Bill Text: IL HB5322 | 2013-2014 | 98th General Assembly | Enrolled

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Common Interest Community Association Act and the Condominium Property Act. Defines "acceptable technological means" and "electronic transmission". Provides that "prescribed delivery method" includes electronic transmission. Provides that electronic votes are valid for the purpose of establishing a quorum. Provides that an association may conduct elections by electronic or acceptable technological means and adds provisions concerning the procedure for conducting such elections. Deletes provisions concerning secret ballots. Provides that, with exceptions, any notice required to be sent or received or signature, vote, consent, or approval required to be obtained may be accomplished using the most advanced technology available at that time. Provides that a verifiable electronic signature satisfies any requirement for a signature. Provides that no action need be acknowledged before a notary public if the identity and signature of the person can otherwise be authenticated to the satisfaction of the board of directors. Provides that if a person does not have the capability or desire to conduct business using electronic transmission or other equivalent technological means, the common interest community association shall make reasonable accommodation, at its expense, for the person to conduct business with the association without the use of electronic or other means. Provides that certain common interest community associations having 10 units or less (instead of "either (i) 10 units or less or (ii) annual budgeted assessments of $100,000 or less") are exempt from the Common Interest Community Association Act.

Spectrum: Moderate Partisan Bill (Democrat 6-1)

Status: (Passed) 2014-08-25 - Public Act . . . . . . . . . 98-1042 [HB5322 Detail]

Download: Illinois-2013-HB5322-Enrolled.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 Sections 1-5 and 1-25 and by adding Section
1-85 as follows:
(765 ILCS 160/1-5)
Sec. 1-5. Definitions. As used in this Act, unless the
context otherwise requires:
"Acceptable technological means" includes, without
limitation, electronic transmission over the Internet or other
network, whether by direct connection, intranet, telecopier,
or electronic mail.
"Association" or "common interest community association"
means the association of all the members of a common interest
community, acting pursuant to bylaws through its duly elected
board of managers or board of directors.
"Board" means a common interest community association's
board of managers or board of directors, whichever is
applicable.
"Board member" or "member of the board" means a member of
the board of managers or the board of directors, whichever is
applicable.

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"Board of directors" means, for a common interest community
that has been incorporated as an Illinois not-for-profit
corporation, the group of people elected by the members of a
common interest community as the governing body to exercise for
the members of the common interest community association all
powers, duties, and authority vested in the board of directors
under this Act and the common interest community association's
declaration and bylaws.
"Board of managers" means, for a common interest community
that is an unincorporated association, the group of people
elected by the members of a common interest community as the
governing body to exercise for the members of the common
interest community association all powers, duties, and
authority vested in the board of managers under this Act and
the common interest community association's declaration and
bylaws.
"Building" means all structures, attached or unattached,
containing one or more units.
"Common areas" means the portion of the property other than
a unit.
"Common expenses" means the proposed or actual expenses
affecting the property, including reserves, if any, lawfully
assessed by the common interest community association.
"Common interest community" means real estate other than a
condominium or cooperative with respect to which any person by
virtue of his or her ownership of a partial interest or a unit

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therein is obligated to pay for the maintenance, improvement,
insurance premiums or real estate taxes of common areas
described in a declaration which is administered by an
association. "Common interest community" may include, but not
be limited to, an attached or detached townhome, villa, or
single-family home. A "common interest community" does not
include a master association.
"Community instruments" means all documents and authorized
amendments thereto recorded by a developer or common interest
community association, including, but not limited to, the
declaration, bylaws, plat of survey, and rules and regulations.
"Declaration" means any duly recorded instruments, however
designated, that have created a common interest community and
any duly recorded amendments to those instruments.
"Developer" means any person who submits property legally
or equitably owned in fee simple by the person to the
provisions of this Act, or any person who offers units legally
or equitably owned in fee simple by the person for sale in the
ordinary course of such person's business, including any
successor to such person's entire interest in the property
other than the purchaser of an individual unit.
"Developer control" means such control at a time prior to
the election of the board of the common interest community
association by a majority of the members other than the
developer.
"Electronic transmission" means any form of communication,

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not directly involving the physical transmission of paper, that
creates a record that may be retained, retrieved, and reviewed
by a recipient and that may be directly reproduced in paper
form by the recipient through an automated process.
"Majority" or "majority of the members" means the owners of
more than 50% in the aggregate in interest of the undivided
ownership of the common elements. Any specified percentage of
the members means such percentage in the aggregate in interest
of such undivided ownership. "Majority" or "majority of the
members of the board of the common interest community
association" means more than 50% of the total number of persons
constituting such board pursuant to the bylaws. Any specified
percentage of the members of the common interest community
association means that percentage of the total number of
persons constituting such board pursuant to the bylaws.
"Management company" or "community association manager"
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 an association 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.
"Meeting of the board" or "board meeting" means any
gathering of a quorum of the members of the board of the common
interest community association held for the purpose of
conducting board business.

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"Member" means the person or entity designated as an owner
and entitled to one vote as defined by the community
instruments. The terms "member" and "unit owner" may be used
interchangeably as defined by the community instruments,
except in situations in which a matter of legal title to the
unit is involved or at issue, in which case the term "unit
owner" would be the applicable term used.
"Membership" means the collective group of members
entitled to vote as defined by the community instruments.
"Parcel" means the lot or lots or tract or tracts of land
described in the declaration as part of a common interest
community.
"Person" means a natural individual, corporation,
partnership, trustee, or other legal entity capable of holding
title to real property.
"Plat" means a plat or plats of survey of the parcel and of
all units in the common interest community, which may consist
of a three-dimensional horizontal and vertical delineation of
all such units, structures, easements, and common areas on the
property.
"Prescribed delivery method" means mailing, delivering,
posting in an association publication that is routinely mailed
to all members, electronic transmission, or any other delivery
method that is approved in writing by the member and authorized
by the community instruments.
"Property" means all the land, property, and space

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comprising the parcel, all improvements and structures
erected, constructed or contained therein or thereon,
including any building and all easements, rights, and
appurtenances belonging thereto, and all fixtures and
equipment intended for the mutual use, benefit, or enjoyment of
the members, under the authority or control of a common
interest community association.
"Purchaser" means any person or persons, other than the
developer, who purchase a unit in a bona fide transaction for
value.
"Record" means to record in the office of the recorder of
the county wherein the property is located.
"Reserves" means those sums paid by members which are
separately maintained by the common interest community
association for purposes specified by the declaration and
bylaws of the common interest community association.
"Unit" means a part of the property designed and intended
for any type of independent use.
"Unit owner" means the person or persons whose estates or
interests, individually or collectively, aggregate fee simple
absolute ownership of a unit.
(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11;
97-1090, eff. 8-24-12.)
(765 ILCS 160/1-25)
Sec. 1-25. Board of managers, board of directors, duties,

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elections, and voting.
(a) Elections shall be held in accordance with the
community instruments, provided that an election shall be held
no less frequently than once every 24 months, for the board of
managers or board of directors from among the membership of a
common interest community association.
(b) (Blank).
(c) The members of the board shall serve without
compensation, unless the community instruments indicate
otherwise.
(d) No member of the board or officer shall be elected for
a term of more than 4 years, but officers and board members may
succeed themselves.
(e) If there is a vacancy on the board, the remaining
members of the board may fill the vacancy by a two-thirds vote
of the remaining board members until the next annual meeting of
the membership or until members holding 20% of the votes of the
association request a meeting of the members to fill the
vacancy for the balance of the term. A meeting of the members
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 membership holding 20% of the votes of the association
requesting such a meeting.
(f) There shall be an election of a:
(1) president from among the members of the board, who
shall preside over the meetings of the board and of the

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membership;
(2) secretary from among the members of the board, who
shall keep the minutes of all meetings of the board and of
the membership and who shall, in general, perform all the
duties incident to the office of secretary; and
(3) treasurer from among the members of the board, who
shall keep the financial records and books of account.
(g) If no election is held to elect board members within
the time period specified in the bylaws, or within a reasonable
amount of time thereafter not to exceed 90 days, then 20% of
the members may bring an action to compel compliance with the
election requirements specified in the bylaws. If the court
finds that an election was not held to elect members of the
board within the required period due to the bad faith acts or
omissions of the board of managers or the board of directors,
the members shall be entitled to recover their reasonable
attorney's fees and costs from the association. If the relevant
notice requirements have been met and an election is not held
solely due to a lack of a quorum, then this subsection (g) does
not apply.
(h) Where there is more than one owner of a unit and there
is only one member vote associated with that unit, if only one
of the multiple owners is present at a meeting of the
membership, he or she is entitled to cast the member vote
associated with that unit.
(h-5) A member may vote:

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(1) by proxy executed in writing by the member or by
his or her duly authorized attorney in fact, provided,
however, that the proxy bears the date of execution. Unless
the community instruments or the written proxy itself
provide otherwise, proxies will not be valid for more than
11 months after the date of its execution; or
(2) by submitting an association-issued ballot in
person at the election meeting; or
(3) by submitting an association-issued ballot to the
association or its designated agent by mail or other means
of delivery specified in the declaration or bylaws; or .
(4) by any electronic or acceptable technological
means.
Votes cast under any paragraph of this subsection (h-5) are
valid for the purpose of establishing a quorum.
(i) The association may, upon adoption of the appropriate
rules by the board, conduct elections by electronic or
acceptable technological means. Members may not vote by proxy
in board elections. Instructions regarding the use of
electronic means or acceptable technological means for voting
shall be distributed to all members not less than 10 and not
more than 30 days before the election meeting. The 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

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to cast votes for candidates whose names do not appear on the
ballot. The board rules shall provide and the instructions
provided to the member shall state that a member who submits a
vote using electronic or acceptable technological means may
request and cast a ballot in person at the election meeting,
and thereby void any vote previously submitted by that member.
secret ballot, distributed by the association, whereby the
voting ballot is marked only with the voting interest for the
member and the vote itself, provided that the association shall
further adopt rules to verify the status of the member casting
a ballot and provided further that proxies shall not be
allowed. A candidate for election to the board or such
candidate's representative shall have the right to be present
at the counting of ballots at such election.
(j) Upon proof of purchase, 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 at any meeting of the
membership called for purposes of electing members of the
board, shall have the right to vote for the members of the
board of the common interest community association and to be
elected to and serve on the board unless the seller expressly
retains in writing any or all of such rights.
(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11;
97-1090, eff. 8-24-12.)

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(765 ILCS 160/1-85 new)
Sec. 1-85. Use of technology.
(a) Any notice required to be sent or received or
signature, vote, consent, or approval required to be obtained
under any community instrument or any provision of this Act may
be accomplished using the technology generally available at
that time. This Section governs the use of technology in
implementing the provisions of any community instrument or any
provision of this Act concerning notices, signatures, votes,
consents, or approvals.
(b) The common interest community association, unit
owners, and other persons entitled to occupy a unit may perform
any obligation or exercise any right under any community
instrument or any provision of this Act by use of any
technological means that provides sufficient security,
reliability, identification, and verifiability.
(c) A verifiable electronic signature satisfies any
requirement for a signature under any community instrument or
any provision of this Act.
(d) Voting on, consent to, and approval of any matter under
any community instrument or any provision of this Act may be
accomplished by electronic transmission or other equivalent
technological means, provided that a record is created as
evidence thereof and maintained as long as the record would be
required to be maintained in nonelectronic form.

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(e) Subject to other provisions of law, no action required
or permitted by any community instrument or any provision of
this Act need be acknowledged before a notary public if the
identity and signature of the person can otherwise be
authenticated to the satisfaction of the board of directors.
(f) If any person does not provide written authorization to
conduct business using electronic transmission or other
equivalent technological means, the common interest community
association shall, at its expense, conduct business with the
person without the use of electronic transmission or other
equivalent technological means.
(g) This Section does not apply to any notices required
under Article IX of the Code of Civil Procedure related to: (i)
an action by the common interest community association to
collect a common expense; or (ii) foreclosure proceedings in
enforcement of any lien rights under this Act.
Section 10. The Condominium Property Act is amended by
changing Sections 2 and 18 and by adding Section 18.8 as
follows:
(765 ILCS 605/2) (from Ch. 30, par. 302)
Sec. 2. Definitions. As used in this Act, unless the
context otherwise requires:
(a) "Declaration" means the instrument by which the
property is submitted to the provisions of this Act, as

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hereinafter provided, and such declaration as from time to time
amended.
(b) "Parcel" means the lot or lots, tract or tracts of
land, described in the declaration, submitted to the provisions
of this Act.
(c) "Property" means all the land, property and space
comprising the parcel, all improvements and structures
erected, constructed or contained therein or thereon,
including the building and all easements, rights and
appurtenances belonging thereto, and all fixtures and
equipment intended for the mutual use, benefit or enjoyment of
the unit owners, submitted to the provisions of this Act.
(d) "Unit" means a part of the property designed and
intended for any type of independent use.
(e) "Common Elements" means all portions of the property
except the units, including limited common elements unless
otherwise specified.
(f) "Person" means a natural individual, corporation,
partnership, trustee or other legal entity capable of holding
title to real property.
(g) "Unit Owner" means the person or persons whose estates
or interests, individually or collectively, aggregate fee
simple absolute ownership of a unit, or, in the case of a
leasehold condominium, the lessee or lessees of a unit whose
leasehold ownership of the unit expires simultaneously with the
lease described in item (x) of this Section.

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(h) "Majority" or "majority of the unit owners" means the
owners of more than 50% in the aggregate in interest of the
undivided ownership of the common elements. Any specified
percentage of the unit owners means such percentage in the
aggregate in interest of such undivided ownership. "Majority"
or "majority of the members of the board of managers" means
more than 50% of the total number of persons constituting such
board pursuant to the bylaws. Any specified percentage of the
members of the board of managers means that percentage of the
total number of persons constituting such board pursuant to the
bylaws.
(i) "Plat" means a plat or plats of survey of the parcel
and of all units in the property submitted to the provisions of
this Act, which may consist of a three-dimensional horizontal
and vertical delineation of all such units.
(j) "Record" means to record in the office of the recorder
or, whenever required, to file in the office of the Registrar
of Titles of the county wherein the property is located.
(k) "Conversion Condominium" means a property which
contains structures, excepting those newly constructed and
intended for condominium ownership, which are, or have
previously been, wholly or partially occupied before recording
of condominium instruments by persons other than those who have
contracted for the purchase of condominiums.
(l) "Condominium Instruments" means all documents and
authorized amendments thereto recorded pursuant to the

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provisions of the Act, including the declaration, bylaws and
plat.
(m) "Common Expenses" means the proposed or actual expenses
affecting the property, including reserves, if any, lawfully
assessed by the Board of Managers of the Unit Owner's
Association.
(n) "Reserves" means those sums paid by unit owners which
are separately maintained by the board of managers for purposes
specified by the board of managers or the condominium
instruments.
(o) "Unit Owners' Association" or "Association" means the
association of all the unit owners, acting pursuant to bylaws
through its duly elected board of managers.
(p) "Purchaser" means any person or persons other than the
Developer who purchase a unit in a bona fide transaction for
value.
(q) "Developer" means any person who submits property
legally or equitably owned in fee simple by the developer, or
leased to the developer under a lease described in item (x) of
this Section, to the provisions of this Act, or any person who
offers units legally or equitably owned in fee simple by the
developer, or leased to the developer under a lease described
in item (x) of this Section, for sale in the ordinary course of
such person's business, including any successor or successors
to such developers' entire interest in the property other than
the purchaser of an individual unit.

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(r) "Add-on Condominium" means a property to which
additional property may be added in accordance with condominium
instruments and this Act.
(s) "Limited Common Elements" means a portion of the common
elements so designated in the declaration as being reserved for
the use of a certain unit or units to the exclusion of other
units, including but not limited to balconies, terraces, patios
and parking spaces or facilities.
(t) "Building" means all structures, attached or
unattached, containing one or more units.
(u) "Master Association" means an organization described
in Section 18.5 whether or not it is also an association
described in Section 18.3.
(v) "Developer Control" means such control at a time prior
to the election of the Board of Managers provided for in
Section 18.2(b) of this Act.
(w) "Meeting of Board of Managers or Board of Master
Association" means any gathering of a quorum of the members of
the Board of Managers or Board of the Master Association held
for the purpose of conducting board business.
(x) "Leasehold Condominium" means a property submitted to
the provisions of this Act which is subject to a lease, the
expiration or termination of which would terminate the
condominium and the lessor of which is (i) exempt from taxation
under Section 501(c)(3) of the Internal Revenue Code of 1986,
as amended, (ii) a limited liability company whose sole member

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is exempt from taxation under Section 501 (c)(3) of the
Internal Revenue Code of 1986, as amended, or (iii) a Public
Housing Authority created pursuant to the Housing Authorities
Act that is located in a municipality having a population in
excess of 1,000,000 inhabitants.
(y) "Electronic transmission" means any form of
communication, not directly involving the physical
transmission of paper, that creates a record that may be
retained, retrieved, and reviewed by a recipient and that may
be directly reproduced in paper form by the recipient through
an automated process.
(z) "Acceptable technological means" includes, without
limitation, electronic transmission over the Internet or other
network, whether by direct connection, intranet, telecopier,
or electronic mail.
(Source: P.A. 93-474, eff. 8-8-03.)
(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

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shall be eligible to serve as a member of the board at any
one time.
(2) the powers and duties of the board;
(3) the compensation, if any, of the members of the
board;
(4) the method of removal from office of members of the
board;
(5) that the board may engage the services of a manager
or managing agent;
(6) that each unit owner shall receive, at least 30
days prior to the adoption thereof by the board of
managers, a copy 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 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

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or to the life, health, safety or property of the unit
owners, (v) that assessments for additions and alterations
to the common elements or to association-owned property not
included in the adopted annual budget, shall be separately
assessed and are subject to approval of two-thirds of the
total votes of all unit owners, (vi) that the board of
managers may adopt separate assessments payable over more
than one fiscal year. With respect to multi-year
assessments not governed by items (iv) and (v), the entire
amount of the multi-year assessment shall be deemed
considered and authorized in the first fiscal year in which
the assessment is approved;
(9) that meetings of the board of managers shall be
open to any unit owner, except for the portion of any
meeting held (i) to discuss litigation when an action
against or on behalf of the particular association has been
filed and is pending in a court or administrative tribunal,
or when the board of managers finds that such an action is
probable or imminent, (ii) to consider information
regarding appointment, employment or dismissal of an
employee, or (iii) to discuss violations of rules and
regulations of the association or a unit owner's unpaid
share of common expenses; that any vote on these matters
shall be taken at a meeting or portion thereof open to any
unit owner; that any unit owner may record the proceedings
at meetings or portions thereof required to be open by this

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Act by tape, film or other means; that the board may
prescribe reasonable rules and regulations to govern the
right to make such recordings, that notice of such meetings
shall be mailed or delivered at least 48 hours prior
thereto, unless a written waiver of such notice is signed
by the person or persons entitled to such notice pursuant
to the declaration, bylaws, other condominium instrument,
or provision of law other than this subsection before the
meeting is convened, and that copies of notices of meetings
of the board of managers shall be posted in entranceways,
elevators, or other conspicuous places in the condominium
at least 48 hours prior to the meeting of the board of
managers except where there is no common entranceway for 7
or more units, the board of managers may designate one or
more locations in the proximity of these units where the
notices of meetings shall be posted;
(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

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

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owners, for an election to approve or disapprove the
contract; such petition shall be filed within 20 days after
such notice and such election shall be held within 30 days
after filing the petition; for purposes of this subsection,
a board member's immediate family means the board member's
spouse, parents, and children;
(17) that the board of managers may disseminate to unit
owners biographical and background information about
candidates for election to the board if (i) reasonable
efforts to identify all candidates are made and all
candidates are given an opportunity to include
biographical and background information in the information
to be disseminated; and (ii) the board does not express a
preference in favor of any candidate;
(18) any proxy distributed for board elections by the
board of managers gives unit owners the opportunity to
designate any person as the proxy holder, and gives the
unit owner the opportunity to express a preference for any
of the known candidates for the board or to write in a
name;
(19) that special meetings of the board of managers can
be called by the president or 25% of the members of the
board; and
(20) that the board of managers may establish and
maintain a system of master metering of public utility
services and collect payments in connection therewith,

HB5322 Enrolled - 24 - LRB098 17492 HEP 52599 b
subject to the requirements of the Tenant Utility Payment
Disclosure Act.
(b) (1) What percentage of the unit owners, if other than
20%, shall constitute a quorum provided that, for
condominiums with 20 or more units, the percentage of unit
owners constituting a quorum shall be 20% unless the unit
owners holding a majority of the percentage interest in the
association provide for a higher percentage, provided that
in voting on amendments to the association's bylaws, a unit
owner who is in arrears on the unit owner's regular or
separate assessments for 60 days or more, shall not be
counted for purposes of determining if a quorum is present,
but that unit owner retains the right to vote on amendments
to the association's bylaws;
(2) that the association shall have one class of
membership;
(3) that the members shall hold an annual meeting, one
of the purposes of which shall be to elect members of the
board of managers;
(4) the method of calling meetings of the unit owners;
(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

HB5322 Enrolled - 25 - LRB098 17492 HEP 52599 b
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
allocated to that unit without protest being made promptly
to the person presiding over the meeting by any of the

HB5322 Enrolled - 26 - LRB098 17492 HEP 52599 b
other owners of the unit;
(9)(A) that unless the Articles of Incorporation or the
bylaws otherwise provide, and 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

HB5322 Enrolled - 27 - LRB098 17492 HEP 52599 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;

HB5322 Enrolled - 28 - LRB098 17492 HEP 52599 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

HB5322 Enrolled - 29 - LRB098 17492 HEP 52599 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

HB5322 Enrolled - 30 - LRB098 17492 HEP 52599 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 contact shall be made available to the
association or its agents. For purposes of this subsection,
"installment contact" shall have the same meaning as set
forth in Section 1 (e) of "An Act relating to installment
contracts to sell dwelling structures", approved August
11, 1967, as amended;
(12) the method by which matters subject to the
approval of unit owners set forth in this Act, or in the
condominium instruments, will be submitted to the unit
owners at special membership meetings called for such
purposes; and
(13) that matters subject to the affirmative vote of
not less than 2/3 of the votes of unit owners at a meeting
duly called for that purpose, shall include, but not be
limited to:
(i) merger or consolidation of the association;
(ii) sale, lease, exchange, or other disposition
(excluding the mortgage or pledge) of all, or
substantially all of the property and assets of the
association; and
(iii) the purchase or sale of land or of units on
behalf of all unit owners.

HB5322 Enrolled - 31 - LRB098 17492 HEP 52599 b
(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
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

HB5322 Enrolled - 32 - LRB098 17492 HEP 52599 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 to this Act. For purposes of
this subsection, the term "fiduciary insurance coverage" shall

HB5322 Enrolled - 33 - LRB098 17492 HEP 52599 b
be defined as both a fidelity bond and directors and officers
liability coverage, the fidelity bond in the full amount of
association funds and association reserves that will be in the
custody of the association, and the directors and officers
liability coverage at a level as shall be determined to be
reasonable by the board of managers, if not otherwise
established by the declaration or by laws.
Until one year after the effective date of this amendatory
Act of 1985, if a condominium association has reserves plus
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

HB5322 Enrolled - 34 - LRB098 17492 HEP 52599 b
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 the effective date of this
amendatory Act of 1984. (ii) With regard to any lease entered
into subsequent to the effective date of this amendatory Act of
1989, the unit owner leasing the unit shall deliver a copy of
the signed lease to the board or if the lease is oral, a
memorandum of the lease, not later than the date of occupancy
or 10 days after the lease is signed, whichever occurs first.
In addition to any other remedies, by filing an action jointly
against the tenant and the unit owner, an association may seek
to enjoin a tenant from occupying a unit or seek to evict a
tenant under the provisions of Article IX of the Code of Civil
Procedure for failure of the lessor-owner to comply with the

HB5322 Enrolled - 35 - LRB098 17492 HEP 52599 b
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 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

HB5322 Enrolled - 36 - LRB098 17492 HEP 52599 b
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. 95-624, eff. 6-1-08; 96-55, eff. 1-1-10; 96-977,
eff. 7-2-10.)
(765 ILCS 605/18.8 new)
Sec. 18.8. Use of technology.
(a) Any notice required to be sent or received or
signature, vote, consent, or approval required to be obtained
under any condominium instrument or any provision of this Act
may be accomplished using the technology generally available at
that time. This Section shall govern the use of technology in

HB5322 Enrolled - 37 - LRB098 17492 HEP 52599 b
implementing the provisions of any condominium instrument or
any provision of this Act concerning notices, signatures,
votes, consents, or approvals.
(b) The association, unit owners, and other persons
entitled to occupy a unit may perform any obligation or
exercise any right under any condominium instrument or any
provision of this Act by use of any technological means that
provides sufficient security, reliability, identification, and
verifiability.
(c) A verifiable electronic signature satisfies any
requirement for a signature under any condominium instrument or
any provision of this Act.
(d) Voting on, consent to, and approval of any matter under
any condominium instrument or any provision of this Act may be
accomplished by electronic transmission or other equivalent
technological means, provided that a record is created as
evidence thereof and maintained as long as the record would be
required to be maintained in nonelectronic form.
(e) Subject to other provisions of law, no action required
or permitted by any condominium instrument or any provision of
this Act need be acknowledged before a notary public if the
identity and signature of the person can otherwise be
authenticated to the satisfaction of the board of directors or
board of managers.
(f) If any person does not provide written authorization to
conduct business using electronic transmission or other

HB5322 Enrolled - 38 - LRB098 17492 HEP 52599 b
equivalent technological means, the association shall, at its
expense, conduct business with the person without the use of
electronic transmission or other equivalent technological
means.
(g) This Section does not apply to any notices required
under Article IX of the Code of Civil Procedure related to: (i)
an action by the association to collect a common expense; or
(ii) foreclosure proceedings in enforcement of any lien rights
under this Act.