Bill Text: IL HB2401 | 2017-2018 | 100th General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Common Interest Community Association Act. Provides that the association shall have one class of voting membership (instead of "one class of membership") unless the declaration, bylaws, or operating agreement provide otherwise. Makes a similar change in the Condominium Property Act. Further amends the Condominium Property Act. Deletes language providing that if the property contains 4 or more units, the owners may agree to sell the property by a vote of 75%. Provides instead that if the property contains at least 4 but not more than 6 units, a vote of 75% of the owners is required to sell the condominium property. Provides that if the property contains 7 or more units, a vote of 85% of the owners is required to sell the condominium property.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Failed) 2019-01-08 - Session Sine Die [HB2401 Detail]

Download: Illinois-2017-HB2401-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 HB2401 Introduced , by Rep. Elaine Nekritz SYNOPSIS AS INTRODUCED:
765 ILCS 160/1-30
765 ILCS 605/15 from Ch. 30, par. 315
765 ILCS 605/18 from Ch. 30, par. 318
Amends the Common Interest Community Association Act. Provides that the association shall have one class of voting membership (instead of "one class of membership") unless the declaration, bylaws, or operating agreement provide otherwise. Makes a similar change in the Condominium Property Act. Further amends the Condominium Property Act. Deletes language providing that if the property contains 4 or more units, the owners may agree to sell the property by a vote of 75%. Provides instead that if the property contains at least 4 but not more than 6 units, a vote of 75% of the owners is required to sell the condominium property. Provides that if the property contains 7 or more units, a vote of 85% of the owners is required to sell the condominium property.
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A BILL FOR
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AN ACT concerning civil law.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Common Interest Community Association Act is
amended by changing Section 1-30 as follows:
(765 ILCS 160/1-30)
Sec. 1-30. Board duties and obligations; records.
(a) The board shall meet at least 4 times annually.
(b) A common interest community association may not enter
into a contract with a current board member, or with a
corporation, limited liability company, or partnership in
which a board member or a member of his or her immediate family
has 25% or more interest, unless notice of intent to enter into
the contract is given to members within 20 days after a
decision is made to enter into the contract and the members are
afforded an opportunity by filing a petition, signed by 20% of
the membership, for an election to approve or disapprove the
contract; such petition shall be filed within 20 days after
such notice and such election shall be held within 30 days
after filing the petition. For purposes of this subsection, a
board member's immediate family means the board member's
spouse, parents, siblings, and children.
(c) The bylaws or operating agreement shall provide for the

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maintenance, repair, and replacement of the common areas and
payments therefor, including the method of approving payment
vouchers.
(d) (Blank).
(e) The association may engage the services of a manager or
management company.
(f) The association shall have one class of voting
membership unless the declaration, bylaws, or operating
agreement provide otherwise; however, this subsection (f)
shall not be construed to limit the operation of subsection (c)
of Section 1-20 of this Act.
(g) The board shall have the power, after notice and an
opportunity to be heard, to levy and collect reasonable fines
from members or unit owners for violations of the declaration,
bylaws, operating agreement, and rules and regulations of the
common interest community association.
(h) Other than attorney's fees and court or arbitration
costs, no fees pertaining to the collection of a member's or
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 a member's or unit 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 a member's or

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unit owner's respective share of the common expenses is
specifically stated in the declaration, bylaws, or operating
agreement of the association.
(i) Board records.
(1) The board shall maintain the following records of
the association and make them available for examination and
copying at convenient hours of weekdays by any member or
unit owner in a common interest community subject to the
authority of the board, their mortgagees, and their duly
authorized agents or attorneys:
(i) Copies of the recorded declaration, other
community instruments, other duly recorded covenants
and bylaws and any amendments, articles of
incorporation, articles of organization, annual
reports, and any rules and regulations adopted by the
board shall be available. Prior to the organization of
the board, the developer shall maintain and make
available the records set forth in this paragraph (i)
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 board shall be maintained.

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(iii) The minutes of all meetings of the board
which shall be maintained for not less than 7 years.
(iv) With a written statement of a proper purpose,
ballots and proxies related thereto, if any, for any
election held for the board and for any other matters
voted on by the members, which shall be maintained for
not less than one year.
(v) With a written statement of a proper purpose,
such other records of the board 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, a
living trust, or other legal entity, the trustee,
officer, or manager of the entity may designate, in
writing, a person to cast votes on behalf of the member
or unit owner and a 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 or its agent, failure to
provide the requested record or to respond within 30 days
shall be deemed a denial by the board.
(3) A reasonable fee may be charged by the board for
the cost of retrieving and copying records properly
requested.

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(4) If the board fails to provide records properly
requested under paragraph (1) of this subsection (i) within
the time period provided in that paragraph (1), the member
may seek appropriate relief and shall be entitled to an
award of reasonable attorney's fees and costs if the member
prevails and the court finds that such failure is due to
the acts or omissions of the board of managers or the board
of directors.
(j) The board shall have standing and capacity to act in a
representative capacity in relation to matters involving the
common areas or more than one unit, on behalf of the members or
unit owners as their interests may appear.
(Source: P.A. 98-232, eff. 1-1-14; 98-241, eff. 8-9-13; 98-756,
eff. 7-16-14; 99-41, eff. 7-14-15.)
Section 10. The Condominium Property Act is amended by
changing Sections 15 and 18 as follows:
(765 ILCS 605/15) (from Ch. 30, par. 315)
Sec. 15. Sale of property.
(a) Unless a greater percentage is provided for in the
declaration or bylaws, and notwithstanding the provisions of
Sections 13 and 14 hereof, a majority of the unit owners if
where the property contains 2 units, or not less than 66 2/3%
if where the property contains 3 three units, or and not less
than 75% if where the property contains at least 4 but not more

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than 6 units, or not less than 85% if the property contains 7
or more units, 4 or more units may, by affirmative vote at a
meeting of unit owners duly called for such purpose, elect to
sell the property. Such action shall be binding upon all unit
owners, and it shall thereupon become the duty of every unit
owner to execute and deliver such instruments and to perform
all acts as in manner and form may be necessary to effect such
sale, provided, however, that any unit owner who did not vote
in favor of such action and who has filed written objection
thereto with the manager or board of managers within 20 days
after the date of the meeting at which such sale was approved
shall be entitled to receive from the proceeds of such sale an
amount equivalent to the value of his interest, as determined
by a fair appraisal, less the amount of any unpaid assessments
or charges due and owing from such unit owner.
(b) If there is a disagreement as to the value of the
interest of a unit owner who did not vote in favor of the sale
of the property, that unit owner shall have a right to
designate an expert in appraisal or property valuation to
represent him, in which case, the prospective purchaser of the
property shall designate an expert in appraisal or property
valuation to represent him, and both of these experts shall
mutually designate a third expert in appraisal or property
valuation. The 3 experts shall constitute a panel to determine
by vote of at least 2 of the members of the panel, the value of
that unit owner's interest in the property.

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(Source: P.A. 86-1156.)
(765 ILCS 605/18) (from Ch. 30, par. 318)
Sec. 18. Contents of bylaws. The bylaws shall provide for
at least the following:
(a)(1) The election from among the unit owners of a
board of managers, the number of persons constituting such
board, and that the terms of at least one-third of the
members of the board shall expire annually and that all
members of the board shall be elected at large; if there
are multiple owners of a single unit, only one of the
multiple owners shall be eligible to serve as a member of
the board at any one time;
(2) the powers and duties of the board;
(3) the compensation, if any, of the members of the
board;
(4) the method of removal from office of members of the
board;
(5) that the board may engage the services of a manager
or managing agent;
(6) that each unit owner shall receive, at least 25
days prior to the adoption thereof by the board of
managers, a copy of the proposed annual budget together
with an indication of which portions are intended for
reserves, capital expenditures or repairs or payment of
real estate taxes;

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(7) that the board of managers shall annually supply to
all unit owners an itemized accounting of the common
expenses for the preceding year actually incurred or paid,
together with an indication of which portions were for
reserves, capital expenditures or repairs or payment of
real estate taxes and with a tabulation of the amounts
collected pursuant to the budget or assessment, and showing
the net excess or deficit of income over expenditures plus
reserves;
(8)(i) that each unit owner shall receive notice, in
the same manner as is provided in this Act for membership
meetings, of any meeting of the board of managers
concerning the adoption of the proposed annual budget and
regular assessments pursuant thereto or to adopt a separate
(special) assessment, (ii) that except as provided in
subsection (iv) below, if an adopted budget or any separate
assessment adopted by the board would result in the sum of
all regular and separate assessments payable in the current
fiscal year exceeding 115% of the sum of all regular and
separate assessments payable during the preceding fiscal
year, the board of managers, upon written petition by unit
owners with 20 percent of the votes of the association
delivered to the board within 14 days of the board action,
shall call a meeting of the unit owners within 30 days of
the date of delivery of the petition to consider the budget
or separate assessment; unless a majority of the total

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votes of the unit owners are cast at the meeting to reject
the budget or separate assessment, it is ratified, (iii)
that any common expense not set forth in the budget or any
increase in assessments over the amount adopted in the
budget shall be separately assessed against all unit
owners, (iv) that separate assessments for expenditures
relating to emergencies or mandated by law may be adopted
by the board of managers without being subject to unit
owner approval or the provisions of item (ii) above or item
(v) below. As used herein, "emergency" means an immediate
danger to the structural integrity of the common elements
or to the life, health, safety or property of the unit
owners, (v) that assessments for additions and alterations
to the common elements or to association-owned property not
included in the adopted annual budget, shall be separately
assessed and are subject to approval of two-thirds of the
total votes of all unit owners, (vi) that the board of
managers may adopt separate assessments payable over more
than one fiscal year. With respect to multi-year
assessments not governed by items (iv) and (v), the entire
amount of the multi-year assessment shall be deemed
considered and authorized in the first fiscal year in which
the assessment is approved;
(9)(A) that every meeting of the board of managers
shall be open to any unit owner, except that the board may
close any portion of a noticed meeting or meet separately

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from a noticed meeting to: (i) discuss litigation when an
action against or on behalf of the particular association
has been filed and is pending in a court or administrative
tribunal, or when the board of managers finds that such an
action is probable or imminent, (ii) discuss the
appointment, employment, engagement, or dismissal of an
employee, independent contractor, agent, or other provider
of goods and services, (iii) interview a potential
employee, independent contractor, agent, or other provider
of goods and services, (iv) discuss violations of rules and
regulations of the association, (v) discuss a unit owner's
unpaid share of common expenses, or (vi) consult with the
association's legal counsel; that any vote on these matters
shall take place at a meeting of the board of managers or
portion thereof open to any unit owner;
(B) that board members may participate in and act at
any meeting of the board of managers in person, by
telephonic means, or by use of any acceptable technological
means whereby all persons participating in the meeting can
communicate with each other; that participation
constitutes attendance and presence in person at the
meeting;
(C) that any unit owner may record the proceedings at
meetings of the board of managers or portions thereof
required to be open by this Act by tape, film or other
means, and that the board may prescribe reasonable rules

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and regulations to govern the right to make such
recordings;
(D) that notice of every meeting of the board of
managers shall be given to every board member at least 48
hours prior thereto, unless the board member waives notice
of the meeting pursuant to subsection (a) of Section 18.8;
and
(E) that notice of every meeting of the board of
managers shall be posted in entranceways, elevators, or
other conspicuous places in the condominium at least 48
hours prior to the meeting of the board of managers except
where there is no common entranceway for 7 or more units,
the board of managers may designate one or more locations
in the proximity of these units where the notices of
meetings shall be posted; that notice of every meeting of
the board of managers shall also be given at least 48 hours
prior to the meeting, or such longer notice as this Act may
separately require, to: (i) each unit owner who has
provided the association with written authorization to
conduct business by acceptable technological means, and
(ii) to the extent that the condominium instruments of an
association require, to each other unit owner, as required
by subsection (f) of Section 18.8, by mail or delivery, and
that no other notice of a meeting of the board of managers
need be given to any unit owner;
(10) that the board shall meet at least 4 times

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annually;
(11) that no member of the board or officer shall be
elected for a term of more than 2 years, but that officers
and board members may succeed themselves;
(12) the designation of an officer to mail and receive
all notices and execute amendments to condominium
instruments as provided for in this Act and in the
condominium instruments;
(13) the method of filling vacancies on the board which
shall include authority for the remaining members of the
board to fill the vacancy by two-thirds vote until the next
annual meeting of unit owners or for a period terminating
no later than 30 days following the filing of a petition
signed by unit owners holding 20% of the votes of the
association requesting a meeting of the unit owners to fill
the vacancy for the balance of the term, and that a meeting
of the unit owners shall be called for purposes of filling
a vacancy on the board no later than 30 days following the
filing of a petition signed by unit owners holding 20% of
the votes of the association requesting such a meeting, and
the method of filling vacancies among the officers that
shall include the authority for the members of the board to
fill the vacancy for the unexpired portion of the term;
(14) what percentage of the board of managers, if other
than a majority, shall constitute a quorum;
(15) provisions concerning notice of board meetings to

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members of the board;
(16) the board of managers may not enter into a
contract with a current board member or with a corporation
or partnership in which a board member or a member of the
board member's immediate family has 25% or more interest,
unless notice of intent to enter the contract is given to
unit owners within 20 days after a decision is made to
enter into the contract and the unit owners are afforded an
opportunity by filing a petition, signed by 20% of the unit
owners, for an election to approve or disapprove the
contract; such petition shall be filed within 20 days after
such notice and such election shall be held within 30 days
after filing the petition; for purposes of this subsection,
a board member's immediate family means the board member's
spouse, parents, and children;
(17) that the board of managers may disseminate to unit
owners biographical and background information about
candidates for election to the board if (i) reasonable
efforts to identify all candidates are made and all
candidates are given an opportunity to include
biographical and background information in the information
to be disseminated; and (ii) the board does not express a
preference in favor of any candidate;
(18) any proxy distributed for board elections by the
board of managers gives unit owners the opportunity to
designate any person as the proxy holder, and gives the

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unit owner the opportunity to express a preference for any
of the known candidates for the board or to write in a
name;
(19) that special meetings of the board of managers can
be called by the president or 25% of the members of the
board;
(20) that the board of managers may establish and
maintain a system of master metering of public utility
services and collect payments in connection therewith,
subject to the requirements of the Tenant Utility Payment
Disclosure Act; and
(21) that the board may ratify and confirm actions of
the members of the board taken in response to an emergency,
as that term is defined in subdivision (a)(8)(iv) of this
Section; that the board shall give notice to the unit
owners of: (i) the occurrence of the emergency event within
7 business days after the emergency event, and (ii) the
general description of the actions taken to address the
event within 7 days after the emergency event.
The intent of the provisions of Public Act 99-472
adding this paragraph (21) is to empower and support boards
to act in emergencies.
(b)(1) What percentage of the unit owners, if other
than 20%, shall constitute a quorum provided that, for
condominiums with 20 or more units, the percentage of unit
owners constituting a quorum shall be 20% unless the unit

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owners holding a majority of the percentage interest in the
association provide for a higher percentage, provided that
in voting on amendments to the association's bylaws, a unit
owner who is in arrears on the unit owner's regular or
separate assessments for 60 days or more, shall not be
counted for purposes of determining if a quorum is present,
but that unit owner retains the right to vote on amendments
to the association's bylaws;
(2) that the association shall have one class of voting
membership;
(3) that the members shall hold an annual meeting, one
of the purposes of which shall be to elect members of the
board of managers;
(4) the method of calling meetings of the unit owners;
(5) that special meetings of the members can be called
by the president, board of managers, or by 20% of unit
owners;
(6) that written notice of any membership meeting shall
be mailed or delivered giving members no less than 10 and
no more than 30 days notice of the time, place and purpose
of such meeting except that notice may be sent, to the
extent the condominium instruments or rules adopted
thereunder expressly so provide, by electronic
transmission consented to by the unit owner to whom the
notice is given, provided the director and officer or his
agent certifies in writing to the delivery by electronic

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transmission;
(7) that voting shall be on a percentage basis, and
that the percentage vote to which each unit is entitled is
the percentage interest of the undivided ownership of the
common elements appurtenant thereto, provided that the
bylaws may provide for approval by unit owners in
connection with matters where the requisite approval on a
percentage basis is not specified in this Act, on the basis
of one vote per unit;
(8) that, where there is more than one owner of a unit,
if only one of the multiple owners is present at a meeting
of the association, he is entitled to cast all the votes
allocated to that unit, if more than one of the multiple
owners are present, the votes allocated to that unit may be
cast only in accordance with the agreement of a majority in
interest of the multiple owners, unless the declaration
expressly provides otherwise, that there is majority
agreement if any one of the multiple owners cast the votes
allocated to that unit without protest being made promptly
to the person presiding over the meeting by any of the
other owners of the unit;
(9)(A) except as provided in subparagraph (B) of this
paragraph (9) in connection with board elections, that a
unit owner may vote by proxy executed in writing by the
unit owner or by his duly authorized attorney in fact; that
the proxy must bear the date of execution and, unless the

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condominium instruments or the written proxy itself
provide otherwise, is invalid after 11 months from the date
of its execution; to the extent the condominium instruments
or rules adopted thereunder expressly so provide, a vote or
proxy may be submitted by electronic transmission,
provided that any such electronic transmission shall
either set forth or be submitted with information from
which it can be determined that the electronic transmission
was authorized by the unit owner or the unit owner's proxy;
(B) that if a rule adopted at least 120 days before a
board election or the declaration or bylaws provide for
balloting as set forth in this subsection, unit owners may
not vote by proxy in board elections, but may vote only (i)
by submitting an association-issued ballot in person at the
election meeting or (ii) by submitting an
association-issued ballot to the association or its
designated agent by mail or other means of delivery
specified in the declaration, bylaws, or rule; that the
ballots shall be mailed or otherwise distributed to unit
owners not less than 10 and not more than 30 days before
the election meeting, and the board shall give unit owners
not less than 21 days' prior written notice of the deadline
for inclusion of a candidate's name on the ballots; that
the deadline shall be no more than 7 days before the
ballots are mailed or otherwise distributed to unit owners;
that every such ballot must include the names of all

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candidates who have given the board or its authorized agent
timely written notice of their candidacy and must give the
person casting the ballot the opportunity to cast votes for
candidates whose names do not appear on the ballot; that a
ballot received by the association or its designated agent
after the close of voting shall not be counted; that a unit
owner who submits a ballot by mail or other means of
delivery specified in the declaration, bylaws, or rule may
request and cast a ballot in person at the election
meeting, and thereby void any ballot previously submitted
by that unit owner;
(B-5) that if a rule adopted at least 120 days before a
board election or the declaration or bylaws provide for
balloting as set forth in this subparagraph, unit owners
may not vote by proxy in board elections, but may vote only
(i) by submitting an association-issued ballot in person at
the election meeting; or (ii) by any acceptable
technological means as defined in Section 2 of this Act;
instructions regarding the use of electronic means for
voting shall be distributed to all unit owners not less
than 10 and not more than 30 days before the election
meeting, and the board shall give unit owners not less than
21 days' prior written notice of the deadline for inclusion
of a candidate's name on the ballots; the deadline shall be
no more than 7 days before the instructions for voting
using electronic or acceptable technological means is

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distributed to unit owners; every instruction notice must
include the names of all candidates who have given the
board or its authorized agent timely written notice of
their candidacy and must give the person voting through
electronic or acceptable technological means the
opportunity to cast votes for candidates whose names do not
appear on the ballot; a unit owner who submits a vote using
electronic or acceptable technological means may request
and cast a ballot in person at the election meeting,
thereby voiding any vote previously submitted by that unit
owner;
(C) that if a written petition by unit owners with at
least 20% of the votes of the association is delivered to
the board within 14 days after the board's approval of a
rule adopted pursuant to subparagraph (B) or subparagraph
(B-5) of this paragraph (9), the board shall call a meeting
of the unit owners within 30 days after the date of
delivery of the petition; that unless a majority of the
total votes of the unit owners are cast at the meeting to
reject the rule, the rule is ratified;
(D) that votes cast by ballot under subparagraph (B) or
electronic or acceptable technological means under
subparagraph (B-5) of this paragraph (9) are valid for the
purpose of establishing a quorum;
(10) that the association may, upon adoption of the
appropriate rules by the board of managers, conduct

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elections by secret ballot whereby the voting ballot is
marked only with the percentage interest for the unit and
the vote itself, provided that the board further adopt
rules to verify the status of the unit owner issuing a
proxy or casting a ballot; and further, that a candidate
for election to the board of managers or such candidate's
representative shall have the right to be present at the
counting of ballots at such election;
(11) that in the event of a resale of a condominium
unit the purchaser of a unit from a seller other than the
developer pursuant to an installment contract for purchase
shall during such times as he or she resides in the unit be
counted toward a quorum for purposes of election of members
of the board of managers at any meeting of the unit owners
called for purposes of electing members of the board, shall
have the right to vote for the election of members of the
board of managers and to be elected to and serve on the
board of managers unless the seller expressly retains in
writing any or all of such rights. In no event may the
seller and purchaser both be counted toward a quorum, be
permitted to vote for a particular office or be elected and
serve on the board. Satisfactory evidence of the
installment 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 Section 1(e) of the Dwelling Unit Installment

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Contract Act;
(12) the method by which matters subject to the
approval of unit owners set forth in this Act, or in the
condominium instruments, will be submitted to the unit
owners at special membership meetings called for such
purposes; and
(13) that matters subject to the affirmative vote of
not less than 2/3 of the votes of unit owners at a meeting
duly called for that purpose, shall include, but not be
limited to:
(i) merger or consolidation of the association;
(ii) sale, lease, exchange, or other disposition
(excluding the mortgage or pledge) of all, or
substantially all of the property and assets of the
association; and
(iii) the purchase or sale of land or of units on
behalf of all unit owners.
(c) Election of a president from among the board of
managers, who shall preside over the meetings of the board
of managers and of the unit owners.
(d) Election of a secretary from among the board of
managers, who shall keep the minutes of all meetings of the
board of managers and of the unit owners and who shall, in
general, perform all the duties incident to the office of
secretary.
(e) Election of a treasurer from among the board of

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managers, who shall keep the financial records and books of
account.
(f) Maintenance, repair and replacement of the common
elements and payments therefor, including the method of
approving payment vouchers.
(g) An association with 30 or more units shall obtain
and maintain fidelity insurance covering persons who
control or disburse funds of the association for the
maximum amount of coverage available to protect funds in
the custody or control of the association plus the
association reserve fund. All management companies which
are responsible for the funds held or administered by the
association shall maintain and furnish to the association a
fidelity bond for the maximum amount of coverage available
to protect funds in the custody of the management company
at any time. The association shall bear the cost of the
fidelity insurance and fidelity bond, unless otherwise
provided by contract between the association and a
management company. The association shall be the direct
obligee of any such fidelity bond. A management company
holding reserve funds of an association shall at all times
maintain a separate account for each association,
provided, however, that for investment purposes, the Board
of Managers of an association may authorize a management
company to maintain the association's reserve funds in a
single interest bearing account with similar funds of other

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associations. The management company shall at all times
maintain records identifying all moneys of each
association in such investment account. The management
company may hold all operating funds of associations which
it manages in a single operating account but shall at all
times maintain records identifying all moneys of each
association in such operating account. Such operating and
reserve funds held by the management company for the
association shall not be subject to attachment by any
creditor of the management company.
For the purpose of this subsection, a management
company shall be defined as a person, partnership,
corporation, or other legal entity entitled to transact
business on behalf of others, acting on behalf of or as an
agent for a unit owner, unit owners or association of unit
owners for the purpose of carrying out the duties,
responsibilities, and other obligations necessary for the
day to day operation and management of any property subject
to this Act. For purposes of this subsection, the term
"fiduciary insurance coverage" shall be defined as both a
fidelity bond and directors and officers liability
coverage, the fidelity bond in the full amount of
association funds and association reserves that will be in
the custody of the association, and the directors and
officers liability coverage at a level as shall be
determined to be reasonable by the board of managers, if

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not otherwise established by the declaration or by laws.
Until one year after September 21, 1985 (the effective
date of Public Act 84-722), if a condominium association
has reserves plus assessments in excess of $250,000 and
cannot reasonably obtain 100% fidelity bond coverage for
such amount, then it must obtain a fidelity bond coverage
of $250,000.
(h) Method of estimating the amount of the annual
budget, and the manner of assessing and collecting from the
unit owners their respective shares of such estimated
expenses, and of any other expenses lawfully agreed upon.
(i) That upon 10 days notice to the manager or board of
managers and payment of a reasonable fee, any unit owner
shall be furnished a statement of his account setting forth
the amount of any unpaid assessments or other charges due
and owing from such owner.
(j) Designation and removal of personnel necessary for
the maintenance, repair and replacement of the common
elements.
(k) Such restrictions on and requirements respecting
the use and maintenance of the units and the use of the
common elements, not set forth in the declaration, as are
designed to prevent unreasonable interference with the use
of their respective units and of the common elements by the
several unit owners.
(l) Method of adopting and of amending administrative

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rules and regulations governing the operation and use of
the common elements.
(m) The percentage of votes required to modify or amend
the bylaws, but each one of the particulars set forth in
this section shall always be embodied in the bylaws.
(n)(i) The provisions of this Act, the declaration,
bylaws, other condominium instruments, and rules and
regulations that relate to the use of the individual unit
or the common elements shall be applicable to any person
leasing a unit and shall be deemed to be incorporated in
any lease executed or renewed on or after August 30, 1984
(the effective date of Public Act 83-1271).
(ii) With regard to any lease entered into subsequent
to July 1, 1990 (the effective date of Public Act 86-991),
the unit owner leasing the unit shall deliver a copy of the
signed lease to the board or if the lease is oral, a
memorandum of the lease, not later than the date of
occupancy or 10 days after the lease is signed, whichever
occurs first. In addition to any other remedies, by filing
an action jointly against the tenant and the unit owner, an
association may seek to enjoin a tenant from occupying a
unit or seek to evict a tenant under the provisions of
Article IX of the Code of Civil Procedure for failure of
the lessor-owner to comply with the leasing requirements
prescribed by this Section or by the declaration, bylaws,
and rules and regulations. The board of managers may

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proceed directly against a tenant, at law or in equity, or
under the provisions of Article IX of the Code of Civil
Procedure, for any other breach by tenant of any covenants,
rules, regulations or bylaws.
(o) The association shall have no authority to forbear
the payment of assessments by any unit owner.
(p) That when 30% or fewer of the units, by number,
possess over 50% in the aggregate of the votes in the
association, any percentage vote of members specified
herein or in the condominium instruments shall require the
specified percentage by number of units rather than by
percentage of interest in the common elements allocated to
units that would otherwise be applicable and garage units
or storage units, or both, shall have, in total, no more
votes than their aggregate percentage of ownership in the
common elements; this shall mean that if garage units or
storage units, or both, are to be given a vote, or portion
of a vote, that the association must add the total number
of votes cast of garage units, storage units, or both, and
divide the total by the number of garage units, storage
units, or both, and multiply by the aggregate percentage of
ownership of garage units and storage units to determine
the vote, or portion of a vote, that garage units or
storage units, or both, have. For purposes of this
subsection (p), when making a determination of whether 30%
or fewer of the units, by number, possess over 50% in the

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aggregate of the votes in the association, a unit shall not
include a garage unit or a storage unit.
(q) That a unit owner may not assign, delegate,
transfer, surrender, or avoid the duties,
responsibilities, and liabilities of a unit owner under
this Act, the condominium instruments, or the rules and
regulations of the Association; and that such an attempted
assignment, delegation, transfer, surrender, or avoidance
shall be deemed void.
The provisions of this Section are applicable to all
condominium instruments recorded under this Act. Any portion of
a condominium instrument which contains provisions contrary to
these provisions shall be void as against public policy and
ineffective. Any such instrument which fails to contain the
provisions required by this Section shall be deemed to
incorporate such provisions by operation of law.
(Source: P.A. 98-1042, eff. 1-1-15; 99-472, eff. 6-1-16;
99-567, eff. 1-1-17; 99-642, eff. 7-28-16.)