Bill Text: IL HB2646 | 2015-2016 | 99th General Assembly | Introduced

---

Bill Title: Amends the Condominium Property Act. Provides that the bylaws of a condominium shall provide for the ratification and confirmation by the board of managers of actions taken by the board without a meeting. Provides that the action shall be deemed not approved if specified procedural requirements relating to the ratification and confirmation are not met.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2015-04-24 - Rule 19(a) / Re-referred to Rules Committee [HB2646 Detail]

Download: Illinois-2015-HB2646-Introduced.html

---

99TH GENERAL ASSEMBLY State of Illinois 2015 and 2016 HB2646 Introduced , by Rep. Kelly M. Cassidy SYNOPSIS AS INTRODUCED:
765 ILCS 605/18 from Ch. 30, par. 318
Amends the Condominium Property Act. Provides that the bylaws of a condominium shall provide for the ratification and confirmation by the board of managers of actions taken by the board without a meeting. Provides that the action shall be deemed not approved if specified procedural requirements relating to the ratification and confirmation are not met.
LRB099 07613 HEP 27744 b
A BILL FOR
HB2646 LRB099 07613 HEP 27744 b
AN ACT concerning civil law.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Condominium Property Act is amended by
changing Section 18 as follows:
(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 30 days
prior to the adoption thereof by the board of managers, a copy

HB2646 - 2 - LRB099 07613 HEP 27744 b
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;
(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

HB2646 - 3 - LRB099 07613 HEP 27744 b
or separate assessment; unless a majority of the total 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) that meetings of the board of managers shall be open to
any unit owner, except for the portion of any meeting held (i)
to discuss litigation when an action against or on behalf of
the particular association has been filed and is pending in a

HB2646 - 4 - LRB099 07613 HEP 27744 b
court or administrative tribunal, or when the board of managers
finds that such an action is probable or imminent, (ii) to
consider information regarding appointment, employment or
dismissal of an employee, or (iii) to discuss violations of
rules and regulations of the association or a unit owner's
unpaid share of common expenses; that any vote on these matters
shall be taken at a meeting or portion thereof open to any unit
owner; that any unit owner may record the proceedings at
meetings or portions thereof required to be open by this Act by
tape, film or other means; that the board may prescribe
reasonable rules and regulations to govern the right to make
such recordings, that notice of such meetings shall be mailed
or delivered at least 48 hours prior thereto, unless a written
waiver of such notice is signed by the person or persons
entitled to such notice pursuant to the declaration, bylaws,
other condominium instrument, or provision of law other than
this subsection before the meeting is convened, and that copies
of notices of meetings 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;
(9-5) notwithstanding the provisions of subdivision (a)(9)
of this Section, that any action which may be taken at a

HB2646 - 5 - LRB099 07613 HEP 27744 b
meeting of the board of managers may be taken without a meeting
if a consent, in writing and setting forth the action taken, is
approved in writing by all members of the board of managers
then in office; that the writing shall state the date of
consent to the action; that the consent must be ratified and
confirmed at the first occurring meeting of the board of
managers, which must be held within 30 days after the date of
approval of the action at either a regular or special board
meeting; that a copy of the unanimous written consent shall be
attached to, and made a part of, the minutes of the meeting;
that consent sent by any acceptable technological means to or
from the director or management company representative
requesting the consent shall be deemed consent in writing; that
failure to timely ratify and confirm the consent shall result
in the action being deemed not approved by the board of
managers; that the notice of the board of managers meeting at
which the consent to the action is to be ratified and confirmed
shall describe the action taken and state that the board of
managers will vote to ratify and confirm the action at that
meeting; that at the board of managers meeting, at least one of
the members of the board of managers shall be required to state
his or her reasons for consenting to the action and that a
summary of the statement or statements shall be made a part of
the minutes of the board meeting; that if the number of members
of the board of managers in office at the time of the
ratification and confirmation consent is fewer than the number

HB2646 - 6 - LRB099 07613 HEP 27744 b
required for a quorum of the board of managers, the action
shall be deemed not the action of the board of managers;
(10) that the board shall meet at least 4 times 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;

HB2646 - 7 - LRB099 07613 HEP 27744 b
(15) provisions concerning notice of board meetings to
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 unit owner the

HB2646 - 8 - LRB099 07613 HEP 27744 b
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; and
(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.
(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 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
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;

HB2646 - 9 - LRB099 07613 HEP 27744 b
(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 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

HB2646 - 10 - LRB099 07613 HEP 27744 b
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 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

HB2646 - 11 - LRB099 07613 HEP 27744 b
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 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

HB2646 - 12 - LRB099 07613 HEP 27744 b
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
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

HB2646 - 13 - LRB099 07613 HEP 27744 b
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 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 contact shall be made available to the association

HB2646 - 14 - LRB099 07613 HEP 27744 b
or its agents. For purposes of this subsection, "installment
contact" shall have the same meaning as set forth in Section 1
(e) of "An Act relating to installment contracts to sell
dwelling structures", approved August 11, 1967, as amended;
(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

HB2646 - 15 - LRB099 07613 HEP 27744 b
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 associations. The
management company shall at all times maintain records

HB2646 - 16 - LRB099 07613 HEP 27744 b
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 not otherwise
established by the declaration or by laws.
Until one year after the effective date of this amendatory
Act of 1985, if a condominium association has reserves plus

HB2646 - 17 - LRB099 07613 HEP 27744 b
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 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.

HB2646 - 18 - LRB099 07613 HEP 27744 b
(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 the effective date of this amendatory Act of 1984.
(ii) With regard to any lease entered into subsequent to the
effective date of this amendatory Act of 1989, 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 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

HB2646 - 19 - LRB099 07613 HEP 27744 b
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 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.

HB2646 - 20 - LRB099 07613 HEP 27744 b
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.)