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Public Act 102-0162
Public Act 0162 102ND GENERAL ASSEMBLY
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Public Act 102-0162
| | SB0636 Enrolled | LRB102 11509 LNS 16843 b |
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| AN ACT concerning civil law.
| Be it enacted by the People of the State of Illinois,
| represented in the General Assembly:
| Section 5. The Condominium Property Act is amended by | changing Section 18 as follows:
| (765 ILCS 605/18) (from Ch. 30, par. 318)
| Sec. 18. Contents of bylaws. The bylaws shall provide for | at least
the following:
| (a)(1) The election from among the unit owners of a | board of managers, the number of persons constituting such | board, and that the terms of at
least one-third of the | members of the board shall expire annually and that
all | members of the board shall be elected at large; if there | are multiple owners of a single unit, only one of the | multiple
owners shall be eligible to serve as a member of | the board at any one time. A declaration first submitting | property to the provisions of this Act, in accordance with | Section 3 after the effective date of this amendatory Act | of the 102nd General Assembly, or an amendment to the | condominium instruments adopted in accordance with Section | 27 after the effective date of this amendatory Act of the | 102nd General Assembly, may provide that a majority of the | board of managers, or such lesser number as may be |
| specified in the declaration, must be comprised of unit | owners occupying their unit as their primary residence; | provided that the condominium instruments may not require | that more than a majority of the board shall be comprised | of unit owners who occupy their unit as their principal | residence;
| (2) the powers and duties of the board;
| (3) the compensation, if any, of the members of the | board;
| (4) the method of removal from office of members of | the board;
| (5) that the board may engage the services of a | manager or managing agent;
| (6) that each unit owner shall receive, at least 25 | days prior to the
adoption thereof by the board of | managers, a copy of the proposed annual
budget together | with an indication of which portions are intended for
| reserves, capital expenditures or repairs or payment of | real estate taxes;
| (7) that the board of managers shall annually supply | to
all unit owners an itemized accounting of the common | expenses
for the preceding year actually incurred or paid, | together
with an indication of which portions were for | reserves, capital
expenditures or repairs or payment of | real estate taxes and
with a tabulation of the amounts | collected pursuant to the
budget or assessment, and |
| showing the net excess or
deficit of income over | expenditures plus reserves;
| (8)(i) that each unit owner shall receive notice, in | the same manner
as is provided in this Act for membership | meetings, of any meeting of the
board of managers | concerning the adoption of the proposed annual budget and
| regular assessments pursuant thereto or to adopt a | separate (special)
assessment, (ii) that except as | provided in subsection (iv) below, if an
adopted
budget or | any separate assessment adopted by the board would result | in the
sum of all regular and separate assessments payable | in the current fiscal year
exceeding 115% of the sum of all | regular and separate
assessments payable during the
| preceding fiscal year, the
board of managers, upon written | petition by unit owners with 20 percent of
the votes of the | association delivered to the board within 21
days of the | board action,
shall call a meeting of the unit owners | within 30 days of the date of
delivery of the petition to | consider the budget or separate
assessment; unless a
| majority of
the total votes of the unit owners are cast at | the meeting to reject the
budget or separate assessment,
| it is ratified, (iii) that any common expense not set | forth in the budget or
any increase in assessments over | the amount adopted in the budget shall be
separately | assessed against all unit owners, (iv) that separate | assessments for
expenditures relating to emergencies or |
| mandated by law may be adopted by the
board of managers | without being subject to unit owner approval or the
| provisions of item (ii) above or item (v) below. As used
| herein, "emergency" means an immediate danger to the | structural integrity of
the
common elements or to the | life, health, safety or property of the unit owners,
(v) | that assessments
for additions and alterations to the | common elements or to association-owned
property not | included in the adopted annual budget, shall be separately
| assessed and are subject to approval of two-thirds of the | total votes of all
unit owners, (vi) that the board of | managers may adopt separate assessments
payable over more | than one fiscal year. With respect to multi-year | assessments
not governed by items (iv) and (v), the entire | amount of the multi-year
assessment shall be deemed | considered and authorized in the first fiscal year
in | which the assessment is approved;
| (9)(A) that every meeting of the board of managers | shall be open to any unit
owner, except that the board may | close any portion of a noticed meeting or meet separately | from a noticed meeting to: (i) discuss litigation
when an | action against or on behalf of the particular association | has been
filed and is pending in a court or administrative | tribunal,
or when the board of managers finds that such an | action is probable
or imminent, (ii) discuss the | appointment, employment, engagement,
or dismissal of an |
| employee, independent contractor, agent, or other provider | of goods and services, (iii) interview a potential | employee, independent contractor, agent, or other provider | of goods and services, (iv) discuss violations of rules | and
regulations of the association, (v) discuss a unit | owner's unpaid share of common
expenses, or (vi) consult | with the association's legal counsel; that any vote on | these matters shall take place at a meeting of the board of | managers or
portion thereof open to any unit owner; | (B) that board members may participate in and act at | any meeting of the board of managers in person, by | telephonic means, or by use of any acceptable | technological means whereby all persons participating in | the meeting can communicate with each other; that | participation constitutes attendance and presence in | person at the meeting; | (C) that any unit owner may record the
proceedings at | meetings of the board of managers or portions thereof | required to be open by this
Act by tape, film or other | means, and that the board may prescribe reasonable
rules | and regulations to govern the right to make such | recordings; | (D) that
notice of every meeting of the board of | managers shall be given to every board member at least 48 | hours
prior thereto, unless the board member waives notice | of the meeting pursuant to subsection (a) of Section 18.8; |
| and | (E) that notice of every meeting
of the board of | managers shall be posted in entranceways,
elevators, or | other conspicuous places in the condominium at least 48 | hours
prior to the meeting of the board of managers except | where there is no
common entranceway for 7 or more units, | the board of managers may designate
one or more locations | in the proximity of these units where the notices of
| meetings shall be posted; that notice of every meeting of | the board of managers shall also be given at least 48 hours | prior to the meeting, or such longer notice as this Act may | separately require, to: (i) each unit owner who has | provided the association with written authorization to | conduct business by acceptable technological means, and | (ii) to the extent that the condominium instruments of an | association require, to each other unit owner, as required | by subsection (f) of Section 18.8, by mail or delivery, | and that no other notice of a meeting of the board of | managers need be given to any unit owner;
| (10) that the board shall meet at least 4 times | annually;
| (11) that no member of the board or officer shall be | elected for a term
of more than 2 years, but that officers | and board members may succeed
themselves;
| (12) the designation of an officer to mail and receive | all notices and
execute amendments to condominium |
| instruments as provided for in this Act
and in the | condominium instruments;
| (13) the method of filling vacancies on the board
| which shall include authority for the remaining members of | the board to
fill the vacancy by two-thirds vote until the | next annual meeting of unit
owners or for a period | terminating no later than 30 days following the
filing of | a petition signed by unit owners holding 20% of the votes | of the
association requesting a meeting of the unit owners | to fill the vacancy for
the balance of the term, and that a | meeting of the unit owners shall be
called for purposes of | filling a vacancy on the board no later than 30 days
| following the filing of a petition signed by unit owners | holding 20% of the
votes of the association requesting | such a meeting, and the method of filling
vacancies among | the officers that shall include the authority for the | members
of the board to fill the vacancy for the unexpired | portion of the term;
| (14) what percentage of the board of managers, if | other than a majority,
shall constitute a quorum;
| (15) provisions concerning notice of board meetings to | members of the
board;
| (16) the board of managers may not enter into a | contract with a
current board member
or with a corporation | or partnership in which a board
member or a member of the | board member's immediate family has 25% or
more interest, |
| unless notice of intent to enter the
contract is given to | unit owners within 20 days after a decision is made
to | enter into the contract and the unit owners are
afforded | an opportunity by filing a petition, signed by 20% of the | unit
owners, for an election to approve or disapprove the | contract;
such petition shall be filed within 30 days | after such notice and such
election shall be held within | 30 days after filing the petition; for purposes
of this | subsection, a board member's immediate family means the | board member's
spouse, parents, and children;
| (17) that the board of managers may disseminate
to | unit owners biographical and background information about | candidates for
election to the board if (i) reasonable | efforts to identify all candidates are
made and all | candidates are given an opportunity to include | biographical and
background information in the information | to be disseminated; and (ii) the
board does not express a | preference in favor of any candidate;
| (18) any proxy distributed for board elections
by the | board of managers gives unit owners the
opportunity to | designate any person as the proxy holder, and gives the | unit
owner the opportunity to express a preference for any | of the known
candidates for the board or to write in a | name;
| (19) that special meetings of the board of managers | can be called by
the president or 25% of the members of the |
| board;
| (20) that the board of managers may establish
and | maintain a system of master metering of public utility | services and
collect payments in connection therewith, | subject to the requirements of the
Tenant Utility Payment | Disclosure Act; and
| (21) that the board may ratify and confirm actions of | the
members of the board taken in response to an | emergency, as that
term is defined in subdivision | (a)(8)(iv) of this Section; that
the board shall give | notice to the unit owners of: (i) the
occurrence of the | emergency event within 7 business days after
the emergency | event, and (ii) the general description of the
actions | taken to address the event within 7 days after the
| emergency event. | The intent of the provisions of Public Act 99-472 | adding this paragraph (21) is to empower and support | boards to act in
emergencies. | (b)(1) What percentage of the unit owners, if other | than 20%, shall
constitute a quorum provided that, for | condominiums with 20 or more units,
the percentage of unit | owners constituting a quorum shall be 20% unless the
unit | owners holding a majority of the percentage interest in | the
association provide for a higher percentage, provided | that in voting on amendments to the association's bylaws, | a unit owner who is in arrears on the unit owner's regular |
| or separate assessments for 60 days or more, shall not be | counted for purposes of determining if a quorum is | present, but that unit owner retains the right to vote on | amendments to the association's bylaws;
| (2) that the association shall have one class of | membership;
| (3) that the members shall hold an annual meeting, one | of the purposes
of which shall be to elect members of the | board of managers;
| (4) the method of calling meetings of the unit owners;
| (5) that special meetings of the members can be called | by the president,
board of managers, or by 20% of unit | owners;
| (6) that written notice of any membership meeting | shall be mailed
or delivered giving members no less than | 10 and no more than 30 days
notice of the time, place and | purpose of such meeting except that notice may be sent, to | the extent the condominium instruments or rules adopted | thereunder expressly so provide, by electronic | transmission consented to by the unit owner to whom the | notice is given, provided the director and officer or his | agent certifies in writing to the delivery by electronic | transmission;
| (7) that voting shall be on a percentage basis, and | that the percentage
vote to which each unit is entitled is | the percentage interest of the
undivided ownership of the |
| common elements appurtenant thereto, provided
that the | bylaws may provide for approval by unit owners in | connection with
matters where the requisite approval on a | percentage basis is not specified
in this Act, on the | basis of one vote per unit;
| (8) that, where there is more than one owner of a unit, | if only one
of the multiple owners is present at a meeting | of the association, he is
entitled to cast all the votes | allocated to that unit, if more than one of
the multiple | owners are present, the votes allocated to that unit may | be
cast only in accordance with the agreement of a | majority in interest of the
multiple owners, unless the | declaration expressly provides otherwise, that
there is | majority agreement if any one of the multiple owners cast | the
votes allocated to that unit without protest being | made promptly to the
person presiding over the meeting by | any of the other owners of the unit;
| (9)(A) except as provided in subparagraph (B) of this | paragraph (9) in
connection with board elections, that
a | unit owner may vote by proxy executed in writing by the | unit
owner or by his duly authorized attorney in fact; | that the proxy must bear the date of
execution
and, unless | the condominium instruments or the written proxy itself | provide
otherwise, is
invalid after 11 months from the | date of its execution; to the extent the condominium | instruments or rules adopted thereunder expressly so |
| provide, a vote or proxy may be submitted by electronic | transmission, provided that any such electronic | transmission shall either set forth or be submitted with | information from which it can be determined that the | electronic transmission was authorized by the unit owner | or the unit owner's proxy;
| (B) that if a rule adopted at least 120 days before a | board election
or the
declaration or bylaws provide for | balloting as set forth in this subsection,
unit
owners may | not vote by proxy in board elections, but may vote only (i) | by
submitting an association-issued ballot in person at | the election meeting or
(ii) by
submitting an | association-issued ballot to the association or its | designated
agent
by mail or other means of delivery | specified in the declaration, bylaws, or
rule; that
the | ballots shall be mailed or otherwise distributed to unit | owners not less
than 10
and not more than 30 days before | the election meeting, and the board shall give
unit owners | not less than 21 days' prior written notice of the | deadline for
inclusion of a candidate's name on the | ballots; that the deadline shall be no
more
than 7 days | before the ballots are mailed or otherwise distributed to | unit
owners; that
every such ballot must include the names | of all candidates who have given the
board or its | authorized agent timely written notice of their candidacy | and must
give the person casting the ballot the |
| opportunity to cast votes for candidates
whose names do | not appear on the ballot; that a ballot received by the
| association
or
its designated agent after the close of | voting shall not be counted; that a
unit
owner
who submits | a ballot by mail or other means of delivery specified in | the
declaration, bylaws, or rule may request and cast a | ballot in person at the
election
meeting, and thereby void | any ballot previously submitted by that unit owner; | (B-5) that if a rule adopted at least 120 days before a | board election or the declaration or bylaws provide for | balloting as set forth in this subparagraph, unit owners | may not vote by proxy in board elections, but may vote only | (i) by submitting an association-issued ballot in person | at the election meeting; or (ii) by any acceptable | technological means as defined in Section 2 of this Act; | instructions regarding the use of electronic means for | voting shall be distributed to all unit owners not less | than 10 and not more than 30 days before the election | meeting, and the board shall give unit owners not less | than 21 days' prior written notice of the deadline for | inclusion of a candidate's name on the ballots; the | deadline shall be no more than 7 days before the | instructions for voting using electronic or acceptable | technological means is distributed to unit owners; every | instruction notice must include the names of all | candidates who have given the board or its authorized |
| agent timely written notice of their candidacy and must | give the person voting through electronic or acceptable | technological means the opportunity to cast votes for | candidates whose names do not appear on the ballot; a unit | owner who submits a vote using electronic or acceptable | technological means may request and cast a ballot in | person at the election meeting, thereby voiding any vote | previously submitted by that unit owner;
| (C) that if a written petition by unit owners with at | least 20% of the
votes of
the association is delivered to | the board within 30 days after the board's
approval
of a | rule adopted pursuant to subparagraph (B) or subparagraph | (B-5) of this paragraph (9), the board
shall call a | meeting of the unit owners within 30 days after the date of
| delivery of
the petition; that unless a majority of the | total votes of the unit owners are
cast
at the
meeting to | reject the rule, the rule is ratified;
| (D) that votes cast by ballot under subparagraph (B) | or electronic or acceptable technological means under | subparagraph (B-5) of this paragraph (9) are valid for the | purpose of establishing a quorum; | (10) that the association may, upon adoption of the | appropriate rules by
the board of managers, conduct | elections by secret ballot whereby the voting
ballot is | marked only with the percentage interest for the unit and | the vote
itself, provided that the board further adopt |
| rules to verify the status of the
unit owner issuing a | proxy or casting a ballot; and further, that a candidate
| for election to the board of managers or such
candidate's | representative shall have the right to be present at the
| counting of ballots at such election;
| (11) that in the event of a resale of a condominium | unit the purchaser
of a unit from a seller other than the | developer pursuant to an installment sales
contract for | purchase shall during such times as he or she resides in | the
unit be counted toward a quorum for purposes of | election of members of the
board of managers at any | meeting of the unit owners called for purposes of
electing | members of the board, shall have the right to vote for the
| election of members of the board of managers and to be | elected to and serve
on the board of managers unless the | seller expressly retains in writing any
or all of such | rights. In no event may the seller and purchaser both be
| counted toward a quorum, be permitted to vote for a | particular office or be
elected and serve on the board. | Satisfactory evidence of the installment sales contract
| shall be made available to the association or its agents. | For
purposes of this subsection, "installment sales | contract" shall have the same
meaning as set forth in | Section 5 of the Installment Sales Contract Act and | Section 1(e) of the Dwelling Unit Installment Contract | Act;
|
| (12) the method by which matters subject to the | approval of unit owners
set forth in this Act, or in the | condominium instruments, will be
submitted to the unit | owners at special membership meetings called for such
| purposes; and
| (13) that matters subject to the affirmative vote of | not less than 2/3
of the votes of unit owners at a meeting | duly called for that purpose,
shall include, but not be | limited to:
| (i) merger or consolidation of the association;
| (ii) sale, lease, exchange, or other disposition | (excluding the mortgage
or pledge) of all, or | substantially all of the property and assets of the
| association; and
| (iii) the purchase or sale of land or of units on | behalf of all unit owners.
| (c) Election of a president from among the board of | managers, who shall
preside over the meetings of the board | of managers and of the unit owners.
| (d) Election of a secretary from among the board of | managers, who shall
keep the minutes of all meetings
of | the board of managers and of the unit owners and who shall, | in general,
perform all the duties incident to the office | of secretary.
| (e) Election of a treasurer from among the board of | managers, who shall
keep the financial records and
books |
| of account.
| (f) Maintenance, repair and replacement of the common | elements and
payments therefor, including the method of | approving payment vouchers.
| (g) An association with 30 or more units shall obtain | and maintain
fidelity insurance covering persons who | control or disburse funds of the
association for the | maximum amount of coverage available to protect funds
in | the custody or control of the association plus the | association reserve
fund. All management companies which | are responsible for the funds held or
administered by the | association shall maintain and furnish to the
association | a fidelity bond for the maximum amount of coverage | available to
protect funds in the custody of the | management company at any time. The
association shall bear | the cost of the fidelity insurance and fidelity
bond, | unless otherwise provided by contract between the | association and a
management company. The association | shall be the direct obligee of any
such fidelity bond. A | management company holding reserve funds of an
association | shall at all times maintain a separate account for each
| association, provided, however, that for investment | purposes, the Board of
Managers of an association may | authorize a management company to maintain
the | association's reserve funds in a single interest bearing | account with
similar funds of other associations. The |
| management company shall at all
times maintain records | identifying all moneys of each association in such
| investment account. The management company may hold all | operating funds of
associations which it manages in a | single operating account but shall at
all times maintain | records identifying all moneys of each association in
such | operating account. Such operating and reserve funds held | by the
management company for the association shall not be | subject to attachment
by any creditor of the management | company.
| For the purpose of this subsection, a management | company shall be
defined as a person, partnership, | corporation, or other legal entity
entitled to transact | business on behalf of others, acting on behalf of or
as an | agent for a unit owner, unit owners or association of unit | owners for
the purpose of carrying out the duties, | responsibilities, and other
obligations necessary for the | day to day operation and management of any
property | subject to this Act. For purposes of this subsection, the | term
"fiduciary insurance coverage" shall be defined as | both a fidelity bond and
directors and officers liability | coverage, the fidelity bond in the full
amount of | association funds and association reserves that will be in | the
custody of the association, and the directors and | officers liability
coverage at a level as shall be | determined to be reasonable by the board of
managers, if |
| not otherwise established by the declaration or by laws.
| Until one year after September 21, 1985 (the effective | date of Public Act 84-722),
if a condominium association | has reserves plus assessments in excess of
$250,000 and | cannot reasonably obtain 100% fidelity bond coverage for | such
amount, then it must obtain a fidelity bond coverage | of $250,000.
| (h) Method of estimating the amount of the annual | budget, and the manner
of assessing and collecting from | the unit owners their respective shares of
such estimated | expenses, and of any other expenses lawfully agreed upon.
| (i) That upon 10 days notice to the manager or board of | managers and
payment of a reasonable fee, any unit owner | shall be furnished a statement
of his account setting | forth the amount of any unpaid assessments or other
| charges due and owing from such owner.
| (j) Designation and removal of personnel necessary for | the maintenance,
repair and replacement of the common | elements.
| (k) Such restrictions on and requirements respecting | the use and
maintenance of the units and the use of the | common elements, not set forth
in the declaration, as are | designed to prevent unreasonable interference
with the use | of their respective units and of the common elements by | the
several unit owners.
| (l) Method of adopting and of amending administrative |
| rules and
regulations governing the operation and use of | the common elements.
| (m) The percentage of votes required to modify or | amend the bylaws, but
each one of the particulars set | forth in this section shall always be
embodied in the | bylaws.
| (n)(i) The provisions of this Act, the declaration, | bylaws, other
condominium instruments, and rules and | regulations that relate to the use
of the individual unit | or the common elements shall be applicable to
any person | leasing a unit and shall be deemed to be incorporated in | any
lease executed or renewed on or after August 30, 1984 | (the effective date of Public Act 83-1271). | (ii) With regard to any lease entered into subsequent | to July 1, 1990 (the
effective date of Public Act 86-991), | the unit owner leasing the
unit shall deliver a copy of the | signed lease to the board or if the
lease is oral, a | memorandum of the lease, not later than the date of
| occupancy or 10 days after the lease is signed, whichever | occurs first. In
addition to any other remedies, by filing | an action jointly against the
tenant and the unit owner, | an association may seek to enjoin a tenant from
occupying | a unit or seek to evict a tenant under the provisions of | Article
IX of the Code of Civil Procedure for failure of | the lessor-owner to
comply with the leasing requirements | prescribed by
this Section or by the declaration, bylaws, |
| and
rules and regulations. The board of managers may | proceed directly against a
tenant, at law or in equity, or | under the provisions of Article IX of the
Code of Civil | Procedure, for any other breach by tenant of any
| covenants, rules, regulations or bylaws.
| (o) The association shall have no authority to forbear | the payment
of assessments by any unit owner.
| (p) That when 30% or fewer of the units, by number,
| possess over 50% in the aggregate of the votes in the | association,
any percentage vote of members specified | herein or in the condominium
instruments shall require the | specified percentage by number of units
rather than by | percentage of interest in the common elements allocated
to | units that would otherwise be applicable and garage units | or storage units, or both, shall have, in total, no more | votes than their aggregate percentage of ownership in the | common elements; this shall mean that if garage units or | storage units, or both, are to be given a vote, or portion | of a vote, that the association must add the total number | of votes cast of garage units, storage units, or both, and | divide the total by the number of garage units, storage | units, or both, and multiply by the aggregate percentage | of ownership of garage units and storage units to | determine the vote, or portion of a vote, that garage | units or storage units, or both, have. For purposes of | this subsection (p), when making a determination of |
| whether 30% or fewer of the units, by number, possess over | 50% in the aggregate of the votes in the association, a | unit shall not include a garage unit or a storage unit.
| (q) That a unit owner may not assign, delegate, | transfer, surrender, or
avoid the duties, | responsibilities, and liabilities of a unit owner under | this
Act, the condominium instruments, or the rules and | regulations of the
Association; and that such an attempted | assignment, delegation, transfer,
surrender, or avoidance | shall be deemed void.
| The provisions of this Section are applicable to all | condominium
instruments recorded under this Act. Any portion | of a condominium
instrument which contains provisions contrary | to these provisions shall be
void as against public policy and | ineffective. Any such instrument which
fails to contain the | provisions required by this Section shall be deemed to
| incorporate such provisions by operation of law.
| (Source: P.A. 99-472, eff. 6-1-16; 99-567, eff. 1-1-17; | 99-642, eff. 7-28-16; 100-292, eff. 1-1-18; 100-416, eff. | 1-1-18; 100-863, eff. 8-14-18.)
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Effective Date: 1/1/2022
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