Bill Text: IL SB0177 | 2009-2010 | 96th General Assembly | Engrossed

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Bill Title: Amends the Condominium Property Act. Makes a technical change in a Section pertaining to the submission of property to the provisions of the Act.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2009-05-31 - Rule 19(a) / Re-referred to Rules Committee [SB0177 Detail]

Download: Illinois-2009-SB0177-Engrossed.html

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AN ACT concerning civil law.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Condominium Property Act is amended by
changing Section 18 as follows:
(765 ILCS 605/18) (from Ch. 30, par. 318)
Sec. 18. Contents of bylaws. The bylaws shall provide for
at least the following:
(a) (1) The election from among the unit owners of a board
of managers, the number of persons constituting such board,
and that the terms of at least one-third of the members of
the board shall expire annually and that all members of the
board shall be elected at large. If there are multiple
owners of a single unit, only one of the multiple owners
shall be eligible to serve as a member of the board at any
one time.
(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;

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(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
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

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year, the board of managers, upon written petition by unit
owners with 20 percent of the votes of the association
delivered to the board within 14 days of the board action,
shall call a meeting of the unit owners within 30 days of
the date of delivery of the petition to consider the budget
or separate assessment; unless a majority of the total
votes of the unit owners are cast at the meeting to reject
the budget or separate assessment, it is ratified, (iii)
that any common expense not set forth in the budget or any
increase in assessments over the amount adopted in the
budget shall be separately assessed against all unit
owners, (iv) that separate assessments for expenditures
relating to emergencies or mandated by law may be adopted
by the board of managers without being subject to unit
owner approval or the provisions of item (ii) above or item
(v) below. As used herein, "emergency" means an immediate
danger to the structural integrity of the common elements
or to the life, health, safety or property of the unit
owners, (v) that assessments for additions and alterations
to the common elements or to association-owned property not
included in the adopted annual budget, shall be separately
assessed and are subject to approval of two-thirds of the
total votes of all unit owners, (vi) that the board of
managers may adopt separate assessments payable over more
than one fiscal year. With respect to multi-year
assessments not governed by items (iv) and (v), the entire

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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
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

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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. Any director may
be removed from the Board of Directors at a special meeting
of owners, called for said purpose by a two-thirds majority
of those present or voting by absentee ballot. All
procedures governing secret ballot elections shall hereby
apply. A director, after notice and an opportunity for a
hearing, may be suspended or removed for cause by a
two-thirds majority by the Directors;
(12) the designation of an officer to mail and receive
all notices and execute amendments to condominium
instruments as provided for in this Act and in the
condominium instruments;
(13) the method of filling vacancies on the board which
shall include authority for the remaining members of the
board to fill the vacancy by two-thirds vote until the next

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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
owners, for an election to approve or disapprove the
contract; such petition shall be filed within 20 days after

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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,
subject to the requirements of the Tenant Utility Payment
Disclosure Act.

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(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;
(2) that the association shall have one class of
membership;
(3) that the members shall hold an annual meeting, one
of the purposes of which shall be to elect members of the
board of managers;
(4) the method of calling meetings of the unit owners;
(5) that special meetings of the members can be called
by the president, board of managers, or by 20% of unit
owners;
(6) that written notice of any membership meeting shall
be mailed or delivered giving members no less than 10 and
no more than 30 days notice of the time, place and purpose
of such meeting;
(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

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of one vote per unit;
(8) that, where there is more than one owner of a unit,
if only one of the multiple owners is present at a meeting
of the association, he is entitled to cast all the votes
allocated to that unit, if more than one of the multiple
owners are present, the votes allocated to that unit may be
cast only in accordance with the agreement of a majority in
interest of the multiple owners, unless the declaration
expressly provides otherwise, that there is majority
agreement if any one of the multiple owners cast the votes
allocated to that unit without protest being made promptly
to the person presiding over the meeting by any of the
other owners of the unit;
(9)(A) 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, 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;
(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)

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by submitting an association-issued ballot in person at the
election meeting or (ii) by submitting an
association-issued ballot to the association or its
designated agent by mail or other means of delivery
specified in the declaration, bylaws, or rule; that the
ballots shall be mailed or otherwise distributed to unit
owners not less than 10 and not more than 30 days before
the election meeting, and the board shall give unit owners
not less than 21 days' prior written notice of the deadline
for inclusion of a candidate's name on the ballots; that
the deadline shall be no more than 7 days before the
ballots are mailed or otherwise distributed to unit owners;
that every such ballot must include the names of all
candidates who have given the board or its authorized agent
timely written notice of their candidacy and must give the
person casting the ballot the opportunity to cast votes for
candidates whose names do not appear on the ballot; that a
ballot received by the association or its designated agent
after the close of 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;
(C) that if a written petition by unit owners with at
least 20% of the votes of the association is delivered to

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the board within 14 days after the board's approval of a
rule adopted pursuant to subparagraph (B) of this paragraph
(9), the board shall call a meeting of the unit owners
within 30 days after the date of delivery of the petition;
that unless a majority of the total votes of the unit
owners are cast at the meeting to reject the rule, the rule
is ratified;
(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

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board of managers unless the seller expressly retains in
writing any or all of such rights. In no event may the
seller and purchaser both be counted toward a quorum, be
permitted to vote for a particular office or be elected and
serve on the board. Satisfactory evidence of the
installment 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

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behalf of all unit owners.
(c) Election of a president from among the board of
managers, who shall preside over the meetings of the board of
managers and of the unit owners.
(d) Election of a secretary from among the board of
managers, who shall keep the minutes of all meetings of the
board of managers and of the unit owners and who shall, in
general, perform all the duties incident to the office of
secretary.
(e) Election of a treasurer from among the board of
managers, who shall keep the financial records and books of
account.
(f) Maintenance, repair and replacement of the common
elements and payments therefor, including the method of
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

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otherwise provided by contract between the association and a
management company. The association shall be the direct obligee
of any such fidelity bond. A management company holding reserve
funds of an association shall at all times maintain a separate
account for each association, provided, however, that for
investment purposes, the Board of Managers of an association
may authorize a management company to maintain the
association's reserve funds in a single interest bearing
account with similar funds of other associations. The
management company shall at all times maintain records
identifying all moneys of each association in such investment
account. The management company may hold all 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

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this subsection, the term "fiduciary insurance coverage" shall
be defined as both a fidelity bond and directors and officers
liability coverage, the fidelity bond in the full amount of
association funds and association reserves that will be in the
custody of the association, and the directors and officers
liability coverage at a level as shall be determined to be
reasonable by the board of managers, if not otherwise
established by the declaration or by laws.
Until one year after 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

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elements, not set forth in the declaration, as are designed to
prevent unreasonable interference with the use of their
respective units and of the common elements by the several unit
owners.
(l) Method of adopting and of amending administrative rules
and regulations governing the operation and use of the common
elements.
(m) The percentage of votes required to modify or amend the
bylaws, but each one of the particulars set forth in this
section shall always be embodied in the bylaws.
(n) (i) The provisions of this Act, the declaration,
bylaws, other condominium instruments, and rules and
regulations that relate to the use of the individual unit or
the common elements shall be applicable to any person leasing a
unit and shall be deemed to be incorporated in any lease
executed or renewed on or after 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

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Procedure for failure of the lessor-owner to comply with the
leasing requirements prescribed by this Section or by the
declaration, bylaws, and rules and regulations. The board of
managers may proceed directly against a tenant, at law or in
equity, or under the provisions of Article IX of the Code of
Civil Procedure, for any other breach by tenant of any
covenants, rules, regulations or bylaws.
(o) The association shall have no authority to forbear the
payment of assessments by any unit owner.
(p) That when 30% or fewer of the units, by number, possess
over 50% in the aggregate of the votes in the association, any
percentage vote of members specified herein or in the
condominium instruments shall require the specified percentage
by number of units rather than by percentage of interest in the
common elements allocated to units that would otherwise be
applicable. For purposes of this subsection (p), when making a
determination of whether 30% or fewer of the units, by number,
possess over 50% in the aggregate of the votes in the
association, a unit shall not include a garage unit or a
storage unit.
(q) That a unit owner may not assign, delegate, transfer,
surrender, or avoid the duties, responsibilities, and
liabilities of a unit owner under this Act, the condominium
instruments, or the rules and regulations of the Association;
and that such an attempted assignment, delegation, transfer,
surrender, or avoidance shall be deemed void.

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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.)