Jennifer Gong-Gershowitz SYNOPSIS AS INTRODUCED: |
| 765 ILCS 160/1-35 | | 765 ILCS 605/18.5 | from Ch. 30, par. 318.5 | 765 ILCS 605/22.1 | from Ch. 30, par. 322.1 |
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Amends the Common Interest Community Association Act and the Condominium Property Act. Provides that in the event of any resale of a unit by a member or unit owner other than the developer, the board of directors or managers shall make available for inspection to the prospective purchaser, among other things, a copy of the most recent independent professional reserve study obtained by the association for the property or a statement that the association has not obtained such a study within the last 7 years.
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| | A BILL FOR |
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| 1 | | AN ACT concerning civil law.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Common Interest Community Association Act is | 5 | | amended by changing Section 1-35 as follows: | 6 | | (765 ILCS 160/1-35) | 7 | | Sec. 1-35. Member powers, duties, and obligations. | 8 | | (a) The provisions of this Act, the declaration, bylaws, | 9 | | other community instruments, and rules and regulations that | 10 | | relate to the use of an individual unit or the common areas | 11 | | shall be applicable to any person leasing a unit and shall be | 12 | | deemed to be incorporated in any lease executed or renewed on | 13 | | or after the effective date of this Act. Unless otherwise | 14 | | provided in the community instruments, with regard to any lease | 15 | | entered into subsequent to the effective date of this Act, the | 16 | | unit owner leasing the unit shall deliver a copy of the signed | 17 | | lease to the association or if the lease is oral, a memorandum | 18 | | of the lease, not later than the date of occupancy or 10 days | 19 | | after the lease is signed, whichever occurs first. | 20 | | (b) If there are multiple owners of a single unit, only one | 21 | | of the multiple owners shall be eligible to serve as a member | 22 | | of the board at any one time, unless the unit owner owns | 23 | | another unit independently. |
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| 1 | | (c) Two-thirds of the membership may remove a board member | 2 | | as a director at a duly called special meeting. | 3 | | (d) In the event of any resale of a unit in a common | 4 | | interest community association by a member or unit owner other | 5 | | than the developer, the board shall make available for | 6 | | inspection to the prospective purchaser, upon demand, the | 7 | | following:
| 8 | | (1) A copy of the declaration, other instruments, and | 9 | | any rules and regulations.
| 10 | | (2) A statement of any liens, including a statement of | 11 | | the account of the unit setting forth the amounts of unpaid | 12 | | assessments and other charges due and owing.
| 13 | | (3) A statement of any capital expenditures | 14 | | anticipated by the association within the current or | 15 | | succeeding 2 fiscal years.
| 16 | | (4) A statement of the status and amount of any reserve | 17 | | or replacement fund and any other fund specifically | 18 | | designated for association projects , and a copy of the most | 19 | | recent independent professional reserve study, if any, | 20 | | obtained by the association for the property or a statement | 21 | | that the association has not obtained such a study within | 22 | | the last 7 years .
| 23 | | (5) A copy of the statement of financial condition of | 24 | | the association for the last fiscal year for which such a | 25 | | statement is available.
| 26 | | (6) A statement of the status of any pending suits or |
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| 1 | | judgments in which the association is a party.
| 2 | | (7) A statement setting forth what insurance coverage | 3 | | is provided for all members or unit owners by the | 4 | | association for common properties.
| 5 | | The principal officer of the board or such other officer as | 6 | | is specifically designated shall furnish the above information | 7 | | within 30 days after receiving a written request for such | 8 | | information. | 9 | | A reasonable fee covering the direct out-of-pocket cost of | 10 | | copying and providing such information may be charged by the | 11 | | association or the board to the unit seller for providing the | 12 | | information.
| 13 | | (Source: P.A. 97-605, eff. 8-26-11; 97-1090, eff. 8-24-12; | 14 | | 98-842, eff. 1-1-15 .) | 15 | | Section 10. The Condominium Property Act is amended by | 16 | | changing Sections 18.5 and 22.1 as follows:
| 17 | | (765 ILCS 605/18.5) (from Ch. 30, par. 318.5)
| 18 | | Sec. 18.5. Master Associations.
| 19 | | (a) If the declaration, other condominium instrument, or | 20 | | other duly
recorded covenants provide that any of the powers of | 21 | | the unit owners
associations are to be exercised by or may be | 22 | | delegated to a nonprofit
corporation or unincorporated | 23 | | association that exercises
those or other powers on behalf of | 24 | | one or more condominiums, or for the
benefit of the unit owners |
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| 1 | | of one or more condominiums, such
corporation or association | 2 | | shall be a master association.
| 3 | | (b) There shall be included in the declaration, other
| 4 | | condominium instruments, or other duly recorded covenants | 5 | | establishing
the powers and duties of the master association | 6 | | the provisions set forth in
subsections (c) through (h).
| 7 | | In interpreting subsections (c) through (h), the courts | 8 | | should
interpret these provisions so that they are interpreted | 9 | | consistently with
the similar parallel provisions found in | 10 | | other parts of this Act.
| 11 | | (c) Meetings and finances.
| 12 | | (1) Each unit owner of a condominium subject to the | 13 | | authority of
the board of the master association shall | 14 | | receive, at least 30 days prior
to the adoption thereof by | 15 | | the board of the master association, a copy of
the proposed | 16 | | annual budget.
| 17 | | (2) The board of the master association shall annually | 18 | | supply to
all unit owners of condominiums subject to the | 19 | | authority of the board
of the master association an | 20 | | itemized accounting of the common
expenses for the | 21 | | preceding year actually incurred or paid, together with a
| 22 | | tabulation of the amounts collected pursuant to the budget | 23 | | or assessment,
and showing the net excess or deficit of | 24 | | income over expenditures plus
reserves.
| 25 | | (3) Each unit owner of a condominium subject to the | 26 | | authority of
the board of the master association shall |
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| 1 | | receive written notice mailed
or delivered no less than 10 | 2 | | and no more than 30 days prior to any meeting
of the board | 3 | | of the master association concerning the adoption of the | 4 | | proposed
annual budget or any increase in the budget, or | 5 | | establishment of an
assessment.
| 6 | | (4) Meetings of the board of the master association | 7 | | shall be open
to any unit owner in a condominium subject to | 8 | | the authority of the board
of the master association, | 9 | | except for the portion of any meeting held:
| 10 | | (A) to discuss litigation when an action against or | 11 | | on behalf of the
particular master association has been | 12 | | filed and is pending in a court or
administrative | 13 | | tribunal, or when the board of the master association | 14 | | finds
that such an action is probable or imminent,
| 15 | | (B) to consider information regarding appointment, | 16 | | employment or
dismissal of an employee, or
| 17 | | (C) to discuss violations of rules and regulations | 18 | | of the master
association or unpaid common expenses | 19 | | owed to the master association.
| 20 | | Any vote on these matters shall be taken at a meeting or | 21 | | portion thereof
open to any unit owner of a condominium | 22 | | subject to the authority of the
master association.
| 23 | | Any unit owner may record the proceedings at meetings | 24 | | required
to be open by this Act by tape, film or other | 25 | | means; the board may
prescribe reasonable rules and | 26 | | regulations to govern the right to make such
recordings. |
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| 1 | | Notice of meetings shall be mailed or delivered at least 48
| 2 | | hours prior thereto, unless a written waiver of such notice | 3 | | is signed by
the persons entitled to notice before the | 4 | | meeting is convened. Copies of
notices of meetings of the | 5 | | board of the master association shall be posted
in | 6 | | entranceways, elevators, or other conspicuous places in | 7 | | the condominium
at least 48 hours prior to the meeting of | 8 | | the board of the master
association. Where there is no | 9 | | common entranceway for 7 or more units, the
board of the | 10 | | master association may designate one or more locations in | 11 | | the
proximity of these units where the notices of meetings | 12 | | shall be posted.
| 13 | | (5) If the declaration provides for election by unit | 14 | | owners of members
of the board of directors in the event of | 15 | | a resale of a unit in the master
association, the purchaser | 16 | | of a unit from a seller other than the developer
pursuant | 17 | | to an installment sales contract for purchase shall, during | 18 | | such
times as he or she resides in the unit, be counted | 19 | | toward a quorum for
purposes of election of members of the | 20 | | board of directors at any
meeting of the unit owners called | 21 | | for purposes of electing members of the
board, and shall | 22 | | have the right to vote for the election of members of
the | 23 | | board of directors and to be elected to and serve on the | 24 | | board of
directors unless the seller expressly retains in | 25 | | writing
any or all of those rights. In no event may the | 26 | | seller and
purchaser both be counted toward a quorum, be |
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| 1 | | permitted to vote for a
particular office, or be elected | 2 | | and serve on the board. Satisfactory
evidence of the | 3 | | installment sales contract shall be made available to the
| 4 | | association or its agents. For purposes of this subsection, | 5 | | "installment sales
contract" shall have the same meaning as | 6 | | set forth in Section 5 of the Installment Sales Contract | 7 | | Act and subsection (e) of
Section 1 of the Dwelling Unit | 8 | | Installment Contract Act.
| 9 | | (6) The board of the master association shall have the | 10 | | authority to
establish and maintain a system of master | 11 | | metering of public utility
services and to collect payments | 12 | | in connection therewith, subject to the
requirements of the | 13 | | Tenant Utility Payment Disclosure Act.
| 14 | | (7) The board of the master association or a common | 15 | | interest community
association shall have the power, after | 16 | | notice and an opportunity to be heard,
to levy and collect | 17 | | reasonable fines from members for violations of the
| 18 | | declaration, bylaws, and rules and regulations of the | 19 | | master association or
the common interest community | 20 | | association. Nothing contained in this
subdivision (7) | 21 | | shall give rise to a statutory lien for unpaid fines.
| 22 | | (8) Other than attorney's fees, no fees pertaining to | 23 | | the collection of a unit owner's financial obligation to | 24 | | the Association, including fees charged by a manager or | 25 | | managing agent, shall be added to and deemed a part of an | 26 | | owner's respective share of the common expenses unless: (i) |
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| 1 | | the managing agent fees relate to the costs to collect | 2 | | common expenses for the Association; (ii) the fees are set | 3 | | forth in a contract between the managing agent and the | 4 | | Association; and (iii) the authority to add the management | 5 | | fees to an owner's respective share of the common expenses | 6 | | is specifically stated in the declaration or bylaws of the | 7 | | Association. | 8 | | (d) Records.
| 9 | | (1) The board of the master association shall maintain | 10 | | the following
records of the association and make them | 11 | | available for examination and
copying at convenient hours | 12 | | of weekdays by any unit owners in a condominium
subject to | 13 | | the authority of the board or their mortgagees and their | 14 | | duly
authorized agents or attorneys:
| 15 | | (i) Copies of the recorded declaration, other | 16 | | condominium instruments,
other duly recorded covenants | 17 | | and bylaws and any amendments, articles of
| 18 | | incorporation of the master association, annual | 19 | | reports and any rules and
regulations adopted by the | 20 | | master association or its board shall
be available. | 21 | | Prior to the organization of the master association, | 22 | | the
developer shall maintain and make available the | 23 | | records set forth in this
subdivision (d)(1) for | 24 | | examination and copying.
| 25 | | (ii) Detailed and accurate records in | 26 | | chronological order of the
receipts and expenditures |
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| 1 | | affecting the common areas, specifying and
itemizing | 2 | | the maintenance and repair expenses of the common areas | 3 | | and any
other expenses incurred, and copies of all | 4 | | contracts, leases, or other
agreements entered into by | 5 | | the master association, shall be maintained.
| 6 | | (iii) The minutes of all meetings of the master | 7 | | association and the
board of the master association | 8 | | shall be maintained for not less than 7 years.
| 9 | | (iv) Ballots and proxies related thereto, if any, | 10 | | for any election
held for the board of the master | 11 | | association and for any other matters
voted on by the | 12 | | unit owners shall be maintained for
not less than one | 13 | | year.
| 14 | | (v) Such other records of the master association as | 15 | | are available
for inspection by members of a | 16 | | not-for-profit corporation pursuant to
Section 107.75 | 17 | | of the General Not For Profit Corporation Act of 1986 | 18 | | shall
be maintained.
| 19 | | (vi) With respect to units owned by a land trust, | 20 | | if a trustee
designates in writing a person to cast | 21 | | votes on behalf of the unit
owner, the designation | 22 | | shall remain in effect until a subsequent document
is | 23 | | filed with the association.
| 24 | | (2) Where a request for records under this subsection | 25 | | is made in writing
to the board of managers or its agent, | 26 | | failure to provide the requested
record or to respond |
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| 1 | | within 30 days shall be deemed a denial by the board
of | 2 | | directors.
| 3 | | (3) A reasonable fee may be charged by the master | 4 | | association or its
board for the cost of copying.
| 5 | | (4) If the board of directors fails to provide records | 6 | | properly
requested under subdivision (d)(1) within the
| 7 | | time period provided in subdivision (d)(2), the
unit owner | 8 | | may seek appropriate relief, including an award of
| 9 | | attorney's fees and costs.
| 10 | | (e) The board of directors shall have standing and capacity | 11 | | to act in
a representative capacity in relation to matters | 12 | | involving the common areas
of the master association or more | 13 | | than one unit, on behalf of the unit
owners as their interests | 14 | | may appear.
| 15 | | (f) Administration of property prior to election of the | 16 | | initial board
of directors.
| 17 | | (1) Until the election, by the unit owners or the | 18 | | boards of
managers of the underlying condominium | 19 | | associations, of the initial board
of directors of a master | 20 | | association whose declaration is recorded on
or after | 21 | | August 10, 1990, the same rights, titles, powers, | 22 | | privileges,
trusts, duties and obligations that are vested | 23 | | in or imposed upon the board
of directors by this Act or in | 24 | | the declaration or other duly recorded
covenant shall be | 25 | | held and performed by the developer.
| 26 | | (2) The election 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, by
the unit owners or the boards of | 3 | | managers of the underlying condominium
associations, shall | 4 | | be held not later than 60 days after the conveyance by
the | 5 | | developer of 75% of the units, or 3 years after the | 6 | | recording of the
declaration, whichever is earlier. The | 7 | | developer shall give at least 21
days notice of the meeting | 8 | | to elect the initial board of directors and
shall upon | 9 | | request provide to any unit owner, within 3 working days of | 10 | | the
request, the names, addresses, and weighted vote of | 11 | | each unit owner entitled to vote at the
meeting. Any unit | 12 | | owner shall upon receipt of the request be provided with
| 13 | | the same
information, within 10 days of the request, with | 14 | | respect to
each
subsequent meeting to elect members of the | 15 | | board of directors.
| 16 | | (3) If the initial board of directors of a master | 17 | | association
whose declaration is recorded on or after | 18 | | August 10, 1990 is not elected by
the unit owners or the | 19 | | members of the underlying condominium association
board of | 20 | | managers at the time established in subdivision (f)(2), the
| 21 | | developer shall continue in office for a period of 30 days, | 22 | | whereupon
written notice of his resignation shall be sent | 23 | | to all of the unit owners
or members of the underlying | 24 | | condominium board of managers entitled to vote
at an | 25 | | election for members of the board of directors.
| 26 | | (4) Within 60 days following the election of a majority |
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| 1 | | of the board
of directors, other than the developer, by | 2 | | unit owners, the developer shall
deliver to the board of | 3 | | directors:
| 4 | | (i) All original documents as recorded or filed | 5 | | pertaining to the
property, its administration, and | 6 | | the association, such as the declaration,
articles of | 7 | | incorporation, other instruments, annual reports, | 8 | | minutes,
rules and regulations, and contracts, leases, | 9 | | or other
agreements entered into by the association. If | 10 | | any original documents are
unavailable, a copy may be | 11 | | provided if certified by affidavit of the
developer, or | 12 | | an officer or agent of the developer, as being a | 13 | | complete
copy of the actual document recorded or filed.
| 14 | | (ii) A detailed accounting by the developer, | 15 | | setting forth the
source and nature of receipts and | 16 | | expenditures in connection with the
management, | 17 | | maintenance and operation of the property, copies
of | 18 | | all insurance policies, and a list of any loans or | 19 | | advances to the
association which are outstanding.
| 20 | | (iii) Association funds, which shall have been at | 21 | | all times
segregated from any other moneys of the | 22 | | developer.
| 23 | | (iv) A schedule of all real or personal property, | 24 | | equipment and
fixtures belonging to the association, | 25 | | including documents transferring the
property, | 26 | | warranties, if any, for all real and personal property |
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| 1 | | and
equipment, deeds, title insurance policies, and | 2 | | all tax bills.
| 3 | | (v) A list of all litigation, administrative | 4 | | action and arbitrations
involving the association, any | 5 | | notices of governmental bodies involving
actions taken | 6 | | or which may be taken concerning the association, | 7 | | engineering and
architectural drawings and | 8 | | specifications as approved by any governmental
| 9 | | authority, all other documents filed with any other | 10 | | governmental authority,
all governmental certificates, | 11 | | correspondence involving enforcement of any
| 12 | | association requirements, copies of any documents | 13 | | relating to disputes
involving unit owners, and | 14 | | originals of all documents relating to
everything | 15 | | listed in this subparagraph.
| 16 | | (vi) If the developer fails to fully comply with | 17 | | this paragraph (4)
within
the 60 days
provided and | 18 | | fails to fully comply within 10 days of written demand | 19 | | mailed by
registered
or certified mail to his or her | 20 | | last known address, the board may bring an
action to
| 21 | | compel compliance with this paragraph (4).
If the court | 22 | | finds that any of the
required
deliveries were not made | 23 | | within the required period, the board shall be
entitled | 24 | | to recover
its reasonable attorneys' fees and costs | 25 | | incurred from and after the date of
expiration of
the | 26 | | 10 day demand.
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| 1 | | (5) With respect to any master association whose | 2 | | declaration is
recorded on or after August 10, 1990, any | 3 | | contract, lease, or other
agreement made prior to the | 4 | | election of a majority of the board of
directors other than | 5 | | the developer by or on behalf of unit owners or
underlying | 6 | | condominium associations, the association or the board of
| 7 | | directors, which extends for a period of more than 2 years | 8 | | from the
recording of the declaration, shall be subject to | 9 | | cancellation by more than
1/2 of the votes of the unit | 10 | | owners, other than the developer, cast at a
special meeting | 11 | | of members called for that purpose during a period of 90
| 12 | | days prior to the expiration of the 2 year period if the | 13 | | board of managers
is elected by the unit owners, otherwise | 14 | | by more than 1/2 of the underlying
condominium board of | 15 | | managers. At least 60 days prior to the expiration of
the 2 | 16 | | year period, the board of directors, or, if the board is | 17 | | still under
developer control, then the board of managers | 18 | | or the developer shall send
notice to every unit owner or | 19 | | underlying condominium board of managers,
notifying them | 20 | | of this provision, of what contracts, leases and other
| 21 | | agreements are affected, and of the procedure for calling a | 22 | | meeting of the
unit owners or for action by the underlying | 23 | | condominium board of managers
for the purpose of acting to | 24 | | terminate such contracts, leases or other
agreements. | 25 | | During the 90 day period the other party to the contract,
| 26 | | lease, or other agreement shall also have the right of |
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| 1 | | cancellation.
| 2 | | (6) The statute of limitations for any actions in law | 3 | | or equity which
the master association may bring shall not | 4 | | begin to run until the unit
owners or underlying | 5 | | condominium board of managers have elected a majority
of | 6 | | the members of the board of directors.
| 7 | | (g) In the event of any resale of a unit in a master | 8 | | association by a unit
owner other than the developer, the owner | 9 | | shall obtain from
the board of directors and shall make | 10 | | available for inspection to the
prospective purchaser, upon | 11 | | demand, the following:
| 12 | | (1) A copy of the declaration, other instruments and | 13 | | any rules and
regulations.
| 14 | | (2) A statement of any liens, including a statement of | 15 | | the account of
the unit setting forth the amounts of unpaid | 16 | | assessments and other charges
due and owing.
| 17 | | (3) A statement of any capital expenditures | 18 | | anticipated by the
association within the current or | 19 | | succeeding 2 fiscal years.
| 20 | | (4) A statement of the status and amount of any reserve | 21 | | for
replacement fund and any portion of such fund earmarked | 22 | | for any specified
project by the board of directors , and a | 23 | | copy of the most recent independent professional reserve | 24 | | study, if any, obtained by the association for the property | 25 | | or a statement that the association has not obtained such a | 26 | | study within the last 7 years .
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| 1 | | (5) A copy of the statement of financial condition of | 2 | | the association
for the last fiscal year for which such a | 3 | | statement is available.
| 4 | | (6) A statement of the status of any pending suits or | 5 | | judgments in which
the association is a party.
| 6 | | (7) A statement setting forth what insurance coverage | 7 | | is provided for
all unit owners by the association.
| 8 | | (8) A statement that any improvements or alterations | 9 | | made to the unit,
or any part of the common areas assigned | 10 | | thereto, by the prior unit owner
are in good faith believed | 11 | | to be in compliance with the declaration of the
master | 12 | | association.
| 13 | | The principal officer of the unit owner's association or | 14 | | such
other officer as is specifically designated shall furnish | 15 | | the above
information when requested to do so in writing, | 16 | | within
30 days of receiving the request.
| 17 | | A reasonable fee covering the direct out-of-pocket cost of | 18 | | copying
and providing such information may be charged
by the | 19 | | association or its board of directors to the unit
seller for | 20 | | providing the information.
| 21 | | (g-1) The purchaser of a unit of a common interest | 22 | | community at a judicial foreclosure sale, other than a | 23 | | mortgagee, who takes possession of a unit of a common interest | 24 | | community pursuant to a court order or a purchaser who acquires | 25 | | title from a mortgagee shall have the duty to pay the | 26 | | proportionate share, if any, of the common expenses for the |
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| 1 | | unit that would have become due in the absence of any | 2 | | assessment acceleration during the 6 months immediately | 3 | | preceding institution of an action to enforce the collection of | 4 | | assessments and the court costs incurred by the association in | 5 | | an action to enforce the collection that remain unpaid by the | 6 | | owner during whose possession the assessments accrued. If the | 7 | | outstanding assessments and the court costs incurred by the | 8 | | association in an action to enforce the collection are paid at | 9 | | any time during any action to enforce the collection of | 10 | | assessments, the purchaser shall have no obligation to pay any | 11 | | assessments that accrued before he or she acquired title. The | 12 | | notice of sale of a unit of a common interest community under | 13 | | subsection (c) of Section 15-1507 of the Code of Civil | 14 | | Procedure shall state that the purchaser of the unit other than | 15 | | a mortgagee shall pay the assessments and court costs required | 16 | | 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).
| 3 | | (Source: P.A. 100-416, eff. 1-1-18 .)
| 4 | | (765 ILCS 605/22.1) (from Ch. 30, par. 322.1)
| 5 | | Sec. 22.1.
(a) In the event of any resale of a condominium | 6 | | unit by a
unit owner other than the developer such owner shall | 7 | | obtain from the Board
of Managers and shall make available for | 8 | | inspection to the prospective
purchaser, upon demand, the | 9 | | following:
| 10 | | (1) A copy of the Declaration, by-laws, other | 11 | | condominium
instruments and any rules and regulations.
| 12 | | (2) A statement of any liens, including a statement of
| 13 | | the account of the unit setting forth the amounts of unpaid | 14 | | assessments and
other charges due and owing as authorized | 15 | | and limited by the provisions
of Section 9 of this Act or | 16 | | the condominium instruments.
| 17 | | (3) A statement of any capital expenditures | 18 | | anticipated by the unit
owner's association within the | 19 | | current or succeeding two fiscal years.
| 20 | | (4) A statement of the status and amount of any reserve
| 21 | | for replacement fund and any portion of such fund earmarked | 22 | | for any
specified project by the Board of Managers , and a | 23 | | copy of the most recent independent professional reserve | 24 | | study, if any, obtained by the association for the property | 25 | | or a statement that the association has not obtained such a |
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| 1 | | study within the last 7 years .
| 2 | | (5) A copy of the statement of financial condition of | 3 | | the unit owner's
association for the last fiscal year for | 4 | | which such statement is available.
| 5 | | (6) A statement of the status of any pending suits or
| 6 | | judgments in which the unit owner's association is a party.
| 7 | | (7) A statement setting forth what insurance coverage | 8 | | is
provided for all unit owners by the unit owner's | 9 | | association.
| 10 | | (8) A statement that any improvements or alterations | 11 | | made
to the unit, or the limited common elements assigned | 12 | | thereto, by the prior
unit owner are in good faith believed | 13 | | to be in compliance with the
condominium instruments.
| 14 | | (9) The identity and mailing address of the principal | 15 | | officer of the
unit owner's association or of the other | 16 | | officer or agent as is
specifically designated to receive | 17 | | notices.
| 18 | | (b) The principal officer of the unit owner's association | 19 | | or such other
officer as is specifically designated shall | 20 | | furnish the above information
when requested to do so in | 21 | | writing and within 30 days of the request.
| 22 | | (c) Within 15 days of the recording of a mortgage or trust | 23 | | deed
against a unit ownership given by the owner of that unit | 24 | | to secure a debt,
the owner shall inform the Board of Managers | 25 | | of the unit owner's
association of the identity of the lender | 26 | | together with a mailing address
at which the lender can receive |
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| 1 | | notices from the association.
If a unit owner fails or refuses | 2 | | to inform the Board as required under
subsection (c) then that | 3 | | unit owner shall be liable to the association for
all costs, | 4 | | expenses and reasonable attorneys fees and such other damages,
| 5 | | if any, incurred by the association as a result of such failure | 6 | | or refusal.
| 7 | | A reasonable fee covering the direct out-of-pocket cost of | 8 | | providing
such information and copying may be charged by the | 9 | | association or its Board
of Managers to the unit seller for | 10 | | providing such information.
| 11 | | (Source: P.A. 87-692.)
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