Illinois General Assembly - Full Text of Public Act 095-0624
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Public Act 095-0624




Public Act 095-0624
SB0528 Enrolled LRB095 03634 AJO 23657 b

    AN ACT concerning property.
    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
        (4) the method of removal from office of members of the
        (5) that the board may engage the services of a manager
    or managing agent;
        (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
        (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
        (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
        (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;
        (2) that the association shall have one class of
        (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
        (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;
        (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.
    (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
    (e) Election of a treasurer from among the board of
managers, who shall keep the financial records and books of
    (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 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
    (l) Method of adopting and of amending administrative rules
and regulations governing the operation and use of the common
    (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. 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. 93-243, eff. 1-1-04.)

Effective Date: 6/1/2008