Bill Text: IL HB2932 | 2017-2018 | 100th General Assembly | Introduced

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Bill Title: Amends the Condominium Property Act. Makes numerous changes in provisions concerning: common expenses; liens for nonpayment of common expenses; other liens; standing and capacity of the board of managers; disposition or removal of any portion of the property; the contents of bylaws; powers and duties of board of managers; master associations; display of the American flag or a military flag; standards for community association managers; and resale of a condominium unit.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2019-01-08 - Session Sine Die [HB2932 Detail]

Download: Illinois-2017-HB2932-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 HB2932 Introduced , by Rep. Robyn Gabel SYNOPSIS AS INTRODUCED:
765 ILCS 605/9 from Ch. 30, par. 309
765 ILCS 605/9.1 from Ch. 30, par. 309.1
765 ILCS 605/14.1 from Ch. 30, par. 314.1
765 ILCS 605/18 from Ch. 30, par. 318
765 ILCS 605/18.5 from Ch. 30, par. 318.5
765 ILCS 605/18.6
765 ILCS 605/18.7
765 ILCS 605/22.1 from Ch. 30, par. 322.1
Amends the Condominium Property Act. Makes numerous changes in provisions concerning: common expenses; liens for nonpayment of common expenses; other liens; standing and capacity of the board of managers; disposition or removal of any portion of the property; the contents of bylaws; powers and duties of board of managers; master associations; display of the American flag or a military flag; standards for community association managers; and resale of a condominium unit.
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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 Condominium Property Act is amended by
changing Sections 9, 9.1, 14.1, 18, 18.5, 18.6, 18.7, and 22.1
as follows:
(765 ILCS 605/9) (from Ch. 30, par. 309)
Sec. 9. Sharing of expenses - Lien for nonpayment.
(a) All common expenses incurred or accrued prior to the
first conveyance of a unit shall be paid by the developer, and
during this period no common expense assessment shall be
payable to the association. It shall be the duty of each unit
owner including the developer to pay his proportionate share of
the common expenses commencing with the first conveyance. The
proportionate share shall be in the same ratio as his
percentage of ownership in the common elements set forth in the
declaration.
(b) The condominium instruments may provide that common
expenses for insurance premiums be assessed on a basis
reflecting increased charges for coverage on certain units.
(c) Budget and reserves.
(1) The board of managers shall prepare and distribute
to all unit owners a detailed proposed annual budget,

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setting forth with particularity all anticipated common
expenses by category as well as all anticipated assessments
and other income. The initial budget and common expense
assessment based thereon shall be adopted prior to the
conveyance of any unit. The budget shall also set forth
each unit owner's proposed common expense assessment.
(2) All budgets adopted by a board of managers on or
after July 1, 1990 shall provide for reasonable reserves
for capital expenditures and deferred maintenance for
repair or replacement of the common elements. To determine
the amount of reserves appropriate for an association, the
board of managers shall take into consideration the
following: (i) the repair and replacement cost, and the
estimated useful life, of the property which the
association is obligated to maintain, including but not
limited to structural and mechanical components, surfaces
of the buildings and common elements, and energy systems
and equipment; (ii) the current and anticipated return on
investment of association funds; (iii) any independent
professional reserve study which the association may
obtain; (iv) the financial impact on unit owners, and the
market value of the condominium units, of any assessment
increase needed to fund reserves; and (v) the ability of
the association to obtain financing or refinancing.
(3) Notwithstanding the provisions of this subsection
(c), an association without a reserve requirement in its

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condominium instruments may elect to waive in whole or in
part the reserve requirements of this Section by a vote of
2/3 of the total votes of the association. Any association
having elected under this paragraph (3) to waive the
provisions of subsection (c) may by a vote of 2/3 of the
total votes of the association elect to again be governed
by the requirements of subsection (c).
(4) In the event that an association elects to waive
all or part of the reserve requirements of this Section,
that fact must be disclosed after the meeting at which the
waiver occurs by the association in the financial
statements of the association and, highlighted in bold
print, in the response to any request of a prospective
purchaser for the information prescribed under Section
22.1; and no member of the board of managers or the
managing agent of the association shall be liable, and no
cause of action may be brought for damages against these
parties, for the lack or inadequacy of reserve funds in the
association budget.
(5) A management company holding reserve funds of an
association shall at all times maintain a separate account
for each association; however, 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

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at all times maintain records identifying all moneys of
each association in the investment account. The management
company may hold all operating funds of associations it
manages in a single operating account but shall at all
times maintain records identifying all moneys of each
association in the operating account. The 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.
As used in this subsection, "management company" means
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.
(d) (Blank).
(e) The condominium instruments may provide for the
assessment, in connection with expenditures for the limited
common elements, of only those units to which the limited
common elements are assigned.
(f) Payment of any assessment shall be in amounts and at
times determined by the board of managers.
(g) Lien.
(1) If any unit owner shall fail or refuse to make any

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payment of the common expenses or the amount of any unpaid
fine when due, the amount thereof together with any
interest, late charges, reasonable attorney fees incurred
enforcing the covenants of the condominium instruments,
rules and regulations of the board of managers, or any
applicable statute or ordinance, and costs of collections
shall constitute a lien on the interest of the unit owner
in the property prior to all other liens and encumbrances,
recorded or unrecorded, except only (a) taxes, special
assessments and special taxes theretofore or thereafter
levied by any political subdivision or municipal
corporation of this State and other State or federal taxes
which by law are a lien on the interest of the unit owner
prior to preexisting recorded encumbrances thereon and (b)
encumbrances on the interest of the unit owner recorded
prior to the date of such failure or refusal which by law
would be a lien thereon prior to subsequently recorded
encumbrances. Any action brought to extinguish the lien of
the association shall include the association as a party.
(2) With respect to encumbrances executed prior to
August 30, 1984 or encumbrances executed subsequent to
August 30, 1984 which are neither bonafide first mortgages
nor trust deeds and which encumbrances contain a statement
of a mailing address in the State of Illinois where notice
may be mailed to the encumbrancer thereunder, if and
whenever and as often as the manager or board of managers

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shall send, by United States certified or registered mail,
return receipt requested, to any such encumbrancer at the
mailing address set forth in the recorded encumbrance a
statement of the amounts and due dates of the unpaid common
expenses with respect to the encumbered unit, then, unless
otherwise provided in the declaration or bylaws, the prior
recorded encumbrance shall be subject to the lien of all
unpaid common expenses with respect to the unit which
become due and payable within a period of 90 days after the
date of mailing of each such notice.
(3) The purchaser of a condominium unit at a judicial
foreclosure sale, or a mortgagee who receives title to a
unit by deed in lieu of foreclosure or judgment by common
law strict foreclosure or otherwise takes possession
pursuant to court order under the Illinois Mortgage
Foreclosure Law, shall have the duty to pay the unit's
proportionate share of the common expenses for the unit
assessed from and after the first day of the month after
the date of the judicial foreclosure sale, delivery of the
deed in lieu of foreclosure, entry of a judgment in common
law strict foreclosure, or taking of possession pursuant to
such court order. Such payment confirms the extinguishment
of any lien created pursuant to paragraph (1) or (2) of
this subsection (g) by virtue of the failure or refusal of
a prior unit owner to make payment of common expenses,
where the judicial foreclosure sale has been confirmed by

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order of the court, a deed in lieu thereof has been
accepted by the lender, or a consent judgment has been
entered by the court.
(4) 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 the proportionate share, if any, of
the common expenses for the unit which would have become
due in the absence of any assessment acceleration during
the 6 months immediately preceding institution of an action
to enforce the collection of assessments, and which remain
unpaid by the owner during whose possession the assessments
accrued. If the outstanding assessments are paid at any
time during any 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.
(5) The notice of sale of a condominium unit under
subsection (c) of Section 15-1507 of the Code of Civil
Procedure shall state that the purchaser of the unit other
than a mortgagee shall pay the assessments and the legal
fees required by subdivisions (g)(1) and (g)(4) of Section
9 of this Act. The statement of assessment account issued
by the association to a unit owner under subsection (i) of
Section 18 of this Act, and the disclosure statement issued

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to a prospective purchaser under Section 22.1 of this Act,
shall state the amount of the assessments and the legal
fees, if any, required by subdivisions (g)(1) and (g)(4) of
Section 9 of this Act.
(h) A lien for common expenses shall be in favor of the
members of the board of managers and their successors in office
and shall be for the benefit of all other unit owners. Notice
of the lien may be recorded by the board of managers, or if the
developer is the manager or has a majority of seats on the
board of managers and the manager or board of managers fails to
do so, any unit owner may record notice of the lien. Upon the
recording of such notice the lien may be foreclosed by an
action brought in the name of the board of managers in the same
manner as a mortgage of real property.
(i) Unless otherwise provided in the declaration, the
members of the board of managers and their successors in
office, acting on behalf of the other unit owners, shall have
the power to bid on the interest so foreclosed at the
foreclosure sale, and to acquire and hold, lease, mortgage and
convey it.
(j) Any encumbrancer may from time to time request in
writing a written statement from the manager or board of
managers setting forth the unpaid common expenses with respect
to the unit covered by his encumbrance. Unless the request is
complied with within 20 days, all unpaid common expenses which
become due prior to the date of the making of such request

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shall be subordinate to the lien of the encumbrance. Any
encumbrancer holding a lien on a unit may pay any unpaid common
expenses payable with respect to the unit, and upon payment the
encumbrancer shall have a lien on the unit for the amounts paid
at the same rank as the lien of his encumbrance.
(k) Nothing in Public Act 83-1271 is intended to change the
lien priorities of any encumbrance created prior to August 30,
1984.
(Source: P.A. 94-1049, eff. 1-1-07.)
(765 ILCS 605/9.1) (from Ch. 30, par. 309.1)
Sec. 9.1. (a) Other liens; attachment and satisfaction.
(a) Subsequent to the recording of the declaration, no
liens of any nature shall be created or arise against any
portion of the property except against an individual unit or
units. No labor performed or materials furnished with the
consent or at the request of a particular unit owner shall be
the basis for the filing of a mechanics' lien claim against any
other unit. If the performance of the labor or furnishing of
the materials is expressly authorized by the board of managers,
each unit owner shall be deemed to have expressly authorized it
and consented thereto, and shall be liable for the payment of
his unit's proportionate share of any due and payable
indebtedness as set forth in this Section.
Each mortgage and other lien, including mechanics liens,
securing a debt incurred in the development of the land

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submitted to the provisions of this Act for the sale of units
shall be subject to the provisions of this Act, subsequent to
the conveyance of a unit to the purchaser.
In the event any lien exists against 2 or more units and
the indebtedness secured by such lien is due and payable, the
unit owner of any such unit so affected may remove such unit
and the undivided interest in the common elements appertaining
thereto from such lien by payment of the proportional amount of
such indebtedness attributable to such unit. In the event such
lien exists against the units or against the property, the
amount of such proportional payment shall be computed on the
basis of the percentages set forth in the declaration. Upon
payment as herein provided, it is the duty of the encumbrancer
to execute and deliver to the unit owner a release of such unit
and the undivided interest in the common elements appertaining
thereto from such lien, except that such proportional payment
and release shall not prevent the encumbrancer from proceeding
to enforce his rights against any unit or interest with respect
to which such lien has not been so paid or released.
The owner of a unit shall not be liable for any claims,
damages, or judgments, including but not limited to State or
local government fees or fines, entered as a result of any
action or inaction of the board of managers of the association
other than for mechanics' liens as set forth in this Section.
Unit owners other than the developer, members of the board of
managers other than the developer or developer

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representatives, and the association of unit owners shall not
be liable for any claims, damages, or judgments, including but
not limited to State or local government fees or fines, entered
as result of any action or inaction of the developer other than
for mechanics' liens as set forth in this Section. Each unit
owner's liability for any judgment entered against the board of
managers or the association, if any, shall be limited to his
proportionate share of the indebtedness as set forth in this
Section, whether collection is sought through assessment or
otherwise. A unit owner shall be liable for any claim, damage
or judgment entered as a result of the use or operation of his
unit, or caused by his own conduct. Before conveying a unit, a
developer shall record and furnish purchaser releases of all
liens affecting that unit and its common element interest which
the purchaser does not expressly agree to take subject to or
assume, and the developer shall provide a surety bond or
substitute collateral for or insurance against liens for which
a release is not provided. After conveyance of such unit, no
mechanics lien shall be created against such unit or its common
element interest by reason of any subsequent contract by the
developer to improve or make additions to the property.
Each mortgagee or other lienholder of the unit of a common
interest community or of a unit subject to the Condominium
Property Act shall provide an address to the unit owners'
association at the time the lien or mortgage is recorded at
which address such unit owners' association shall send notice

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to such mortgagee or lienholder of any eminent domain
proceeding to which the association thereafter becomes a party.
If the mortgagee or lienholder has not provided an address for
notice purposes to the association, then such notice shall be
sent to all mortgagees or lienholders which are named insureds
on the master policy of insurance which exists or may exist on
the common interest community or unit subject to the
Condominium Property Act.
(b) Board of Managers' standing and capacity. The board of
managers shall have standing and capacity to act in a
representative capacity in relation to matters involving the
common elements or more than one unit, on behalf of the unit
owners, as their interests may appear.
(Source: P.A. 91-616, eff. 8-19-99.)
(765 ILCS 605/14.1) (from Ch. 30, par. 314.1)
Sec. 14.1. Disposition or removal of any portion of the
property.
(a) The condominium instruments may provide for the
withdrawal of any portion of the property in connection with
eminent domain proceedings in compliance with the provisions of
this Act. Upon the withdrawal of any unit or portion thereof,
the percentage of interest in the common elements appurtenant
to such unit or portion thereof shall be reallocated among the
remaining units on the basis of the percentage of interest of
each remaining unit. If only a portion of a unit is withdrawn,

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the percentage of interest appurtenant to that unit shall be
reduced accordingly, upon the basis of diminution in market
value of the unit, as determined by the board of managers. The
allocation of any condemnation award or other proceeds to any
withdrawing or remaining unit owner shall be on an equitable
basis, which need not be a unit's percentage interest. Any
condemnation award or other proceeds available in connection
with the withdrawal of any portion of the common elements, not
necessarily including the limited common elements, shall be
allocated on the basis of each unit owner's percentage interest
therein. The declaration may provide that proceeds available
from the withdrawal of any limited common element will be
distributed in accordance with the interests of those entitled
to their use. The condominium instruments shall provide for the
cessation of responsibility for the payment of assessments for
any unit or portion thereof withdrawn from the condominium. In
the event that the unit owners' association is named as
defendant in an eminent domain proceeding on behalf of all unit
owners, then the payment of the proceeds of the eminent domain
proceeding attributable to the taking or damaging of the common
element shall be according to this Section unless the
condominium instrument or declaration of a common interest
community expressly provides for different procedures. This
Section shall also apply to eminent domain proceedings in which
the unit owners' association of a common interest community is
named as a defendant on behalf of all unit owners.

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(b) Notwithstanding anything to the contrary contained in
this Section, in a leasehold condominium, any allocation of any
condemnation award or other proceeds available in connection
with the withdrawal of any portion of the property shall
include an equitable allocation to the lessor. The allocation
shall take into account any provisions of the lease described
in item (x) of Section 2 of this Act concerning such
allocations.
(Source: P.A. 89-89, eff. 6-30-95.)
(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;

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(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;
(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

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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
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

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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
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

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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
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

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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
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

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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
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

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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 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

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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
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;
(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

HB2932 - 23 - LRB100 10224 HEP 20407 b
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 owners cast the votes

HB2932 - 24 - LRB100 10224 HEP 20407 b
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

HB2932 - 25 - LRB100 10224 HEP 20407 b
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
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;

HB2932 - 26 - LRB100 10224 HEP 20407 b
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
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

HB2932 - 27 - LRB100 10224 HEP 20407 b
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
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

HB2932 - 28 - LRB100 10224 HEP 20407 b
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
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

HB2932 - 29 - LRB100 10224 HEP 20407 b
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
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) (Blank). 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

HB2932 - 30 - LRB100 10224 HEP 20407 b
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 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

HB2932 - 31 - LRB100 10224 HEP 20407 b
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 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

HB2932 - 32 - LRB100 10224 HEP 20407 b
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.
(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

HB2932 - 33 - LRB100 10224 HEP 20407 b
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 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

HB2932 - 34 - LRB100 10224 HEP 20407 b
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.
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.)

HB2932 - 35 - LRB100 10224 HEP 20407 b
(765 ILCS 605/18.5) (from Ch. 30, par. 318.5)
Sec. 18.5. Master Associations.
(a) If the declaration, other condominium instrument, or
other duly recorded covenants provide that any of the powers of
the unit owners associations are to be exercised by or may be
delegated to a nonprofit corporation or unincorporated
association that exercises those or other powers on behalf of
one or more condominiums, or for the benefit of the unit owners
of one or more condominiums, such corporation or association
shall be a master association.
(b) There shall be included in the declaration, other
condominium instruments, or other duly recorded covenants
establishing the powers and duties of the master association
the provisions set forth in subsections (c) through (h).
In interpreting subsections (c) through (h), the courts
should interpret these provisions so that they are interpreted
consistently with the similar parallel provisions found in
other parts of this Act.
(c) Meetings and finances.
(1) Each unit owner of a condominium subject to the
authority of the board of the master association shall
receive, at least 30 days prior to the adoption thereof by
the board of the master association, a copy of the proposed
annual budget.
(2) The board of the master association shall annually

HB2932 - 36 - LRB100 10224 HEP 20407 b
supply to all unit owners of condominiums subject to the
authority of the board of the master association an
itemized accounting of the common expenses for the
preceding year actually incurred or paid, together with a
tabulation of the amounts collected pursuant to the budget
or assessment, and showing the net excess or deficit of
income over expenditures plus reserves.
(3) Each unit owner of a condominium subject to the
authority of the board of the master association shall
receive written notice mailed or delivered no less than 10
and no more than 30 days prior to any meeting of the board
of the master association concerning the adoption of the
proposed annual budget or any increase in the budget, or
establishment of an assessment.
(4) Meetings of the board of the master association
shall be open to any unit owner in a condominium subject to
the authority of the board of the master association,
except for the portion of any meeting held:
(A) to discuss litigation when an action against or
on behalf of the particular master association has been
filed and is pending in a court or administrative
tribunal, or when the board of the master association
finds that such an action is probable or imminent,
(B) to consider information regarding appointment,
employment or dismissal of an employee, or
(C) to discuss violations of rules and regulations

HB2932 - 37 - LRB100 10224 HEP 20407 b
of the master association or unpaid common expenses
owed to the master association.
Any vote on these matters shall be taken at a meeting or
portion thereof open to any unit owner of a condominium
subject to the authority of the master association.
Any unit owner may record the proceedings at meetings
required to be open by this Act by tape, film or other
means; the board may prescribe reasonable rules and
regulations to govern the right to make such recordings.
Notice of meetings shall be mailed or delivered at least 48
hours prior thereto, unless a written waiver of such notice
is signed by the persons entitled to notice before the
meeting is convened. Copies of notices of meetings of the
board of the master association shall be posted in
entranceways, elevators, or other conspicuous places in
the condominium at least 48 hours prior to the meeting of
the board of the master association. Where there is no
common entranceway for 7 or more units, the board of the
master association may designate one or more locations in
the proximity of these units where the notices of meetings
shall be posted.
(5) If the declaration provides for election by unit
owners of members of the board of directors in the event of
a resale of a unit in the master association, the purchaser
of a unit from a seller other than the developer pursuant
to an installment contract for purchase shall, during such

HB2932 - 38 - LRB100 10224 HEP 20407 b
times as he or she resides in the unit, be counted toward a
quorum for purposes of election of members of the board of
directors at any meeting of the unit owners called for
purposes of electing members of the board, and shall have
the right to vote for the election of members of the board
of directors and to be elected to and serve on the board of
directors unless the seller expressly retains in writing
any or all of those rights. In no event may the seller and
purchaser both be counted toward a quorum, be permitted to
vote for a particular office, or be elected and serve on
the board. Satisfactory evidence of the installment
contract shall be made available to the association or its
agents. For purposes of this subsection, "installment
contract" shall have the same meaning as set forth in
subsection (e) of Section 1 of the Dwelling Unit
Installment Contract Act.
(6) The board of the master association shall have the
authority to establish and maintain a system of master
metering of public utility services and to collect payments
in connection therewith, subject to the requirements of the
Tenant Utility Payment Disclosure Act.
(7) The board of the master association or a common
interest community association shall have the power, after
notice and an opportunity to be heard, to levy and collect
reasonable fines from members for violations of the
declaration, bylaws, and rules and regulations of the

HB2932 - 39 - LRB100 10224 HEP 20407 b
master association or the common interest community
association. Nothing contained in this subdivision (7)
shall give rise to a statutory lien for unpaid fines.
(8) Other than attorney's fees, no fees pertaining to
the collection of a unit owner's financial obligation to
the Association, including fees charged by a manager or
managing agent, shall be added to and deemed a part of an
owner's respective share of the common expenses unless: (i)
the managing agent fees relate to the costs to collect
common expenses for the Association; (ii) the fees are set
forth in a contract between the managing agent and the
Association; and (iii) the authority to add the management
fees to an owner's respective share of the common expenses
is specifically stated in the declaration or bylaws of the
Association.
(d) Records.
(1) The board of the master association shall keep and
maintain the following records, or true and complete copies
of the records, at the association's principal office of
the association and make them available for examination and
copying at convenient hours of weekdays by any unit owners
in a condominium subject to the authority of the board or
their mortgagees and their duly authorized agents or
attorneys:
(i) the association's declaration, bylaws, and
plats of survey, and all amendments of the

HB2932 - 40 - LRB100 10224 HEP 20407 b
association's declaration, bylaws, and plats of
survey;
(ii) the rules and regulations of the association,
if any;
(iii) if the association is incorporated as a
corporation, the articles of incorporation of the
association and all amendments to the articles of
incorporation;
(iv) minutes of all meetings of the association and
its board of managers for the immediately preceding 7
years;
(v) all current policies of insurance of the
association;
(vi) all contracts, leases, and other agreements
then in effect to which the association is a party or
under which the association or the unit owners have
obligations or liabilities;
(vii) a current listing of the names, addresses,
and weighted vote of all members entitled to vote;
(viii) ballots and proxies related to ballots for
all matters voted on by the members of the association
during the immediately preceding 12 months, including,
but not limited to, the election of members of the
board of managers; and
(ix) the books and records of account for the
association's current and 10 immediately preceding

HB2932 - 41 - LRB100 10224 HEP 20407 b
fiscal years, including, but not limited to, itemized
and detailed records of all receipts and expenditures.
With respect to units owned by a land trust, if a
trustee designates in writing a person to cast votes on
behalf of the unit owner, the designation shall remain in
effect until a subsequent document is filed with the
association.
(2) Any member of an association has the right to
inspect, examine, and make copies of the records described
in subdivisions (i), (ii), (iii), (iv), and (v) of
paragraph (1) of this subsection, in person or by agent, at
any reasonable time or times, at the association's
principal office. In order to exercise this right, a member
must submit a written request to the association's board of
directors or its authorized agent, stating with
particularity the records sought. Failure of an
association's board of directors to make available all
requested records within 30 days of receipt of the member's
written request shall be deemed a denial.
Any member who prevails in an enforcement action to
compel examination of records described in subdivisions
(i), (ii), (iii), (iv), and (v) of paragraph (1) of this
subsection is entitled to recover reasonable attorney's
fees and costs from the association.
(3) Except as otherwise provided in this subsection,
any member of an association has the right to inspect,

HB2932 - 42 - LRB100 10224 HEP 20407 b
examine, and make copies of the records described in
subdivisions (vi), (vii), (viii), and (ix) of paragraph (1)
of this subsection, in person or by agent, at any
reasonable time or times, but only for a proper purpose, at
the association's principal office. In order to exercise
this right, a member must submit a written request to the
association's board of directors or its authorized agent,
stating with particularity the records sought and a proper
purpose for the request. Subject to the provisions of
paragraph (5) of this subsection, failure of an
association's board of directors to make available all
requested records within 30 business days of receipt of the
member's written request shall be deemed a denial; however,
the board of directors of an association that has adopted a
secret ballot election process shall not be deemed to have
denied a member's request for records described in
subdivision (viii) of paragraph (1) of this subsection if
voting ballots, without identifying unit numbers, are made
available to the requesting member within 30 days of
receipt of the member's written request.
In an action to compel examination of records described
in subdivisions (vi), (vii), (viii), and (ix) of paragraph
(1) of this subsection, the burden of proof is upon the
member to establish that the member's request is based on a
proper purpose. Any member who prevails in an enforcement
action to compel examination of records described in

HB2932 - 43 - LRB100 10224 HEP 20407 b
subdivisions (vi), (vii), (viii), and (ix) of paragraph (1)
of this subsection is entitled to recover reasonable
attorney's fees and costs from the association only if the
court finds that the board of directors acted in bad faith
in denying the member's request.
(4) The actual cost to the association of retrieving
and making requested records available for inspection and
examination under this Section shall be charged by the
association to the requesting member. If a member requests
copies of records under this Section, the actual costs to
the association of reproducing the records shall also be
charged by the association to the requesting member.
(5) Notwithstanding the other provisions of this
subsection, unless otherwise directed by court order, an
association need not make the following records available
for inspection, examination, or copying by its members:
(i) documents relating to appointment, employment,
discipline, or dismissal of association employees;
(ii) documents relating to actions pending against
or on behalf of the association or its board of
managers in a court or administrative tribunal;
(iii) documents relating to actions threatened
against, or likely to be asserted on behalf of, the
association or its board of directors in a court or
administrative tribunal;
(iv) documents relating to common expenses or

HB2932 - 44 - LRB100 10224 HEP 20407 b
other charges owed by a member other than the
requesting member; and
(v) documents provided to an association in
connection with the lease, sale, or other transfer of a
unit by a member other than the requesting member.
(i) Copies of the recorded declaration, other
condominium instruments, other duly recorded covenants
and bylaws and any amendments, articles of
incorporation of the master association, annual
reports and any rules and regulations adopted by the
master association or its board shall be available.
Prior to the organization of the master association,
the developer shall maintain and make available the
records set forth in this subdivision (d)(1) for
examination and copying.
(ii) Detailed and accurate records in
chronological order of the receipts and expenditures
affecting the common areas, specifying and itemizing
the maintenance and repair expenses of the common areas
and any other expenses incurred, and copies of all
contracts, leases, or other agreements entered into by
the master association, shall be maintained.
(iii) The minutes of all meetings of the master
association and the board of the master association
shall be maintained for not less than 7 years.
(iv) Ballots and proxies related thereto, if any,

HB2932 - 45 - LRB100 10224 HEP 20407 b
for any election held for the board of the master
association and for any other matters voted on by the
unit owners shall be maintained for not less than one
year.
(v) Such other records of the master association as
are available for inspection by members of a
not-for-profit corporation pursuant to Section 107.75
of the General Not For Profit Corporation Act of 1986
shall be maintained.
(vi) With respect to units owned by a land trust,
if a trustee designates in writing a person to cast
votes on behalf of the unit owner, the designation
shall remain in effect until a subsequent document is
filed with the association.
(2) Where a request for records under this subsection
is made in writing to the board of managers or its agent,
failure to provide the requested record or to respond
within 30 days shall be deemed a denial by the board of
directors.
(3) A reasonable fee may be charged by the master
association or its board for the cost of copying.
(4) If the board of directors fails to provide records
properly requested under subdivision (d)(1) within the
time period provided in subdivision (d)(2), the unit owner
may seek appropriate relief, including an award of
attorney's fees and costs.

HB2932 - 46 - LRB100 10224 HEP 20407 b
(e) The board of directors shall have standing and capacity
to act in a representative capacity in relation to matters
involving the common areas of the master association or more
than one unit, on behalf of the unit owners as their interests
may appear.
(f) Administration of property prior to election of the
initial board of directors.
(1) Until the election, by the unit owners or the
boards of managers of the underlying condominium
associations, of the initial board of directors of a master
association whose declaration is recorded on or after
August 10, 1990, the same rights, titles, powers,
privileges, trusts, duties and obligations that are vested
in or imposed upon the board of directors by this Act or in
the declaration or other duly recorded covenant shall be
held and performed by the developer.
(2) The election of the initial board of directors of a
master association whose declaration is recorded on or
after August 10, 1990, by the unit owners or the boards of
managers of the underlying condominium associations, shall
be held not later than 60 days after the conveyance by the
developer of 75% of the units, or 3 years after the
recording of the declaration, whichever is earlier. The
developer shall give at least 21 days notice of the meeting
to elect the initial board of directors and shall upon
request provide to any unit owner, within 3 working days of

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the request, the names, addresses, and weighted vote of
each unit owner entitled to vote at the meeting. Any unit
owner shall upon receipt of the request be provided with
the same information, within 10 days of the request, with
respect to each subsequent meeting to elect members of the
board of directors.
(3) If the initial board of directors of a master
association whose declaration is recorded on or after
August 10, 1990 is not elected by the unit owners or the
members of the underlying condominium association board of
managers at the time established in subdivision (f)(2), the
developer shall continue in office for a period of 30 days,
whereupon written notice of his resignation shall be sent
to all of the unit owners or members of the underlying
condominium board of managers entitled to vote at an
election for members of the board of directors.
(4) Within 60 days following the election of a majority
of the board of directors, other than the developer, by
unit owners, the developer shall deliver to the board of
directors:
(i) All original documents as recorded or filed
pertaining to the property, its administration, and
the association, such as the declaration, articles of
incorporation, other instruments, annual reports,
minutes, rules and regulations, and contracts, leases,
or other agreements entered into by the association. If

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any original documents are unavailable, a copy may be
provided if certified by affidavit of the developer, or
an officer or agent of the developer, as being a
complete copy of the actual document recorded or filed.
(ii) A detailed accounting by the developer,
setting forth the source and nature of receipts and
expenditures in connection with the management,
maintenance and operation of the property, copies of
all insurance policies, and a list of any loans or
advances to the association which are outstanding.
(iii) Association funds, which shall have been at
all times segregated from any other moneys of the
developer.
(iv) A schedule of all real or personal property,
equipment and fixtures belonging to the association,
including documents transferring the property,
warranties, if any, for all real and personal property
and equipment, deeds, title insurance policies, and
all tax bills.
(v) A list of all litigation, administrative
action and arbitrations involving the association, any
notices of governmental bodies involving actions taken
or which may be taken concerning the association,
engineering and architectural drawings and
specifications as approved by any governmental
authority, all other documents filed with any other

HB2932 - 49 - LRB100 10224 HEP 20407 b
governmental authority, all governmental certificates,
correspondence involving enforcement of any
association requirements, copies of any documents
relating to disputes involving unit owners, and
originals of all documents relating to everything
listed in this subparagraph.
(vi) If the developer fails to fully comply with
this paragraph (4) within the 60 days provided and
fails to fully comply within 10 days of written demand
mailed by registered or certified mail to his or her
last known address, the board may bring an action to
compel compliance with this paragraph (4). If the court
finds that any of the required deliveries were not made
within the required period, the board shall be entitled
to recover its reasonable attorneys' fees and costs
incurred from and after the date of expiration of the
10 day demand.
(5) With respect to any master association whose
declaration is recorded on or after August 10, 1990, any
contract, lease, or other agreement made prior to the
election of a majority of the board of directors other than
the developer by or on behalf of unit owners or underlying
condominium associations, the association or the board of
directors, which extends for a period of more than 2 years
from the recording of the declaration, shall be subject to
cancellation by more than 1/2 of the votes of the unit

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owners, other than the developer, cast at a special meeting
of members called for that purpose during a period of 90
days prior to the expiration of the 2 year period if the
board of managers is elected by the unit owners, otherwise
by more than 1/2 of the underlying condominium board of
managers. At least 60 days prior to the expiration of the 2
year period, the board of directors, or, if the board is
still under developer control, then the board of managers
or the developer shall send notice to every unit owner or
underlying condominium board of managers, notifying them
of this provision, of what contracts, leases and other
agreements are affected, and of the procedure for calling a
meeting of the unit owners or for action by the underlying
condominium board of managers for the purpose of acting to
terminate such contracts, leases or other agreements.
During the 90 day period the other party to the contract,
lease, or other agreement shall also have the right of
cancellation.
(6) The statute of limitations for any actions in law
or equity which the master association may bring shall not
begin to run until the unit owners or underlying
condominium board of managers have elected a majority of
the members of the board of directors.
(g) In the event of any resale of a unit in a master
association by a unit owner other than the developer, the owner
shall obtain from the board of directors and shall make

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available for inspection to the prospective purchaser, upon
demand, the following:
(1) A copy of the declaration, other instruments and
any rules and regulations.
(2) A statement of any liens, including a statement of
the account of the unit setting forth the amounts of unpaid
assessments and other charges due and owing.
(3) A statement of any capital expenditures
anticipated by the association within the current or
succeeding 2 fiscal years.
(4) A statement of the status and amount of any reserve
for replacement fund and any portion of such fund earmarked
for any specified project by the board of directors.
(5) A copy of the statement of financial condition of
the association for the last fiscal year for which such a
statement is available.
(6) A statement of the status of any pending suits or
judgments in which the association is a party that may have
a material adverse impact on the association's financial
condition.
(7) A statement setting forth what insurance coverage
is provided for all unit owners by the association.
(8) A statement that any known improvements or
alterations made to the unit, or any part of the common
areas assigned thereto, by the prior unit owner are in good
faith believed to be in compliance with the declaration of

HB2932 - 52 - LRB100 10224 HEP 20407 b
the master association.
The principal officer of the unit owner's association or
such other officer, manager, or agent as is specifically
designated shall furnish the above information when requested
to do so in writing, within 30 days of receiving the request.
A reasonable fee covering the direct out-of-pocket cost of
copying and providing such information may be charged by the
association or its board of directors to the unit seller for
providing the information.
Within 15 days of the recording of a mortgage or trust deed
against a unit ownership given by the owner of that unit to
secure a debt, the owner shall inform the board of the master
association of the identity of the lender, together with a
mailing address at which the lender can receive notices from
the association. If a unit owner fails or refuses to inform the
board as required under this subsection, then that unit owner
is liable to the association for all costs, expenses, and
reasonable attorney's fees and other damages, if any, incurred
by the association as a result of the failure or refusal.
(g-1) The purchaser of a unit of a common interest
community at a judicial foreclosure sale, other than a
mortgagee, who takes possession of a unit of a common interest
community pursuant to a court order or a purchaser who acquires
title from a mortgagee shall have the duty to pay the
proportionate share, if any, of the common expenses for the
unit that would have become due in the absence of any

HB2932 - 53 - LRB100 10224 HEP 20407 b
assessment acceleration during the 6 months immediately
preceding institution of an action to enforce the collection of
assessments and the court costs incurred by the association in
an action to enforce the collection that remain unpaid by the
owner during whose possession the assessments accrued. If the
outstanding assessments and the court costs incurred by the
association in an action to enforce the collection are paid at
any time during any action to enforce the collection of
assessments, the purchaser shall have no obligation to pay any
assessments that accrued before he or she acquired title. The
notice of sale of a unit of a common interest community under
subsection (c) of Section 15-1507 of the Code of Civil
Procedure shall state that the purchaser of the unit other than
a mortgagee shall pay the assessments and court costs required
by this subsection (g-1).
(h) Errors and omissions.
(1) If there is an omission or error in the declaration
or other instrument of the master association, the master
association may correct the error or omission by an
amendment to the declaration or other instrument, as may be
required to conform it to this Act, to any other applicable
statute, or to the declaration. The amendment shall be
adopted by vote of two-thirds of the members of the board
of directors or by a majority vote of the unit owners at a
meeting called for that purpose, unless the Act or the
declaration of the master association specifically

HB2932 - 54 - LRB100 10224 HEP 20407 b
provides for greater percentages or different procedures.
(2) If, through a scrivener's error, a unit has not
been designated as owning an appropriate undivided share of
the common areas or does not bear an appropriate share of
the common expenses, or if all of the common expenses or
all of the common elements in the condominium have not been
distributed in the declaration, so that the sum total of
the shares of common areas which have been distributed or
the sum total of the shares of the common expenses fail to
equal 100%, or if it appears that more than 100% of the
common elements or common expenses have been distributed,
the error may be corrected by operation of law by filing an
amendment to the declaration, approved by vote of
two-thirds of the members of the board of directors or a
majority vote of the unit owners at a meeting called for
that purpose, which proportionately adjusts all percentage
interests so that the total is equal to 100%, unless the
declaration specifically provides for a different
procedure or different percentage vote by the owners of the
units and the owners of mortgages thereon affected by
modification being made in the undivided interest in the
common areas, the number of votes in the unit owners
association or the liability for common expenses
appertaining to the unit.
(3) If an omission or error or a scrivener's error in
the declaration or other instrument is corrected by vote of

HB2932 - 55 - LRB100 10224 HEP 20407 b
two-thirds of the members of the board of directors
pursuant to the authority established in subdivisions
(h)(1) or (h)(2) of this Section, the board, upon written
petition by unit owners with 20% of the votes of the
association or resolutions adopted by the board of managers
or board of directors of the condominium and common
interest community associations which select 20% of the
members of the board of directors of the master
association, whichever is applicable, received within 30
days of the board action, shall call a meeting of the unit
owners or the boards of the condominium and common interest
community associations which select members of the board of
directors of the master association within 30 days of the
filing of the petition or receipt of the condominium and
common interest community association resolution to
consider the board action. Unless a majority of the votes
of the unit owners of the association are cast at the
meeting to reject the action, or board of managers or board
of directors of condominium and common interest community
associations which select over 50% of the members of the
board of the master association adopt resolutions prior to
the meeting rejecting the action of the board of directors
of the master association, it is ratified whether or not a
quorum is present.
(4) The procedures for amendments set forth in this
subsection (h) cannot be used if such an amendment would

HB2932 - 56 - LRB100 10224 HEP 20407 b
materially or adversely affect property rights of the unit
owners unless the affected unit owners consent in writing.
This Section does not restrict the powers of the
association to otherwise amend the declaration, bylaws, or
other condominium instruments, but authorizes a simple
process of amendment requiring a lesser vote for the
purpose of correcting defects, errors, or omissions when
the property rights of the unit owners are not materially
or adversely affected.
(5) If there is an omission or error in the declaration
or other instruments that may not be corrected by an
amendment procedure set forth in subdivision (h)(1) or
(h)(2) of this Section, then the circuit court in the
county in which the master association is located shall
have jurisdiction to hear a petition of one or more of the
unit owners thereon or of the association, to correct the
error or omission, and the action may be a class action.
The court may require that one or more methods of
correcting the error or omission be submitted to the unit
owners to determine the most acceptable correction. All
unit owners in the association must be joined as parties to
the action. Service of process on owners may be by
publication, but the plaintiff shall furnish all unit
owners not personally served with process with copies of
the petition and final judgment of the court by certified
mail, return receipt requested, at their last known

HB2932 - 57 - LRB100 10224 HEP 20407 b
address.
(6) Nothing contained in this Section shall be
construed to invalidate any provision of a declaration
authorizing the developer to amend an instrument prior to
the latest date on which the initial membership meeting of
the unit owners must be held, whether or not it has
actually been held, to bring the instrument into compliance
with the legal requirements of the Federal National
Mortgage Association, the Federal Home Loan Mortgage
Corporation, the Federal Housing Administration, the
United States Veterans Administration or their respective
successors and assigns.
(i) The provisions of subsections (c) through (h) are
applicable to all declarations, other condominium instruments,
and other duly recorded covenants establishing the powers and
duties of the master association recorded under this Act. Any
portion of a declaration, other condominium instrument, or
other duly recorded covenant establishing the powers and duties
of a master association which contains provisions contrary to
the provisions of subsection (c) through (h) shall be void as
against public policy and ineffective. Any declaration, other
condominium instrument, or other duly recorded covenant
establishing the powers and duties of the master association
which fails to contain the provisions required by subsections
(c) through (h) shall be deemed to incorporate such provisions
by operation of law.

HB2932 - 58 - LRB100 10224 HEP 20407 b
(j) (Blank).
(Source: P.A. 96-1045, eff. 7-14-10; 97-535, eff. 1-1-12;
97-605, eff. 8-26-11; 97-813, eff. 7-13-12.)
(765 ILCS 605/18.6)
Sec. 18.6. Display of American flag or military flag.
(a) Notwithstanding any provision in the declaration,
bylaws, rules, regulations, or agreements or other instruments
of a condominium association or a master association or a
common interest community association or a board's
construction of any of those instruments, a board may not
prohibit the display of the American flag or a military flag,
or both, on or within the limited common areas and facilities
of a unit owner or on the immediately adjacent exterior of the
building in which the unit of a unit owner is located. A board
may adopt reasonable rules and regulations, consistent with
Sections 4 through 10 of Chapter 1 of Title 4 of the United
States Code, regarding the placement and manner of display of
the American flag and a board may adopt reasonable rules and
regulations regarding the placement and manner of display of a
military flag. A board may not prohibit the installation of a
flagpole for the display of the American flag or a military
flag, or both, on or within the limited common areas and
facilities of a unit owner or on the immediately adjacent
exterior of the building in which the unit of a unit owner is
located, but a board may adopt reasonable rules and regulations

HB2932 - 59 - LRB100 10224 HEP 20407 b
regarding the location and size of flagpoles.
(b) As used in this Section:
"American flag" means the flag of the United States (as
defined in Section 1 of Chapter 1 of Title 4 of the United
States Code and the Executive Orders entered in connection with
that Section) made of fabric, cloth, or paper displayed from a
staff or flagpole or in a window, but "American flag" does not
include a depiction or emblem of the American flag made of
lights, paint, roofing, siding, paving materials, flora, or
balloons, or any other similar building, landscaping, or
decorative component.
"Board" includes a board of managers of a condominium
association or a board of a master association or a common
interest community association.
"Military flag" means a flag of any branch of the United
States armed forces or the Illinois National Guard made of
fabric, cloth, or paper displayed from a staff or flagpole or
in a window, but "military flag" does not include a depiction
or emblem of a military flag made of lights, paint, roofing,
siding, paving materials, flora, or balloons, or any other
similar building, landscaping, or decorative component.
(Source: P.A. 93-481, eff. 1-1-04.)
(765 ILCS 605/18.7)
Sec. 18.7. Standards for community association managers.
(a) "Community association" has the meaning provided in

HB2932 - 60 - LRB100 10224 HEP 20407 b
Section 10 of the Community Association Manager Licensing and
Disciplinary Act means an association in which membership is a
condition of ownership or shareholder interest of a unit in a
condominium, cooperative, townhouse, villa, or other
residential unit that is part of a residential development plan
as a master association or common interest community and that
is authorized to impose an assessment and other costs that may
become a lien on the unit or lot.
(b) "Community association manager" has the meaning
provided in Section 10 of the Community Association Manager
Licensing and Disciplinary Act means an individual who
administers for compensation the coordination of financial,
administrative, maintenance, or other duties called for in the
management contract, including individuals who are direct
employees of a community association. A manager does not
include support staff, such as bookkeepers, administrative
assistants, secretaries, property inspectors, or customer
service representatives.
(c) (Blank). Requirements. To perform services as a
community association manager, an individual must meet these
requirements:
(1) shall have attained the age of 21 and be a citizen
or legal permanent resident of the United States;
(2) shall not have been convicted of forgery,
embezzlement, obtaining money under false pretenses,
larceny, extortion, conspiracy to defraud or other similar

HB2932 - 61 - LRB100 10224 HEP 20407 b
offense or offenses;
(3) shall have a working knowledge of the fundamentals
of community association management, including the
Condominium Property Act, the Illinois Not-for-Profit
Corporation Act, and any other laws pertaining to community
association management; and
(4) shall not have engaged in the following activities:
failure to cooperate with any law enforcement agency in the
investigation of a complaint; or failure to produce any
document, book, or record in the possession or control of
the community association manager after a request for
production of that document, book, or record in the course
of an investigation of a complaint.
(d) (Blank). Access to community association funds. For
community associations of 6 or more units, apartments,
townhomes, villas or other residential units, a community
association manager or the firm with whom the manager is
employed shall not solely and exclusively have access to and
disburse funds of a community association unless:
(1) There is a fidelity bond in place.
(2) The fidelity bond is in an amount not less than all
monies of that association in the custody or control of the
community association manager.
(3) The fidelity bond covers the community association
manager and all partners, officers, and employees of the
firm with whom the community association manager is

HB2932 - 62 - LRB100 10224 HEP 20407 b
employed during the term of the bond, as well as the
community association officers, directors, and employees
of the community association who control or disburse funds.
(4) The insurance company issuing the bond may not
cancel or refuse to renew the bond without giving not less
than 10 days' prior written notice to the community
association.
(5) The community association shall secure and pay for
the bond.
(e) A community association manager who provides community
association management services for more than one community
association shall maintain separate, segregated accounts for
each community association. The funds shall not, in any event,
be commingled with funds of the community association manager,
the firm of the community association manager, or any other
community association, except to the extent permitted under
paragraph (5) of subsection (c) of Section 9 of this Act. The
maintenance of these accounts shall be custodial, and the
accounts shall be in the name of the respective community
association.
(f) Exempt persons. Except as otherwise provided, this
Section does not apply to any person acting as a receiver,
trustee in bankruptcy, administrator, executor, or guardian
acting under a court order or under the authority of a will or
of a trust instrument.
(g) Right of Action.

HB2932 - 63 - LRB100 10224 HEP 20407 b
(1) Nothing in this Section amendatory Act of the 95th
General Assembly shall create a cause of action by a unit
owner, shareholder, or community association member
against a community association manager or the firm of a
community association management firm as defined in
Section 10 of the Community Association Manager Licensing
and Disciplinary Act manager.
(2) This Section amendatory Act of the 95th General
Assembly shall not impair any right of action by a unit
owner or shareholder against a community association or
master association board of directors under existing law.
(Source: P.A. 95-318, eff. 1-1-08.)
(765 ILCS 605/22.1) (from Ch. 30, par. 322.1)
Sec. 22.1. (a) In the event of any resale of a condominium
unit by a unit owner other than the developer such owner shall
obtain from the Board of Managers and shall make available for
inspection to the prospective purchaser, upon demand, the
following:
(1) A copy of the Declaration, by-laws, other
condominium instruments and any rules and regulations.
(2) A statement of any liens, including a statement of
the account of the unit setting forth the amounts of unpaid
assessments and other charges due and owing as authorized
and limited by the provisions of Section 9 of this Act or
the condominium instruments.

HB2932 - 64 - LRB100 10224 HEP 20407 b
(3) A statement of any capital expenditures
anticipated by the unit owner's association within the
current or succeeding two fiscal years.
(4) A statement of the status and amount of any reserve
for replacement fund and any portion of such fund earmarked
for any specified project by the Board of Managers.
(5) A copy of the statement of financial condition of
the unit owner's association for the last fiscal year for
which such statement is available.
(6) A statement of the status of any pending suits or
judgments in which the unit owner's association is a party
that may have a material adverse impact on the financial
condition of the association.
(7) A statement setting forth what insurance coverage
is provided for all unit owners by the unit owner's
association.
(8) A statement that any known improvements or
alterations made to the unit, or the limited common
elements assigned thereto, by the prior unit owner are in
good faith believed to be in compliance with the
condominium instruments.
(9) The identity and mailing address of the principal
officer of the unit owner's association or of the other
officer or agent as is specifically designated to receive
notices.
(b) The principal officer of the unit owner's association

HB2932 - 65 - LRB100 10224 HEP 20407 b
or such other officer, manager, or agent as is specifically
designated shall furnish the above information when requested
to do so in writing and within 30 days of the request.
(c) Within 15 days of the recording of a mortgage or trust
deed against a unit ownership given by the owner of that unit
to secure a debt, the owner shall inform the Board of Managers
of the unit owner's association of the identity of the lender
together with a mailing address at which the lender can receive
notices from the association. If a unit owner fails or refuses
to inform the Board as required under subsection (c) then that
unit owner shall be liable to the association for all costs,
expenses and reasonable attorneys fees and such other damages,
if any, incurred by the association as a result of such failure
or refusal.
A reasonable fee covering the direct out-of-pocket cost of
providing such information and copying may be charged by the
association or its Board of Managers to the unit seller for
providing such information.
(Source: P.A. 87-692.)