Bill Amendment: IL SB0636 | 2021-2022 | 102nd General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: CONDOS-BYLAWS
Status: 2021-07-26 - Public Act . . . . . . . . . 102-0162 [SB0636 Detail]
Download: Illinois-2021-SB0636-Senate_Amendment_001.html
Bill Title: CONDOS-BYLAWS
Status: 2021-07-26 - Public Act . . . . . . . . . 102-0162 [SB0636 Detail]
Download: Illinois-2021-SB0636-Senate_Amendment_001.html
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1 | AMENDMENT TO SENATE BILL 636
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2 | AMENDMENT NO. ______. Amend Senate Bill 636 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Condominium Property Act is amended by | ||||||
5 | changing Section 18 as follows:
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6 | (765 ILCS 605/18) (from Ch. 30, par. 318)
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7 | Sec. 18. Contents of bylaws. The bylaws shall provide for | ||||||
8 | at least
the following:
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9 | (a)(1) The election from among the unit owners of a | ||||||
10 | board of managers, the number of persons constituting such | ||||||
11 | board, and that the terms of at
least one-third of the | ||||||
12 | members of the board shall expire annually and that
all | ||||||
13 | members of the board shall be elected at large; if there | ||||||
14 | are multiple owners of a single unit, only one of the | ||||||
15 | multiple
owners shall be eligible to serve as a member of | ||||||
16 | the board at any one time . A declaration first submitting |
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1 | property to the provisions of this Act, in accordance with | ||||||
2 | Section 3 after the effective date of this amendatory Act | ||||||
3 | of the 102nd General Assembly, or an amendment to the | ||||||
4 | condominium instruments adopted in accordance with Section | ||||||
5 | 27 after the effective date of this amendatory Act of the | ||||||
6 | 102nd General Assembly, may provide that a majority of the | ||||||
7 | board of managers, or such lesser number as may be | ||||||
8 | specified in the declaration, must be comprised of unit | ||||||
9 | owners occupying their unit as their primary residence; | ||||||
10 | provided that the condominium instruments may not require | ||||||
11 | that more than a majority of the board shall be comprised | ||||||
12 | of unit owners who occupy their unit as their principal | ||||||
13 | residence ;
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14 | (2) the powers and duties of the board;
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15 | (3) the compensation, if any, of the members of the | ||||||
16 | board;
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17 | (4) the method of removal from office of members of | ||||||
18 | the board;
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19 | (5) that the board may engage the services of a | ||||||
20 | manager or managing agent;
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21 | (6) that each unit owner shall receive, at least 25 | ||||||
22 | days prior to the
adoption thereof by the board of | ||||||
23 | managers, a copy of the proposed annual
budget together | ||||||
24 | with an indication of which portions are intended for
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25 | reserves, capital expenditures or repairs or payment of | ||||||
26 | real estate taxes;
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1 | (7) that the board of managers shall annually supply | ||||||
2 | to
all unit owners an itemized accounting of the common | ||||||
3 | expenses
for the preceding year actually incurred or paid, | ||||||
4 | together
with an indication of which portions were for | ||||||
5 | reserves, capital
expenditures or repairs or payment of | ||||||
6 | real estate taxes and
with a tabulation of the amounts | ||||||
7 | collected pursuant to the
budget or assessment, and | ||||||
8 | showing the net excess or
deficit of income over | ||||||
9 | expenditures plus reserves;
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10 | (8)(i) that each unit owner shall receive notice, in | ||||||
11 | the same manner
as is provided in this Act for membership | ||||||
12 | meetings, of any meeting of the
board of managers | ||||||
13 | concerning the adoption of the proposed annual budget and
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14 | regular assessments pursuant thereto or to adopt a | ||||||
15 | separate (special)
assessment, (ii) that except as | ||||||
16 | provided in subsection (iv) below, if an
adopted
budget or | ||||||
17 | any separate assessment adopted by the board would result | ||||||
18 | in the
sum of all regular and separate assessments payable | ||||||
19 | in the current fiscal year
exceeding 115% of the sum of all | ||||||
20 | regular and separate
assessments payable during the
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21 | preceding fiscal year, the
board of managers, upon written | ||||||
22 | petition by unit owners with 20 percent of
the votes of the | ||||||
23 | association delivered to the board within 21
days of the | ||||||
24 | board action,
shall call a meeting of the unit owners | ||||||
25 | within 30 days of the date of
delivery of the petition to | ||||||
26 | consider the budget or separate
assessment; unless a
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1 | majority of
the total votes of the unit owners are cast at | ||||||
2 | the meeting to reject the
budget or separate assessment,
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3 | it is ratified, (iii) that any common expense not set | ||||||
4 | forth in the budget or
any increase in assessments over | ||||||
5 | the amount adopted in the budget shall be
separately | ||||||
6 | assessed against all unit owners, (iv) that separate | ||||||
7 | assessments for
expenditures relating to emergencies or | ||||||
8 | mandated by law may be adopted by the
board of managers | ||||||
9 | without being subject to unit owner approval or the
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10 | provisions of item (ii) above or item (v) below. As used
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11 | herein, "emergency" means an immediate danger to the | ||||||
12 | structural integrity of
the
common elements or to the | ||||||
13 | life, health, safety or property of the unit owners,
(v) | ||||||
14 | that assessments
for additions and alterations to the | ||||||
15 | common elements or to association-owned
property not | ||||||
16 | included in the adopted annual budget, shall be separately
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17 | assessed and are subject to approval of two-thirds of the | ||||||
18 | total votes of all
unit owners, (vi) that the board of | ||||||
19 | managers may adopt separate assessments
payable over more | ||||||
20 | than one fiscal year. With respect to multi-year | ||||||
21 | assessments
not governed by items (iv) and (v), the entire | ||||||
22 | amount of the multi-year
assessment shall be deemed | ||||||
23 | considered and authorized in the first fiscal year
in | ||||||
24 | which the assessment is approved;
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25 | (9)(A) that every meeting of the board of managers | ||||||
26 | shall be open to any unit
owner, except that the board may |
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1 | close any portion of a noticed meeting or meet separately | ||||||
2 | from a noticed meeting to: (i) discuss litigation
when an | ||||||
3 | action against or on behalf of the particular association | ||||||
4 | has been
filed and is pending in a court or administrative | ||||||
5 | tribunal,
or when the board of managers finds that such an | ||||||
6 | action is probable
or imminent, (ii) discuss the | ||||||
7 | appointment, employment, engagement,
or dismissal of an | ||||||
8 | employee, independent contractor, agent, or other provider | ||||||
9 | of goods and services, (iii) interview a potential | ||||||
10 | employee, independent contractor, agent, or other provider | ||||||
11 | of goods and services, (iv) discuss violations of rules | ||||||
12 | and
regulations of the association, (v) discuss a unit | ||||||
13 | owner's unpaid share of common
expenses, or (vi) consult | ||||||
14 | with the association's legal counsel; that any vote on | ||||||
15 | these matters shall take place at a meeting of the board of | ||||||
16 | managers or
portion thereof open to any unit owner; | ||||||
17 | (B) that board members may participate in and act at | ||||||
18 | any meeting of the board of managers in person, by | ||||||
19 | telephonic means, or by use of any acceptable | ||||||
20 | technological means whereby all persons participating in | ||||||
21 | the meeting can communicate with each other; that | ||||||
22 | participation constitutes attendance and presence in | ||||||
23 | person at the meeting; | ||||||
24 | (C) that any unit owner may record the
proceedings at | ||||||
25 | meetings of the board of managers or portions thereof | ||||||
26 | required to be open by this
Act by tape, film or other |
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1 | means, and that the board may prescribe reasonable
rules | ||||||
2 | and regulations to govern the right to make such | ||||||
3 | recordings; | ||||||
4 | (D) that
notice of every meeting of the board of | ||||||
5 | managers shall be given to every board member at least 48 | ||||||
6 | hours
prior thereto, unless the board member waives notice | ||||||
7 | of the meeting pursuant to subsection (a) of Section 18.8; | ||||||
8 | and | ||||||
9 | (E) that notice of every meeting
of the board of | ||||||
10 | managers shall be posted in entranceways,
elevators, or | ||||||
11 | other conspicuous places in the condominium at least 48 | ||||||
12 | hours
prior to the meeting of the board of managers except | ||||||
13 | where there is no
common entranceway for 7 or more units, | ||||||
14 | the board of managers may designate
one or more locations | ||||||
15 | in the proximity of these units where the notices of
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16 | meetings shall be posted; that notice of every meeting of | ||||||
17 | the board of managers shall also be given at least 48 hours | ||||||
18 | prior to the meeting, or such longer notice as this Act may | ||||||
19 | separately require, to: (i) each unit owner who has | ||||||
20 | provided the association with written authorization to | ||||||
21 | conduct business by acceptable technological means, and | ||||||
22 | (ii) to the extent that the condominium instruments of an | ||||||
23 | association require, to each other unit owner, as required | ||||||
24 | by subsection (f) of Section 18.8, by mail or delivery, | ||||||
25 | and that no other notice of a meeting of the board of | ||||||
26 | managers need be given to any unit owner;
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1 | (10) that the board shall meet at least 4 times | ||||||
2 | annually;
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3 | (11) that no member of the board or officer shall be | ||||||
4 | elected for a term
of more than 2 years, but that officers | ||||||
5 | and board members may succeed
themselves;
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6 | (12) the designation of an officer to mail and receive | ||||||
7 | all notices and
execute amendments to condominium | ||||||
8 | instruments as provided for in this Act
and in the | ||||||
9 | condominium instruments;
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10 | (13) the method of filling vacancies on the board
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11 | which shall include authority for the remaining members of | ||||||
12 | the board to
fill the vacancy by two-thirds vote until the | ||||||
13 | next annual meeting of unit
owners or for a period | ||||||
14 | terminating no later than 30 days following the
filing of | ||||||
15 | a petition signed by unit owners holding 20% of the votes | ||||||
16 | of the
association requesting a meeting of the unit owners | ||||||
17 | to fill the vacancy for
the balance of the term, and that a | ||||||
18 | meeting of the unit owners shall be
called for purposes of | ||||||
19 | filling a vacancy on the board no later than 30 days
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20 | following the filing of a petition signed by unit owners | ||||||
21 | holding 20% of the
votes of the association requesting | ||||||
22 | such a meeting, and the method of filling
vacancies among | ||||||
23 | the officers that shall include the authority for the | ||||||
24 | members
of the board to fill the vacancy for the unexpired | ||||||
25 | portion of the term;
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26 | (14) what percentage of the board of managers, if |
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1 | other than a majority,
shall constitute a quorum;
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2 | (15) provisions concerning notice of board meetings to | ||||||
3 | members of the
board;
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4 | (16) the board of managers may not enter into a | ||||||
5 | contract with a
current board member
or with a corporation | ||||||
6 | or partnership in which a board
member or a member of the | ||||||
7 | board member's immediate family has 25% or
more interest, | ||||||
8 | unless notice of intent to enter the
contract is given to | ||||||
9 | unit owners within 20 days after a decision is made
to | ||||||
10 | enter into the contract and the unit owners are
afforded | ||||||
11 | an opportunity by filing a petition, signed by 20% of the | ||||||
12 | unit
owners, for an election to approve or disapprove the | ||||||
13 | contract;
such petition shall be filed within 30 days | ||||||
14 | after such notice and such
election shall be held within | ||||||
15 | 30 days after filing the petition; for purposes
of this | ||||||
16 | subsection, a board member's immediate family means the | ||||||
17 | board member's
spouse, parents, and children;
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18 | (17) that the board of managers may disseminate
to | ||||||
19 | unit owners biographical and background information about | ||||||
20 | candidates for
election to the board if (i) reasonable | ||||||
21 | efforts to identify all candidates are
made and all | ||||||
22 | candidates are given an opportunity to include | ||||||
23 | biographical and
background information in the information | ||||||
24 | to be disseminated; and (ii) the
board does not express a | ||||||
25 | preference in favor of any candidate;
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26 | (18) any proxy distributed for board elections
by the |
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1 | board of managers gives unit owners the
opportunity to | ||||||
2 | designate any person as the proxy holder, and gives the | ||||||
3 | unit
owner the opportunity to express a preference for any | ||||||
4 | of the known
candidates for the board or to write in a | ||||||
5 | name;
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6 | (19) that special meetings of the board of managers | ||||||
7 | can be called by
the president or 25% of the members of the | ||||||
8 | board;
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9 | (20) that the board of managers may establish
and | ||||||
10 | maintain a system of master metering of public utility | ||||||
11 | services and
collect payments in connection therewith, | ||||||
12 | subject to the requirements of the
Tenant Utility Payment | ||||||
13 | Disclosure Act; and
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14 | (21) that the board may ratify and confirm actions of | ||||||
15 | the
members of the board taken in response to an | ||||||
16 | emergency, as that
term is defined in subdivision | ||||||
17 | (a)(8)(iv) of this Section; that
the board shall give | ||||||
18 | notice to the unit owners of: (i) the
occurrence of the | ||||||
19 | emergency event within 7 business days after
the emergency | ||||||
20 | event, and (ii) the general description of the
actions | ||||||
21 | taken to address the event within 7 days after the
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22 | emergency event. | ||||||
23 | The intent of the provisions of Public Act 99-472 | ||||||
24 | adding this paragraph (21) is to empower and support | ||||||
25 | boards to act in
emergencies. | ||||||
26 | (b)(1) What percentage of the unit owners, if other |
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1 | than 20%, shall
constitute a quorum provided that, for | ||||||
2 | condominiums with 20 or more units,
the percentage of unit | ||||||
3 | owners constituting a quorum shall be 20% unless the
unit | ||||||
4 | owners holding a majority of the percentage interest in | ||||||
5 | the
association provide for a higher percentage, provided | ||||||
6 | that in voting on amendments to the association's bylaws, | ||||||
7 | a unit owner who is in arrears on the unit owner's regular | ||||||
8 | or separate assessments for 60 days or more, shall not be | ||||||
9 | counted for purposes of determining if a quorum is | ||||||
10 | present, but that unit owner retains the right to vote on | ||||||
11 | amendments to the association's bylaws;
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12 | (2) that the association shall have one class of | ||||||
13 | membership;
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14 | (3) that the members shall hold an annual meeting, one | ||||||
15 | of the purposes
of which shall be to elect members of the | ||||||
16 | board of managers;
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17 | (4) the method of calling meetings of the unit owners;
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18 | (5) that special meetings of the members can be called | ||||||
19 | by the president,
board of managers, or by 20% of unit | ||||||
20 | owners;
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21 | (6) that written notice of any membership meeting | ||||||
22 | shall be mailed
or delivered giving members no less than | ||||||
23 | 10 and no more than 30 days
notice of the time, place and | ||||||
24 | purpose of such meeting except that notice may be sent, to | ||||||
25 | the extent the condominium instruments or rules adopted | ||||||
26 | thereunder expressly so provide, by electronic |
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1 | transmission consented to by the unit owner to whom the | ||||||
2 | notice is given, provided the director and officer or his | ||||||
3 | agent certifies in writing to the delivery by electronic | ||||||
4 | transmission;
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5 | (7) that voting shall be on a percentage basis, and | ||||||
6 | that the percentage
vote to which each unit is entitled is | ||||||
7 | the percentage interest of the
undivided ownership of the | ||||||
8 | common elements appurtenant thereto, provided
that the | ||||||
9 | bylaws may provide for approval by unit owners in | ||||||
10 | connection with
matters where the requisite approval on a | ||||||
11 | percentage basis is not specified
in this Act, on the | ||||||
12 | basis of one vote per unit;
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13 | (8) that, where there is more than one owner of a unit, | ||||||
14 | if only one
of the multiple owners is present at a meeting | ||||||
15 | of the association, he is
entitled to cast all the votes | ||||||
16 | allocated to that unit, if more than one of
the multiple | ||||||
17 | owners are present, the votes allocated to that unit may | ||||||
18 | be
cast only in accordance with the agreement of a | ||||||
19 | majority in interest of the
multiple owners, unless the | ||||||
20 | declaration expressly provides otherwise, that
there is | ||||||
21 | majority agreement if any one of the multiple owners cast | ||||||
22 | the
votes allocated to that unit without protest being | ||||||
23 | made promptly to the
person presiding over the meeting by | ||||||
24 | any of the other owners of the unit;
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25 | (9)(A) except as provided in subparagraph (B) of this | ||||||
26 | paragraph (9) in
connection with board elections, that
a |
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1 | unit owner may vote by proxy executed in writing by the | ||||||
2 | unit
owner or by his duly authorized attorney in fact; | ||||||
3 | that the proxy must bear the date of
execution
and, unless | ||||||
4 | the condominium instruments or the written proxy itself | ||||||
5 | provide
otherwise, is
invalid after 11 months from the | ||||||
6 | date of its execution; to the extent the condominium | ||||||
7 | instruments or rules adopted thereunder expressly so | ||||||
8 | provide, a vote or proxy may be submitted by electronic | ||||||
9 | transmission, provided that any such electronic | ||||||
10 | transmission shall either set forth or be submitted with | ||||||
11 | information from which it can be determined that the | ||||||
12 | electronic transmission was authorized by the unit owner | ||||||
13 | or the unit owner's proxy;
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14 | (B) that if a rule adopted at least 120 days before a | ||||||
15 | board election
or the
declaration or bylaws provide for | ||||||
16 | balloting as set forth in this subsection,
unit
owners may | ||||||
17 | not vote by proxy in board elections, but may vote only (i) | ||||||
18 | by
submitting an association-issued ballot in person at | ||||||
19 | the election meeting or
(ii) by
submitting an | ||||||
20 | association-issued ballot to the association or its | ||||||
21 | designated
agent
by mail or other means of delivery | ||||||
22 | specified in the declaration, bylaws, or
rule; that
the | ||||||
23 | ballots shall be mailed or otherwise distributed to unit | ||||||
24 | owners not less
than 10
and not more than 30 days before | ||||||
25 | the election meeting, and the board shall give
unit owners | ||||||
26 | not less than 21 days' prior written notice of the |
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1 | deadline for
inclusion of a candidate's name on the | ||||||
2 | ballots; that the deadline shall be no
more
than 7 days | ||||||
3 | before the ballots are mailed or otherwise distributed to | ||||||
4 | unit
owners; that
every such ballot must include the names | ||||||
5 | of all candidates who have given the
board or its | ||||||
6 | authorized agent timely written notice of their candidacy | ||||||
7 | and must
give the person casting the ballot the | ||||||
8 | opportunity to cast votes for candidates
whose names do | ||||||
9 | not appear on the ballot; that a ballot received by the
| ||||||
10 | association
or
its designated agent after the close of | ||||||
11 | voting shall not be counted; that a
unit
owner
who submits | ||||||
12 | a ballot by mail or other means of delivery specified in | ||||||
13 | the
declaration, bylaws, or rule may request and cast a | ||||||
14 | ballot in person at the
election
meeting, and thereby void | ||||||
15 | any ballot previously submitted by that unit owner; | ||||||
16 | (B-5) that if a rule adopted at least 120 days before a | ||||||
17 | board election or the declaration or bylaws provide for | ||||||
18 | balloting as set forth in this subparagraph, unit owners | ||||||
19 | may not vote by proxy in board elections, but may vote only | ||||||
20 | (i) by submitting an association-issued ballot in person | ||||||
21 | at the election meeting; or (ii) by any acceptable | ||||||
22 | technological means as defined in Section 2 of this Act; | ||||||
23 | instructions regarding the use of electronic means for | ||||||
24 | voting shall be distributed to all unit owners not less | ||||||
25 | than 10 and not more than 30 days before the election | ||||||
26 | meeting, and the board shall give unit owners not less |
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1 | than 21 days' prior written notice of the deadline for | ||||||
2 | inclusion of a candidate's name on the ballots; the | ||||||
3 | deadline shall be no more than 7 days before the | ||||||
4 | instructions for voting using electronic or acceptable | ||||||
5 | technological means is distributed to unit owners; every | ||||||
6 | instruction notice must include the names of all | ||||||
7 | candidates who have given the board or its authorized | ||||||
8 | agent timely written notice of their candidacy and must | ||||||
9 | give the person voting through electronic or acceptable | ||||||
10 | technological means the opportunity to cast votes for | ||||||
11 | candidates whose names do not appear on the ballot; a unit | ||||||
12 | owner who submits a vote using electronic or acceptable | ||||||
13 | technological means may request and cast a ballot in | ||||||
14 | person at the election meeting, thereby voiding any vote | ||||||
15 | previously submitted by that unit owner;
| ||||||
16 | (C) that if a written petition by unit owners with at | ||||||
17 | least 20% of the
votes of
the association is delivered to | ||||||
18 | the board within 30 days after the board's
approval
of a | ||||||
19 | rule adopted pursuant to subparagraph (B) or subparagraph | ||||||
20 | (B-5) of this paragraph (9), the board
shall call a | ||||||
21 | meeting of the unit owners within 30 days after the date of
| ||||||
22 | delivery of
the petition; that unless a majority of the | ||||||
23 | total votes of the unit owners are
cast
at the
meeting to | ||||||
24 | reject the rule, the rule is ratified;
| ||||||
25 | (D) that votes cast by ballot under subparagraph (B) | ||||||
26 | or electronic or acceptable technological means under |
| |||||||
| |||||||
1 | subparagraph (B-5) of this paragraph (9) are valid for the | ||||||
2 | purpose of establishing a quorum; | ||||||
3 | (10) that the association may, upon adoption of the | ||||||
4 | appropriate rules by
the board of managers, conduct | ||||||
5 | elections by secret ballot whereby the voting
ballot is | ||||||
6 | marked only with the percentage interest for the unit and | ||||||
7 | the vote
itself, provided that the board further adopt | ||||||
8 | rules to verify the status of the
unit owner issuing a | ||||||
9 | proxy or casting a ballot; and further, that a candidate
| ||||||
10 | for election to the board of managers or such
candidate's | ||||||
11 | representative shall have the right to be present at the
| ||||||
12 | counting of ballots at such election;
| ||||||
13 | (11) that in the event of a resale of a condominium | ||||||
14 | unit the purchaser
of a unit from a seller other than the | ||||||
15 | developer pursuant to an installment sales
contract for | ||||||
16 | purchase shall during such times as he or she resides in | ||||||
17 | the
unit be counted toward a quorum for purposes of | ||||||
18 | election of members of the
board of managers at any | ||||||
19 | meeting of the unit owners called for purposes of
electing | ||||||
20 | members of the board, shall have the right to vote for the
| ||||||
21 | election of members of the board of managers and to be | ||||||
22 | elected to and serve
on the board of managers unless the | ||||||
23 | seller expressly retains in writing any
or all of such | ||||||
24 | rights. In no event may the seller and purchaser both be
| ||||||
25 | counted toward a quorum, be permitted to vote for a | ||||||
26 | particular office or be
elected and serve on the board. |
| |||||||
| |||||||
1 | Satisfactory evidence of the installment sales contract
| ||||||
2 | shall be made available to the association or its agents. | ||||||
3 | For
purposes of this subsection, "installment sales | ||||||
4 | contract" shall have the same
meaning as set forth in | ||||||
5 | Section 5 of the Installment Sales Contract Act and | ||||||
6 | Section 1(e) of the Dwelling Unit Installment Contract | ||||||
7 | Act;
| ||||||
8 | (12) the method by which matters subject to the | ||||||
9 | approval of unit owners
set forth in this Act, or in the | ||||||
10 | condominium instruments, will be
submitted to the unit | ||||||
11 | owners at special membership meetings called for such
| ||||||
12 | purposes; and
| ||||||
13 | (13) that matters subject to the affirmative vote of | ||||||
14 | not less than 2/3
of the votes of unit owners at a meeting | ||||||
15 | duly called for that purpose,
shall include, but not be | ||||||
16 | limited to:
| ||||||
17 | (i) merger or consolidation of the association;
| ||||||
18 | (ii) sale, lease, exchange, or other disposition | ||||||
19 | (excluding the mortgage
or pledge) of all, or | ||||||
20 | substantially all of the property and assets of the
| ||||||
21 | association; and
| ||||||
22 | (iii) the purchase or sale of land or of units on | ||||||
23 | behalf of all unit owners.
| ||||||
24 | (c) Election of a president from among the board of | ||||||
25 | managers, who shall
preside over the meetings of the board | ||||||
26 | of managers and of the unit owners.
|
| |||||||
| |||||||
1 | (d) Election of a secretary from among the board of | ||||||
2 | managers, who shall
keep the minutes of all meetings
of | ||||||
3 | the board of managers and of the unit owners and who shall, | ||||||
4 | in general,
perform all the duties incident to the office | ||||||
5 | of secretary.
| ||||||
6 | (e) Election of a treasurer from among the board of | ||||||
7 | managers, who shall
keep the financial records and
books | ||||||
8 | of account.
| ||||||
9 | (f) Maintenance, repair and replacement of the common | ||||||
10 | elements and
payments therefor, including the method of | ||||||
11 | approving payment vouchers.
| ||||||
12 | (g) An association with 30 or more units shall obtain | ||||||
13 | and maintain
fidelity insurance covering persons who | ||||||
14 | control or disburse funds of the
association for the | ||||||
15 | maximum amount of coverage available to protect funds
in | ||||||
16 | the custody or control of the association plus the | ||||||
17 | association reserve
fund. All management companies which | ||||||
18 | are responsible for the funds held or
administered by the | ||||||
19 | association shall maintain and furnish to the
association | ||||||
20 | a fidelity bond for the maximum amount of coverage | ||||||
21 | available to
protect funds in the custody of the | ||||||
22 | management company at any time. The
association shall bear | ||||||
23 | the cost of the fidelity insurance and fidelity
bond, | ||||||
24 | unless otherwise provided by contract between the | ||||||
25 | association and a
management company. The association | ||||||
26 | shall be the direct obligee of any
such fidelity bond. A |
| |||||||
| |||||||
1 | management company holding reserve funds of an
association | ||||||
2 | shall at all times maintain a separate account for each
| ||||||
3 | association, provided, however, that for investment | ||||||
4 | purposes, the Board of
Managers of an association may | ||||||
5 | authorize a management company to maintain
the | ||||||
6 | association's reserve funds in a single interest bearing | ||||||
7 | account with
similar funds of other associations. The | ||||||
8 | management company shall at all
times maintain records | ||||||
9 | identifying all moneys of each association in such
| ||||||
10 | investment account. The management company may hold all | ||||||
11 | operating funds of
associations which it manages in a | ||||||
12 | single operating account but shall at
all times maintain | ||||||
13 | records identifying all moneys of each association in
such | ||||||
14 | operating account. Such operating and reserve funds held | ||||||
15 | by the
management company for the association shall not be | ||||||
16 | subject to attachment
by any creditor of the management | ||||||
17 | company.
| ||||||
18 | For the purpose of this subsection, a management | ||||||
19 | company shall be
defined as a person, partnership, | ||||||
20 | corporation, or other legal entity
entitled to transact | ||||||
21 | business on behalf of others, acting on behalf of or
as an | ||||||
22 | agent for a unit owner, unit owners or association of unit | ||||||
23 | owners for
the purpose of carrying out the duties, | ||||||
24 | responsibilities, and other
obligations necessary for the | ||||||
25 | day to day operation and management of any
property | ||||||
26 | subject to this Act. For purposes of this subsection, the |
| |||||||
| |||||||
1 | term
"fiduciary insurance coverage" shall be defined as | ||||||
2 | both a fidelity bond and
directors and officers liability | ||||||
3 | coverage, the fidelity bond in the full
amount of | ||||||
4 | association funds and association reserves that will be in | ||||||
5 | the
custody of the association, and the directors and | ||||||
6 | officers liability
coverage at a level as shall be | ||||||
7 | determined to be reasonable by the board of
managers, if | ||||||
8 | not otherwise established by the declaration or by laws.
| ||||||
9 | Until one year after September 21, 1985 (the effective | ||||||
10 | date of Public Act 84-722),
if a condominium association | ||||||
11 | has reserves plus assessments in excess of
$250,000 and | ||||||
12 | cannot reasonably obtain 100% fidelity bond coverage for | ||||||
13 | such
amount, then it must obtain a fidelity bond coverage | ||||||
14 | of $250,000.
| ||||||
15 | (h) Method of estimating the amount of the annual | ||||||
16 | budget, and the manner
of assessing and collecting from | ||||||
17 | the unit owners their respective shares of
such estimated | ||||||
18 | expenses, and of any other expenses lawfully agreed upon.
| ||||||
19 | (i) That upon 10 days notice to the manager or board of | ||||||
20 | managers and
payment of a reasonable fee, any unit owner | ||||||
21 | shall be furnished a statement
of his account setting | ||||||
22 | forth the amount of any unpaid assessments or other
| ||||||
23 | charges due and owing from such owner.
| ||||||
24 | (j) Designation and removal of personnel necessary for | ||||||
25 | the maintenance,
repair and replacement of the common | ||||||
26 | elements.
|
| |||||||
| |||||||
1 | (k) Such restrictions on and requirements respecting | ||||||
2 | the use and
maintenance of the units and the use of the | ||||||
3 | common elements, not set forth
in the declaration, as are | ||||||
4 | designed to prevent unreasonable interference
with the use | ||||||
5 | of their respective units and of the common elements by | ||||||
6 | the
several unit owners.
| ||||||
7 | (l) Method of adopting and of amending administrative | ||||||
8 | rules and
regulations governing the operation and use of | ||||||
9 | the common elements.
| ||||||
10 | (m) The percentage of votes required to modify or | ||||||
11 | amend the bylaws, but
each one of the particulars set | ||||||
12 | forth in this section shall always be
embodied in the | ||||||
13 | bylaws.
| ||||||
14 | (n)(i) The provisions of this Act, the declaration, | ||||||
15 | bylaws, other
condominium instruments, and rules and | ||||||
16 | regulations that relate to the use
of the individual unit | ||||||
17 | or the common elements shall be applicable to
any person | ||||||
18 | leasing a unit and shall be deemed to be incorporated in | ||||||
19 | any
lease executed or renewed on or after August 30, 1984 | ||||||
20 | (the effective date of Public Act 83-1271). | ||||||
21 | (ii) With regard to any lease entered into subsequent | ||||||
22 | to July 1, 1990 (the
effective date of Public Act 86-991), | ||||||
23 | the unit owner leasing the
unit shall deliver a copy of the | ||||||
24 | signed lease to the board or if the
lease is oral, a | ||||||
25 | memorandum of the lease, not later than the date of
| ||||||
26 | occupancy or 10 days after the lease is signed, whichever |
| |||||||
| |||||||
1 | occurs first. In
addition to any other remedies, by filing | ||||||
2 | an action jointly against the
tenant and the unit owner, | ||||||
3 | an association may seek to enjoin a tenant from
occupying | ||||||
4 | a unit or seek to evict a tenant under the provisions of | ||||||
5 | Article
IX of the Code of Civil Procedure for failure of | ||||||
6 | the lessor-owner to
comply with the leasing requirements | ||||||
7 | prescribed by
this Section or by the declaration, bylaws, | ||||||
8 | and
rules and regulations. The board of managers may | ||||||
9 | proceed directly against a
tenant, at law or in equity, or | ||||||
10 | under the provisions of Article IX of the
Code of Civil | ||||||
11 | Procedure, for any other breach by tenant of any
| ||||||
12 | covenants, rules, regulations or bylaws.
| ||||||
13 | (o) The association shall have no authority to forbear | ||||||
14 | the payment
of assessments by any unit owner.
| ||||||
15 | (p) That when 30% or fewer of the units, by number,
| ||||||
16 | possess over 50% in the aggregate of the votes in the | ||||||
17 | association,
any percentage vote of members specified | ||||||
18 | herein or in the condominium
instruments shall require the | ||||||
19 | specified percentage by number of units
rather than by | ||||||
20 | percentage of interest in the common elements allocated
to | ||||||
21 | units that would otherwise be applicable and garage units | ||||||
22 | or storage units, or both, shall have, in total, no more | ||||||
23 | votes than their aggregate percentage of ownership in the | ||||||
24 | common elements; this shall mean that if garage units or | ||||||
25 | storage units, or both, are to be given a vote, or portion | ||||||
26 | of a vote, that the association must add the total number |
| |||||||
| |||||||
1 | of votes cast of garage units, storage units, or both, and | ||||||
2 | divide the total by the number of garage units, storage | ||||||
3 | units, or both, and multiply by the aggregate percentage | ||||||
4 | of ownership of garage units and storage units to | ||||||
5 | determine the vote, or portion of a vote, that garage | ||||||
6 | units or storage units, or both, have. For purposes of | ||||||
7 | this subsection (p), when making a determination of | ||||||
8 | whether 30% or fewer of the units, by number, possess over | ||||||
9 | 50% in the aggregate of the votes in the association, a | ||||||
10 | unit shall not include a garage unit or a storage unit.
| ||||||
11 | (q) That a unit owner may not assign, delegate, | ||||||
12 | transfer, surrender, or
avoid the duties, | ||||||
13 | responsibilities, and liabilities of a unit owner under | ||||||
14 | this
Act, the condominium instruments, or the rules and | ||||||
15 | regulations of the
Association; and that such an attempted | ||||||
16 | assignment, delegation, transfer,
surrender, or avoidance | ||||||
17 | shall be deemed void.
| ||||||
18 | The provisions of this Section are applicable to all | ||||||
19 | condominium
instruments recorded under this Act. Any portion | ||||||
20 | of a condominium
instrument which contains provisions contrary | ||||||
21 | to these provisions shall be
void as against public policy and | ||||||
22 | ineffective. Any such instrument which
fails to contain the | ||||||
23 | provisions required by this Section shall be deemed to
| ||||||
24 | incorporate such provisions by operation of law.
| ||||||
25 | (Source: P.A. 99-472, eff. 6-1-16; 99-567, eff. 1-1-17; | ||||||
26 | 99-642, eff. 7-28-16; 100-292, eff. 1-1-18; 100-416, eff. |
| |||||||
| |||||||
1 | 1-1-18; 100-863, eff. 8-14-18 .)".
|