Bill Text: IL HB4158 | 2021-2022 | 102nd General Assembly | Enrolled
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Common Interest Community Association Act. Requires a common interest community association's board of managers or board of directors to maintain a record of any reserve study. Amends the Condominium Property Act. Requires the board of managers of every association to keep and maintain records of any reserve study.
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Passed) 2022-05-27 - Public Act . . . . . . . . . 102-0921 [HB4158 Detail]
Download: Illinois-2021-HB4158-Enrolled.html
Bill Title: Amends the Common Interest Community Association Act. Requires a common interest community association's board of managers or board of directors to maintain a record of any reserve study. Amends the Condominium Property Act. Requires the board of managers of every association to keep and maintain records of any reserve study.
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Passed) 2022-05-27 - Public Act . . . . . . . . . 102-0921 [HB4158 Detail]
Download: Illinois-2021-HB4158-Enrolled.html
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1 | AN ACT concerning civil law.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Common Interest Community Association Act | ||||||
5 | is amended by changing Sections 1-30 and 1-90 as follows:
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6 | (765 ILCS 160/1-30)
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7 | Sec. 1-30. Board duties and obligations; records. | ||||||
8 | (a) The board shall meet at least 4 times annually. | ||||||
9 | (b) A common interest community association may not enter | ||||||
10 | into a contract with a current board member, or with a | ||||||
11 | corporation, limited liability company, or partnership in | ||||||
12 | which a board member or a member of his or her immediate family | ||||||
13 | has 25% or more interest, unless notice of intent to enter into | ||||||
14 | the contract is given to members within 20 days after a | ||||||
15 | decision is made to enter into the contract and the members are | ||||||
16 | afforded an opportunity by filing a petition, signed by 20% of | ||||||
17 | the membership, for an election to approve or disapprove the | ||||||
18 | contract; such petition shall be filed within 20 days after | ||||||
19 | such notice and such election shall be held within 30 days | ||||||
20 | after filing the petition. For purposes of this subsection, a | ||||||
21 | board member's immediate family means the board member's | ||||||
22 | spouse, parents, siblings, and children. | ||||||
23 | (c) The bylaws or operating agreement shall provide for |
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1 | the maintenance, repair, and replacement of the common areas | ||||||
2 | and payments therefor, including the method of approving | ||||||
3 | payment vouchers. | ||||||
4 | (d) (Blank). | ||||||
5 | (e) The association may engage the services of a manager | ||||||
6 | or management company. | ||||||
7 | (f) The association shall have one class of membership | ||||||
8 | unless the declaration, bylaws, or operating agreement provide | ||||||
9 | otherwise; however, this subsection (f) shall not be construed | ||||||
10 | to limit the operation of subsection (c) of Section 1-20 of | ||||||
11 | this Act. | ||||||
12 | (g) The board shall have the power, after notice and an | ||||||
13 | opportunity to be heard, to levy and collect reasonable fines | ||||||
14 | from members or unit owners for violations of the declaration, | ||||||
15 | bylaws, operating agreement, and rules and regulations of the | ||||||
16 | common interest community association. | ||||||
17 | (h) Other than attorney's fees and court or arbitration | ||||||
18 | costs, no fees pertaining to the collection of a member's or | ||||||
19 | unit owner's financial obligation to the association, | ||||||
20 | including fees charged by a manager or managing agent, shall | ||||||
21 | be added to and deemed a part of a member's or unit owner's | ||||||
22 | respective share of the common expenses unless: (i) the | ||||||
23 | managing agent fees relate to the costs to collect common | ||||||
24 | expenses for the association; (ii) the fees are set forth in a | ||||||
25 | contract between the managing agent and the association; and | ||||||
26 | (iii) the authority to add the management fees to a member's or |
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1 | unit owner's respective share of the common expenses is | ||||||
2 | specifically stated in the declaration, bylaws, or operating | ||||||
3 | agreement of the association. | ||||||
4 | (i) Board records. | ||||||
5 | (1) The board shall maintain the following records of | ||||||
6 | the association and make them available for examination | ||||||
7 | and copying at convenient hours of weekdays by any member | ||||||
8 | or unit owner in a common interest community subject to | ||||||
9 | the authority of the board, their mortgagees, and their | ||||||
10 | duly authorized agents or attorneys: | ||||||
11 | (i) Copies of the recorded declaration, other | ||||||
12 | community instruments, other duly recorded covenants | ||||||
13 | and bylaws and any amendments, articles of | ||||||
14 | incorporation, articles of organization, annual | ||||||
15 | reports, and any rules and regulations adopted by the | ||||||
16 | board shall be available. Prior to the organization of | ||||||
17 | the board, the developer shall maintain and make | ||||||
18 | available the records set forth in this paragraph (i) | ||||||
19 | for examination and copying. | ||||||
20 | (ii) Detailed and accurate records in | ||||||
21 | chronological order of the receipts and expenditures | ||||||
22 | affecting the common areas, specifying and itemizing | ||||||
23 | the maintenance and repair expenses of the common | ||||||
24 | areas and any other expenses incurred, and copies of | ||||||
25 | all contracts, leases, or other agreements entered | ||||||
26 | into by the board shall be maintained. |
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1 | (iii) The minutes of all meetings of the board | ||||||
2 | which shall be maintained for not less than 7 years. | ||||||
3 | (iv) With a written statement of a proper purpose, | ||||||
4 | ballots and proxies related thereto, if any, for any | ||||||
5 | election held for the board and for any other matters | ||||||
6 | voted on by the members, which shall be maintained for | ||||||
7 | not less than one year. | ||||||
8 | (v) With a written statement of a proper purpose, | ||||||
9 | such other records of the board as are available for | ||||||
10 | inspection by members of a not-for-profit corporation | ||||||
11 | pursuant to Section 107.75 of the General Not For | ||||||
12 | Profit Corporation Act of 1986 shall be maintained. | ||||||
13 | (vi) With respect to units owned by a land trust, a | ||||||
14 | living trust, or other legal entity, the trustee, | ||||||
15 | officer, or manager of the entity may designate, in | ||||||
16 | writing, a person to cast votes on behalf of the member | ||||||
17 | or unit owner and a designation shall remain in effect | ||||||
18 | until a subsequent document is filed with the | ||||||
19 | association. | ||||||
20 | (vii) Any reserve study. | ||||||
21 | (2) Where a request for records under this subsection | ||||||
22 | is made in writing to the board or its agent, failure to | ||||||
23 | provide the requested record or to respond within 30 days | ||||||
24 | shall be deemed a denial by the board. | ||||||
25 | (3) A reasonable fee may be charged by the board for | ||||||
26 | the cost of retrieving and copying records properly |
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1 | requested. | ||||||
2 | (4) If the board fails to provide records properly | ||||||
3 | requested under paragraph (1) of this subsection (i) | ||||||
4 | within the time period provided in that paragraph (1), the | ||||||
5 | member may seek appropriate relief and shall be entitled | ||||||
6 | to an award of reasonable attorney's fees and costs if the | ||||||
7 | member prevails and the court finds that such failure is | ||||||
8 | due to the acts or omissions of the board of managers or | ||||||
9 | the board of directors. | ||||||
10 | (j) The board shall have standing and capacity to act in a | ||||||
11 | representative capacity in relation to matters involving the | ||||||
12 | common areas or more than one unit, on behalf of the members or | ||||||
13 | unit owners as their interests may appear.
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14 | (Source: P.A. 98-232, eff. 1-1-14; 98-241, eff. 8-9-13; | ||||||
15 | 98-756, eff. 7-16-14; 99-41, eff. 7-14-15.)
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16 | (765 ILCS 160/1-90) | ||||||
17 | (Section scheduled to be repealed on July 1, 2022) | ||||||
18 | Sec. 1-90. Compliance with the Condominium and Common | ||||||
19 | Interest Community Ombudsperson Act. Every common interest | ||||||
20 | community association, except for those exempt from this Act | ||||||
21 | under Section 1-75, must comply with the Condominium and | ||||||
22 | Common Interest Community Ombudsperson Act and is subject to | ||||||
23 | all provisions of the Condominium and Common Interest | ||||||
24 | Community Ombudsperson Act. This Section is repealed January | ||||||
25 | 1, 2024 July 1, 2022 .
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1 | (Source: P.A. 99-776, eff. 8-12-16; 100-201, eff. 8-18-17.)
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2 | Section 10. The Condominium Property Act is amended by | ||||||
3 | changing Sections 19 and 35 as follows:
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4 | (765 ILCS 605/19) (from Ch. 30, par. 319)
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5 | Sec. 19. Records of the association; availability for | ||||||
6 | examination.
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7 | (a) The board of managers of every association shall keep | ||||||
8 | and maintain the
following records, or true and complete | ||||||
9 | copies of these records, at the
association's principal | ||||||
10 | office:
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11 | (1) the association's declaration, bylaws, and plats | ||||||
12 | of survey, and all
amendments of these;
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13 | (2) the rules and regulations of the association, if | ||||||
14 | any;
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15 | (3) if the association is incorporated as a | ||||||
16 | corporation, the articles
of incorporation of the | ||||||
17 | association and all amendments to the articles of
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18 | incorporation;
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19 | (4) minutes of all meetings of the association and its | ||||||
20 | board of managers
for the immediately preceding 7 years;
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21 | (5) all current policies of insurance of the | ||||||
22 | association;
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23 | (6) all contracts, leases, and other agreements then | ||||||
24 | in effect to which
the association is a party or under |
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1 | which the association or the unit owners
have obligations | ||||||
2 | or liabilities;
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3 | (7) a current listing of the names, addresses, email | ||||||
4 | addresses, telephone numbers, and weighted vote of all
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5 | members entitled to vote;
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6 | (8) ballots and proxies related to ballots for all | ||||||
7 | matters voted on by
the members of the association during | ||||||
8 | the immediately preceding 12 months,
including, but not | ||||||
9 | limited to, the election of members of the board of | ||||||
10 | managers;
and
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11 | (9) the books and records for the association's | ||||||
12 | current and 10
immediately preceding fiscal years, | ||||||
13 | including, but not limited to, itemized and
detailed | ||||||
14 | records of all receipts, expenditures, and accounts ; and | ||||||
15 | (10) any reserve study .
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16 | (b) Any member of an association shall have the right to | ||||||
17 | inspect, examine,
and make copies of the records described in | ||||||
18 | subdivisions (1), (2), (3), (4),
(5), (6), and (9) , and (10) of | ||||||
19 | subsection (a) of this Section, in person or by agent, at any
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20 | reasonable time or times, at the association's principal | ||||||
21 | office. In order
to exercise this right, a member must submit a | ||||||
22 | written request to the
association's board of managers or its | ||||||
23 | authorized agent, stating with
particularity the records | ||||||
24 | sought to be examined. Failure of an association's
board of | ||||||
25 | managers to make available all records so requested within 10 | ||||||
26 | business days of
receipt of the member's written request shall |
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1 | be deemed a denial.
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2 | Any member who prevails in an enforcement action to compel | ||||||
3 | examination of
records described in subdivisions (1), (2), | ||||||
4 | (3), (4), (5), (6), and (9) , and (10) of subsection (a)
of this | ||||||
5 | Section shall be entitled to recover reasonable attorney's | ||||||
6 | fees and
costs from the association.
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7 | (c) (Blank).
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8 | (d) (Blank).
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9 | (d-5) As used in this Section, "commercial purpose" means | ||||||
10 | the use of any part of a record or records described in | ||||||
11 | subdivisions (7) and (8) of subsection (a) of this Section, or | ||||||
12 | information derived from such records, in any form for sale, | ||||||
13 | resale, or solicitation or advertisement for sales or | ||||||
14 | services. | ||||||
15 | (e) Except as otherwise provided in subsection (g) of this
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16 | Section, any member of an association shall have the right to | ||||||
17 | inspect, examine,
and make copies of the records described in | ||||||
18 | subdivisions (7) and (8) of subsection (a) of this Section, in | ||||||
19 | person or by agent, at any reasonable
time or times but only | ||||||
20 | for a purpose that relates to the association, at the | ||||||
21 | association's principal
office. In order to exercise this | ||||||
22 | right, a member must submit a written
request, to the | ||||||
23 | association's board of managers or its authorized agent,
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24 | stating with particularity the records sought to be examined. | ||||||
25 | As a condition for exercising this right, the board of | ||||||
26 | managers or authorized agent of the association may require |
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1 | the member to certify in writing that the information | ||||||
2 | contained in the records obtained by the member will not be | ||||||
3 | used by the member for any commercial purpose or for any | ||||||
4 | purpose that does not relate to the association. The board of | ||||||
5 | managers of the association may impose a fine in accordance | ||||||
6 | with item (l) of Section 18.4 upon any person who makes a false | ||||||
7 | certification. Subject to the provisions of subsection (g) of | ||||||
8 | this Section, failure of an association's board of managers to | ||||||
9 | make
available all records so requested within 10 business | ||||||
10 | days of receipt of the
member's written request shall be | ||||||
11 | deemed a denial; provided, however, that the
board of managers | ||||||
12 | of an association that has adopted a secret ballot election
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13 | process as provided in Section 18 of this Act shall not be | ||||||
14 | deemed to have
denied a member's request for records described | ||||||
15 | in subdivision (8) of
subsection (a) of this Section if voting | ||||||
16 | ballots, without identifying unit
numbers, are made available | ||||||
17 | to the requesting member within 10 business days of receipt
of | ||||||
18 | the member's written request.
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19 | Any member who prevails in an enforcement action to compel
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20 | examination of records described in subdivision (7) or (8) of
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21 | subsection (a) of this Section shall be entitled to recover | ||||||
22 | reasonable
attorney's fees and costs from the association only | ||||||
23 | if the court finds that
the board of directors acted in bad | ||||||
24 | faith in denying the member's request.
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25 | (f) The actual cost to the association of retrieving and | ||||||
26 | making requested
records available for inspection and |
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1 | examination under this Section may be
charged by the | ||||||
2 | association to the requesting member. If a member requests
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3 | copies of records requested under this Section, the actual | ||||||
4 | costs to the
association of reproducing the records may also | ||||||
5 | be charged by the association
to the requesting member.
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6 | (g) Notwithstanding the provisions of subsection (e) of | ||||||
7 | this Section, unless
otherwise directed by court order, an | ||||||
8 | association need not make the following
records available for | ||||||
9 | inspection, examination, or copying by its members:
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10 | (1) documents relating to appointment, employment, | ||||||
11 | discipline, or
dismissal of association employees;
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12 | (2) documents relating to actions pending against or | ||||||
13 | on behalf of the
association or its board of managers in a | ||||||
14 | court or administrative tribunal;
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15 | (3) documents relating to actions threatened against, | ||||||
16 | or likely to be
asserted on behalf of, the association or | ||||||
17 | its board of managers in a court or
administrative | ||||||
18 | tribunal;
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19 | (4) documents relating to common expenses or other | ||||||
20 | charges owed by a
member other than the requesting member; | ||||||
21 | and
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22 | (5) documents provided to an association in connection | ||||||
23 | with the lease,
sale, or other transfer of a unit by a | ||||||
24 | member other than the requesting member.
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25 | (h) The provisions of this Section are applicable to all | ||||||
26 | condominium
instruments recorded under this Act. Any portion |
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1 | of a condominium instrument
that contains provisions contrary | ||||||
2 | to these provisions shall be void as against
public policy and | ||||||
3 | ineffective. Any condominium instrument that fails to
contain | ||||||
4 | the provisions required by this Section shall be deemed to | ||||||
5 | incorporate
the provisions by operation of law.
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6 | (Source: P.A. 100-292, eff. 1-1-18; 100-863, eff. 8-14-18.)
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7 | (765 ILCS 605/35) | ||||||
8 | (Section scheduled to be repealed on July 1, 2022) | ||||||
9 | Sec. 35. Compliance with the Condominium and Common | ||||||
10 | Interest Community Ombudsperson Act. Every unit owners' | ||||||
11 | association must comply with the Condominium and Common | ||||||
12 | Interest Community Ombudsperson Act and is subject to all | ||||||
13 | provisions of the Condominium and Common Interest Community | ||||||
14 | Ombudsperson Act. This Section is repealed January 1, 2024 | ||||||
15 | July 1, 2022 .
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16 | (Source: P.A. 98-1135, eff. 1-1-17 (See Section 20 of P.A. | ||||||
17 | 99-776 for effective date of P.A. 98-1135); 99-776, eff. | ||||||
18 | 8-12-16 .)
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19 | Section 15. The Condominium and Common Interest Community | ||||||
20 | Ombudsperson Act is amended by changing Section 70 as follows:
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21 | (765 ILCS 615/70)
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22 | (Section scheduled to be repealed on July 1, 2022) | ||||||
23 | Sec. 70. Repeal. This Act is repealed on January 1, 2024 |
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1 | July 1, 2022 .
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2 | (Source: P.A. 98-1135, eff. 1-1-17 (See Section 20 of P.A. | ||||||
3 | 99-776 for effective date of P.A. 98-1135); 99-776, eff. | ||||||
4 | 8-12-16 .)
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5 | Section 99. Effective date. This Act takes effect upon | ||||||
6 | becoming law.
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