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applicable instruments or covenants. Mistakes and |
misunderstandings are inevitable and may lead to serious, |
costly, and divisive problems. This Act seeks to educate |
unit owners, condominium associations, common interest |
community associations, boards of managers, and boards of |
directors about the Condominium Property Act and the Common |
Interest Community Association Act. Effective education |
can prevent or reduce the severity of problems within a |
condominium or common interest community. |
(2) Anecdotal accounts of abuses within condominiums |
and common interest communities create continuing public |
demand for reform of condominium and common interest |
community property law. This results in frequent changes to |
the law, making it difficult to understand and apply, and |
imposes significant transitional costs on these |
communities statewide. By collecting empirical data on the |
nature and incidence of problems within these communities, |
this Act will provide a sound basis for prioritizing reform |
efforts, thereby increasing the stability of condominium |
and common interest community property law.
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Section 15. Definitions. As used in this Act:
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"Association" means a condominium association or common |
interest community association as defined in this Act.
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"Board of managers" or "board of directors" means:
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(1) a common interest community association's board of |
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managers or board of directors, whichever is applicable; or
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(2) a condominium association's board of managers or |
board or directors, whichever is applicable.
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"Common interest community" means a property governed by |
the Common Interest Community Association Act.
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"Common interest community association" has the meaning |
ascribed to it in Section 1-5 of the Common Interest Community |
Association Act.
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"Condominium" means a property governed by the Condominium |
Property Act.
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"Condominium association" means an association in which |
membership is a condition of ownership or shareholder interest |
of a unit in a condominium, cooperative, townhouse, villa, or |
other residential unit which is part of a residential |
development plan and that is authorized to impose an |
assessment, rents, or other costs that may become a lien on the |
unit or lot, and includes a unit owners' association as defined |
in subsection (o) of Section 2 of the Condominium Property Act |
and a master association as defined in subsection (u) of |
Section 2 of the Condominium Property Act.
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"Declaration" has the meaning ascribed to it in:
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(1) Section 1-5 of the Common Interest Community |
Association Act; or
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(2) Section 2 of the Condominium Property Act.
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"Department" means the Department of Financial and |
Professional Regulation.
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"Director" means the Director of the Division of |
Professional Regulation.
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"Division" means the Division of Professional Regulation |
within the Department of Financial and Professional |
Regulation.
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"Office" means the Office of the Condominium and Common |
Interest Community Ombudsperson established under Section 20 |
of this Act.
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"Ombudsperson" means the Condominium and Common Interest |
Community Ombudsperson employed under Section 20 of this Act.
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"Person" includes a natural person, firm, association, |
organization, partnership, business trust, corporation, |
limited liability company, or public entity.
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"Secretary" means the Secretary of Financial and |
Professional Regulation.
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"Unit" means a part of the condominium property or common |
interest community property designed and intended for any type |
of independent use.
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"Unit owner" has the meaning ascribed to it in: |
(1) subsection (g) of Section 2 of the Condominium |
Property Act; or |
(2) Section 1-5 of the Common Interest Community |
Association Act.
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Section 20. Office of the Condominium and Common Interest |
Community Ombudsperson.
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(a) There is created in the Division of Professional |
Regulation within the Department of Financial and Professional |
Regulation, under the supervision and control of the Secretary, |
the Office of the Condominium and Common Interest Community |
Ombudsperson.
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(b) The Department shall employ an Ombudsperson and other |
persons as necessary to discharge the requirements of this Act. |
The Ombudsperson shall have the powers delegated to him or her |
by the Department, in addition to the powers set forth in this |
Act.
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(c) Information and advice provided by the Ombudsperson has |
no binding legal effect and is not subject to the rulemaking |
provisions of the Illinois Administrative Procedure Act.
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Section 25. Training and education.
On or before July 1, |
2018, the Ombudsperson shall offer training, educational |
materials, and courses to unit owners, associations, boards of |
managers, and boards of directors in subjects relevant to: (i) |
the operation and management of condominiums and common |
interest communities; and (ii) the Condominium Property Act and |
the Common Interest Community Association Act.
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Section 30. Website.
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(a) The Office shall maintain on the Department's website |
the following information:
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(1) the text of this Act, the Condominium Property Act, |
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the Community Interest Community Association Act, and any |
other statute, administrative rule, or regulation that the |
Ombudsperson determines is relevant to the operation and |
management of a condominium association or common interest |
community association;
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(2) information concerning nonjudicial resolution of |
disputes that may arise within a condominium or common |
interest community;
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(3) a description of the services provided by the |
Ombudsperson and information on how to contact the |
Ombudsperson for assistance; and
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(4) any other information that the Ombudsperson |
determines is useful to unit owners, associations, boards |
of managers, and boards of directors.
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(b) The Office shall make the information described in |
subsection (a) of this Section available in printed form.
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Section 35. Written policy for resolving complaints.
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(a) Each association, except for those outlined in Section |
(b) of this Section, shall adopt a written policy for resolving |
complaints made by unit owners. The association shall make the |
policy available to all unit owners upon request. The policy |
must include:
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(1) a sample form on which a unit owner may make a |
complaint to the association;
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(2) a description of the process by which complaints |
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shall be delivered to the association;
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(3) the association's timeline and manner of making |
final determinations in response to a unit owner's |
complaint; and |
(4) a requirement that the final determination made by |
the association in response to a unit owner's complaint be: |
(i) made in writing;
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(ii) made within a reasonable time after the unit |
owner's original complaint; and
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(iii) marked clearly and conspicuously as "final".
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(b) Common interest community associations exempt from the |
Common Interest Community Association Act are not required to |
have a written policy for resolving complaints. |
(c) No later than 180 days after the effective date of this |
Act, associations existing on the effective date of this Act, |
except for those identified in subsection (b) of this Section, |
must establish and adopt the policy required under this |
Section.
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(d) Associations first created after the effective date of |
this Act, except for those identified in subsection (b) of this |
Section, must establish and adopt the policy required under |
this Section at the time of initial registration as required by |
Section 65 of this Act.
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(e) A unit owner may not bring a request for assistance |
under Section 40 of this Act for an association's lack of or |
inadequacy of a written policy to resolve complaints, but may |
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notify the Department in writing of the association's lack of |
or inadequacy of a written policy. An association that fails to |
comply with this Section is subject to subsection (g) of |
Section 65 of this Act.
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Section 40. Requests for assistance.
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(a) Beginning on July 1, 2019, unit owners meeting the |
requirements of this Section may make a written request, as |
outlined in subsection (f) of this Section, to the Ombudsperson |
for assistance in resolving a dispute between a unit owner and |
an association that involves a violation of the Condominium |
Property Act or the Common Interest Community Property Act.
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(b) The Ombudsperson shall not accept requests for |
resolutions of disputes with community association managers, |
supervising community association managers, or community |
association management firms, as defined in the Community |
Association Manager Licensing and Disciplinary Act.
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(c) The Ombudsperson shall not accept requests for |
resolutions of disputes for which there is a pending complaint |
filed in any court or administrative tribunal in any |
jurisdiction or for which arbitration or alternative dispute |
resolution is scheduled to occur or has previously occurred.
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(d) The assistance described in subsection (a) of this |
Section is available only to unit owners. In order for a unit |
owner to receive the assistance from the Ombudsperson described |
in subsection (a) of this Section, the unit owner must:
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(1) owe no outstanding assessments, fees, or funds to |
the association, unless the assessments, fees, or funds are |
central to the dispute;
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(2) allege a dispute that was initiated or initially |
occurred within the past 2 calendar years of the date of |
the request;
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(3) have made a written complaint pursuant to the unit |
owner's association's complaint policy, as outlined in |
Section 35, which alleges violations of the Condominium |
Property Act or the Common Interest Community Association |
Act;
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(4) have received a final and adverse decision from the |
association and attach a copy of the association's final |
adverse decision marked "final" to the request to the |
Ombudsperson; and
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(5) have filed the request within 30 days after the |
receipt of the association's final adverse decision.
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(e) A unit owner who has not received a response, marked |
"final", to his or her complaint from the association within a |
reasonable time may request assistance from the Ombudsperson |
pursuant to subsection (a) of this Section if the unit owner |
meets the requirements of items (1), (2), and (3) of subsection |
(d) of this Section. A unit owner may not request assistance |
from the Ombudsperson until at least 90 days after the initial |
written complaint was submitted to the association. The |
Ombudsperson may decline a unit owner's request for assistance |
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on the basis that a reasonable time has not yet passed.
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(f) The request for assistance shall be in writing, on |
forms provided by the Office, and include the following:
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(1) the name, address, and contact information of the |
unit owner;
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(2) the name, address, and contact information of the |
association;
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(3) the applicable association governing documents |
unless the absence of governing documents is central to the |
dispute;
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(4) the date of the final adverse decision by the |
association;
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(5) a copy of the association's written complaint |
policy required under Section 35 of this Act;
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(6) a copy of the unit owner's complaint to the |
association with a specific reference to the alleged |
violations of the Condominium Property Act or the Common |
Interest Community Association Act;
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(7) documentation verifying the unit owner's ownership |
of a unit, such as a copy of a recorded deed or other |
document conferring title; and
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(8) a copy of the association's adverse decision marked |
"final", if applicable.
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(g) On receipt of a unit owner's request for assistance |
that the Department determines meets the requirements of this |
Section, the Ombudsperson shall, within the limits of the |
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available resources, confer with the interested parties and |
assist in efforts to resolve the dispute by mutual agreement of |
the parties.
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(h) The Ombudsperson shall assist only opposing parties who |
mutually agree to participate in dispute resolution.
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(i) A unit owner is limited to one request for assistance |
per dispute. The meaning of dispute is to be broadly |
interpreted by the Department.
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(j) The Department has the authority to determine whether |
or not a final decision is adverse under paragraph (4) of |
subsection (d) of this Section.
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(k) The Department shall establish rules describing the |
time limit, method, and manner for dispute resolution.
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(l) A request under the Freedom of Information Act for |
information does not constitute a request for assistance under |
this Section.
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Section 45. Confidentiality. All information collected by |
the Department in the course of addressing a request for |
assistance pursuant to Section 40 shall be maintained for the |
confidential use of the Department and shall not be disclosed. |
The Department shall not disclose the information to anyone |
other than law enforcement officials or regulatory agencies |
that have an appropriate regulatory interest as determined by |
the Secretary. Information and documents disclosed to a |
federal, State, county, or local law enforcement agency shall |
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not be disclosed by that agency for any purpose to any other |
agency or person.
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Section 50. Reports.
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(a) The Department shall submit an annual written report on |
the activities of the Office to the General Assembly, no later |
than October 1 of each year, with the initial report being due |
October 1, 2020. The report shall include all of the following:
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(1) annual workload and performance data, including |
the number of requests for assistance received, the manner |
in which requests were or were not resolved and the staff |
time required to resolve the requests. For each category of |
data, the report shall provide subtotals based on the type |
of question or dispute involved in the request; and
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(2) analysis of the most common and serious types of |
disputes within condominiums and common interest |
communities, along with any recommendations for statutory |
reform to reduce the frequency or severity of those |
disputes.
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Section 55. Registration.
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(a) Except as otherwise provided in subsections (d) and (f) |
of this Section, every association shall register with the |
Department in a form and manner specified by the Department. A |
registration shall be valid for 2 years. The initial |
registration for an association existing on the effective date |
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of this Act is due one year after the effective date of this |
Act, or at such time as the Department has adopted rules and |
forms for registration, whichever is later.
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(b) Newly created associations required to register with |
the Department must register no later than 90 days after the |
association has assumed control of a property.
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(c) The Department may issue a certification of |
registration under this Act to any association that applies to |
the Department on forms provided by the Department and provides |
the following:
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(1) the business name of the association seeking |
registration;
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(2) the business address or addresses and contact |
information of the association seeking registration;
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(3) the name, address, and contact information for the |
association's authorized agent or management company and |
management company representative;
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(4) a certification that the applicant has a written |
policy for resolving complaints as required by Section 35 |
of this Act;
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(5) the initial date of recording of the declaration;
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(6) the recording number or book and page for the |
document that constitutes the declaration; and
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(7) a certification that the association will comply |
with all other requirements of this Act and rules |
established for the implementation of this Act.
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(d) This Section does not apply to a unit, or the owner |
thereof, if the unit is a timeshare property subject to the |
Real Estate Timeshare Act of 1999.
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(e) If any of the information submitted under subsection |
(c) of this Section changes, the association shall provide |
updated information to the Department no later than 60 days |
after the change.
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(f) A common interest community association is exempt from |
registration if it is exempt from the Common Interest Community |
Association Act.
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(g) If an association fails to initially register as |
provided in subsection (a) of this Section or fails to timely |
renew its registration, the Department may impose a late charge |
or late fee against the association. If an association fails to |
properly register within 2 years after the effective date of |
this Act, or fails to renew its registration on 3 or more |
occasions, the association is ineligible to impose or enforce a |
lien for common expenses or to pursue any action or employ any |
enforcement mechanism otherwise available to it in enforcement |
of a lien for common expenses until it is validly registered |
pursuant to this Section. A lien for common expenses previously |
filed during a period in which the association was registered |
pursuant to this Section shall not be extinguished by a lapse |
in the association's registration, nor shall the common expense |
debt reflected by the lien or court action be deemed invalid, |
but any pending enforcement proceedings related to the lien |
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shall be suspended and any applicable time limits tolled until |
the association is again validly registered pursuant to this |
Section.
Nothing contained herein shall be deemed to invalidate |
any claim for common expenses or other enforcement mechanism, |
even if the claim arose while the association was not |
registered.
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Section 60. Rules. The Department may adopt rules for the |
administration and enforcement of this Act. Any rule adopted |
under this Act is subject to the rulemaking provisions of the |
Illinois Administrative Procedure Act.
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Section 65. State Lawsuit Immunity Act. Nothing in this Act |
shall be construed to constitute a waiver of the immunity of |
the State, Department, Division, Office, or Ombudsperson, or |
any officer, employee, or agent thereof under the State Lawsuit |
Immunity Act.
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Section 70. Repeal. This Act is repealed on July 1, 2021.
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Section 75. The Condominium Property Act is amended by |
adding Section 35 as follows:
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(765 ILCS 605/35 new) |
Sec. 35. Compliance with the Condominium and Common |
Interest Community Ombudsperson Act. Every unit owners' |
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association must comply with the Condominium and Common |
Interest Community Ombudsperson Act and is subject to all |
provisions of the Condominium and Common Interest Community |
Ombudsperson Act. This Section is repealed July 1, 2021.
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Section 80. The Common Interest Community Association Act |
is amended by adding Section 1-90 as follows:
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(765 ILCS 160/1-90 new) |
Sec. 1-90. Compliance with the Condominium and Common |
Interest Community Ombudsperson Act. Every common interest |
community association, except for those exempt from this Act |
under Section 1-75, must comply with the Condominium and |
Community Interest Community Ombudsperson Act and is subject to |
all provisions of the Condominium and Community Interest |
Community Ombudsperson Act. This Section is repealed July 1, |
2021.
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Section 999. Effective date. This Act takes effect July 1, |
2016.
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