Bill Amendment: IL HB2844 | 2017-2018 | 100th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: CONDO/CICAA: BYLAWS-LIENHOLDER

Status: 2019-01-08 - Session Sine Die [HB2844 Detail]

Download: Illinois-2017-HB2844-House_Amendment_001.html

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Rep. Kelly M. Cassidy

Filed: 3/24/2017

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AMENDMENT TO HOUSE BILL 2844
AMENDMENT NO. ______. Amend House Bill 2844 by replacing
everything after the enacting clause with the following:
"Section 5. The Common Interest Community Association Act
is amended by changing Section 1-20 as follows:
(765 ILCS 160/1-20)
Sec. 1-20. Amendments to the declaration, bylaws, or
operating agreement.
(a) The administration of every property shall be governed
by the declaration and bylaws or operating agreement, which may
either be embodied in the declaration or in a separate
instrument, a true copy of which shall be appended to and
recorded with the declaration. No modification or amendment of
the declaration, bylaws, or operating agreement shall be valid
unless the same is set forth in an amendment thereof and such
amendment is duly recorded. An amendment of the declaration,

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bylaws, or operating agreement shall be deemed effective upon
recordation, unless the amendment sets forth a different
effective date.
(b) Unless otherwise provided by this Act, amendments to
community instruments authorized to be recorded shall be
executed and recorded by the president of the board or such
other officer authorized by the common interest community
association or the community instruments.
(c) If an association that currently permits leasing amends
its declaration, bylaws, or rules and regulations to prohibit
leasing, nothing in this Act or the declarations, bylaws, rules
and regulations of an association shall prohibit a unit owner
incorporated under 26 USC 501(c)(3) which is leasing a unit at
the time of the prohibition from continuing to do so until such
time that the unit owner voluntarily sells the unit; and no
special fine, fee, dues, or penalty shall be assessed against
the unit owner for leasing its unit.
(d) No action to incorporate a common interest community as
a municipality shall commence until an instrument agreeing to
incorporation has been signed by two-thirds of the members.
(e) If the community instruments require approval of any
mortgagee or lienholder of record and the mortgagee or
lienholder of record receives a request to approve or consent
to the amendment to the community instruments, the mortgagee or
lienholder of record is deemed to have approved or consented to
the request unless the mortgagee or lienholder of record

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delivers a negative response to the requesting party within 60
days after the mailing of the request. A request to approve or
consent to an amendment to the community instruments that is
required to be sent to a mortgagee or lienholder of record
shall be sent by certified mail.
(Source: P.A. 99-41, eff. 7-14-15.)
Section 10. The Condominium Property Act is amended by
changing Section 27 as follows:
(765 ILCS 605/27) (from Ch. 30, par. 327)
Sec. 27. Amendments.
(a) If there is any unit owner other than the developer,
and unless otherwise provided in this Act, the condominium
instruments shall be amended only as follows:
(i) upon the affirmative vote of 2/3 of those voting or
upon the majority specified by the condominium
instruments, provided that in no event shall the
condominium instruments require more than a three-quarters
vote of all unit owners; and
(ii) with the approval of, or notice to, any mortgagees
or other lienholders of record, if required under the
provisions of the condominium instruments. If the
condominium instruments require approval of any mortgagee
or lienholder of record and the mortgagee or lienholder of
record receives a request to approve or consent to the

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amendment to the condominium instruments, the mortgagee or
lienholder of record is deemed to have approved or
consented to the request unless the mortgagee or lienholder
of record delivers a negative response to the requesting
party within 60 days after the mailing of the request. A
request to approve or consent to an amendment to the
condominium instruments that is required to be sent to a
mortgagee or lienholder of record shall be sent by
certified mail.
(b)(1) If there is an omission, error, or inconsistency in
a condominium instrument, such that a provision of a
condominium instrument does not conform to this Act or to
another applicable statute, the association may correct the
omission, error, or inconsistency to conform the condominium
instrument to this Act or to another applicable statute by an
amendment adopted by vote of two-thirds of the Board of
Managers, without a unit owner vote. A provision in a
condominium instrument requiring or allowing unit owners,
mortgagees, or other lienholders of record to vote to approve
an amendment to a condominium instrument, or for the mortgagees
or other lienholders of record to be given notice of an
amendment to a condominium instrument, is not applicable to an
amendment to the extent that the amendment corrects an
omission, error, or inconsistency to conform the condominium
instrument to this Act or to another applicable statute.
(2) If through a scrivener's error, a unit has not been

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designated as owning an appropriate undivided share of the
common elements or does not bear an appropriate share of the
common expenses or that all the common expenses or all of the
common elements in the condominium have not been distributed in
the declaration, so that the sum total of the shares of common
elements which have been distributed or the sum total of the
shares of the common expenses fail to equal 100%, or if it
appears that more than 100% of the common elements or common
expenses have been distributed, the error may be corrected by
operation of law by filing an amendment to the declaration
approved by vote of two-thirds of the members of the Board of
Managers or a majority vote of the unit owners at a meeting
called for this purpose which proportionately adjusts all
percentage interests so that the total is equal to 100% unless
the condominium instruments specifically provide for a
different procedure or different percentage vote by the owners
of the units and the owners of mortgages thereon affected by
modification being made in the undivided interest in the common
elements, the number of votes in the unit owners association or
the liability for common expenses appertaining to the unit.
(3) If an omission or error or a scrivener's error in the
declaration, bylaws or other condominium instrument is
corrected by vote of two-thirds of the members of the Board of
Managers pursuant to the authority established in subsections
(b)(1) or (b)(2) of this Section 27 of this Act, the Board upon
written petition by unit owners with 20 percent of the votes of

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the association filed within 30 days of the Board action shall
call a meeting of the unit owners within 30 days of the filing
of the petition to consider the Board action. Unless a majority
of the votes of the unit owners of the association are cast at
the meeting to reject the action, it is ratified whether or not
a quorum is present.
(4) The procedures for amendments set forth in this
subsection (b) cannot be used if such an amendment would
materially or adversely affect property rights of the unit
owners unless the affected unit owners consent in writing. This
Section does not restrict the powers of the association to
otherwise amend the declaration, bylaws, or other condominium
instruments, but authorizes a simple process of amendment
requiring a lesser vote for the purpose of correcting defects,
errors, or omissions when the property rights of the unit
owners are not materially or adversely affected.
(5) If there is an omission or error in the declaration,
bylaws, or other condominium instruments, which may not be
corrected by an amendment procedure set forth in paragraphs (1)
and (2) of this subsection (b) of Section 27 in the declaration
then the Circuit Court in the County in which the condominium
is located shall have jurisdiction to hear a petition of one or
more of the unit owners thereon or of the association, to
correct the error or omission, and the action may be a class
action. The court may require that one or more methods of
correcting the error or omission be submitted to the unit

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owners to determine the most acceptable correction. All unit
owners in the association must be joined as parties to the
action. Service of process on owners may be by publication, but
the plaintiff shall furnish all unit owners not personally
served with process with copies of the petition and final
judgment of the court by certified mail return receipt
requested, at their last known address.
(6) Nothing contained in this Section shall be construed to
invalidate any provision of a condominium instrument
authorizing the developer to amend a condominium instrument
prior to the latest date on which the initial membership
meeting of the unit owners must be held, whether or not nor it
has actually been held, to bring the instrument into compliance
with the legal requirements of the Federal National Mortgage
Association, the Federal Home Loan Mortgage Corporation, the
Federal Housing Administration, the United States Veterans
Administration or their respective successors and assigns.
(Source: P.A. 98-282, eff. 1-1-14; 99-472, eff. 6-1-16; revised
9-1-16.)".