Bill Amendment: IL SB0948 | 2017-2018 | 100th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

---

Bill Title: CONDO/CICAA: BUDGETS; MEETINGS

Status: 2019-01-09 - Session Sine Die [SB0948 Detail]

Download: Illinois-2017-SB0948-House_Amendment_002.html

---

Rep. Andr� Thapedi

Filed: 6/24/2017

10000SB0948ham002 LRB100 06987 KTG 27687 a
AMENDMENT TO SENATE BILL 948
AMENDMENT NO. ______. Amend Senate Bill 948 by replacing
everything after the enacting clause with the following:
"Section 5. The Community Association Manager Licensing
and Disciplinary Act is amended by changing Sections 5, 10, 15,
25, 30, 50, 55, 60, 70, 75, 85, 90, 92, 155, and 165 as follows:
(225 ILCS 427/5)
(Section scheduled to be repealed on January 1, 2020)
Sec. 5. Legislative intent. It is the intent of the General
Assembly that this Act provide for the licensing and regulation
of community association managers and community association
management firms, ensure that those who hold themselves out as
possessing professional qualifications to engage in the
business of community association management are, in fact,
qualified to render management services of a professional
nature, and provide for the maintenance of high standards of

10000SB0948ham002 - 2 - LRB100 06987 KTG 27687 a
professional conduct by those licensed to provide community
association management services.
(Source: P.A. 98-365, eff. 1-1-14.)
(225 ILCS 427/10)
(Section scheduled to be repealed on January 1, 2020)
Sec. 10. Definitions. As used in this Act:
"Address of record" means the designated address recorded
by the Department in the applicant's or licensee's application
file or license file maintained by the Department's licensure
maintenance unit. It is the duty of the applicant or licensee
to inform the Department of any change of address, and such
changes must be made either through the Department's website or
by contacting the Department's licensure maintenance unit.
"Advertise" means, but is not limited to, issuing or
causing to be distributed any card, sign or device to any
person; or causing, permitting or allowing any sign or marking
on or in any building, structure, newspaper, magazine or
directory, or on radio or television; or advertising by any
other means designed to secure public attention.
"Board" means the Illinois Community Association Manager
Licensing and Disciplinary Board.
"Community 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

10000SB0948ham002 - 3 - LRB100 06987 KTG 27687 a
development plan and that is authorized to impose an
assessment, rents, or other costs that may become a lien on the
unit or lot.
"Community association funds" means any assessments, fees,
fines, or other funds collected by the community association
manager from the community association, or its members, other
than the compensation paid to the community association manager
for performance of community association management services.
"Community association management firm" means a company,
corporation, limited liability company, or other entity that
engages in community association management services through a
designated community association manager.
"Community association management services" means those
services listed in the definition of community association
manager in this Section.
"Community association manager" means an individual who
administers for remuneration the financial, administrative,
maintenance, or other duties for the community association,
including, but not limited to, any of the following services:
(A) collecting, controlling or disbursing funds of the
community association or having the authority to do so; (B)
preparing budgets or other financial documents for the
community association; (C) assisting in the conduct of
community association meetings; (D) maintaining association
records; or and (E) administrating association contracts, as
stated in the declaration, bylaws, proprietary lease,

10000SB0948ham002 - 4 - LRB100 06987 KTG 27687 a
declaration of covenants, or other governing document of the
community association. "Community association manager" does
not mean support staff, including, but not limited to
bookkeepers, administrative assistants, secretaries, property
inspectors, or customer service representatives.
"Department" means the Department of Financial and
Professional Regulation.
"Designated community association manager" means a
licensed community association manager who has an ownership
interest in or is otherwise employed by a community association
management firm to act as the controlling person and the
authorized signatory for the firm on community association
accounts and to otherwise supervise, manage, and be responsible
for the firm's community association manager activities
pursuant to Section 50 of this Act.
"License" means the license issued to a person,
corporation, partnership, limited liability company, or other
legal entity under this Act to provide community association
management services.
"Person" means an any individual, corporation,
partnership, limited liability company, or other legal entity.
"Secretary" means the Secretary of Financial and
Professional Regulation.
"Supervising community association manager" means an
individual licensed as a community association manager who
manages and supervises a firm.

10000SB0948ham002 - 5 - LRB100 06987 KTG 27687 a
(Source: P.A. 98-365, eff. 1-1-14; revised 10-27-16.)
(225 ILCS 427/15)
(Section scheduled to be repealed on January 1, 2020)
Sec. 15. License required. It shall be unlawful for any
person, corporation, partnership, limited liability company,
or other entity to provide community association management
services, provide services as a community association manager,
or hold himself, herself, or itself out as a community
association manager or community association management firm
to any community association in this State, unless he, she, or
it holds a current and valid license issued licensed by the
Department, employs a designated community association manager
with a current and valid license issued by the Department, or
is otherwise exempt from licensure under this Act.
(Source: P.A. 98-365, eff. 1-1-14.)
(225 ILCS 427/25)
(Section scheduled to be repealed on January 1, 2020)
Sec. 25. Community Association Manager Licensing and
Disciplinary Board.
(a) There is hereby created the Community Association
Manager Licensing and Disciplinary Board, which shall consist
of 7 members appointed by the Secretary. All members must be
residents of the State and must have resided in the State for
at least 5 years immediately preceding the date of appointment.

10000SB0948ham002 - 6 - LRB100 06987 KTG 27687 a
Five members of the Board must be licensees under this Act, at
least two members of which shall be supervising community
association managers. Two members of the Board shall be owners
of, or hold a shareholder's interest in, a unit in a community
association at the time of appointment who are not licensees
under this Act and have no direct affiliation or work
experience with the community association's community
association manager. This Board shall act in an advisory
capacity to the Department.
(b) Board members shall serve for terms of 5 years, except
that, initially, 4 members shall serve for 5 years and 3
members shall serve for 4 years. All members shall serve until
his or her successor is appointed and qualified. All vacancies
shall be filled in like manner for the unexpired term. No
member shall serve for more than 2 successive terms. The
Secretary shall remove from the Board any member whose license
has become void or has been revoked or suspended and may remove
any member of the Board for neglect of duty, misconduct, or
incompetence. A member who is subject to formal disciplinary
proceedings shall disqualify himself or herself from all Board
business until the charge is resolved. A member also shall
disqualify himself or herself from any matter on which the
member cannot act objectively.
(c) Four Board members shall constitute a quorum. A quorum
is required for all Board decisions.
(d) The Board shall elect annually a chairperson and vice

10000SB0948ham002 - 7 - LRB100 06987 KTG 27687 a
chairperson.
(e) Each member shall receive reimbursement as set by the
Governor's Travel Control Board for expenses incurred in
carrying out the duties as a Board member. The Board shall be
compensated as determined by the Secretary.
(f) The Board may recommend policies, procedures, and rules
relevant to the administration and enforcement of this Act.
(Source: P.A. 98-365, eff. 1-1-14.)
(225 ILCS 427/30)
(Section scheduled to be repealed on January 1, 2020)
Sec. 30. Powers and duties of the Department. The
Department may exercise the following functions, powers and
duties:
(a) formulate rules for the administration and
enforcement of this Act;
(b) prescribe forms to be issued for the administration
and enforcement of this Act;
(c) conduct hearings or proceedings to refuse to issue,
renew, suspend, revoke, place on probation, reprimand, or
take disciplinary or non-disciplinary action as the
Department may deem appropriate under this Act;
(d) maintain a roster of the names and addresses of all
licensees and the community association management firms
that employ them in a manner as deemed appropriate by the
Department; and

10000SB0948ham002 - 8 - LRB100 06987 KTG 27687 a
(e) seek the advice and expert knowledge of the Board
on any matter relating to the administration and
enforcement of this Act.
(Source: P.A. 96-726, eff. 7-1-10.)
(225 ILCS 427/50)
(Section scheduled to be repealed on January 1, 2020)
Sec. 50. Community association management firm.
(a) No corporation, partnership, limited liability
company, or other legal entity shall provide or offer to
provide community association management services, unless it
does so through a licensed community association manager that
has applied in writing on the prescribed forms and has paid the
required nonrefundable fees and provided evidence to the
Department that he or she meets the requirements to be named as
a the firm has designated community association manager and
agrees a licensed supervising community association manager to
supervise and manage the firm's licensed activities firm. A
designated supervising community association manager shall be
a continuing requirement of firm operation. licensure. No
supervising community association manager may be the
supervising community association manager for more than one
firm.
(b) Any corporation, partnership, limited liability
company, or other legal entity that is providing, or offering
to provide, community association management services and is

10000SB0948ham002 - 9 - LRB100 06987 KTG 27687 a
not in compliance with Section 50 and other provisions of this
Act shall be subject to the civil penalties fines, injunctions,
cease and desist provisions, and penalties provided for in
Sections 90, 92, and 155 of this Act.
(c) No community association manager may be the designated
community association manager licensee-in-charge for more than
one firm, corporation, limited liability company, or other
legal entity.
(d) The Department is authorized to adopt rules and set all
necessary requirements for the implementation of this Section.
(Source: P.A. 98-365, eff. 1-1-14.)
(225 ILCS 427/55)
(Section scheduled to be repealed on January 1, 2020)
Sec. 55. Fidelity insurance; segregation of accounts.
(a) The designated supervising community association
manager or the community association management firm with which
he or she is employed shall not have access to and disburse
community association funds unless each of the following
conditions occur:
(1) There is fidelity insurance in place to insure
against loss for theft of community association funds.
(2) The fidelity insurance is not less than all moneys
under the control of the designated supervising community
association manager or the employing community association
management firm for the association.

10000SB0948ham002 - 10 - LRB100 06987 KTG 27687 a
(3) The fidelity insurance covers the designated
community association manager, all other licensees,
supervising community association manager, and all
partners, officers, and employees of the community
association management firm during the term of the
insurance coverage, which shall be at least for the same
term as the service agreement between the community
association management firm or supervising community
association manager as well as the community association
officers, directors, and employees.
(4) The insurance company issuing the fidelity
insurance may not cancel or refuse to renew the bond
without giving at least 10 days' prior written notice.
(5) Unless an agreement between the community
association and the supervising community association
manager or the community association management firm
provides to the contrary, a community association may
secure and pay for the fidelity insurance required by this
Section. The designated supervising community association
manager, all other licensees, and or the community
association management firm must be named as additional
insured parties on the community association policy.
(b) A community association management firm that provides
community association management services for more than one
community association shall maintain separate, segregated
accounts for each community association or, with the consent of

10000SB0948ham002 - 11 - LRB100 06987 KTG 27687 a
the community association, combine the accounts of one or more
community associations, but in that event, separately account
for the funds of each community association. The funds shall
not, in any event, be commingled with the supervising community
association manager's or community association management
firm's funds. The maintenance of such accounts shall be
custodial, and such accounts shall be in the name of the
respective community association or community association
manager or community association management firm Community
Association Management Agency as the agent for the association.
(c) The supervising community association manager or
community association management firm shall obtain the
appropriate general liability and errors and omissions
insurance, as determined by the Department, to cover any losses
or claims against the supervising community association
manager or the community association management firm.
(d) The Department shall have authority to promulgate
additional rules regarding insurance, fidelity insurance and
all accounts maintained and to be maintained by a designated
supervising community association manager or community
association management firm.
(Source: P.A. 98-365, eff. 1-1-14.)
(225 ILCS 427/60)
(Section scheduled to be repealed on January 1, 2020)
Sec. 60. Licenses; renewals; restoration; person in

10000SB0948ham002 - 12 - LRB100 06987 KTG 27687 a
military service.
(a) The expiration date and renewal period for each license
issued under this Act shall be set by rule. The Department may
promulgate rules requiring continuing education and set all
necessary requirements for such, including but not limited to
fees, approved coursework, number of hours, and waivers of
continuing education.
(b) Any licensee who has permitted his or , her, or its
license to expire may have the license restored by making
application to the Department and filing proof acceptable to
the Department of fitness to have his or , her, or its license
restored, by which may include sworn evidence certifying to
active practice in another jurisdiction satisfactory to the
Department, complying with any continuing education
requirements, and paying the required restoration fee.
(c) If the person has not maintained an active practice in
another jurisdiction satisfactory to the Department, the
Department shall determine, by an evaluation program
established by rule, the person's fitness to resume active
status and may require the person to complete a period of
evaluated clinical experience and successful completion of a
practical examination. However, any person whose license
expired while (i) in federal service on active duty with the
Armed Forces of the United States or called into service or
training with the State Militia or (ii) in training or
education under the supervision of the United States

10000SB0948ham002 - 13 - LRB100 06987 KTG 27687 a
preliminary to induction into the military service may have his
or her license renewed or restored without paying any lapsed
renewal fees if, within 2 years after honorable termination of
the service, training or education, except under condition
other than honorable, he or she furnishes the Department with
satisfactory evidence to the effect that he or she has been so
engaged and that the service, training, or education has been
so terminated.
(d) A community association manager, community association
management firm or supervising community association manager
who notifies the Department, in writing on forms prescribed by
the Department, may place his or , her, or its license on
inactive status and shall be excused from the payment of
renewal fees until the person notifies the Department in
writing of the intention to resume active practice.
(e) A community association manager, community association
management firm, or supervising community association manager
requesting his or , her, or its license be changed from inactive
to active status shall be required to pay the current renewal
fee and shall also demonstrate compliance with the continuing
education requirements.
(f) Any licensee with a nonrenewed or on inactive license
status or any community association firm operating without a
designated community association manager shall not provide
community association management services as set forth in this
Act.

10000SB0948ham002 - 14 - LRB100 06987 KTG 27687 a
(g) Any person or entity violating subsection (f) of this
Section shall be considered to be practicing without a license
and will be subject to the disciplinary provisions of this Act.
(Source: P.A. 98-365, eff. 1-1-14.)
(225 ILCS 427/70)
(Section scheduled to be repealed on January 1, 2020)
Sec. 70. Penalty for insufficient funds; payments. Any
person who delivers a check or other payment to the Department
that is returned to the Department unpaid by the financial
institution upon which it is drawn shall pay to the Department,
in addition to the amount already owed to the Department, a
fine of $50. The Department shall notify the person that
payment of fees and fines shall be paid to the Department by
certified check or money order within 30 calendar days after
notification. If, after the expiration of 30 days from the date
of the notification, the person has failed to submit the
necessary remittance, the Department shall automatically
terminate the license or deny the application, without hearing.
If, after termination or denial, the person seeks a license, he
or , she, or it shall apply to the Department for restoration or
issuance of the license and pay all fees and fines due to the
Department. The Department may establish a fee for the
processing of an application for restoration of a license to
pay all expenses of processing this application. The Secretary
may waive the fines due under this Section in individual cases

10000SB0948ham002 - 15 - LRB100 06987 KTG 27687 a
where the Secretary finds that the fines would be unreasonable
or unnecessarily burdensome.
(Source: P.A. 98-365, eff. 1-1-14.)
(225 ILCS 427/75)
(Section scheduled to be repealed on January 1, 2020)
Sec. 75. Endorsement. The Department may issue a community
association manager or supervising community association
manager license, without the required examination, to an
applicant licensed under the laws of another state if the
requirements for licensure in that state are, on the date of
licensure, substantially equal to the requirements of this Act
or to a person who, at the time of his or her application for
licensure, possessed individual qualifications that were
substantially equivalent to the requirements then in force in
this State. An applicant under this Section shall pay all of
the required fees.
Applicants have 3 years from the date of application to
complete the application process. If the process has not been
completed within the 3 years, the application shall be denied,
the fee shall be forfeited, and the applicant must reapply and
meet the requirements in effect at the time of reapplication.
(Source: P.A. 98-365, eff. 1-1-14.)
(225 ILCS 427/85)
(Section scheduled to be repealed on January 1, 2020)

10000SB0948ham002 - 16 - LRB100 06987 KTG 27687 a
Sec. 85. Grounds for discipline; refusal, revocation, or
suspension.
(a) The Department may refuse to issue or renew a license,
or may place on probation, reprimand, suspend, or revoke any
license, or take any other disciplinary or non-disciplinary
action as the Department may deem proper and impose a fine not
to exceed $10,000 for each violation upon any licensee or
applicant under this Act or any person or entity who holds
himself, herself, or itself out as an applicant or licensee for
any one or combination of the following causes:
(1) Material misstatement in furnishing information to
the Department.
(2) Violations of this Act or its rules.
(3) Conviction of or entry of a plea of guilty or plea
of nolo contendere to a felony or a misdemeanor under the
laws of the United States, any state, or any other
jurisdiction or entry of an administrative sanction by a
government agency in this State or any other jurisdiction.
Action taken under this paragraph (3) for a misdemeanor or
an administrative sanction is limited to a misdemeanor or
administrative sanction that has as an essential element
dishonesty or fraud, that involves larceny, embezzlement,
or obtaining money, property, or credit by false pretenses
or by means of a confidence game, or that is directly
related to the practice of the profession.
(4) Making any misrepresentation for the purpose of

10000SB0948ham002 - 17 - LRB100 06987 KTG 27687 a
obtaining a license or violating any provision of this Act
or its rules.
(5) Professional incompetence.
(6) Gross negligence.
(7) Aiding or assisting another person in violating any
provision of this Act or its rules.
(8) Failing, within 30 days, to provide information in
response to a request made by the Department.
(9) Engaging in dishonorable, unethical, or
unprofessional conduct of a character likely to deceive,
defraud or harm the public as defined by the rules of the
Department, or violating the rules of professional conduct
adopted by the Department.
(10) Habitual or excessive use or addiction to alcohol,
narcotics, stimulants, or any other chemical agent or drug
that results in the inability to practice with reasonable
judgment, skill, or safety.
(11) Having been disciplined by another state, the
District of Columbia, a territory, a foreign nation, or a
governmental agency authorized to impose discipline if at
least one of the grounds for the discipline is the same or
substantially equivalent of one of the grounds for which a
licensee may be disciplined under this Act. A certified
copy of the record of the action by the other state or
jurisdiction shall be prima facie evidence thereof.
(12) Directly or indirectly giving to or receiving from

10000SB0948ham002 - 18 - LRB100 06987 KTG 27687 a
any person, firm, corporation, partnership or association
any fee, commission, rebate, or other form of compensation
for any professional services not actually or personally
rendered.
(13) A finding by the Department that the licensee,
after having his or , her, or its license placed on
probationary status, has violated the terms of probation.
(14) Willfully making or filing false records or
reports relating to a licensee's practice, including but
not limited to false records filed with any State or
federal agencies or departments.
(15) Being named as a perpetrator in an indicated
report by the Department of Children and Family Services
under the Abused and Neglected Child Reporting Act and upon
proof by clear and convincing evidence that the licensee
has caused a child to be an abused child or neglected child
as defined in the Abused and Neglected Child Reporting Act.
(16) Physical illness or mental illness or impairment,
including, but not limited to, deterioration through the
aging process or loss of motor skill that results in the
inability to practice the profession with reasonable
judgment, skill, or safety.
(17) Solicitation of professional services by using
false or misleading advertising.
(18) A finding that licensure has been applied for or
obtained by fraudulent means.

10000SB0948ham002 - 19 - LRB100 06987 KTG 27687 a
(19) Practicing or attempting to practice under a name
other than the full name as shown on the license or any
other legally authorized name unless approved by the
Department.
(20) Gross overcharging for professional services
including, but not limited to, (i) collection of fees or
moneys for services that are not rendered; and (ii)
charging for services that are not in accordance with the
contract between the licensee and the community
association.
(21) Improper commingling of personal and client funds
in violation of this Act or any rules promulgated thereto.
(22) Failing to account for or remit any moneys or
documents coming into the licensee's possession that
belong to another person or entity.
(23) Giving differential treatment to a person that is
to that person's detriment because of race, color, creed,
sex, religion, or national origin.
(24) Performing and charging for services without
reasonable authorization to do so from the person or entity
for whom service is being provided.
(25) Failing to make available to the Department, upon
request, any books, records, or forms required by this Act.
(26) Purporting to be a designated supervising
community association manager of a firm without active
participation in the firm.

10000SB0948ham002 - 20 - LRB100 06987 KTG 27687 a
(27) Failing to make available to the Department at the
time of the request any indicia of licensure or
registration issued under this Act.
(28) Failing to maintain and deposit funds belonging to
a community association in accordance with subsection (b)
of Section 55 of this Act.
(29) Violating the terms of a disciplinary order issued
by the Department.
(30) Operating a community association management firm
without a licensed designated community association
manager.
(31) Failing to meet the requirements for acting as a
designated community association manager, if appropriate.
(b) In accordance with subdivision (a)(5) of Section
2105-15 of the Department of Professional Regulation Law of the
Civil Administrative Code of Illinois (20 ILCS 2105/2105-15),
the Department shall deny a license or renewal authorized by
this Act to a person who has defaulted on an educational loan
or scholarship provided or guaranteed by the Illinois Student
Assistance Commission or any governmental agency of this State.
(c) The determination by a circuit court that a licensee is
subject to involuntary admission or judicial admission, as
provided in the Mental Health and Developmental Disabilities
Code, operates as an automatic suspension. The suspension will
terminate only upon a finding by a court that the patient is no
longer subject to involuntary admission or judicial admission

10000SB0948ham002 - 21 - LRB100 06987 KTG 27687 a
and the issuance of an order so finding and discharging the
patient, and upon the recommendation of the Board to the
Secretary that the licensee be allowed to resume his or her
practice as a licensed community association manager.
(d) In accordance with subsection (g) of Section 2105-15 of
the Department of Professional Regulation Law of the Civil
Administrative Code of Illinois (20 ILCS 2105/2105-15), the
Department may refuse to issue or renew or may suspend the
license of any person who fails to file a return, to pay the
tax, penalty, or interest shown in a filed return, or to pay
any final assessment of tax, penalty, or interest, as required
by any tax Act administered by the Department of Revenue, until
such time as the requirements of that tax Act are satisfied.
(e) In accordance with subdivision (a)(5) of Section
2105-15 of the Department of Professional Regulation Law of the
Civil Administrative Code of Illinois (20 ILCS 2105/2105-15)
and in cases where the Department of Healthcare and Family
Services (formerly Department of Public Aid) has previously
determined that a licensee or a potential licensee is more than
30 days delinquent in the payment of child support and has
subsequently certified the delinquency to the Department may
refuse to issue or renew or may revoke or suspend that person's
license or may take other disciplinary action against that
person based solely upon the certification of delinquency made
by the Department of Healthcare and Family Services.
(f) In enforcing this Section, the Department or Board upon

10000SB0948ham002 - 22 - LRB100 06987 KTG 27687 a
a showing of a possible violation may compel a licensee or an
individual licensed to practice under this Act, or who has
applied for licensure under this Act, to submit to a mental or
physical examination, or both, as required by and at the
expense of the Department. The Department or Board may order
the examining physician to present testimony concerning the
mental or physical examination of the licensee or applicant. No
information shall be excluded by reason of any common law or
statutory privilege relating to communications between the
licensee or applicant and the examining physician. The
examining physicians shall be specifically designated by the
Board or Department. The individual to be examined may have, at
his or her own expense, another physician of his or her choice
present during all aspects of this examination. Failure of an
individual to submit to a mental or physical examination, when
directed, shall be grounds for suspension of his or her license
or denial of his or her application or renewal until the
individual submits to the examination if the Department finds,
after notice and hearing, that the refusal to submit to the
examination was without reasonable cause.
If the Department or Board finds an individual unable to
practice because of the reasons set forth in this Section, the
Department or Board may require that individual to submit to
care, counseling, or treatment by physicians approved or
designated by the Department or Board, as a condition, term, or
restriction for continued, reinstated, or renewed licensure to

10000SB0948ham002 - 23 - LRB100 06987 KTG 27687 a
practice; or, in lieu of care, counseling, or treatment, the
Department may file, or the Board may recommend to the
Department to file, a complaint to immediately suspend, revoke,
deny, or otherwise discipline the license of the individual. An
individual whose license was granted, continued, reinstated,
renewed, disciplined or supervised subject to such terms,
conditions, or restrictions, and who fails to comply with such
terms, conditions, or restrictions, shall be referred to the
Secretary for a determination as to whether the individual
shall have his or her license suspended immediately, pending a
hearing by the Department.
In instances in which the Secretary immediately suspends a
person's license under this Section, a hearing on that person's
license must be convened by the Department within 30 days after
the suspension and completed without appreciable delay. The
Department and Board shall have the authority to review the
subject individual's record of treatment and counseling
regarding the impairment to the extent permitted by applicable
federal statutes and regulations safeguarding the
confidentiality of medical records.
An individual licensed under this Act and affected under
this Section shall be afforded an opportunity to demonstrate to
the Department or Board that he or she can resume practice in
compliance with acceptable and prevailing standards under the
provisions of his or her license.
(Source: P.A. 97-333, eff. 8-12-11; 98-365, eff. 1-1-14;

10000SB0948ham002 - 24 - LRB100 06987 KTG 27687 a
98-756, eff. 7-16-14.)
(225 ILCS 427/90)
(Section scheduled to be repealed on January 1, 2020)
Sec. 90. Violations; injunctions; cease and desist orders.
(a) If any person violates a provision of this Act, the
Secretary may, in the name of the People of the State of
Illinois, through the Attorney General of the State of
Illinois, petition for an order enjoining the violation or for
an order enforcing compliance with this Act. Upon the filing of
a verified petition in court, the court may issue a temporary
restraining order, without notice or bond, and may
preliminarily and permanently enjoin the violation. If it is
established that the person has violated or is violating the
injunction, the Court may punish the offender for contempt of
court. Proceedings under this Section are in addition to, and
not in lieu of, all other remedies and penalties provided by
this Act.
(b) If any person, entity or other business may provide
community association management services or provide services
as community association manager to any community association
in this State without having a valid license under this Act or
without a designated community association manager for a
community association management firm, then any licensee, any
interested party or any person injured thereby may, in addition
to the Secretary, petition for relief as provided in subsection

10000SB0948ham002 - 25 - LRB100 06987 KTG 27687 a
(a) of this Section.
(c) Whenever in the opinion of the Department any person,
entity or other business violates any provision of this Act,
the Department may issue a rule to show cause why an order to
cease and desist should not be entered against such person,
firm or other entity. The rule shall clearly set forth the
grounds relied upon by the Department and shall provide a
period of at least 7 days from the date of the rule to file an
answer to the satisfaction of the Department. If the person,
firm or other entity fails to file an answer satisfactory to
the Department, the matter shall be considered as a default and
the Department may cause an order to cease and desist to be
issued immediately.
(Source: P.A. 96-726, eff. 7-1-10.)
(225 ILCS 427/92)
(Section scheduled to be repealed on January 1, 2020)
Sec. 92. Unlicensed practice; violation; civil penalty.
(a) Any person, entity or other business who practices,
offers to practice, attempts to practice, or holds himself,
herself or itself out to practice as a community association
manager or community association management firm or provide
services as a community association manager or community
association management firm to any community association in
this State without being licensed under this Act or without a
designated community association manager for a community

10000SB0948ham002 - 26 - LRB100 06987 KTG 27687 a
association management firm shall, in addition to any other
penalty provided by law, pay a civil penalty to the Department
in an amount not to exceed $10,000 for each offense, as
determined by the Department. The civil penalty shall be
assessed by the Department after a hearing is held in
accordance with the provisions set forth in this Act regarding
the provision of a hearing for the discipline of a licensee.
(b) The Department may investigate any and all unlicensed
activity.
(c) The civil penalty shall be paid within 60 days after
the effective date of the order imposing the civil penalty. The
order shall constitute a judgment and may be filed and
execution had thereon in the same manner as any judgment from
any court of record.
(Source: P.A. 98-365, eff. 1-1-14.)
(225 ILCS 427/155)
(Section scheduled to be repealed on January 1, 2020)
Sec. 155. Violations; penalties.
(a) A person who violates any of the following provisions
shall be guilty of a Class A misdemeanor; a person who commits
a second or subsequent violation of these provisions is guilty
of a Class 4 felony:
(1) The practice of or attempted practice of or holding
out as available to practice as a community association
manager or supervising community association manager

10000SB0948ham002 - 27 - LRB100 06987 KTG 27687 a
without a license.
(2) Operation of or attempt to operate a community
association management firm without a firm license or a
designated supervising community association manager.
(3) The obtaining of or the attempt to obtain any
license or authorization issued under this Act by
fraudulent misrepresentation.
(b) Whenever a licensee is convicted of a felony related to
the violations set forth in this Section, the clerk of the
court in any jurisdiction shall promptly report the conviction
to the Department and the Department shall immediately revoke
any license authorized under this Act held by that licensee.
The licensee shall not be eligible for licensure under this Act
until at least 10 years have elapsed since the time of full
discharge from any sentence imposed for a felony conviction. If
any person in making any oath or affidavit required by this Act
swears falsely, the person is guilty of perjury and may be
punished accordingly.
(Source: P.A. 98-365, eff. 1-1-14; 99-78, eff. 7-20-15.)
(225 ILCS 427/165)
(Section scheduled to be repealed on January 1, 2020)
Sec. 165. Home rule. The regulation and licensing of
community association managers, supervising community
association managers, and community association management
firms are exclusive powers and functions of the State. A home

10000SB0948ham002 - 28 - LRB100 06987 KTG 27687 a
rule unit may not regulate or license community association
managers, supervising community association managers, or
community association management firms. This Section is a
denial and limitation of home rule powers and functions under
subsection (h) of Section 6 of Article VII of the Illinois
Constitution.
(Source: P.A. 98-365, eff. 1-1-14.)
(225 ILCS 427/42 rep.)
Section 10. The Community Association Manager Licensing
and Disciplinary Act is amended by repealing Section 42.
Section 15. The Common Interest Community Association Act
is amended by changing Sections 1-35 and 1-45 as follows:
(765 ILCS 160/1-35)
Sec. 1-35. Member powers, duties, and obligations.
(a) The provisions of this Act, the declaration, bylaws,
other community instruments, and rules and regulations that
relate to the use of an individual unit or the common areas
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 Act. Unless otherwise
provided in the community instruments, with regard to any lease
entered into subsequent to the effective date of this Act, the
unit owner leasing the unit shall deliver a copy of the signed

10000SB0948ham002 - 29 - LRB100 06987 KTG 27687 a
lease to the association 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.
(b) 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, unless the unit owner owns
another unit independently.
(c) Two-thirds of the membership may remove a board member
as a director at a duly called special meeting.
(d) In the event of any resale of a unit in a common
interest community association by a member or unit owner other
than the developer, the board shall make available for
inspection to the prospective purchaser, upon demand, the
following:
(1) A copy of the declaration, other instruments, and
any rules and regulations, and any adopted common expense
collection policies.
(2) A statement of any liens, including a statement of
the account of the unit setting forth the amounts of unpaid
assessments and other charges due and owing.
(3) A statement of any capital expenditures
anticipated by the association within the current or
succeeding 2 fiscal years.
(4) A statement of the status and amount of any reserve
or replacement fund and any other fund specifically
designated for association projects.

10000SB0948ham002 - 30 - LRB100 06987 KTG 27687 a
(5) A copy of the statement of financial condition of
the association for the last fiscal year for which such a
statement is available.
(6) A statement of the status of any pending suits or
judgments in which the association is a party.
(7) A statement setting forth what insurance coverage
is provided for all members or unit owners by the
association for common properties.
(8) A statement setting forth the current assessment
obligations, including any special assessments or other
common expenses.
(9) A statement setting forth the current late fees or
interest that may be charged on an unpaid balance, if any.
The principal officer of the board, or such other officer
as is specifically designated, or agent for the association
shall disclose furnish the above information within 30 days
after receiving a written request for such information.
A reasonable fee covering the direct out-of-pocket cost of
copying and providing such information may be charged by the
association or the board to the unit seller for providing the
information.
(Source: P.A. 97-605, eff. 8-26-11; 97-1090, eff. 8-24-12;
98-842, eff. 1-1-15.)
(765 ILCS 160/1-45)
Sec. 1-45. Finances.

10000SB0948ham002 - 31 - LRB100 06987 KTG 27687 a
(a) Each member shall receive through a prescribed delivery
method, at least 30 days but not more than 60 days prior to the
adoption thereof by the board, 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.
(b) The board shall provide all members with a reasonably
detailed summary of the receipts, common expenses, and reserves
for the preceding budget year. The board shall (i) make
available for review to all members an itemized accounting of
the common expenses for the preceding year actually incurred or
paid, together with an indication of which portions were for
reserves, capital expenditures or repairs or payment of real
estate taxes and with a tabulation of the amounts collected
pursuant to the budget or assessment, and showing the net
excess or deficit of income over expenditures plus reserves or
(ii) provide a consolidated annual independent audit report of
the financial status of all fund accounts within the
association.
(c) 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
common interest community association, upon written petition
by members with 20% of the votes of the association delivered

10000SB0948ham002 - 32 - LRB100 06987 KTG 27687 a
to the board within 21 14 days of the board action, shall call
a meeting of the members 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 members are cast at
the meeting to reject the budget or separate assessment, it
shall be deemed ratified.
(d) If total common expenses exceed the total amount of the
approved and adopted budget, the common interest community
association shall disclose this variance to all its members and
specifically identify the subsequent assessments needed to
offset this variance in future budgets.
(e) Separate assessments for expenditures relating to
emergencies or mandated by law may be adopted by the board
without being subject to member approval or the provisions of
subsection (c) or (f) of this Section. As used herein,
"emergency" means a danger to or a compromise of the structural
integrity of the common areas or any of the common facilities
of the common interest community. "Emergency" also includes a
danger to the life, health or safety of the membership.
(f) Assessments for additions and alterations to the common
areas or to association-owned property not included in the
adopted annual budget, shall be separately assessed and are
subject to approval of a simple majority of the total members
at a meeting called for that purpose.
(g) The board may adopt separate assessments payable over
more than one fiscal year. With respect to multi-year

10000SB0948ham002 - 33 - LRB100 06987 KTG 27687 a
assessments not governed by subsections (e) and (f) of this
Section, 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.
(h) The board of a common interest community association
shall have the authority to establish and maintain a system of
master metering of public utility services to collect payments
in conjunction therewith, subject to the requirements of the
Tenant Utility Payment Disclosure Act.
(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11;
97-1090, eff. 8-24-12.)
Section 20. The Condominium Property Act is amended by
changing Sections 9.2 and 18.5 as follows:
(765 ILCS 605/9.2) (from Ch. 30, par. 309.2)
Sec. 9.2. Other remedies.
(a) In the event of any default by any unit owner, his
tenant, invitee or guest in the performance of his obligations
under this Act or under the declaration, bylaws, or the rules
and regulations of the board of managers, the board of managers
or its agents shall have such rights and remedies as provided
in the Act or condominium instruments including the right to
maintain an action for possession against such defaulting unit
owner or his tenant for the benefit of all the other unit
owners in the manner prescribed by Article IX of the Code of

10000SB0948ham002 - 34 - LRB100 06987 KTG 27687 a
Civil Procedure.
(b) Except for attorney's fees incurred in any litigation
or arbitration described in subsection (d) in which a unit
owner is deemed by the court or arbitrator to be the prevailing
party, any Any attorneys' fees incurred by the Association
arising out of an adjudicated a default by any unit owner, his
tenant, invitee or guest in the performance of any of the
provisions of the condominium instruments, rules and
regulations or any applicable statute or ordinance shall be
added to, and deemed a part of, his respective share of the
common expense.
(c) Other than attorney's fees, no fees pertaining to the
collection of a unit owner's financial obligation to the
Association, including fees charged by a manager or managing
agent, shall be added to and deemed a part of an owner's
respective share of the common expenses unless: (i) the
managing agent fees relate to the costs to collect common
expenses for the Association; (ii) the fees are set forth in a
contract between the managing agent and the Association; and
(iii) the authority to add the management fees to an owner's
respective share of the common expenses is specifically stated
in the declaration or bylaws of the Association.
(d) In any litigation or arbitration between a unit owner
and the Association or its board of managers or any individual
member of the Association or its board of managers regarding:
(i) the enforcement of obligations of the board or the

10000SB0948ham002 - 35 - LRB100 06987 KTG 27687 a
Association, set forth either in this Act, the condominium
instruments, rules and regulations, or any applicable statute
or ordinance; (ii) a disputed charge on the unit owner's
account; or (iii) a purported default as described in
subsection (a), if the unit owner is deemed by the court or
arbitrator to be the prevailing party, then the court or the
arbitrator shall award to the unit owner from the
non-prevailing party reasonable attorney's fees and costs
incurred by the unit owner in the litigation or arbitration.
(Source: P.A. 94-384, eff. 1-1-06.)
(765 ILCS 605/18.5) (from Ch. 30, par. 318.5)
Sec. 18.5. Master Associations.
(a) If the declaration, other condominium instrument, or
other duly recorded covenants provide that any of the powers of
the unit owners associations are to be exercised by or may be
delegated to a nonprofit corporation or unincorporated
association that exercises those or other powers on behalf of
one or more condominiums, or for the benefit of the unit owners
of one or more condominiums, such corporation or association
shall be a master association.
(b) There shall be included in the declaration, other
condominium instruments, or other duly recorded covenants
establishing the powers and duties of the master association
the provisions set forth in subsections (c) through (h).
In interpreting subsections (c) through (h), the courts

10000SB0948ham002 - 36 - LRB100 06987 KTG 27687 a
should interpret these provisions so that they are interpreted
consistently with the similar parallel provisions found in
other parts of this Act.
(c) Meetings and finances.
(1) Each unit owner of a condominium subject to the
authority of the board of the master association shall
receive, at least 30 days prior to the adoption thereof by
the board of the master association, a copy of the proposed
annual budget.
(2) The board of the master association shall annually
supply to all unit owners of condominiums subject to the
authority of the board of the master association an
itemized accounting of the common expenses for the
preceding year actually incurred or paid, together with a
tabulation of the amounts collected pursuant to the budget
or assessment, and showing the net excess or deficit of
income over expenditures plus reserves.
(3) Each unit owner of a condominium subject to the
authority of the board of the master association shall
receive written notice mailed or delivered no less than 10
and no more than 30 days prior to any meeting of the board
of the master association concerning the adoption of the
proposed annual budget or any increase in the budget, or
establishment of an assessment.
(4) Meetings of the board of the master association
shall be open to any unit owner in a condominium subject to

10000SB0948ham002 - 37 - LRB100 06987 KTG 27687 a
the authority of the board of the master association,
except for the portion of any meeting held:
(A) to discuss litigation when an action against or
on behalf of the particular master association has been
filed and is pending in a court or administrative
tribunal, or when the board of the master association
finds that such an action is probable or imminent,
(B) to consider information regarding appointment,
employment or dismissal of an employee, or
(C) to discuss violations of rules and regulations
of the master association or unpaid common expenses
owed to the master association.
Any vote on these matters shall be taken at a meeting or
portion thereof open to any unit owner of a condominium
subject to the authority of the master association.
Any unit owner may record the proceedings at meetings
required to be open by this Act by tape, film or other
means; the board may prescribe reasonable rules and
regulations to govern the right to make such recordings.
Notice of meetings shall be mailed or delivered at least 48
hours prior thereto, unless a written waiver of such notice
is signed by the persons entitled to notice before the
meeting is convened. Copies of notices of meetings of the
board of the master association shall be posted in
entranceways, elevators, or other conspicuous places in
the condominium at least 48 hours prior to the meeting of

10000SB0948ham002 - 38 - LRB100 06987 KTG 27687 a
the board of the master association. Where there is no
common entranceway for 7 or more units, the board of the
master association may designate one or more locations in
the proximity of these units where the notices of meetings
shall be posted.
(5) If the declaration provides for election by unit
owners of members of the board of directors in the event of
a resale of a unit in the master association, 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
directors at any meeting of the unit owners called for
purposes of electing members of the board, and shall have
the right to vote for the election of members of the board
of directors and to be elected to and serve on the board of
directors unless the seller expressly retains in writing
any or all of those 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
contract shall be made available to the association or its
agents. For purposes of this subsection, "installment
contract" shall have the same meaning as set forth in
subsection (e) of Section 1 of the Dwelling Unit
Installment Contract Act.

10000SB0948ham002 - 39 - LRB100 06987 KTG 27687 a
(6) The board of the master association shall have the
authority to establish and maintain a system of master
metering of public utility services and to collect payments
in connection therewith, subject to the requirements of the
Tenant Utility Payment Disclosure Act.
(7) The board of the master association or a common
interest community association shall have the power, after
notice and an opportunity to be heard, to levy and collect
reasonable fines from members for violations of the
declaration, bylaws, and rules and regulations of the
master association or the common interest community
association. Nothing contained in this subdivision (7)
shall give rise to a statutory lien for unpaid fines.
(8) Other than attorney's fees, no fees pertaining to
the collection of a unit owner's financial obligation to
the Association, including fees charged by a manager or
managing agent, shall be added to and deemed a part of an
owner's respective share of the common expenses unless: (i)
the managing agent fees relate to the costs to collect
common expenses for the Association; (ii) the fees are set
forth in a contract between the managing agent and the
Association; and (iii) the authority to add the management
fees to an owner's respective share of the common expenses
is specifically stated in the declaration or bylaws of the
Association.
(d) Records.

10000SB0948ham002 - 40 - LRB100 06987 KTG 27687 a
(1) The board of the master association shall keep and
maintain the following records, or true and complete copies
of the records, at the association's principal office of
the association and make them available for examination and
copying at convenient hours of weekdays by any unit owners
in a condominium subject to the authority of the board or
their mortgagees and their duly authorized agents or
attorneys:
(i) the association's declaration, bylaws, and
plats of survey, and all amendments of the
association's declaration, bylaws, and plats of
survey;
(ii) the rules and regulations of the association,
if any;
(iii) if the association is incorporated as a
corporation, the articles of incorporation of the
association and all amendments to the articles of
incorporation;
(iv) minutes of all meetings of the association and
its board of managers for the immediately preceding 7
years;
(v) all current policies of insurance of the
association;
(vi) all contracts, leases, and other agreements
then in effect to which the association is a party or
under which the association or the unit owners have

10000SB0948ham002 - 41 - LRB100 06987 KTG 27687 a
obligations or liabilities;
(vii) a current listing of the names, addresses,
email addresses, telephone numbers, and weighted vote
of all members entitled to vote;
(viii) ballots and proxies related to ballots for
all matters voted on by the members of the association
during the immediately preceding 12 months, including,
but not limited to, the election of members of the
board of managers; and
(ix) the books and records for the association's
current and 10 immediately preceding fiscal years,
including, but not limited to, itemized and detailed
records of all receipts, expenditures, and accounts.
With respect to units owned by a land trust, if a
trustee designates in writing a person to cast votes on
behalf of the unit owner, the designation shall remain in
effect until a subsequent document is filed with the
association.
(2) Any member of an association has the right to
inspect, examine, and make copies of the records described
in subdivisions (i), (ii), (iii), (iv), (v), (vi), and (ix)
of paragraph (1) of this subsection, in person or by agent,
at any reasonable time or times, at the association's
principal office. In order to exercise this right, a member
must submit a written request to the association's board of
directors or its authorized agent, stating with

10000SB0948ham002 - 42 - LRB100 06987 KTG 27687 a
particularity the records sought. Failure of an
association's board of directors to make available all
requested records within 10 days of receipt of the member's
written request shall be deemed a denial.
Any member who prevails in an enforcement action to
compel examination of records described in subdivisions
(i), (ii), (iii), (iv), (v), (vi), and (ix) of paragraph
(1) of this subsection is entitled to recover reasonable
attorney's fees and costs from the association.
(2.5) As used in this Section, "commercial purpose"
means the use of any part of a record or records described
in subdivisions (vii) and (viii) of paragraph (1) of this
subsection, or information derived from such records, in
any form for sale, resale, or solicitation or advertisement
for sales or services.
(3) Except as otherwise provided in this subsection,
any member of an association has the right to inspect,
examine, and make copies of the records described in
subdivisions (vii) and (viii) of paragraph (1) of this
subsection, in person or by agent, at any reasonable time
or times, but only for a purpose that relates to the
association, at the association's principal office. In
order to exercise this right, a member must submit a
written request to the association's board of directors or
its authorized agent, stating with particularity the
records sought to be examined. As a condition for

10000SB0948ham002 - 43 - LRB100 06987 KTG 27687 a
exercising this right, the board of managers or authorized
agent of the association may require the member to certify
in writing that the information contained in the records
obtained by the member will not be used by the member for
any commercial purpose or for any purpose that does not
relate to the association. The board of managers of the
association may impose a fine in accordance with item (l)
of Section 18.4 upon any person who makes a false
certification. Subject to the provisions of paragraph (5)
of this subsection, failure of an association's board of
directors to make available all requested records within 10
business days of receipt of the member's written request
shall be deemed a denial; however, the board of directors
of an association that has adopted a secret ballot election
process shall not be deemed to have denied a member's
request for records described in subdivision (viii) of
paragraph (1) of this subsection if voting ballots, without
identifying unit numbers, are made available to the
requesting member within 10 days of receipt of the member's
written request.
Any member who prevails in an enforcement action to
compel examination of records described in subdivisions
(vii) or (viii) of paragraph (1) of this subsection is
entitled to recover reasonable attorney's fees and costs
from the association only if the court finds that the board
of directors acted in bad faith in denying the member's

10000SB0948ham002 - 44 - LRB100 06987 KTG 27687 a
request.
(4) The actual cost to the association of retrieving
and making requested records available for inspection and
examination under this Section may be charged by the
association to the requesting member. If a member requests
copies of records under this Section, the actual costs to
the association of reproducing the records may also be
charged by the association to the requesting member.
(5) Notwithstanding the other provisions of this
subsection, unless otherwise directed by court order, an
association need not make the following records available
for inspection, examination, or copying by its members:
(i) documents relating to appointment, employment,
discipline, or dismissal of association employees;
(ii) documents relating to actions pending against
or on behalf of the association or its board of
managers in a court or administrative tribunal;
(iii) documents relating to actions threatened
against, or likely to be asserted on behalf of, the
association or its board of directors in a court or
administrative tribunal;
(iv) documents relating to common expenses or
other charges owed by a member other than the
requesting member; and
(v) documents provided to an association in
connection with the lease, sale, or other transfer of a

10000SB0948ham002 - 45 - LRB100 06987 KTG 27687 a
unit by a member other than the requesting member.
(i) Copies of the recorded declaration, other
condominium instruments, other duly recorded covenants
and bylaws and any amendments, articles of
incorporation of the master association, annual
reports and any rules and regulations adopted by the
master association or its board shall be available.
Prior to the organization of the master association,
the developer shall maintain and make available the
records set forth in this subdivision (d)(1) for
examination and copying.
(ii) Detailed and accurate records in
chronological order of the receipts and expenditures
affecting the common areas, specifying and itemizing
the maintenance and repair expenses of the common areas
and any other expenses incurred, and copies of all
contracts, leases, or other agreements entered into by
the master association, shall be maintained.
(iii) The minutes of all meetings of the master
association and the board of the master association
shall be maintained for not less than 7 years.
(iv) Ballots and proxies related thereto, if any,
for any election held for the board of the master
association and for any other matters voted on by the
unit owners shall be maintained for not less than one
year.

10000SB0948ham002 - 46 - LRB100 06987 KTG 27687 a
(v) Such other records of the master association as
are available for inspection by members of a
not-for-profit corporation pursuant to Section 107.75
of the General Not For Profit Corporation Act of 1986
shall be maintained.
(vi) With respect to units owned by a land trust,
if a trustee designates in writing a person to cast
votes on behalf of the unit owner, the designation
shall remain in effect until a subsequent document is
filed with the association.
(2) Where a request for records under this subsection
is made in writing to the board of managers or its agent,
failure to provide the requested record or to respond
within 30 days shall be deemed a denial by the board of
directors.
(3) A reasonable fee may be charged by the master
association or its board for the cost of copying.
(4) If the board of directors fails to provide records
properly requested under subdivision (d)(1) within the
time period provided in subdivision (d)(2), the unit owner
may seek appropriate relief, including an award of
attorney's fees and costs.
(e) The board of directors shall have standing and capacity
to act in a representative capacity in relation to matters
involving the common areas of the master association or more
than one unit, on behalf of the unit owners as their interests

10000SB0948ham002 - 47 - LRB100 06987 KTG 27687 a
may appear.
(f) Administration of property prior to election of the
initial board of directors.
(1) Until the election, by the unit owners or the
boards of managers of the underlying condominium
associations, of the initial board of directors of a master
association whose declaration is recorded on or after
August 10, 1990, the same rights, titles, powers,
privileges, trusts, duties and obligations that are vested
in or imposed upon the board of directors by this Act or in
the declaration or other duly recorded covenant shall be
held and performed by the developer.
(2) The election of the initial board of directors of a
master association whose declaration is recorded on or
after August 10, 1990, by the unit owners or the boards of
managers of the underlying condominium associations, shall
be held not later than 60 days after the conveyance by the
developer of 75% of the units, or 3 years after the
recording of the declaration, whichever is earlier. The
developer shall give at least 21 days notice of the meeting
to elect the initial board of directors and shall upon
request provide to any unit owner, within 3 working days of
the request, the names, addresses, and weighted vote of
each unit owner entitled to vote at the meeting. Any unit
owner shall upon receipt of the request be provided with
the same information, within 10 days of the request, with

10000SB0948ham002 - 48 - LRB100 06987 KTG 27687 a
respect to each subsequent meeting to elect members of the
board of directors.
(3) If the initial board of directors of a master
association whose declaration is recorded on or after
August 10, 1990 is not elected by the unit owners or the
members of the underlying condominium association board of
managers at the time established in subdivision (f)(2), the
developer shall continue in office for a period of 30 days,
whereupon written notice of his resignation shall be sent
to all of the unit owners or members of the underlying
condominium board of managers entitled to vote at an
election for members of the board of directors.
(4) Within 60 days following the election of a majority
of the board of directors, other than the developer, by
unit owners, the developer shall deliver to the board of
directors:
(i) All original documents as recorded or filed
pertaining to the property, its administration, and
the association, such as the declaration, articles of
incorporation, other instruments, annual reports,
minutes, rules and regulations, and contracts, leases,
or other agreements entered into by the association. If
any original documents are unavailable, a copy may be
provided if certified by affidavit of the developer, or
an officer or agent of the developer, as being a
complete copy of the actual document recorded or filed.

10000SB0948ham002 - 49 - LRB100 06987 KTG 27687 a
(ii) A detailed accounting by the developer,
setting forth the source and nature of receipts and
expenditures in connection with the management,
maintenance and operation of the property, copies of
all insurance policies, and a list of any loans or
advances to the association which are outstanding.
(iii) Association funds, which shall have been at
all times segregated from any other moneys of the
developer.
(iv) A schedule of all real or personal property,
equipment and fixtures belonging to the association,
including documents transferring the property,
warranties, if any, for all real and personal property
and equipment, deeds, title insurance policies, and
all tax bills.
(v) A list of all litigation, administrative
action and arbitrations involving the association, any
notices of governmental bodies involving actions taken
or which may be taken concerning the association,
engineering and architectural drawings and
specifications as approved by any governmental
authority, all other documents filed with any other
governmental authority, all governmental certificates,
correspondence involving enforcement of any
association requirements, copies of any documents
relating to disputes involving unit owners, and

10000SB0948ham002 - 50 - LRB100 06987 KTG 27687 a
originals of all documents relating to everything
listed in this subparagraph.
(vi) If the developer fails to fully comply with
this paragraph (4) within the 60 days provided and
fails to fully comply within 10 days of written demand
mailed by registered or certified mail to his or her
last known address, the board may bring an action to
compel compliance with this paragraph (4). If the court
finds that any of the required deliveries were not made
within the required period, the board shall be entitled
to recover its reasonable attorneys' fees and costs
incurred from and after the date of expiration of the
10 day demand.
(5) With respect to any master association whose
declaration is recorded on or after August 10, 1990, any
contract, lease, or other agreement made prior to the
election of a majority of the board of directors other than
the developer by or on behalf of unit owners or underlying
condominium associations, the association or the board of
directors, which extends for a period of more than 2 years
from the recording of the declaration, shall be subject to
cancellation by more than 1/2 of the votes of the unit
owners, other than the developer, cast at a special meeting
of members called for that purpose during a period of 90
days prior to the expiration of the 2 year period if the
board of managers is elected by the unit owners, otherwise

10000SB0948ham002 - 51 - LRB100 06987 KTG 27687 a
by more than 1/2 of the underlying condominium board of
managers. At least 60 days prior to the expiration of the 2
year period, the board of directors, or, if the board is
still under developer control, then the board of managers
or the developer shall send notice to every unit owner or
underlying condominium board of managers, notifying them
of this provision, of what contracts, leases and other
agreements are affected, and of the procedure for calling a
meeting of the unit owners or for action by the underlying
condominium board of managers for the purpose of acting to
terminate such contracts, leases or other agreements.
During the 90 day period the other party to the contract,
lease, or other agreement shall also have the right of
cancellation.
(6) The statute of limitations for any actions in law
or equity which the master association may bring shall not
begin to run until the unit owners or underlying
condominium board of managers have elected a majority of
the members of the board of directors.
(g) In the event of any resale of a unit in a master
association by a unit owner other than the developer, the owner
shall obtain from the board of directors and shall make
available for inspection to the prospective purchaser, upon
demand, the following:
(1) A copy of the declaration, other instruments and
any rules and regulations.

10000SB0948ham002 - 52 - LRB100 06987 KTG 27687 a
(2) A statement of any liens, including a statement of
the account of the unit setting forth the amounts of unpaid
assessments and other charges due and owing.
(3) A statement of any capital expenditures
anticipated by the association within the current or
succeeding 2 fiscal years.
(4) A statement of the status and amount of any reserve
for replacement fund and any portion of such fund earmarked
for any specified project by the board of directors.
(5) A copy of the statement of financial condition of
the association for the last fiscal year for which such a
statement is available.
(6) A statement of the status of any pending suits or
judgments in which the association is a party that may have
a material adverse impact on the association's financial
condition.
(7) A statement setting forth what insurance coverage
is provided for all unit owners by the association.
(8) A statement that any known improvements or
alterations made to the unit, or any part of the common
areas assigned thereto, by the prior unit owner are in good
faith believed to be in compliance with the declaration of
the master association.
The principal officer of the unit owner's association or
such other officer, manager, or agent as is specifically
designated shall furnish the above information when requested

10000SB0948ham002 - 53 - LRB100 06987 KTG 27687 a
to do so in writing, within 30 days of receiving the request.
A reasonable fee covering the direct out-of-pocket cost of
copying and providing such information may be charged by the
association or its board of directors to the unit seller for
providing the information.
Within 15 days of the recording of a mortgage or trust deed
against a unit ownership given by the owner of that unit to
secure a debt, the owner shall inform the board of the master
association of the identity of the lender, together with a
mailing address at which the lender can receive notices from
the association. If a unit owner fails or refuses to inform the
board as required under this subsection, then that unit owner
is liable to the association for all costs, expenses, and
reasonable attorney's fees and other damages, if any, incurred
by the association as a result of the failure or refusal.
(g-1) The purchaser of a unit of a common interest
community at a judicial foreclosure sale, other than a
mortgagee, who takes possession of a unit of a common interest
community pursuant to a court order or a purchaser who acquires
title from a mortgagee shall have the duty to pay the
proportionate share, if any, of the common expenses for the
unit that would have become due in the absence of any
assessment acceleration during the 6 months immediately
preceding institution of an action to enforce the collection of
assessments and the court costs incurred by the association in
an action to enforce the collection that remain unpaid by the

10000SB0948ham002 - 54 - LRB100 06987 KTG 27687 a
owner during whose possession the assessments accrued. If the
outstanding assessments and the court costs incurred by the
association in an action to enforce the collection are paid at
any time during any action to enforce the collection of
assessments, the purchaser shall have no obligation to pay any
assessments that accrued before he or she acquired title. The
notice of sale of a unit of a common interest community under
subsection (c) of Section 15-1507 of the Code of Civil
Procedure shall state that the purchaser of the unit other than
a mortgagee shall pay the assessments and court costs required
by this subsection (g-1).
(h) Errors and omissions.
(1) If there is an omission or error in the declaration
or other instrument of the master association, the master
association may correct the error or omission by an
amendment to the declaration or other instrument, as may be
required to conform it to this Act, to any other applicable
statute, or to the declaration. The amendment shall be
adopted by vote of two-thirds of the members of the board
of directors or by a majority vote of the unit owners at a
meeting called for that purpose, unless the Act or the
declaration of the master association specifically
provides for greater percentages or different procedures.
(2) If, through a scrivener's error, a unit has not
been designated as owning an appropriate undivided share of
the common areas or does not bear an appropriate share of

10000SB0948ham002 - 55 - LRB100 06987 KTG 27687 a
the common expenses, or if all of 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 areas 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 directors or a
majority vote of the unit owners at a meeting called for
that purpose, which proportionately adjusts all percentage
interests so that the total is equal to 100%, unless the
declaration specifically provides 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 areas, 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 or other instrument is corrected by vote of
two-thirds of the members of the board of directors
pursuant to the authority established in subdivisions
(h)(1) or (h)(2) of this Section, the board, upon written
petition by unit owners with 20% of the votes of the

10000SB0948ham002 - 56 - LRB100 06987 KTG 27687 a
association or resolutions adopted by the board of managers
or board of directors of the condominium and common
interest community associations which select 20% of the
members of the board of directors of the master
association, whichever is applicable, received within 30
days of the board action, shall call a meeting of the unit
owners or the boards of the condominium and common interest
community associations which select members of the board of
directors of the master association within 30 days of the
filing of the petition or receipt of the condominium and
common interest community association resolution 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, or board of managers or board
of directors of condominium and common interest community
associations which select over 50% of the members of the
board of the master association adopt resolutions prior to
the meeting rejecting the action of the board of directors
of the master association, it is ratified whether or not a
quorum is present.
(4) The procedures for amendments set forth in this
subsection (h) 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

10000SB0948ham002 - 57 - LRB100 06987 KTG 27687 a
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
or other instruments that may not be corrected by an
amendment procedure set forth in subdivision (h)(1) or
(h)(2) of this Section, then the circuit court in the
county in which the master association 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
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 declaration
authorizing the developer to amend an instrument prior to

10000SB0948ham002 - 58 - LRB100 06987 KTG 27687 a
the latest date on which the initial membership meeting of
the unit owners must be held, whether or not 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.
(i) The provisions of subsections (c) through (h) are
applicable to all declarations, other condominium instruments,
and other duly recorded covenants establishing the powers and
duties of the master association recorded under this Act. Any
portion of a declaration, other condominium instrument, or
other duly recorded covenant establishing the powers and duties
of a master association which contains provisions contrary to
the provisions of subsection (c) through (h) shall be void as
against public policy and ineffective. Any declaration, other
condominium instrument, or other duly recorded covenant
establishing the powers and duties of the master association
which fails to contain the provisions required by subsections
(c) through (h) shall be deemed to incorporate such provisions
by operation of law.
(j) (Blank).
(Source: P.A. 96-1045, eff. 7-14-10; 97-535, eff. 1-1-12;
97-605, eff. 8-26-11; 97-813, eff. 7-13-12.)".