Bill Text: IL HB4090 | 2023-2024 | 103rd General Assembly | Engrossed

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Bill Title: Inserts the bill, including House Amendments No. 1 and No. 2, and the following addition: Provides that nothing in the Rental Property Utility Service Act may be construed as giving a common interest community association the right to establish a system of master metering or submetering of public utility services.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed) 2024-04-24 - Referred to Assignments [HB4090 Detail]

Download: Illinois-2023-HB4090-Engrossed.html

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AN ACT concerning civil law.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Common Interest Community Association Act
is amended by changing Section 1-45 as follows:
(765 ILCS 160/1-45)
Sec. 1-45. Finances.
(a) Each member shall receive through a prescribed
delivery method, at least 30 days but not more than 60 days
prior to the adoption thereof by the board, 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.
(b) The board shall provide all members with a reasonably
detailed summary of the receipts, common expenses, and
reserves for the preceding budget year. The board shall (i)
make available for review to all members 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

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expenditures plus reserves or (ii) provide a consolidated
annual independent audit report of the financial status of all
fund accounts within the association.
(c) If an adopted budget or any separate assessment
adopted by the board would result in the sum of all regular and
separate assessments payable in the current fiscal year
exceeding 115% of the sum of all regular and separate
assessments payable during the preceding fiscal year, the
common interest community association, upon written petition
by members with 20% of the votes of the association delivered
to the board within 14 days of the board action, shall call a
meeting of the members 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 members are cast at
the meeting to reject the budget or separate assessment, it
shall be deemed ratified.
(d) If total common expenses exceed the total amount of
the approved and adopted budget, the common interest community
association shall disclose this variance to all its members
and specifically identify the subsequent assessments needed to
offset this variance in future budgets.
(e) Separate assessments for expenditures relating to
emergencies or mandated by law may be adopted by the board
without being subject to member approval or the provisions of
subsection (c) or (f) of this Section. As used herein,
"emergency" means a danger to or a compromise of the

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structural integrity of the common areas or any of the common
facilities of the common interest community. "Emergency" also
includes a danger to the life, health or safety of the
membership.
(f) Assessments for additions and alterations to the
common areas or to association-owned property not included in
the adopted annual budget, shall be separately assessed and
are subject to approval of a simple majority of the total
members at a meeting called for that purpose.
(g) The board may adopt separate assessments payable over
more than one fiscal year. With respect to multi-year
assessments not governed by subsections (e) and (f) of this
Section, 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.
(h) The board of a common interest community association
shall have the authority to establish and maintain a system of
master metering of public utility services to collect payments
in conjunction therewith, subject to the requirements of
Section 1.5 of the Residential Property Utility Service the
Tenant Utility Payment Disclosure Act.
(i) An association subject to this Act that consists of
100 or more units shall use generally accepted accounting
principles in fulfilling any accounting obligations under this
Act.
(Source: P.A. 100-292, eff. 1-1-18.)

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Section 10. The Condominium Property Act is amended by
changing Sections 18 and 18.5 as follows:
(765 ILCS 605/18) (from Ch. 30, par. 318)
Sec. 18. Contents of bylaws. The bylaws shall provide for
at least the following:
(a)(1) The election from among the unit owners of a
board of managers, the number of persons constituting such
board, and that the terms of at least one-third of the
members of the board shall expire annually and that all
members of the board shall be elected at large; if there
are multiple owners of a single unit, only one of the
multiple owners shall be eligible to serve as a member of
the board at any one time. A declaration first submitting
property to the provisions of this Act, in accordance with
Section 3 after the effective date of this amendatory Act
of the 102nd General Assembly, or an amendment to the
condominium instruments adopted in accordance with Section
27 after the effective date of this amendatory Act of the
102nd General Assembly, may provide that a majority of the
board of managers, or such lesser number as may be
specified in the declaration, must be comprised of unit
owners occupying their unit as their primary residence;
provided that the condominium instruments may not require
that more than a majority of the board shall be comprised

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of unit owners who occupy their unit as their principal
residence;
(2) the powers and duties of the board;
(3) the compensation, if any, of the members of the
board;
(4) the method of removal from office of members of
the board;
(5) that the board may engage the services of a
manager or managing agent;
(6) that each unit owner shall receive, at least 25
days prior to the adoption thereof by the board of
managers, a copy of the proposed annual budget together
with an indication of which portions are intended for
reserves, capital expenditures or repairs or payment of
real estate taxes;
(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

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meetings, of any meeting of the board of managers
concerning the adoption of the proposed annual budget and
regular assessments pursuant thereto or to adopt a
separate (special) assessment, (ii) that except as
provided in subsection (iv) below, if an adopted budget or
any separate assessment adopted by the board would result
in the sum of all regular and separate assessments payable
in the current fiscal year exceeding 115% of the sum of all
regular and separate assessments payable during the
preceding fiscal year, the board of managers, upon written
petition by unit owners with 20 percent of the votes of the
association delivered to the board within 21 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

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structural integrity of the common elements or to the
life, health, safety or property of the unit owners, (v)
that assessments for additions and alterations to the
common elements or to association-owned property not
included in the adopted annual budget, shall be separately
assessed and are subject to approval of two-thirds of the
total votes of all unit owners, (vi) that the board of
managers may adopt separate assessments payable over more
than one fiscal year. With respect to multi-year
assessments not governed by items (iv) and (v), the entire
amount of the multi-year assessment shall be deemed
considered and authorized in the first fiscal year in
which the assessment is approved;
(9)(A) that every meeting of the board of managers
shall be open to any unit owner, except that the board may
close any portion of a noticed meeting or meet separately
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

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and regulations of the association, (v) discuss a unit
owner's unpaid share of common expenses, or (vi) consult
with the association's legal counsel; that any vote on
these matters shall take place at a meeting of the board of
managers or portion thereof open to any unit owner;
(B) that board members may participate in and act at
any meeting of the board of managers in person, by
telephonic means, or by use of any acceptable
technological means whereby all persons participating in
the meeting can communicate with each other; that
participation constitutes attendance and presence in
person at the meeting;
(C) that any unit owner may record the proceedings at
meetings of the board of managers or portions thereof
required to be open by this Act by tape, film or other
means, and that the board may prescribe reasonable rules
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

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

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the board to fill the vacancy by two-thirds vote until the
next annual meeting of unit owners or for a period
terminating no later than 30 days following the filing of
a petition signed by unit owners holding 20% of the votes
of the association requesting a meeting of the unit owners
to fill the vacancy for the balance of the term, and that a
meeting of the unit owners shall be called for purposes of
filling a vacancy on the board no later than 30 days
following the filing of a petition signed by unit owners
holding 20% of the votes of the association requesting
such a meeting, and the method of filling vacancies among
the officers that shall include the authority for the
members of the board to fill the vacancy for the unexpired
portion of the term;
(14) what percentage of the board of managers, if
other than a majority, shall constitute a quorum;
(15) provisions concerning notice of board meetings to
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

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unit owners, for an election to approve or disapprove the
contract; such petition shall be filed within 30 days
after such notice and such election shall be held within
30 days after filing the petition; for purposes of this
subsection, a board member's immediate family means the
board member's spouse, parents, and children;
(17) that the board of managers may disseminate to
unit owners biographical and background information about
candidates for election to the board if (i) reasonable
efforts to identify all candidates are made and all
candidates are given an opportunity to include
biographical and background information in the information
to be disseminated; and (ii) the board does not express a
preference in favor of any candidate;
(18) any proxy distributed for board elections by the
board of managers gives unit owners the opportunity to
designate any person as the proxy holder, and gives the
unit owner the 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,

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subject to the requirements of Section 1.5 of the
Residential Property Utility Service the Tenant Utility
Payment Disclosure Act; and
(21) that the board may ratify and confirm actions of
the members of the board taken in response to an
emergency, as that term is defined in subdivision
(a)(8)(iv) of this Section; that the board shall give
notice to the unit owners of: (i) the occurrence of the
emergency event within 7 business days after the emergency
event, and (ii) the general description of the actions
taken to address the event within 7 days after the
emergency event.
The intent of the provisions of Public Act 99-472
adding this paragraph (21) is to empower and support
boards to act in emergencies.
(b)(1) What percentage of the unit owners, if other
than 20%, shall constitute a quorum provided that, for
condominiums with 20 or more units, the percentage of unit
owners constituting a quorum shall be 20% unless the unit
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

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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 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

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

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

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

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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 30 days after the board's approval of a
rule adopted pursuant to subparagraph (B) or subparagraph
(B-5) of this paragraph (9), the board shall call a
meeting of the unit owners within 30 days after the date of
delivery of the petition; that unless a majority of the
total votes of the unit owners are cast at the meeting to
reject the rule, the rule is ratified;
(D) that votes cast by ballot under subparagraph (B)
or electronic or acceptable technological means under
subparagraph (B-5) of this paragraph (9) are valid for the
purpose of establishing a quorum;
(10) that the association may, upon adoption of the
appropriate rules by the board of managers, conduct
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

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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 sales contract for
purchase shall during such times as he or she resides in
the unit be counted toward a quorum for purposes of
election of members of the board of managers at any
meeting of the unit owners called for purposes of electing
members of the board, shall have the right to vote for the
election of members of the board of managers and to be
elected to and serve on the board of managers unless the
seller expressly retains in writing any or all of such
rights. In no event may the seller and purchaser both be
counted toward a quorum, be permitted to vote for a
particular office or be elected and serve on the board.
Satisfactory evidence of the installment sales contract
shall be made available to the association or its agents.
For purposes of this subsection, "installment sales
contract" shall have the same meaning as set forth in
Section 5 of the Installment Sales Contract Act and
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

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

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

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operating funds of associations which it manages in a
single operating account but shall at all times maintain
records identifying all moneys of each association in such
operating account. Such operating and reserve funds held
by the management company for the association shall not be
subject to attachment by any creditor of the management
company.
For the purpose of this subsection, a management
company shall be defined as a person, partnership,
corporation, or other legal entity entitled to transact
business on behalf of others, acting on behalf of or as an
agent for a unit owner, unit owners or association of unit
owners for the purpose of carrying out the duties,
responsibilities, and other obligations necessary for the
day to day operation and management of any property
subject to this Act. For purposes of this subsection, the
term "fiduciary insurance coverage" shall be defined as
both a fidelity bond and directors and officers liability
coverage, the fidelity bond in the full amount of
association funds and association reserves that will be in
the custody of the association, and the directors and
officers liability coverage at a level as shall be
determined to be reasonable by the board of managers, if
not otherwise established by the declaration or by laws.
Until one year after September 21, 1985 (the effective
date of Public Act 84-722), if a condominium association

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has reserves plus assessments in excess of $250,000 and
cannot reasonably obtain 100% fidelity bond coverage for
such amount, then it must obtain a fidelity bond coverage
of $250,000.
(h) Method of estimating the amount of the annual
budget, and the manner of assessing and collecting from
the unit owners their respective shares of such estimated
expenses, and of any other expenses lawfully agreed upon.
(i) That upon 10 days notice to the manager or board of
managers and payment of a reasonable fee, any unit owner
shall be furnished a statement of his account setting
forth the amount of any unpaid assessments or other
charges due and owing from such owner.
(j) Designation and removal of personnel necessary for
the maintenance, repair and replacement of the common
elements.
(k) Such restrictions on and requirements respecting
the use and maintenance of the units and the use of the
common elements, not set forth in the declaration, as are
designed to prevent unreasonable interference with the use
of their respective units and of the common elements by
the several unit owners.
(l) Method of adopting and of amending administrative
rules and regulations governing the operation and use of
the common elements.
(m) The percentage of votes required to modify or

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

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Procedure, for any other breach by tenant of any
covenants, rules, regulations or bylaws.
(o) The association shall have no authority to forbear
the payment of assessments by any unit owner.
(p) That when 30% or fewer of the units, by number,
possess over 50% in the aggregate of the votes in the
association, any percentage vote of members specified
herein or in the condominium instruments shall require the
specified percentage by number of units rather than by
percentage of interest in the common elements allocated to
units that would otherwise be applicable and garage units
or storage units, or both, shall have, in total, no more
votes than their aggregate percentage of ownership in the
common elements; this shall mean that if garage units or
storage units, or both, are to be given a vote, or portion
of a vote, that the association must add the total number
of votes cast of garage units, storage units, or both, and
divide the total by the number of garage units, storage
units, or both, and multiply by the aggregate percentage
of ownership of garage units and storage units to
determine the vote, or portion of a vote, that garage
units or storage units, or both, have. For purposes of
this subsection (p), when making a determination of
whether 30% or fewer of the units, by number, possess over
50% in the aggregate of the votes in the association, a
unit shall not include a garage unit or a storage unit.

HB4090 Engrossed - 25 - LRB103 32446 LNS 61933 b
(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. 102-162, eff. 1-1-22.)
(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.

HB4090 Engrossed - 26 - LRB103 32446 LNS 61933 b
(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
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

HB4090 Engrossed - 27 - LRB103 32446 LNS 61933 b
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
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

HB4090 Engrossed - 28 - LRB103 32446 LNS 61933 b
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 sales 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 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

HB4090 Engrossed - 29 - LRB103 32446 LNS 61933 b
evidence of the installment sales contract shall be made
available to the association or its agents. For purposes
of this subsection, "installment sales contract" shall
have the same meaning as set forth in Section 5 of the
Installment Sales Contract Act and 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 Section 1.5 of the Residential Property
Utility Service 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
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

HB4090 Engrossed - 30 - LRB103 32446 LNS 61933 b
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 maintain
the following records 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) 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

HB4090 Engrossed - 31 - LRB103 32446 LNS 61933 b
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,
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

HB4090 Engrossed - 32 - LRB103 32446 LNS 61933 b
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.
(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

HB4090 Engrossed - 33 - LRB103 32446 LNS 61933 b
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 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

HB4090 Engrossed - 34 - LRB103 32446 LNS 61933 b
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 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

HB4090 Engrossed - 35 - LRB103 32446 LNS 61933 b
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
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.

HB4090 Engrossed - 36 - LRB103 32446 LNS 61933 b
(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 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

HB4090 Engrossed - 37 - LRB103 32446 LNS 61933 b
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
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.

HB4090 Engrossed - 38 - LRB103 32446 LNS 61933 b
(6) A statement of the status of any pending suits or
judgments in which the association is a party.
(7) A statement setting forth what insurance coverage
is provided for all unit owners by the association.
(8) A statement that any 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 the
master association.
The principal officer of the unit owner's association or
such other officer 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.
(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
assessment acceleration during the 6 months immediately
preceding institution of an action to enforce the collection

HB4090 Engrossed - 39 - LRB103 32446 LNS 61933 b
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 provides for greater percentages or different
procedures.

HB4090 Engrossed - 40 - LRB103 32446 LNS 61933 b
(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 two-thirds of the members of the board of directors

HB4090 Engrossed - 41 - LRB103 32446 LNS 61933 b
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
materially or adversely affect property rights of the unit

HB4090 Engrossed - 42 - LRB103 32446 LNS 61933 b
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
address.

HB4090 Engrossed - 43 - LRB103 32446 LNS 61933 b
(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.
(j) (Blank).

HB4090 Engrossed - 44 - LRB103 32446 LNS 61933 b
(Source: P.A. 100-416, eff. 1-1-18.)
Section 15. The Rental Property Utility Service Act is
amended by changing the title of the Act and Section 0.01 and
by adding Section 1.5 as follows:
(765 ILCS 735/Act title)
An Act concerning residential providing remedies for
lessees in relation to the failure of lessors to pay for
utility services.
(765 ILCS 735/0.01) (from Ch. 80, par. 61)
Sec. 0.01. Short title. This Act may be cited as the
Residential Rental Property Utility Service Act.
(Source: P.A. 86-1324.)
(765 ILCS 735/1.5 new)
Sec. 1.5. Payment for master metered public utility
services.
(a) No landlord may demand payment for master metered
public utility services pursuant to a lease provision
providing for tenant payment of a proportionate share of
public utility service without the landlord first providing
the tenant with a copy in writing either as part of the lease
or another written agreement of the formula used by the
landlord for allocating the public utility payments among the

HB4090 Engrossed - 45 - LRB103 32446 LNS 61933 b
tenants. The total of payments under the formula for the
building as a whole for a billing period may not exceed the sum
demanded by the public utility. The formula shall include all
those that use that public utility service and may reflect
variations in apartment size or usage. The landlord shall also
make available to the tenant upon request a copy of the public
utility bill for any billing period for which payment is
demanded. Nothing herein shall preclude a landlord from
leasing property to a tenant, including the cost of utilities,
for a rental which does not segregate or allocate the cost of
the utilities.
(b) No condominium or common interest community
association may demand payment for master metered public
utility services from a unit owner of a proportionate share
for public utility service without the condominium or common
interest community association first providing the unit owner
with a copy in writing of the formula used by the association
for allocating the public utility payments among the unit
owners. The total of payments under the formula for the
association as a whole for the annual budgeted billing period
may not exceed the sum demanded by the public utility,
however, the board of directors of the association may direct
that any payments received by the association in excess of
actual utility bills be applied to other budgeted items having
a deficit, or be applied to the association's reserve fund, or
be credited to the account of the unit owners for the following

HB4090 Engrossed - 46 - LRB103 32446 LNS 61933 b
year's budget. The formula shall include all those that use
that public utility service and may reflect, but is not
limited to, percent interest, unit size, or usage. The
condominium or common interest community association shall
also make available to the unit owner upon request a copy of
the public utility bill for any billing period for which
payment is demanded. A condominium association shall have the
right to establish and maintain a system of master metering of
public utility services pursuant to Sections 18 and 18.5 of
the Condominium Property Act. A common interest community
association shall have the right to establish and maintain a
system of master metering of public utility services pursuant
to Section 1-45 of the Common Interest Community Association
Act. Nothing in this Act shall be construed as giving a common
interest community association the right to establish a system
of master metering or submetering of public utility services.
(c) A municipality may request a copy in writing of the
formula used by the landlord or condominium or common interest
community association for allocating the public utility
payments among the unit owners. The landlord or condominium or
common interest community association shall respond within 30
calendar days of receiving the municipality's request.
(d) Treble damages available to residential tenants under
Section 1.3 of this Act are not applicable to alleged
violations of this Section.

HB4090 Engrossed - 47 - LRB103 32446 LNS 61933 b