Bill Text: IL SB0949 | 2017-2018 | 100th General Assembly | Engrossed


Bill Title: Amends the Common Interest Community Association Act and the Condominium Property Act. Provides that if the condominium or community instruments require approval of any mortgagee or lienholder of record and the mortgagee or lienholder of record receives a request to approve or consent to the amendment to the condominium or community instruments, the mortgagee or lienholder of record is deemed to have approved or consented to the request unless the mortgagee or lienholder of record delivers a negative response to the requesting party within 35 days after the mailing of the request.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Engrossed) 2017-05-31 - House Committee Amendment No. 2 Rule 19(a) / Re-referred to Rules Committee [SB0949 Detail]

Download: Illinois-2017-SB0949-Engrossed.html



SB0949 EngrossedLRB100 06989 HEP 17042 b
1 AN ACT concerning civil law.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Common Interest Community Association Act is
5amended by changing Section 1-20 as follows:
6 (765 ILCS 160/1-20)
7 Sec. 1-20. Amendments to the declaration, bylaws, or
8operating agreement.
9 (a) The administration of every property shall be governed
10by the declaration and bylaws or operating agreement, which may
11either be embodied in the declaration or in a separate
12instrument, a true copy of which shall be appended to and
13recorded with the declaration. No modification or amendment of
14the declaration, bylaws, or operating agreement shall be valid
15unless the same is set forth in an amendment thereof and such
16amendment is duly recorded. An amendment of the declaration,
17bylaws, or operating agreement shall be deemed effective upon
18recordation, unless the amendment sets forth a different
19effective date.
20 (b) Unless otherwise provided by this Act, amendments to
21community instruments authorized to be recorded shall be
22executed and recorded by the president of the board or such
23other officer authorized by the common interest community

SB0949 Engrossed- 2 -LRB100 06989 HEP 17042 b
1association or the community instruments.
2 (c) If an association that currently permits leasing amends
3its declaration, bylaws, or rules and regulations to prohibit
4leasing, nothing in this Act or the declarations, bylaws, rules
5and regulations of an association shall prohibit a unit owner
6incorporated under 26 USC 501(c)(3) which is leasing a unit at
7the time of the prohibition from continuing to do so until such
8time that the unit owner voluntarily sells the unit; and no
9special fine, fee, dues, or penalty shall be assessed against
10the unit owner for leasing its unit.
11 (d) No action to incorporate a common interest community as
12a municipality shall commence until an instrument agreeing to
13incorporation has been signed by two-thirds of the members.
14 (e) If the community instruments require approval of any
15mortgagee or lienholder of record and the mortgagee or
16lienholder of record receives a request to approve or consent
17to the amendment to the community instruments, the mortgagee or
18lienholder of record is deemed to have approved or consented to
19the request unless the mortgagee or lienholder of record
20delivers a negative response to the requesting party within 60
21days after the mailing of the request. A request to approve or
22consent to an amendment to the community instruments that is
23required to be sent to a mortgagee or lienholder of record
24shall be sent by certified mail.
25(Source: P.A. 99-41, eff. 7-14-15.)

SB0949 Engrossed- 3 -LRB100 06989 HEP 17042 b
1 Section 10. The Condominium Property Act is amended by
2changing Section 27 as follows:
3 (765 ILCS 605/27) (from Ch. 30, par. 327)
4 Sec. 27. Amendments.
5 (a) If there is any unit owner other than the developer,
6and unless otherwise provided in this Act, the condominium
7instruments shall be amended only as follows:
8 (i) upon the affirmative vote of 2/3 of those voting or
9 upon the majority specified by the condominium
10 instruments, provided that in no event shall the
11 condominium instruments require more than a three-quarters
12 vote of all unit owners; and
13 (ii) with the approval of, or notice to, any mortgagees
14 or other lienholders of record, if required under the
15 provisions of the condominium instruments. If the
16 condominium instruments require approval of any mortgagee
17 or lienholder of record and the mortgagee or lienholder of
18 record receives a request to approve or consent to the
19 amendment to the condominium instruments, the mortgagee or
20 lienholder of record is deemed to have approved or
21 consented to the request unless the mortgagee or lienholder
22 of record delivers a negative response to the requesting
23 party within 60 days after the mailing of the request. A
24 request to approve or consent to an amendment to the
25 condominium instruments that is required to be sent to a

SB0949 Engrossed- 4 -LRB100 06989 HEP 17042 b
1 mortgagee or lienholder of record shall be sent by
2 certified mail.
3 (b)(1) If there is an omission, error, or inconsistency in
4a condominium instrument, such that a provision of a
5condominium instrument does not conform to this Act or to
6another applicable statute, the association may correct the
7omission, error, or inconsistency to conform the condominium
8instrument to this Act or to another applicable statute by an
9amendment adopted by vote of two-thirds of the Board of
10Managers, without a unit owner vote. A provision in a
11condominium instrument requiring or allowing unit owners,
12mortgagees, or other lienholders of record to vote to approve
13an amendment to a condominium instrument, or for the mortgagees
14or other lienholders of record to be given notice of an
15amendment to a condominium instrument, is not applicable to an
16amendment to the extent that the amendment corrects an
17omission, error, or inconsistency to conform the condominium
18instrument to this Act or to another applicable statute.
19 (2) If through a scrivener's error, a unit has not been
20designated as owning an appropriate undivided share of the
21common elements or does not bear an appropriate share of the
22common expenses or that all the common expenses or all of the
23common elements in the condominium have not been distributed in
24the declaration, so that the sum total of the shares of common
25elements which have been distributed or the sum total of the
26shares of the common expenses fail to equal 100%, or if it

SB0949 Engrossed- 5 -LRB100 06989 HEP 17042 b
1appears that more than 100% of the common elements or common
2expenses have been distributed, the error may be corrected by
3operation of law by filing an amendment to the declaration
4approved by vote of two-thirds of the members of the Board of
5Managers or a majority vote of the unit owners at a meeting
6called for this purpose which proportionately adjusts all
7percentage interests so that the total is equal to 100% unless
8the condominium instruments specifically provide for a
9different procedure or different percentage vote by the owners
10of the units and the owners of mortgages thereon affected by
11modification being made in the undivided interest in the common
12elements, the number of votes in the unit owners association or
13the liability for common expenses appertaining to the unit.
14 (3) If an omission or error or a scrivener's error in the
15declaration, bylaws or other condominium instrument is
16corrected by vote of two-thirds of the members of the Board of
17Managers pursuant to the authority established in subsections
18(b)(1) or (b)(2) of this Section 27 of this Act, the Board upon
19written petition by unit owners with 20 percent of the votes of
20the association filed within 30 days of the Board action shall
21call a meeting of the unit owners within 30 days of the filing
22of the petition to consider the Board action. Unless a majority
23of the votes of the unit owners of the association are cast at
24the meeting to reject the action, it is ratified whether or not
25a quorum is present.
26 (4) The procedures for amendments set forth in this

SB0949 Engrossed- 6 -LRB100 06989 HEP 17042 b
1subsection (b) cannot be used if such an amendment would
2materially or adversely affect property rights of the unit
3owners unless the affected unit owners consent in writing. This
4Section does not restrict the powers of the association to
5otherwise amend the declaration, bylaws, or other condominium
6instruments, but authorizes a simple process of amendment
7requiring a lesser vote for the purpose of correcting defects,
8errors, or omissions when the property rights of the unit
9owners are not materially or adversely affected.
10 (5) If there is an omission or error in the declaration,
11bylaws, or other condominium instruments, which may not be
12corrected by an amendment procedure set forth in paragraphs (1)
13and (2) of this subsection (b) of Section 27 in the declaration
14then the Circuit Court in the County in which the condominium
15is located shall have jurisdiction to hear a petition of one or
16more of the unit owners thereon or of the association, to
17correct the error or omission, and the action may be a class
18action. The court may require that one or more methods of
19correcting the error or omission be submitted to the unit
20owners to determine the most acceptable correction. All unit
21owners in the association must be joined as parties to the
22action. Service of process on owners may be by publication, but
23the plaintiff shall furnish all unit owners not personally
24served with process with copies of the petition and final
25judgment of the court by certified mail return receipt
26requested, at their last known address.

SB0949 Engrossed- 7 -LRB100 06989 HEP 17042 b
1 (6) Nothing contained in this Section shall be construed to
2invalidate any provision of a condominium instrument
3authorizing the developer to amend a condominium instrument
4prior to the latest date on which the initial membership
5meeting of the unit owners must be held, whether or not nor it
6has actually been held, to bring the instrument into compliance
7with the legal requirements of the Federal National Mortgage
8Association, the Federal Home Loan Mortgage Corporation, the
9Federal Housing Administration, the United States Veterans
10Administration or their respective successors and assigns.
11(Source: P.A. 98-282, eff. 1-1-14; 99-472, eff. 6-1-16; revised
129-1-16.)
feedback