Bill Text: IL HB2400 | 2017-2018 | 100th General Assembly | Introduced
Bill Title: Amends the Common Interest Community Association Act. Provides that all voting by the members of a common interest community association shall be on a non-cumulative basis. Amends the Condominium Property Act. Provides that the bylaws shall provide that voting shall be on a non-cumulative basis.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Failed) 2019-01-08 - Session Sine Die [HB2400 Detail]
Download: Illinois-2017-HB2400-Introduced.html
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1 | AN ACT concerning civil law.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Common Interest Community Association Act is | |||||||||||||||||||||
5 | amended by changing Section 1-25 as follows:
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6 | (765 ILCS 160/1-25) | |||||||||||||||||||||
7 | Sec. 1-25. Board of managers, board of directors, duties, | |||||||||||||||||||||
8 | elections, and voting. | |||||||||||||||||||||
9 | (a) Elections shall be held in accordance with the | |||||||||||||||||||||
10 | community instruments, provided that an election shall be held | |||||||||||||||||||||
11 | no less frequently than once every 24 months, for the board of | |||||||||||||||||||||
12 | managers or board of directors from among the membership of a | |||||||||||||||||||||
13 | common interest community association. | |||||||||||||||||||||
14 | (b) (Blank). | |||||||||||||||||||||
15 | (c) The members of the board shall serve without | |||||||||||||||||||||
16 | compensation, unless the community instruments indicate | |||||||||||||||||||||
17 | otherwise. | |||||||||||||||||||||
18 | (d) No member of the board or officer shall be elected for | |||||||||||||||||||||
19 | a term of more than 4 years, but officers and board members may | |||||||||||||||||||||
20 | succeed themselves. | |||||||||||||||||||||
21 | (e) If there is a vacancy on the board, the remaining | |||||||||||||||||||||
22 | members of the board may fill the vacancy by a two-thirds vote | |||||||||||||||||||||
23 | of the remaining board members until the next annual meeting of |
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1 | the membership or until members holding 20% of the votes of the | ||||||
2 | association request a meeting of the members to fill the | ||||||
3 | vacancy for the balance of the term. A meeting of the members | ||||||
4 | shall be called for purposes of filling a vacancy on the board | ||||||
5 | no later than 30 days following the filing of a petition signed | ||||||
6 | by membership holding 20% of the votes of the association | ||||||
7 | requesting such a meeting. | ||||||
8 | (f) There shall be an election of a: | ||||||
9 | (1) president from among the members of the board, who | ||||||
10 | shall preside over the meetings of the board and of the | ||||||
11 | membership; | ||||||
12 | (2) secretary from among the members of the board, who | ||||||
13 | shall keep the minutes of all meetings of the board and of | ||||||
14 | the membership and who shall, in general, perform all the | ||||||
15 | duties incident to the office of secretary; and | ||||||
16 | (3) treasurer from among the members of the board, who | ||||||
17 | shall keep the financial records and books of account. | ||||||
18 | (g) If no election is held to elect board members within | ||||||
19 | the time period specified in the bylaws, or within a reasonable | ||||||
20 | amount of time thereafter not to exceed 90 days, then 20% of | ||||||
21 | the members may bring an action to compel compliance with the | ||||||
22 | election requirements specified in the bylaws or operating | ||||||
23 | agreement. If the court finds that an election was not held to | ||||||
24 | elect members of the board within the required period due to | ||||||
25 | the bad faith acts or omissions of the board of managers or the | ||||||
26 | board of directors, the members shall be entitled to recover |
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1 | their reasonable attorney's fees and costs from the | ||||||
2 | association. If the relevant notice requirements have been met | ||||||
3 | and an election is not held solely due to a lack of a quorum, | ||||||
4 | then this subsection (g) does not apply. | ||||||
5 | (h) Where there is more than one owner of a unit and there | ||||||
6 | is only one member vote associated with that unit, if only one | ||||||
7 | of the multiple owners is present at a meeting of the | ||||||
8 | membership, he or she is entitled to cast the member vote | ||||||
9 | associated with that unit. | ||||||
10 | (h-5) A member may vote: | ||||||
11 | (1) by proxy executed in writing by the member or by | ||||||
12 | his or her duly authorized attorney in fact, provided, | ||||||
13 | however, that the proxy bears the date of execution. Unless | ||||||
14 | the community instruments or the written proxy itself | ||||||
15 | provide otherwise, proxies will not be valid for more than | ||||||
16 | 11 months after the date of its execution; or | ||||||
17 | (2) by submitting an association-issued ballot in | ||||||
18 | person at the election meeting; or | ||||||
19 | (3) by submitting an association-issued ballot to the | ||||||
20 | association or its designated agent by mail or other means | ||||||
21 | of delivery specified in the declaration or bylaws; or | ||||||
22 | (4) by any electronic or acceptable technological | ||||||
23 | means. | ||||||
24 | Votes cast under any paragraph of this subsection (h-5) are | ||||||
25 | valid for the purpose of establishing a quorum. | ||||||
26 | (i) The association may, upon adoption of the appropriate |
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1 | rules by the board, conduct elections by electronic or | ||||||
2 | acceptable technological means. Members may not vote by proxy | ||||||
3 | in board elections. Instructions regarding the use of | ||||||
4 | electronic means or acceptable technological means for voting | ||||||
5 | shall be distributed to all members not less than 10 and not | ||||||
6 | more than 30 days before the election meeting. The instruction | ||||||
7 | notice must include the names of all candidates who have given | ||||||
8 | the board or its authorized agent timely written notice of | ||||||
9 | their candidacy and must give the person voting through | ||||||
10 | electronic or acceptable technological means the opportunity | ||||||
11 | to cast votes for candidates whose names do not appear on the | ||||||
12 | ballot. The board rules shall provide and the instructions | ||||||
13 | provided to the member shall state that a member who submits a | ||||||
14 | vote using electronic or acceptable technological means may | ||||||
15 | request and cast a ballot in person at the election meeting, | ||||||
16 | and thereby void any vote previously submitted by that member. | ||||||
17 | (j) Upon proof of purchase, the purchaser of a unit from a | ||||||
18 | seller other than the developer pursuant to an installment | ||||||
19 | contract for purchase shall, during such times as he or she | ||||||
20 | resides in the unit, be counted toward a quorum for purposes of | ||||||
21 | election of members of the board at any meeting of the | ||||||
22 | membership called for purposes of electing members of the | ||||||
23 | board, shall have the right to vote for the members of the | ||||||
24 | board of the common interest community association and to be | ||||||
25 | elected to and serve on the board unless the seller expressly | ||||||
26 | retains in writing any or all of such rights.
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1 | (k) All voting by the members of a common interest | ||||||
2 | community association shall be on a non-cumulative basis. | ||||||
3 | (Source: P.A. 98-1042, eff. 1-1-15; 99-41, eff. 7-14-15.)
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4 | Section 10. 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;
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17 | (2) the powers and duties of the board;
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18 | (3) the compensation, if any, of the members of the | ||||||
19 | board;
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20 | (4) the method of removal from office of members of the | ||||||
21 | board;
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22 | (5) that the board may engage the services of a manager | ||||||
23 | or managing agent;
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24 | (6) that each unit owner shall receive, at least 25 |
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1 | days prior to the
adoption thereof by the board of | ||||||
2 | managers, a copy of the proposed annual
budget together | ||||||
3 | with an indication of which portions are intended for
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4 | reserves, capital expenditures or repairs or payment of | ||||||
5 | real estate taxes;
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6 | (7) that the board of managers shall annually supply to
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7 | all unit owners an itemized accounting of the common | ||||||
8 | expenses
for the preceding year actually incurred or paid, | ||||||
9 | together
with an indication of which portions were for | ||||||
10 | reserves, capital
expenditures or repairs or payment of | ||||||
11 | real estate taxes and
with a tabulation of the amounts | ||||||
12 | collected pursuant to the
budget or assessment, and showing | ||||||
13 | the net excess or
deficit of income over expenditures plus | ||||||
14 | reserves;
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15 | (8)(i) that each unit owner shall receive notice, in | ||||||
16 | the same manner
as is provided in this Act for membership | ||||||
17 | meetings, of any meeting of the
board of managers | ||||||
18 | concerning the adoption of the proposed annual budget and
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19 | regular assessments pursuant thereto or to adopt a separate | ||||||
20 | (special)
assessment, (ii) that except as provided in | ||||||
21 | subsection (iv) below, if an
adopted
budget or any separate | ||||||
22 | assessment adopted by the board would result in the
sum of | ||||||
23 | all regular and separate assessments payable in the current | ||||||
24 | fiscal year
exceeding 115% of the sum of all regular and | ||||||
25 | separate
assessments payable during the
preceding fiscal | ||||||
26 | year, the
board of managers, upon written petition by unit |
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1 | owners with 20 percent of
the votes of the association | ||||||
2 | delivered to the board within 14
days of the board action,
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3 | shall call a meeting of the unit owners within 30 days of | ||||||
4 | the date of
delivery of the petition to consider the budget | ||||||
5 | or separate
assessment; unless a
majority of
the total | ||||||
6 | votes of the unit owners are cast at the meeting to reject | ||||||
7 | the
budget or separate assessment,
it is ratified, (iii) | ||||||
8 | that any common expense not set forth in the budget or
any | ||||||
9 | increase in assessments over the amount adopted in the | ||||||
10 | budget shall be
separately assessed against all unit | ||||||
11 | owners, (iv) that separate assessments for
expenditures | ||||||
12 | relating to emergencies or mandated by law may be adopted | ||||||
13 | by the
board of managers without being subject to unit | ||||||
14 | owner approval or the
provisions of item (ii) above or item | ||||||
15 | (v) below. As used
herein, "emergency" means an immediate | ||||||
16 | danger to the structural integrity of
the
common elements | ||||||
17 | or to the life, health, safety or property of the unit | ||||||
18 | owners,
(v) that assessments
for additions and alterations | ||||||
19 | to the common elements or to association-owned
property not | ||||||
20 | included in the adopted annual budget, shall be separately
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21 | assessed and are subject to approval of two-thirds of the | ||||||
22 | total votes of all
unit owners, (vi) that the board of | ||||||
23 | managers may adopt separate assessments
payable over more | ||||||
24 | than one fiscal year. With respect to multi-year | ||||||
25 | assessments
not governed by items (iv) and (v), the entire | ||||||
26 | amount of the multi-year
assessment shall be deemed |
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1 | considered and authorized in the first fiscal year
in which | ||||||
2 | the assessment is approved;
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3 | (9)(A) that every meeting of the board of managers | ||||||
4 | shall be open to any unit
owner, except that the board may | ||||||
5 | close any portion of a noticed meeting or meet separately | ||||||
6 | from a noticed meeting to: (i) discuss litigation
when an | ||||||
7 | action against or on behalf of the particular association | ||||||
8 | has been
filed and is pending in a court or administrative | ||||||
9 | tribunal,
or when the board of managers finds that such an | ||||||
10 | action is probable
or imminent, (ii) discuss the | ||||||
11 | appointment, employment, engagement,
or dismissal of an | ||||||
12 | employee, independent contractor, agent, or other provider | ||||||
13 | of goods and services, (iii) interview a potential | ||||||
14 | employee, independent contractor, agent, or other provider | ||||||
15 | of goods and services, (iv) discuss violations of rules and
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16 | regulations of the association, (v) discuss a unit owner's | ||||||
17 | unpaid share of common
expenses, or (vi) consult with the | ||||||
18 | association's legal counsel; that any vote on these matters | ||||||
19 | shall take place at a meeting of the board of managers or
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20 | portion thereof open to any unit owner; | ||||||
21 | (B) that board members may participate in and act at | ||||||
22 | any meeting of the board of managers in person, by | ||||||
23 | telephonic means, or by use of any acceptable technological | ||||||
24 | means whereby all persons participating in the meeting can | ||||||
25 | communicate with each other; that participation | ||||||
26 | constitutes attendance and presence in person at the |
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1 | meeting; | ||||||
2 | (C) that any unit owner may record the
proceedings at | ||||||
3 | meetings of the board of managers or portions thereof | ||||||
4 | required to be open by this
Act by tape, film or other | ||||||
5 | means, and that the board may prescribe reasonable
rules | ||||||
6 | and regulations to govern the right to make such | ||||||
7 | recordings; | ||||||
8 | (D) that
notice of every meeting of the board of | ||||||
9 | managers shall be given to every board member at least 48 | ||||||
10 | hours
prior thereto, unless the board member waives notice | ||||||
11 | of the meeting pursuant to subsection (a) of Section 18.8; | ||||||
12 | and | ||||||
13 | (E) that notice of every meeting
of the board of | ||||||
14 | managers shall be posted in entranceways,
elevators, or | ||||||
15 | other conspicuous places in the condominium at least 48 | ||||||
16 | hours
prior to the meeting of the board of managers except | ||||||
17 | where there is no
common entranceway for 7 or more units, | ||||||
18 | the board of managers may designate
one or more locations | ||||||
19 | in the proximity of these units where the notices of
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20 | meetings shall be posted; that notice of every meeting of | ||||||
21 | the board of managers shall also be given at least 48 hours | ||||||
22 | prior to the meeting, or such longer notice as this Act may | ||||||
23 | separately require, to: (i) each unit owner who has | ||||||
24 | provided the association with written authorization to | ||||||
25 | conduct business by acceptable technological means, and | ||||||
26 | (ii) to the extent that the condominium instruments of an |
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1 | association require, to each other unit owner, as required | ||||||
2 | by subsection (f) of Section 18.8, by mail or delivery, and | ||||||
3 | that no other notice of a meeting of the board of managers | ||||||
4 | need be given to any unit owner;
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5 | (10) that the board shall meet at least 4 times | ||||||
6 | annually;
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7 | (11) that no member of the board or officer shall be | ||||||
8 | elected for a term
of more than 2 years, but that officers | ||||||
9 | and board members may succeed
themselves;
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10 | (12) the designation of an officer to mail and receive | ||||||
11 | all notices and
execute amendments to condominium | ||||||
12 | instruments as provided for in this Act
and in the | ||||||
13 | condominium instruments;
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14 | (13) the method of filling vacancies on the board
which | ||||||
15 | shall include authority for the remaining members of the | ||||||
16 | board to
fill the vacancy by two-thirds vote until the next | ||||||
17 | annual meeting of unit
owners or for a period terminating | ||||||
18 | no later than 30 days following the
filing of a petition | ||||||
19 | signed by unit owners holding 20% of the votes of the
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20 | association requesting a meeting of the unit owners to fill | ||||||
21 | the vacancy for
the balance of the term, and that a meeting | ||||||
22 | of the unit owners shall be
called for purposes of filling | ||||||
23 | a vacancy on the board no later than 30 days
following the | ||||||
24 | filing of a petition signed by unit owners holding 20% of | ||||||
25 | the
votes of the association requesting such a meeting, and | ||||||
26 | the method of filling
vacancies among the officers that |
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1 | shall include the authority for the members
of the board to | ||||||
2 | fill the vacancy for the unexpired portion of the term;
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3 | (14) what percentage of the board of managers, if other | ||||||
4 | than a majority,
shall constitute a quorum;
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5 | (15) provisions concerning notice of board meetings to | ||||||
6 | members of the
board;
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7 | (16) the board of managers may not enter into a | ||||||
8 | contract with a
current board member
or with a corporation | ||||||
9 | or partnership in which a board
member or a member of the | ||||||
10 | board member's immediate family has 25% or
more interest, | ||||||
11 | unless notice of intent to enter the
contract is given to | ||||||
12 | unit owners within 20 days after a decision is made
to | ||||||
13 | enter into the contract and the unit owners are
afforded an | ||||||
14 | opportunity by filing a petition, signed by 20% of the unit
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15 | owners, for an election to approve or disapprove the | ||||||
16 | contract;
such petition shall be filed within 20 days after | ||||||
17 | such notice and such
election shall be held within 30 days | ||||||
18 | after filing the petition; for purposes
of this subsection, | ||||||
19 | a board member's immediate family means the board member's
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20 | spouse, parents, and children;
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21 | (17) that the board of managers may disseminate
to unit | ||||||
22 | owners biographical and background information about | ||||||
23 | candidates for
election to the board if (i) reasonable | ||||||
24 | efforts to identify all candidates are
made and all | ||||||
25 | candidates are given an opportunity to include | ||||||
26 | biographical and
background information in the information |
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1 | to be disseminated; and (ii) the
board does not express a | ||||||
2 | preference in favor of any candidate;
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3 | (18) any proxy distributed for board elections
by the | ||||||
4 | board of managers gives unit owners the
opportunity to | ||||||
5 | designate any person as the proxy holder, and gives the | ||||||
6 | unit
owner the opportunity to express a preference for any | ||||||
7 | of the known
candidates for the board or to write in a | ||||||
8 | name;
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9 | (19) that special meetings of the board of managers can | ||||||
10 | be called by
the president or 25% of the members of the | ||||||
11 | board;
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12 | (20) that the board of managers may establish
and | ||||||
13 | maintain a system of master metering of public utility | ||||||
14 | services and
collect payments in connection therewith, | ||||||
15 | subject to the requirements of the
Tenant Utility Payment | ||||||
16 | Disclosure Act; and
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17 | (21) that the board may ratify and confirm actions of | ||||||
18 | the
members of the board taken in response to an emergency, | ||||||
19 | as that
term is defined in subdivision (a)(8)(iv) of this | ||||||
20 | Section; that
the board shall give notice to the unit | ||||||
21 | owners of: (i) the
occurrence of the emergency event within | ||||||
22 | 7 business days after
the emergency event, and (ii) the | ||||||
23 | general description of the
actions taken to address the | ||||||
24 | event within 7 days after the
emergency event. | ||||||
25 | The intent of the provisions of Public Act 99-472 | ||||||
26 | adding this paragraph (21) is to empower and support boards |
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1 | to act in
emergencies. | ||||||
2 | (b)(1) What percentage of the unit owners, if other | ||||||
3 | than 20%, shall
constitute a quorum provided that, for | ||||||
4 | condominiums with 20 or more units,
the percentage of unit | ||||||
5 | owners constituting a quorum shall be 20% unless the
unit | ||||||
6 | owners holding a majority of the percentage interest in the
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7 | association provide for a higher percentage, provided that | ||||||
8 | in voting on amendments to the association's bylaws, a unit | ||||||
9 | owner who is in arrears on the unit owner's regular or | ||||||
10 | separate assessments for 60 days or more, shall not be | ||||||
11 | counted for purposes of determining if a quorum is present, | ||||||
12 | but that unit owner retains the right to vote on amendments | ||||||
13 | to the association's bylaws;
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14 | (2) that the association shall have one class of | ||||||
15 | membership;
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16 | (3) that the members shall hold an annual meeting, one | ||||||
17 | of the purposes
of which shall be to elect members of the | ||||||
18 | board of managers;
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19 | (4) the method of calling meetings of the unit owners;
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20 | (5) that special meetings of the members can be called | ||||||
21 | by the president,
board of managers, or by 20% of unit | ||||||
22 | owners;
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23 | (6) that written notice of any membership meeting shall | ||||||
24 | be mailed
or delivered giving members no less than 10 and | ||||||
25 | no more than 30 days
notice of the time, place and purpose | ||||||
26 | of such meeting except that notice may be sent, to the |
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1 | extent the condominium instruments or rules adopted | ||||||
2 | thereunder expressly so provide, by electronic | ||||||
3 | transmission consented to by the unit owner to whom the | ||||||
4 | notice is given, provided the director and officer or his | ||||||
5 | agent certifies in writing to the delivery by electronic | ||||||
6 | transmission;
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7 | (7) that voting shall be on a non-cumulative percentage | ||||||
8 | basis, and that the percentage
vote to which each unit is | ||||||
9 | entitled is the percentage interest of the
undivided | ||||||
10 | ownership of the common elements appurtenant thereto, | ||||||
11 | provided
that the bylaws may provide for approval by unit | ||||||
12 | owners in connection with
matters where the requisite | ||||||
13 | approval on a percentage basis is not specified
in this | ||||||
14 | Act, on the basis of non-cumulative one vote per unit;
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15 | (8) that, where there is more than one owner of a unit, | ||||||
16 | if only one
of the multiple owners is present at a meeting | ||||||
17 | of the association, he is
entitled to cast all the votes | ||||||
18 | allocated to that unit, if more than one of
the multiple | ||||||
19 | owners are present, the votes allocated to that unit may be
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20 | cast only in accordance with the agreement of a majority in | ||||||
21 | interest of the
multiple owners, unless the declaration | ||||||
22 | expressly provides otherwise, that
there is majority | ||||||
23 | agreement if any one of the multiple owners cast the
votes | ||||||
24 | allocated to that unit without protest being made promptly | ||||||
25 | to the
person presiding over the meeting by any of the | ||||||
26 | other owners of the unit;
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1 | (9)(A) except as provided in subparagraph (B) of this | ||||||
2 | paragraph (9) in
connection with board elections, that
a | ||||||
3 | unit owner may vote by proxy executed in writing by the | ||||||
4 | unit
owner or by his duly authorized attorney in fact; that | ||||||
5 | the proxy must bear the date of
execution
and, unless the | ||||||
6 | condominium instruments or the written proxy itself | ||||||
7 | provide
otherwise, is
invalid after 11 months from the date | ||||||
8 | of its execution; to the extent the condominium instruments | ||||||
9 | or rules adopted thereunder expressly so provide, a vote or | ||||||
10 | proxy may be submitted by electronic transmission, | ||||||
11 | provided that any such electronic transmission shall | ||||||
12 | either set forth or be submitted with information from | ||||||
13 | which it can be determined that the electronic transmission | ||||||
14 | was authorized by the unit owner or the unit owner's proxy;
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15 | (B) that if a rule adopted at least 120 days before a | ||||||
16 | board election
or the
declaration or bylaws provide for | ||||||
17 | balloting as set forth in this subsection,
unit
owners may | ||||||
18 | not vote by proxy in board elections, but may vote only (i) | ||||||
19 | by
submitting an association-issued ballot in person at the | ||||||
20 | election meeting or
(ii) by
submitting an | ||||||
21 | association-issued ballot to the association or its | ||||||
22 | designated
agent
by mail or other means of delivery | ||||||
23 | specified in the declaration, bylaws, or
rule; that
the | ||||||
24 | ballots shall be mailed or otherwise distributed to unit | ||||||
25 | owners not less
than 10
and not more than 30 days before | ||||||
26 | the election meeting, and the board shall give
unit owners |
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1 | not less than 21 days' prior written notice of the deadline | ||||||
2 | for
inclusion of a candidate's name on the ballots; that | ||||||
3 | the deadline shall be no
more
than 7 days before the | ||||||
4 | ballots are mailed or otherwise distributed to unit
owners; | ||||||
5 | that
every such ballot must include the names of all | ||||||
6 | candidates who have given the
board or its authorized agent | ||||||
7 | timely written notice of their candidacy and must
give the | ||||||
8 | person casting the ballot the opportunity to cast votes for | ||||||
9 | candidates
whose names do not appear on the ballot; that a | ||||||
10 | ballot received by the
association
or
its designated agent | ||||||
11 | after the close of voting shall not be counted; that a
unit
| ||||||
12 | owner
who submits a ballot by mail or other means of | ||||||
13 | delivery specified in the
declaration, bylaws, or rule may | ||||||
14 | request and cast a ballot in person at the
election
| ||||||
15 | meeting, and thereby void any ballot previously submitted | ||||||
16 | by that unit owner; | ||||||
17 | (B-5) that if a rule adopted at least 120 days before a | ||||||
18 | board election or the declaration or bylaws provide for | ||||||
19 | balloting as set forth in this subparagraph, unit owners | ||||||
20 | may not vote by proxy in board elections, but may vote only | ||||||
21 | (i) by submitting an association-issued ballot in person at | ||||||
22 | the election meeting; or (ii) by any acceptable | ||||||
23 | technological means as defined in Section 2 of this Act; | ||||||
24 | instructions regarding the use of electronic means for | ||||||
25 | voting shall be distributed to all unit owners not less | ||||||
26 | than 10 and not more than 30 days before the election |
| |||||||
| |||||||
1 | meeting, and the board shall give unit owners not less than | ||||||
2 | 21 days' prior written notice of the deadline for inclusion | ||||||
3 | of a candidate's name on the ballots; the deadline shall be | ||||||
4 | no more than 7 days before the instructions for voting | ||||||
5 | using electronic or acceptable technological means is | ||||||
6 | distributed to unit owners; every instruction notice must | ||||||
7 | include the names of all candidates who have given the | ||||||
8 | board or its authorized agent timely written notice of | ||||||
9 | their candidacy and must give the person voting through | ||||||
10 | electronic or acceptable technological means the | ||||||
11 | opportunity to cast votes for candidates whose names do not | ||||||
12 | appear on the ballot; a unit owner who submits a vote using | ||||||
13 | electronic or acceptable technological means may request | ||||||
14 | and cast a ballot in person at the election meeting, | ||||||
15 | thereby voiding any vote previously submitted by that unit | ||||||
16 | owner;
| ||||||
17 | (C) that if a written petition by unit owners with at | ||||||
18 | least 20% of the
votes of
the association is delivered to | ||||||
19 | the board within 14 days after the board's
approval
of a | ||||||
20 | rule adopted pursuant to subparagraph (B) or subparagraph | ||||||
21 | (B-5) of this paragraph (9), the board
shall call a meeting | ||||||
22 | of the unit owners within 30 days after the date of
| ||||||
23 | delivery of
the petition; that unless a majority of the | ||||||
24 | total votes of the unit owners are
cast
at the
meeting to | ||||||
25 | reject the rule, the rule is ratified;
| ||||||
26 | (D) that votes cast by ballot under subparagraph (B) or |
| |||||||
| |||||||
1 | electronic or acceptable technological means under | ||||||
2 | subparagraph (B-5) of this paragraph (9) are valid for the | ||||||
3 | purpose of establishing a quorum; | ||||||
4 | (10) that the association may, upon adoption of the | ||||||
5 | appropriate rules by
the board of managers, conduct | ||||||
6 | elections by secret ballot whereby the voting
ballot is | ||||||
7 | marked only with the percentage interest for the unit and | ||||||
8 | the vote
itself, provided that the board further adopt | ||||||
9 | rules to verify the status of the
unit owner issuing a | ||||||
10 | proxy or casting a ballot; and further, that a candidate
| ||||||
11 | for election to the board of managers or such
candidate's | ||||||
12 | representative shall have the right to be present at the
| ||||||
13 | counting of ballots at such election;
| ||||||
14 | (11) that in the event of a resale of a condominium | ||||||
15 | unit the purchaser
of a unit from a seller other than the | ||||||
16 | developer pursuant to an installment
contract for purchase | ||||||
17 | shall during such times as he or she resides in the
unit be | ||||||
18 | counted toward a quorum for purposes of election of members | ||||||
19 | of the
board of managers at any meeting of the unit owners | ||||||
20 | called for purposes of
electing members of the board, shall | ||||||
21 | have the right to vote for the
election of members of the | ||||||
22 | board of managers and to be elected to and serve
on the | ||||||
23 | board of managers unless the seller expressly retains in | ||||||
24 | writing any
or all of such rights. In no event may the | ||||||
25 | seller and purchaser both be
counted toward a quorum, be | ||||||
26 | permitted to vote for a particular office or be
elected and |
| |||||||
| |||||||
1 | serve on the board. Satisfactory evidence of the | ||||||
2 | installment contract
shall be made available to the | ||||||
3 | association or its agents. For
purposes of this subsection, | ||||||
4 | "installment contract" shall have the same
meaning as set | ||||||
5 | forth in Section 1(e) of the Dwelling Unit Installment | ||||||
6 | Contract Act;
| ||||||
7 | (12) the method by which matters subject to the | ||||||
8 | approval of unit owners
set forth in this Act, or in the | ||||||
9 | condominium instruments, will be
submitted to the unit | ||||||
10 | owners at special membership meetings called for such
| ||||||
11 | purposes; and
| ||||||
12 | (13) that matters subject to the affirmative vote of | ||||||
13 | not less than 2/3
of the votes of unit owners at a meeting | ||||||
14 | duly called for that purpose,
shall include, but not be | ||||||
15 | limited to:
| ||||||
16 | (i) merger or consolidation of the association;
| ||||||
17 | (ii) sale, lease, exchange, or other disposition | ||||||
18 | (excluding the mortgage
or pledge) of all, or | ||||||
19 | substantially all of the property and assets of the
| ||||||
20 | association; and
| ||||||
21 | (iii) the purchase or sale of land or of units on | ||||||
22 | behalf of all unit owners.
| ||||||
23 | (c) Election of a president from among the board of | ||||||
24 | managers, who shall
preside over the meetings of the board | ||||||
25 | of managers and of the unit owners.
| ||||||
26 | (d) Election of a secretary from among the board of |
| |||||||
| |||||||
1 | managers, who shall
keep the minutes of all meetings
of the | ||||||
2 | board of managers and of the unit owners and who shall, in | ||||||
3 | general,
perform all the duties incident to the office of | ||||||
4 | secretary.
| ||||||
5 | (e) Election of a treasurer from among the board of | ||||||
6 | managers, who shall
keep the financial records and
books of | ||||||
7 | account.
| ||||||
8 | (f) Maintenance, repair and replacement of the common | ||||||
9 | elements and
payments therefor, including the method of | ||||||
10 | approving payment vouchers.
| ||||||
11 | (g) An association with 30 or more units shall obtain | ||||||
12 | and maintain
fidelity insurance covering persons who | ||||||
13 | control or disburse funds of the
association for the | ||||||
14 | maximum amount of coverage available to protect funds
in | ||||||
15 | the custody or control of the association plus the | ||||||
16 | association reserve
fund. All management companies which | ||||||
17 | are responsible for the funds held or
administered by the | ||||||
18 | association shall maintain and furnish to the
association a | ||||||
19 | fidelity bond for the maximum amount of coverage available | ||||||
20 | to
protect funds in the custody of the management company | ||||||
21 | at any time. The
association shall bear the cost of the | ||||||
22 | fidelity insurance and fidelity
bond, unless otherwise | ||||||
23 | provided by contract between the association and a
| ||||||
24 | management company. The association shall be the direct | ||||||
25 | obligee of any
such fidelity bond. A management company | ||||||
26 | holding reserve funds of an
association shall at all times |
| |||||||
| |||||||
1 | maintain a separate account for each
association, | ||||||
2 | provided, however, that for investment purposes, the Board | ||||||
3 | of
Managers of an association may authorize a management | ||||||
4 | company to maintain
the association's reserve funds in a | ||||||
5 | single interest bearing account with
similar funds of other | ||||||
6 | associations. The management company shall at all
times | ||||||
7 | maintain records identifying all moneys of each | ||||||
8 | association in such
investment account. The management | ||||||
9 | company may hold all operating funds of
associations which | ||||||
10 | it manages in a single operating account but shall at
all | ||||||
11 | times maintain records identifying all moneys of each | ||||||
12 | association in
such operating account. Such operating and | ||||||
13 | reserve funds held by the
management company for the | ||||||
14 | association shall not be subject to attachment
by any | ||||||
15 | creditor of the management company.
| ||||||
16 | For the purpose of this subsection, a management | ||||||
17 | company shall be
defined as a person, partnership, | ||||||
18 | corporation, or other legal entity
entitled to transact | ||||||
19 | business on behalf of others, acting on behalf of or
as an | ||||||
20 | agent for a unit owner, unit owners or association of unit | ||||||
21 | owners for
the purpose of carrying out the duties, | ||||||
22 | responsibilities, and other
obligations necessary for the | ||||||
23 | day to day operation and management of any
property subject | ||||||
24 | to this Act. For purposes of this subsection, the term
| ||||||
25 | "fiduciary insurance coverage" shall be defined as both a | ||||||
26 | fidelity bond and
directors and officers liability |
| |||||||
| |||||||
1 | coverage, the fidelity bond in the full
amount of | ||||||
2 | association funds and association reserves that will be in | ||||||
3 | the
custody of the association, and the directors and | ||||||
4 | officers liability
coverage at a level as shall be | ||||||
5 | determined to be reasonable by the board of
managers, if | ||||||
6 | not otherwise established by the declaration or by laws.
| ||||||
7 | Until one year after September 21, 1985 (the effective | ||||||
8 | date of Public Act 84-722),
if a condominium association | ||||||
9 | has reserves plus assessments in excess of
$250,000 and | ||||||
10 | cannot reasonably obtain 100% fidelity bond coverage for | ||||||
11 | such
amount, then it must obtain a fidelity bond coverage | ||||||
12 | of $250,000.
| ||||||
13 | (h) Method of estimating the amount of the annual | ||||||
14 | budget, and the manner
of assessing and collecting from the | ||||||
15 | unit owners their respective shares of
such estimated | ||||||
16 | expenses, and of any other expenses lawfully agreed upon.
| ||||||
17 | (i) That upon 10 days notice to the manager or board of | ||||||
18 | managers and
payment of a reasonable fee, any unit owner | ||||||
19 | shall be furnished a statement
of his account setting forth | ||||||
20 | the amount of any unpaid assessments or other
charges due | ||||||
21 | and owing from such owner.
| ||||||
22 | (j) Designation and removal of personnel necessary for | ||||||
23 | the maintenance,
repair and replacement of the common | ||||||
24 | elements.
| ||||||
25 | (k) Such restrictions on and requirements respecting | ||||||
26 | the use and
maintenance of the units and the use of the |
| |||||||
| |||||||
1 | common elements, not set forth
in the declaration, as are | ||||||
2 | designed to prevent unreasonable interference
with the use | ||||||
3 | of their respective units and of the common elements by the
| ||||||
4 | several unit owners.
| ||||||
5 | (l) Method of adopting and of amending administrative | ||||||
6 | rules and
regulations governing the operation and use of | ||||||
7 | the common elements.
| ||||||
8 | (m) The percentage of votes required to modify or amend | ||||||
9 | the bylaws, but
each one of the particulars set forth in | ||||||
10 | this section shall always be
embodied in the bylaws.
| ||||||
11 | (n)(i) The provisions of this Act, the declaration, | ||||||
12 | bylaws, other
condominium instruments, and rules and | ||||||
13 | regulations that relate to the use
of the individual unit | ||||||
14 | or the common elements shall be applicable to
any person | ||||||
15 | leasing a unit and shall be deemed to be incorporated in | ||||||
16 | any
lease executed or renewed on or after August 30, 1984 | ||||||
17 | (the effective date of Public Act 83-1271). | ||||||
18 | (ii) With regard to any lease entered into subsequent | ||||||
19 | to July 1, 1990 (the
effective date of Public Act 86-991), | ||||||
20 | the unit owner leasing the
unit shall deliver a copy of the | ||||||
21 | signed lease to the board or if the
lease is oral, a | ||||||
22 | memorandum of the lease, not later than the date of
| ||||||
23 | occupancy or 10 days after the lease is signed, whichever | ||||||
24 | occurs first. In
addition to any other remedies, by filing | ||||||
25 | an action jointly against the
tenant and the unit owner, an | ||||||
26 | association may seek to enjoin a tenant from
occupying a |
| |||||||
| |||||||
1 | unit or seek to evict a tenant under the provisions of | ||||||
2 | Article
IX of the Code of Civil Procedure for failure of | ||||||
3 | the lessor-owner to
comply with the leasing requirements | ||||||
4 | prescribed by
this Section or by the declaration, bylaws, | ||||||
5 | and
rules and regulations. The board of managers may | ||||||
6 | proceed directly against a
tenant, at law or in equity, or | ||||||
7 | under the provisions of Article IX of the
Code of Civil | ||||||
8 | Procedure, for any other breach by tenant of any
covenants, | ||||||
9 | rules, regulations or bylaws.
| ||||||
10 | (o) The association shall have no authority to forbear | ||||||
11 | the payment
of assessments by any unit owner.
| ||||||
12 | (p) That when 30% or fewer of the units, by number,
| ||||||
13 | possess over 50% in the aggregate of the votes in the | ||||||
14 | association,
any percentage vote of members specified | ||||||
15 | herein or in the condominium
instruments shall require the | ||||||
16 | specified percentage by number of units
rather than by | ||||||
17 | percentage of interest in the common elements allocated
to | ||||||
18 | units that would otherwise be applicable and garage units | ||||||
19 | or storage units, or both, shall have, in total, no more | ||||||
20 | votes than their aggregate percentage of ownership in the | ||||||
21 | common elements; this shall mean that if garage units or | ||||||
22 | storage units, or both, are to be given a vote, or portion | ||||||
23 | of a vote, that the association must add the total number | ||||||
24 | of votes cast of garage units, storage units, or both, and | ||||||
25 | divide the total by the number of garage units, storage | ||||||
26 | units, or both, and multiply by the aggregate percentage of |
| |||||||
| |||||||
1 | ownership of garage units and storage units to determine | ||||||
2 | the vote, or portion of a vote, that garage units or | ||||||
3 | storage units, or both, have. For purposes of this | ||||||
4 | subsection (p), when making a determination of whether 30% | ||||||
5 | or fewer of the units, by number, possess over 50% in the | ||||||
6 | aggregate of the votes in the association, a unit shall not | ||||||
7 | include a garage unit or a storage unit.
| ||||||
8 | (q) That a unit owner may not assign, delegate, | ||||||
9 | transfer, surrender, or
avoid the duties, | ||||||
10 | responsibilities, and liabilities of a unit owner under | ||||||
11 | this
Act, the condominium instruments, or the rules and | ||||||
12 | regulations of the
Association; and that such an attempted | ||||||
13 | assignment, delegation, transfer,
surrender, or avoidance | ||||||
14 | shall be deemed void.
| ||||||
15 | The provisions of this Section are applicable to all | ||||||
16 | condominium
instruments recorded under this Act. Any portion of | ||||||
17 | a condominium
instrument which contains provisions contrary to | ||||||
18 | these provisions shall be
void as against public policy and | ||||||
19 | ineffective. Any such instrument which
fails to contain the | ||||||
20 | provisions required by this Section shall be deemed to
| ||||||
21 | incorporate such provisions by operation of law.
| ||||||
22 | (Source: P.A. 98-1042, eff. 1-1-15; 99-472, eff. 6-1-16; | ||||||
23 | 99-567, eff. 1-1-17; 99-642, eff. 7-28-16 .)
|