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Public Act 096-0055
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| SB0154 Enrolled |
LRB096 03582 AJO 13608 b |
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AN ACT concerning civil law.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Condominium Property Act is amended by |
changing Section 18 as follows:
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(765 ILCS 605/18) (from Ch. 30, par. 318)
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Sec. 18. Contents of bylaws. The bylaws shall provide for |
at least
the following:
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(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.
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(2) the powers and duties of the board;
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(3) the compensation, if any, of the members of the |
board;
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(4) the method of removal from office of members of the |
board;
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(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
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reserves, capital expenditures or repairs or payment of |
real estate taxes;
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(7) that the board of managers shall annually supply to
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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;
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(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
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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 |
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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,
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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
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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 |
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amount of the multi-year
assessment shall be deemed |
considered and authorized in the first fiscal year
in which |
the assessment is approved;
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(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
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filed and is pending in a court or administrative tribunal,
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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
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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
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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 |
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of the board of managers shall be posted in entranceways,
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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;
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(10) that the board shall meet at least 4 times |
annually;
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(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;
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(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;
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(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
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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 |
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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;
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(14) what percentage of the board of managers, if other |
than a majority,
shall constitute a quorum;
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(15) provisions concerning notice of board meetings to |
members of the
board;
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(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
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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
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spouse, parents, and children;
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(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 |
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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;
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(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;
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(19) that special meetings of the board of managers can |
be called by
the president or 25% of the members of the |
board; and
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(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.
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(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
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association provide for a higher percentage, provided that |
in voting on amendments to the association's bylaws, a unit |
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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;
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(2) that the association shall have one class of |
membership;
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(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;
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(4) the method of calling meetings of the unit owners;
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(5) that special meetings of the members can be called |
by the president,
board of managers, or by 20% of unit |
owners;
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(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;
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(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
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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;
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(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
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execution
and, unless the condominium instruments or the |
written proxy itself provide
otherwise, is
invalid after 11 |
months from the date of its execution;
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(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 |
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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
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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
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meeting, and thereby void any ballot previously submitted |
by that unit owner;
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(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 |
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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;
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(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
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for election to the board of managers or such
candidate's |
representative shall have the right to be present at the
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counting of ballots at such election;
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(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 |
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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
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contracts to sell dwelling structures", approved August |
11, 1967, as amended;
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(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
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purposes; and
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(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:
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(i) merger or consolidation of the association;
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(ii) sale, lease, exchange, or other disposition |
(excluding the mortgage
or pledge) of all, or |
substantially all of the property and assets of the
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association; and
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(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.
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(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.
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(e) Election of a treasurer from among the board of |
managers, who shall
keep the financial records and
books of |
account.
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(f) Maintenance, repair and replacement of the common |
elements and
payments therefor, including the method of |
approving payment vouchers.
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(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
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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.
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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
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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 |
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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
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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.
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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.
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(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.
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(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.
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(j) Designation and removal of personnel necessary for the |
maintenance,
repair and replacement of the common elements.
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(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 |
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prevent unreasonable interference
with the use of their |
respective units and of the common elements by the
several unit |
owners.
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(l) Method of adopting and of amending administrative rules |
and
regulations governing the operation and use of the common |
elements.
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(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.
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(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 |
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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
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covenants, rules, regulations or bylaws.
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(o) The association shall have no authority to forbear the |
payment
of assessments by any unit owner.
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(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. 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.
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(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,
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surrender, or avoidance shall be deemed void.
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The provisions of this Section are applicable to all |