Bill Text: IL HB2646 | 2013-2014 | 98th General Assembly | Engrossed
Bill Title: Amends the Condominium Property Act. Provides that the purchaser of a condominium unit at a judicial foreclosure sale, other than a mortgagee, or a purchaser of a condominium unit from a mortgagee who acquired title through a judicial foreclosure, a consent foreclosure, a common law strict foreclosure, or the delivery of a deed in lieu of foreclosure (instead of the purchaser of a condominium unit at a judicial foreclosure sale, other than a mortgagee, who takes possession of a condominium unit pursuant to a court order or a purchaser who acquires title from a mortgagee) shall have the duty to pay to the association an amount not to exceed the total of the regular monthly assessments for the condominium unit for the 9-month period immediately preceding the relevant event. Provides that the amount due may include any attorney's fees and court costs, but may not exceed 9 months of regular assessments due over the same 9-month period. Deletes language providing that the purchaser shall have the duty to pay the proportionate share, if any, of the common expenses for the unit which would have become due in the absence of any assessment acceleration for the 6 months immediately preceding the institution of an action to enforce the collection of assessments, and which remain unpaid. Deletes language providing that if the outstanding assessments are paid at any time during an action to enforce the collection of assessments, the purchaser shall have no obligation to pay any assessments which accrued before he or she acquired title. Provides that the notice of a foreclosure sale of a condominium unit shall state that a purchaser, other than a mortgagee, shall pay to the association any unpaid monthly assessments for the 9-month period preceding the sale, including attorney's fees and court costs. Provides that each offer of sale or contract for the sale of a condominium unit under the new provisions shall state that the purchaser of the unit shall pay to the association the fees required by the new provisions, and that each disclosure statement issued to a prospective purchaser shall list the required fees. Provides that in certain situations, the owner or owner's agent of a condominium unit must make specified information available within 10 days of the request (instead of "upon demand"). Effective immediately.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Introduced - Dead) 2013-05-14 - Added Co-Sponsor Rep. John M. Cabello [HB2646 Detail]
Download: Illinois-2013-HB2646-Engrossed.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 Condominium Property Act is amended by | ||||||
5 | changing Sections 9 and 22.1 as follows:
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6 | (765 ILCS 605/9) (from Ch. 30, par. 309)
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7 | Sec. 9. Sharing of expenses - Lien for nonpayment.
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8 | (a) All common expenses incurred or accrued prior to the | ||||||
9 | first conveyance
of a unit shall be paid by the developer, and | ||||||
10 | during this period no common
expense assessment shall be | ||||||
11 | payable to the association. It shall be the duty
of each unit | ||||||
12 | owner including the developer to pay his proportionate share of
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13 | the common expenses commencing with the first conveyance. The | ||||||
14 | proportionate
share shall be in the same ratio as his | ||||||
15 | percentage of ownership in the common
elements set forth in the | ||||||
16 | declaration.
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17 | (b) The condominium instruments may provide that common | ||||||
18 | expenses for
insurance premiums be assessed on a basis | ||||||
19 | reflecting increased charges for
coverage on certain units.
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20 | (c) Budget and reserves.
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21 | (1) The board of managers shall prepare and distribute | ||||||
22 | to
all unit owners a detailed proposed annual budget, | ||||||
23 | setting forth with
particularity all anticipated common |
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1 | expenses by category as well as all
anticipated assessments | ||||||
2 | and other income. The initial budget and common
expense | ||||||
3 | assessment based thereon shall be adopted prior to the
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4 | conveyance of any unit. The budget shall also set forth | ||||||
5 | each unit owner's
proposed common expense assessment.
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6 | (2) All budgets adopted by a board of managers on or | ||||||
7 | after July 1, 1990
shall provide for reasonable reserves | ||||||
8 | for capital expenditures and deferred
maintenance for | ||||||
9 | repair or replacement of the common elements. To determine
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10 | the amount of reserves appropriate for an association, the | ||||||
11 | board of
managers shall take into consideration the | ||||||
12 | following: (i) the repair and
replacement cost, and the | ||||||
13 | estimated useful life, of the property which the
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14 | association is obligated to maintain, including but not | ||||||
15 | limited to
structural and mechanical components, surfaces | ||||||
16 | of the buildings and common
elements, and energy systems | ||||||
17 | and equipment; (ii) the current and
anticipated return on | ||||||
18 | investment of association funds; (iii) any
independent | ||||||
19 | professional reserve study which the association may | ||||||
20 | obtain;
(iv) the financial impact on unit owners, and the | ||||||
21 | market value of the
condominium units, of any assessment | ||||||
22 | increase needed to fund reserves; and
(v) the ability of | ||||||
23 | the association to obtain financing or refinancing.
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24 | (3) Notwithstanding the provisions of this subsection | ||||||
25 | (c), an
association without a reserve requirement in its | ||||||
26 | condominium
instruments may elect to waive in whole or in |
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1 | part the reserve requirements
of this Section by a vote of | ||||||
2 | 2/3 of the total votes of the association.
Any association | ||||||
3 | having elected under this paragraph (3) to waive the
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4 | provisions of subsection (c) may by a vote of 2/3 of the | ||||||
5 | total votes of the
association elect to again be governed | ||||||
6 | by the requirements of subsection (c).
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7 | (4) In the event that an association elects to waive | ||||||
8 | all or part of
the reserve requirements of this Section, | ||||||
9 | that fact must be
disclosed after the meeting at which the | ||||||
10 | waiver occurs by the
association in the financial | ||||||
11 | statements of the association and, highlighted
in bold | ||||||
12 | print, in the response to any request of a prospective | ||||||
13 | purchaser
for the information prescribed under Section | ||||||
14 | 22.1; and no member of the
board of managers or the | ||||||
15 | managing agent of the association shall be liable,
and no | ||||||
16 | cause of action may be brought for damages against these | ||||||
17 | parties,
for the lack or inadequacy of reserve funds in the | ||||||
18 | association budget.
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19 | (d) (Blank).
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20 | (e) The condominium instruments may provide for the | ||||||
21 | assessment,
in connection with expenditures for the limited | ||||||
22 | common elements, of only those
units to which the limited | ||||||
23 | common elements are assigned.
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24 | (f) Payment of any assessment shall be in amounts and at | ||||||
25 | times
determined by the board of managers.
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26 | (g) Lien.
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1 | (1) If any unit owner shall fail or refuse to make any | ||||||
2 | payment of
the common expenses or the amount of any unpaid | ||||||
3 | fine when due, the
amount thereof together with any | ||||||
4 | interest, late charges, reasonable
attorney fees incurred | ||||||
5 | enforcing the covenants of the condominium
instruments, | ||||||
6 | rules and regulations of the board of managers, or any | ||||||
7 | applicable
statute or ordinance, and costs of collections | ||||||
8 | shall constitute a lien on the
interest of the unit owner | ||||||
9 | in the property prior to all other
liens and encumbrances, | ||||||
10 | recorded or unrecorded, except only (a) taxes,
special | ||||||
11 | assessments and special taxes theretofore or thereafter | ||||||
12 | levied by
any political subdivision or municipal | ||||||
13 | corporation of this State and other
State or federal taxes | ||||||
14 | which by law are a lien on the interest of the
unit owner | ||||||
15 | prior to preexisting recorded encumbrances thereon and
(b) | ||||||
16 | encumbrances on the interest of the unit owner recorded
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17 | prior to the date of such failure or refusal which by law | ||||||
18 | would be a lien
thereon prior to subsequently recorded | ||||||
19 | encumbrances. Any action
brought to extinguish the lien of | ||||||
20 | the association shall include the
association as a party.
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21 | (2) With respect to encumbrances executed prior to | ||||||
22 | August 30, 1984 or
encumbrances executed subsequent to | ||||||
23 | August 30, 1984 which are neither
bonafide first mortgages | ||||||
24 | nor trust deeds and which encumbrances contain a
statement | ||||||
25 | of a mailing address in the State of Illinois where notice | ||||||
26 | may be
mailed to the encumbrancer thereunder, if and |
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1 | whenever and as often as the
manager or board of managers | ||||||
2 | shall send, by United States certified or
registered mail, | ||||||
3 | return receipt requested, to any such encumbrancer at the
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4 | mailing address set forth in the recorded encumbrance a | ||||||
5 | statement of the
amounts and due dates of the unpaid common | ||||||
6 | expenses with respect to the
encumbered unit, then, unless | ||||||
7 | otherwise provided in the declaration or bylaws,
the prior | ||||||
8 | recorded encumbrance shall be subject to the lien of all | ||||||
9 | unpaid
common expenses with respect to the unit which | ||||||
10 | become due and payable within a
period of 90 days after the | ||||||
11 | date of mailing of each such notice.
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12 | (3) The purchaser of a condominium unit at a judicial
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13 | foreclosure sale, or a mortgagee who receives title to a | ||||||
14 | unit by deed in
lieu of foreclosure or judgment by common | ||||||
15 | law strict foreclosure or
otherwise takes possession | ||||||
16 | pursuant to court order under the Illinois
Mortgage | ||||||
17 | Foreclosure Law, shall have the duty to pay the unit's
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18 | proportionate share of the common expenses for the unit | ||||||
19 | assessed from and
after the first day of the month after | ||||||
20 | the date of the judicial foreclosure
sale, delivery of the | ||||||
21 | deed in lieu of foreclosure, entry of a judgment in
common | ||||||
22 | law strict foreclosure, or taking of possession pursuant to | ||||||
23 | such
court order. Such payment confirms the extinguishment | ||||||
24 | of any lien created
pursuant to paragraph (1) or (2) of | ||||||
25 | this subsection (g) by virtue of the
failure or refusal of | ||||||
26 | a prior unit owner to make payment of common
expenses, |
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1 | where the judicial foreclosure sale has been confirmed by | ||||||
2 | order
of the court, a deed in lieu thereof has been | ||||||
3 | accepted by the lender, or a
consent judgment has been | ||||||
4 | entered by the court.
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5 | (4) The purchaser of a condominium unit at a judicial | ||||||
6 | foreclosure sale, other than a mortgagee, or a purchaser of | ||||||
7 | a condominium unit from a mortgagee who acquired title | ||||||
8 | through a judicial foreclosure, a consent foreclosure, a | ||||||
9 | common law strict foreclosure, or the delivery of a deed in | ||||||
10 | lieu of foreclosure who takes possession of a condominium | ||||||
11 | unit pursuant to a court order or a purchaser who acquires | ||||||
12 | title from a mortgagee shall have the duty to pay to the | ||||||
13 | association an amount not to exceed the total of the | ||||||
14 | regular monthly assessments for the condominium unit for | ||||||
15 | the 9-month period immediately preceding any of these | ||||||
16 | events. The amount due may include any attorney's fees and | ||||||
17 | court costs incurred by the association during this same | ||||||
18 | 9-month period caused by the nonpayment of these | ||||||
19 | assessments along with unpaid regular monthly assessments | ||||||
20 | for the same period. However, the total amount may not | ||||||
21 | exceed 9 months of regular assessments due over the same | ||||||
22 | 9-month period the proportionate share, if any, of the | ||||||
23 | common expenses for the unit which would have become due in | ||||||
24 | the absence of any assessment acceleration during the 6 | ||||||
25 | months immediately preceding institution of an action to | ||||||
26 | enforce the collection of assessments, and which remain |
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1 | unpaid by the owner during whose possession the assessments | ||||||
2 | accrued. If the outstanding assessments are paid at any | ||||||
3 | time during any action to enforce the collection of | ||||||
4 | assessments, the purchaser shall have no obligation to pay | ||||||
5 | any assessments which accrued before he or she acquired | ||||||
6 | title .
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7 | (5) The notice of sale of a condominium unit under | ||||||
8 | subsection (c) of Section 15-1507 of the Code of Civil | ||||||
9 | Procedure shall state that the purchaser of the unit other | ||||||
10 | than a mortgagee shall pay to the association amounts the | ||||||
11 | assessments and the legal fees required by subdivisions | ||||||
12 | (g)(1) and (g)(4) of Section 9 of this Act. The statement | ||||||
13 | of assessment account issued by the association to a unit | ||||||
14 | owner under subsection (i) of Section 18 of this Act, and | ||||||
15 | the disclosure statement issued to a prospective purchaser | ||||||
16 | under Section 22.1 of this Act, shall state the amount of | ||||||
17 | the assessments and the legal fees, if any, required by | ||||||
18 | subdivisions (g)(1) and (g)(4) of Section 9 of this Act.
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19 | (h) A lien for common expenses shall be in favor of the | ||||||
20 | members of the
board of managers and their successors in office | ||||||
21 | and shall be for the
benefit of all other unit owners. Notice | ||||||
22 | of the lien may be recorded by
the board of managers, or if the | ||||||
23 | developer is the manager or has a majority
of seats on the | ||||||
24 | board of managers and the manager or board of managers
fails to | ||||||
25 | do so, any unit owner may record notice of the lien. Upon the
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26 | recording of such notice the lien may be foreclosed by an |
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1 | action brought in
the name of the board of managers in the same | ||||||
2 | manner as a mortgage of real
property.
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3 | (i) Unless otherwise provided in the declaration, the | ||||||
4 | members
of the board of managers and their successors in | ||||||
5 | office, acting on behalf
of the other unit owners, shall have | ||||||
6 | the power to bid on the
interest so foreclosed at the | ||||||
7 | foreclosure sale, and to acquire and
hold, lease, mortgage and | ||||||
8 | convey it.
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9 | (j) Any encumbrancer may from time to time request in | ||||||
10 | writing a written
statement from the manager or board of | ||||||
11 | managers setting forth the unpaid
common expenses with respect | ||||||
12 | to the unit covered by his encumbrance.
Unless the request is | ||||||
13 | complied with within 20 days, all unpaid common
expenses which | ||||||
14 | become due prior to the date of the making of such request
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15 | shall be subordinate to the lien of the encumbrance. Any | ||||||
16 | encumbrancer
holding a lien on a unit may pay any unpaid common | ||||||
17 | expenses payable with
respect to the unit, and upon payment the | ||||||
18 | encumbrancer shall have a lien on
the unit for the amounts paid | ||||||
19 | at the same rank as the lien of his encumbrance.
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20 | (k) Nothing in Public Act 83-1271 is intended to change the | ||||||
21 | lien
priorities of any encumbrance created prior to August 30, | ||||||
22 | 1984.
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23 | (Source: P.A. 94-1049, eff. 1-1-07.)
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24 | (765 ILCS 605/22.1) (from Ch. 30, par. 322.1)
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25 | Sec. 22.1.
(a) In the event of any resale of a condominium |
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1 | unit by a
unit owner other than the developer , the Board of | ||||||
2 | Managers shall, within 15 days of a request from the owner or | ||||||
3 | owner's agent, make available the following for inspection by | ||||||
4 | the prospective purchaser: such owner shall obtain from the | ||||||
5 | Board
of Managers and shall make available for inspection to | ||||||
6 | the prospective
purchaser, upon demand, the following:
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7 | (1) A copy of the Declaration, by-laws, other | ||||||
8 | condominium
instruments and any rules and regulations.
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9 | (2) A statement of any liens, including a statement of
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10 | the account of the unit setting forth the amounts of unpaid | ||||||
11 | assessments and
other charges due and owing as authorized | ||||||
12 | and limited by the provisions
of Section 9 of this Act or | ||||||
13 | the condominium instruments.
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14 | (3) A statement of any capital expenditures | ||||||
15 | anticipated by the unit
owner's association within the | ||||||
16 | current or succeeding two fiscal years.
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17 | (4) A statement of the status and amount of any reserve
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18 | for replacement fund and any portion of such fund earmarked | ||||||
19 | for any
specified project by the Board of Managers.
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20 | (5) A copy of the statement of financial condition of | ||||||
21 | the unit owner's
association for the last fiscal year for | ||||||
22 | which such statement is available.
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23 | (6) A statement of the status of any pending suits or
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24 | judgments in which the unit owner's association is a party.
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25 | (7) A statement setting forth what insurance coverage | ||||||
26 | is
provided for all unit owners by the unit owner's |
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1 | association.
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2 | (8) A statement that any improvements or alterations | ||||||
3 | made
to the unit, or the limited common elements assigned | ||||||
4 | thereto, by the prior
unit owner are in good faith believed | ||||||
5 | to be in compliance with the
condominium instruments.
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6 | (9) The identity and mailing address of the principal | ||||||
7 | officer of the
unit owner's association or of the other | ||||||
8 | officer or agent as is
specifically designated to receive | ||||||
9 | notices.
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10 | (10) If ownership of the condominium unit was | ||||||
11 | transferred by either a judicial foreclosure sale, a | ||||||
12 | consent foreclosure, a common law strict foreclosure, or a | ||||||
13 | deed in lieu of foreclosure, a statement setting forth the | ||||||
14 | total due and owing under subsection (g) of Section 9 of | ||||||
15 | this Act. | ||||||
16 | (b) (Blank). The principal officer of the unit owner's | ||||||
17 | association or such other
officer as is specifically designated | ||||||
18 | shall furnish the above information
when requested to do so in | ||||||
19 | writing and within 30 days of the request.
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20 | (c) Within 15 days of the recording of a mortgage or trust | ||||||
21 | deed
against a unit ownership given by the owner of that unit | ||||||
22 | to secure a debt,
the owner shall inform the Board of Managers | ||||||
23 | of the unit owner's
association of the identity of the lender | ||||||
24 | together with a mailing address
at which the lender can receive | ||||||
25 | notices from the association.
If a unit owner fails or refuses | ||||||
26 | to inform the Board as required under
subsection (c) then that |
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1 | unit owner shall be liable to the association for
all costs, | |||||||||||||||||||||||||
2 | expenses and reasonable attorneys fees and such other damages,
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3 | if any, incurred by the association as a result of such failure | |||||||||||||||||||||||||
4 | or refusal.
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5 | A reasonable fee covering the direct out-of-pocket cost of | |||||||||||||||||||||||||
6 | providing
such information and copying may be charged by the | |||||||||||||||||||||||||
7 | association or its Board
of Managers to the unit seller for | |||||||||||||||||||||||||
8 | providing such information.
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9 | (Source: P.A. 87-692.)
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10 | Section 99. Effective date. This Act takes effect upon | |||||||||||||||||||||||||
11 | becoming law.
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