Bill Text: IL HB5985 | 2009-2010 | 96th General Assembly | Introduced

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Bill Title: Amends the Condominium Property Act. Provides that to the extent that the governing documents of a common interest community or a master association provide for lien rights and the applicability of forcible entry provisions of the Code of Civil Procedure, the purchaser of a unit in a common interest community or master association at a judicial foreclosure sale, other than a mortgagee, who takes possession of a unit pursuant to a court order or a purchaser who acquires title from a mortgagee has the duty to pay the proportionate share, if any, of the common expenses for the unit which would have become due in the absence of any assessment acceleration during the 6 months immediately preceding the commencement of an action to collect the unpaid assessments. Provides that if the outstanding assessments are paid at any time during a collection action, the purchaser shall have no obligation to pay any assessments which accrued before he or she acquired title. Provides that this does not create a statutory lien in favor of the common interest community or master association.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2010-02-10 - Referred to Rules Committee [HB5985 Detail]

Download: Illinois-2009-HB5985-Introduced.html

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96TH GENERAL ASSEMBLY State of Illinois 2009 and 2010 HB5985 Introduced 2/10/2010, by Rep. Michael J. Zalewski SYNOPSIS AS INTRODUCED:
765 ILCS 605/18.5 from Ch. 30, par. 318.5
Amends the Condominium Property Act. Provides that to the extent that the governing documents of a common interest community or a master association provide for lien rights and the applicability of forcible entry provisions of the Code of Civil Procedure, the purchaser of a unit in a common interest community or master association at a judicial foreclosure sale, other than a mortgagee, who takes possession of a unit pursuant to a court order or a purchaser who acquires title from a mortgagee has the duty to pay the proportionate share, if any, of the common expenses for the unit which would have become due in the absence of any assessment acceleration during the 6 months immediately preceding the commencement of an action to collect the unpaid assessments. Provides that if the outstanding assessments are paid at any time during a collection action, the purchaser shall have no obligation to pay any assessments which accrued before he or she acquired title. Provides that this does not create a statutory lien in favor of the common interest community or master association.
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A BILL FOR
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AN ACT concerning property.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Condominium Property Act is amended by
changing Section 18.5 as follows:
(765 ILCS 605/18.5) (from Ch. 30, par. 318.5)
Sec. 18.5. Master Associations.
(a) If the declaration, other condominium instrument, or
other duly recorded covenants provide that any of the powers of
the unit owners associations are to be exercised by or may be
delegated to a nonprofit corporation or unincorporated
association that exercises those or other powers on behalf of
one or more condominiums, or for the benefit of the unit owners
of one or more condominiums, such corporation or association
shall be a master association.
(b) There shall be included in the declaration, other
condominium instruments, or other duly recorded covenants
establishing the powers and duties of the master association
the provisions set forth in subsections (c) through (h).
In interpreting subsections (c) through (h), the courts
should interpret these provisions so that they are interpreted
consistently with the similar parallel provisions found in
other parts of this Act.

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(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
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

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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 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

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the proximity of these units where the notices of meetings
shall be posted.
(5) If the declaration provides for election by unit
owners of members of the board of directors in the event of
a resale of a unit in the master association, the purchaser
of a unit from a seller other than the developer pursuant
to an installment contract for purchase shall, during such
times as he or she resides in the unit, be counted toward a
quorum for purposes of election of members of the board of
directors at any meeting of the unit owners called for
purposes of electing members of the board, and shall have
the right to vote for the election of members of the board
of directors and to be elected to and serve on the board of
directors unless the seller expressly retains in writing
any or all of those rights. In no event may the seller and
purchaser both be counted toward a quorum, be permitted to
vote for a particular office, or be elected and serve on
the board. Satisfactory evidence of the installment
contract shall be made available to the association or its
agents. For purposes of this subsection, "installment
contract" shall have the same meaning as set forth in
subsection (e) of Section 1 of the Dwelling Unit
Installment Contract Act.
(6) The board of the master association shall have the
authority to establish and maintain a system of master
metering of public utility services and to collect payments

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in connection therewith, subject to the requirements of the
Tenant Utility Payment Disclosure Act.
(7) The board of the master association or a common
interest community association shall have the power, after
notice and an opportunity to be heard, to levy and collect
reasonable fines from members for violations of the
declaration, bylaws, and rules and regulations of the
master association or the common interest community
association. Nothing contained in this subdivision (7)
shall give rise to a statutory lien for unpaid fines.
(8) Other than attorney's fees, no fees pertaining to
the collection of a unit owner's financial obligation to
the Association, including fees charged by a manager or
managing agent, shall be added to and deemed a part of an
owner's respective share of the common expenses unless: (i)
the managing agent fees relate to the costs to collect
common expenses for the Association; (ii) the fees are set
forth in a contract between the managing agent and the
Association; and (iii) the authority to add the management
fees to an owner's respective share of the common expenses
is specifically stated in the declaration or bylaws of the
Association.
(9) To the extent that the governing documents of a
common interest community or a master association provide
for lien rights and the applicability of Article IX of the
Code of Civil Procedure, the purchaser of a unit in a

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common interest community or master association at a
judicial foreclosure sale, other than a mortgagee, who
takes possession of a unit pursuant to a court order, or a
purchaser who acquires title from a mortgagee shall have
the duty to pay the proportionate share, if any, of the
common expenses for the unit which would have become due in
the absence of any assessment acceleration during the 6
months immediately preceding the institution of an action
to enforce the collection of assessments, and which remain
unpaid by the owner during whose possession the assessments
accrued. If the outstanding assessments are paid at any
time during any action to enforce the collection of
assessments, the purchaser shall have no obligation to pay
any assessments which accrued before he or she acquired
title. Nothing contained in this subdivision (9) shall give
rise to a statutory lien in favor of the common interest
community or master 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

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and bylaws and any amendments, articles of
incorporation of the master association, annual
reports and any rules and regulations adopted by the
master association or its board shall be available.
Prior to the organization of the master association,
the developer shall maintain and make available the
records set forth in this subdivision (d)(1) for
examination and copying.
(ii) Detailed and accurate records in
chronological order of the receipts and expenditures
affecting the common areas, specifying and itemizing
the maintenance and repair expenses of the common areas
and any other expenses incurred, and copies of all
contracts, leases, or other agreements entered into by
the master association, shall be maintained.
(iii) The minutes of all meetings of the master
association and the board of the master association
shall be maintained for not less than 7 years.
(iv) Ballots and proxies related thereto, if any,
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

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of the General Not For Profit Corporation Act of 1986
shall be maintained.
(vi) With respect to units owned by a land trust,
if a trustee designates in writing a person to cast
votes on behalf of the unit owner, the designation
shall remain in effect until a subsequent document is
filed with the association.
(2) Where a request for records under this subsection
is made in writing to the board of managers or its agent,
failure to provide the requested record or to respond
within 30 days shall be deemed a denial by the board of
directors.
(3) A reasonable fee may be charged by the master
association or its board for the cost of copying.
(4) If the board of directors fails to provide records
properly requested under subdivision (d)(1) within the
time period provided in subdivision (d)(2), the unit owner
may seek appropriate relief, including an award of
attorney's fees and costs.
(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.

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(1) Until the election, by the unit owners or the
boards of managers of the underlying condominium
associations, of the initial board of directors of a master
association whose declaration is recorded on or after
August 10, 1990, the same rights, titles, powers,
privileges, trusts, duties and obligations that are vested
in or imposed upon the board of directors by this Act or in
the declaration or other duly recorded covenant shall be
held and performed by the developer.
(2) The election of the initial board of directors of a
master association whose declaration is recorded on or
after August 10, 1990, by the unit owners or the boards of
managers of the underlying condominium associations, shall
be held not later than 60 days after the conveyance by the
developer of 75% of the units, or 3 years after the
recording of the declaration, whichever is earlier. The
developer shall give at least 21 days notice of the meeting
to elect the initial board of directors and shall upon
request provide to any unit owner, within 3 working days of
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

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

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maintenance and operation of the property, copies of
all insurance policies, and a list of any loans or
advances to the association which are outstanding.
(iii) Association funds, which shall have been at
all times segregated from any other moneys of the
developer.
(iv) A schedule of all real or personal property,
equipment and fixtures belonging to the association,
including documents transferring the property,
warranties, if any, for all real and personal property
and equipment, deeds, title insurance policies, and
all tax bills.
(v) A list of all litigation, administrative
action and arbitrations involving the association, any
notices of governmental bodies involving actions taken
or which may be taken concerning the association,
engineering and architectural drawings and
specifications as approved by any governmental
authority, all other documents filed with any other
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

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

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

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(3) A statement of any capital expenditures
anticipated by the association within the current or
succeeding 2 fiscal years.
(4) A statement of the status and amount of any reserve
for replacement fund and any portion of such fund earmarked
for any specified project by the board of directors.
(5) A copy of the statement of financial condition of
the association for the last fiscal year for which such a
statement is available.
(6) A statement of the status of any pending suits or
judgments in which the association is a party.
(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.

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(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.
(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

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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
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

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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
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

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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.
(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

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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) The provisions of subsections (c) through (h) are
applicable to all common interest community associations and
their unit owners for common interest community associations
which are subject to the provisions of Section 9-102(a)(8) of
the Code of Civil Procedure. For purposes of this subsection,
the terms "common interest community" and "unit owners" shall
have the same meaning as set forth in Section 9-102(c) of the
Code of Civil Procedure.
(Source: P.A. 94-384, eff. 1-1-06.)