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Public Act 096-0977
Public Act 0977 96TH GENERAL ASSEMBLY
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Public Act 096-0977
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| HB6082 Enrolled |
LRB096 17441 AJO 32797 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.
| (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;
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| (6) that each unit owner shall receive, at least 30 | 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 14
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) that meetings of the board of managers shall be | open to any unit
owner, except for the portion of any | meeting held (i) to 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) to consider information | regarding appointment, employment
or dismissal of an | employee, or (iii) to discuss violations of rules and
| regulations of the association or a unit owner's unpaid | share of common
expenses; that any vote on these matters | shall be taken at a meeting or
portion thereof open to any | unit owner; that any unit owner may record the
proceedings | at meetings or portions thereof required to be open by this
| Act by tape, film or other means; that the board may | prescribe reasonable
rules and regulations to govern the | right to make such recordings, that
notice of such meetings | shall be mailed or delivered at least 48 hours
prior | thereto, unless a written waiver of such notice is signed | by the
person or persons entitled to such notice pursuant | to the declaration,
bylaws, other condominium instrument, | or provision of law other than this
subsection before the | meeting is convened, and that copies of notices of
meetings |
| 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;
| (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 20 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; and
| (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.
| (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;
| (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;
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| (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) that unless the Articles of Incorporation or the | bylaws
otherwise
provide, and except as provided in | subparagraph (B) of this paragraph (9) in
connection with | board elections,
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;
| (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;
| (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 14 days after the board's
approval
of a |
| rule adopted pursuant to subparagraph (B) 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;
| (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
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
contact shall be made available to the | association or its agents. For
purposes of this subsection, | "installment contact" shall have the same
meaning as set | forth in Section 1 (e) of "An Act relating to installment
| contracts to sell dwelling structures", approved August | 11, 1967, as amended;
| (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.
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| (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
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| 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 the effective date of this amendatory | Act of 1985,
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 the effective date of this | amendatory
Act of 1984. (ii) With regard to any lease entered | into subsequent to the
effective date of this amendatory Act of | 1989, 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. 95-624, eff. 6-1-08; 96-55, eff. 1-1-10.)
| Section 99. Effective date. This Act takes effect upon | becoming law.
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Effective Date: 7/2/2010
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