Bill Text: IL SB1651 | 2011-2012 | 97th 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. Provides that the Act applies to all common interest communities in this State, except as specifically stated. Provides that portions of a declaration or the by-laws of a common interest community association that are inconsistent with the Act are void as against public policy. Deletes provision that states community instruments should be interpreted consistently with the Act's definitions, unless the context otherwise requires. Deletes provision that states that all provisions of a declaration, bylaws, and other community instruments are severable. Deletes provision stating that the terms of at least one-third of the board members expire annually and that board members are elected at large. Exempts master associations from the provision that states that two-thirds of the unit owners may remove a board member at a special meeting. Deletes exception that allows community instruments to require a quorum other than 20% of the unit owners. Exempts master associations from the finance provisions of the Act that concern separate assessments. Deletes provisions that exempted certain common interest community associations (those which: are not permitted, under their governing documents, to use litigation or arbitration to collect assessments or fines; have 10 units or less; or have annual budgeted assessments of $50,000 or less) from provisions in the Act pertaining to board meeting frequency, meeting notices, meeting procedures, and fidelity insurance. Makes other changes.

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Passed) 2011-08-26 - Public Act . . . . . . . . . 97-0605 [SB1651 Detail]

Download: Illinois-2011-SB1651-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, 1-15, 1-20, 1-25, 1-30, 1-35,
1-40, 1-45, 1-55, 1-60, and 1-75 and by adding Section 1-80 as
follows:
(765 ILCS 160/1-5)
Sec. 1-5. Definitions. As used in this Act, unless the
context otherwise requires:
"Association" or "common interest community association"
means the association of all the unit owners 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.
"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 unit owners of

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a common interest community as the governing body to exercise
for the unit owners 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 unit owners of a common interest community as
the governing body to exercise for the unit owners 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
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

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association. "Common interest community" may include, but not
be limited to, an attached or detached townhome, villa, or
single-family home, or master association. 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 unit owners other than the
developer.
"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

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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.
"Master association" means a common interest community
association that exercises its powers on behalf of one or more
condominium or other common interest community associations or
for the benefit of unit owners in such associations.
"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.
"Member" means the person or entity designated as an owner
and entitled to one vote as defined by the community
instruments.
"Membership" means the collective group of members

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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 unit owners, or any other delivery method that is
approved in writing by the unit owner and authorized by the
community instruments.
"Property" means all the land, property, and space
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 unit owners, under the authority or control of a common
interest community association.
"Purchaser" means any person or persons, other than the

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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 unit owners 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.)
(765 ILCS 160/1-15)
Sec. 1-15. Construction, interpretation, and validity of
community instruments.
(a) Except to the extent otherwise provided by the
declaration or other community instruments, the terms defined
in Section 1-5 of this Act shall be deemed to have the meaning
specified therein unless the context otherwise requires.
(b) All provisions of the declaration, bylaws, and other
community instruments are severable.
(c) A provision in the declaration limiting ownership,
rental, or occupancy of a unit to a person 55 years of age or

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older shall be valid and deemed not to be in violation of
Article 3 of the Illinois Human Rights Act provided that the
person or the immediate family of a person owning, renting, or
lawfully occupying such unit prior to the recording of the
initial declaration shall not be deemed to be in violation of
such age restriction so long as they continue to own or reside
in such unit.
(d) Every common interest community association shall
define a member and its relationship to the units or unit
owners in its community instruments.
(Source: P.A. 96-1400, eff. 7-29-10.)
(765 ILCS 160/1-20)
Sec. 1-20. Amendments to the declaration or bylaws.
(a) The administration of every property shall be governed
by the declaration and bylaws, which may either be embodied in
the declaration or in a separate instrument, a true copy of
which shall be appended to and recorded with the declaration.
No modification or amendment of the declaration or bylaws shall
be valid unless the same is set forth in an amendment thereof
and such amendment is duly recorded. An amendment of the
declaration or bylaws shall be deemed effective upon
recordation, unless the amendment sets forth a different
effective date.
(b) Unless otherwise provided by this Act, amendments to
community instruments authorized to be recorded shall be

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executed and recorded by the president of the board or such
other officer authorized by the common interest community
association or the community instruments declaration.
(c) If an association that currently permits leasing amends
its declaration, bylaws, or rules and regulations to prohibit
leasing, nothing in this Act or the declarations, bylaws, rules
and regulations of an association shall prohibit a unit owner
incorporated under 26 USC 501(c)(3) which is leasing a unit at
the time of the prohibition from continuing to do so until such
time that the unit owner voluntarily sells the unit; and no
special fine, fee, dues, or penalty shall be assessed against
the unit owner for leasing its unit.
(Source: P.A. 96-1400, eff. 7-29-10.)
(765 ILCS 160/1-25)
Sec. 1-25. Board of managers, board of directors, duties,
elections, and voting.
(a) There shall be an annual election of the board of
managers or board of directors from among the membership unit
owners of a common interest community association.
(b) (Blank). The terms of at least one-third of the members
of the board shall expire annually and all members of the board
shall be elected at large.
(c) The members of the board shall serve without
compensation, unless the community instruments indicate
otherwise.

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(d) No member of the board or officer shall be elected for
a term of more than 3 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 unit owners or until members unit owners holding
20% of the votes of the association request a meeting of the
members unit owners to fill the vacancy for the balance of the
term. A meeting of the members 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 membership
unit owners 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
membership unit owners;
(2) secretary from among the members of the board, who
shall keep the minutes of all meetings of the board and of
the membership unit owners 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

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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 unit owners 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 unit owners 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 association, he or she is entitled to cast the
member vote associated with that unit all the votes allocated
to that unit.
(h-5) A member unit owner may vote:
(1) by proxy executed in writing by the member unit
owner 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

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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.
(i) The association may, upon adoption of the appropriate
rules by the board, conduct elections by secret ballot,
distributed by the association, whereby the voting ballot is
marked only with the voting interest for the member unit and
the vote itself, provided that the association shall further
adopt rules to verify the status of the member unit owner
issuing a proxy or casting a ballot. 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 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 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 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.)

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(765 ILCS 160/1-30)
Sec. 1-30. Board duties and obligations; records.
(a) The board shall meet at least 4 times annually.
(b) A member of the board of the common interest community
association 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 his or her immediate family has 25% or
more interest, unless notice of intent to enter into 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 membership unit 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.
(c) The bylaws shall provide for the maintenance, repair,
and replacement of the common areas and payments therefor,
including the method of approving payment vouchers.
(d) (Blank).
(e) The association may engage the services of a manager or
management company.
(f) The association shall have one class of membership
unless the declaration or bylaws provide otherwise; however,

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this subsection (f) shall not be construed to limit the
operation of subsection (c) of Section 1-20 of this Act.
(g) The board shall have the power, after notice and an
opportunity to be heard, to levy and collect reasonable fines
from unit owners for violations of the declaration, bylaws, and
rules and regulations of the common interest community
association.
(h) Other than attorney's fees and court costs, 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 a unit 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 a unit owner's respective share of the common expenses is
specifically stated in the declaration or bylaws of the
association.
(i) Board records.
(1) The board shall maintain the following records of
the association and make them available for examination and
copying at convenient hours of weekdays by any unit owner
in a common interest community subject to the authority of
the board, their mortgagees, and their duly authorized
agents or attorneys:

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(i) Copies of the recorded declaration, other
community instruments, other duly recorded covenants
and bylaws and any amendments, articles of
incorporation, annual reports, and any rules and
regulations adopted by the board shall be available.
Prior to the organization of the board, the developer
shall maintain and make available the records set forth
in this paragraph (i) 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 board shall be maintained.
(iii) The minutes of all meetings of the board
which shall be maintained for not less than 7 years.
(iv) With a written statement of a proper purpose,
ballots and proxies related thereto, if any, for any
election held for the board and for any other matters
voted on by the unit owners, which shall be maintained
for not less than one year.
(v) With a written statement of a proper purpose,
such other records of the board as are available for
inspection by members of a not-for-profit corporation
pursuant to Section 107.75 of the General Not For

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Profit Corporation Act of 1986 shall be maintained.
(vi) With respect to units owned by a land trust, a
living trust, or other legal entity, the trustee,
officer, or manager of the entity may designate, in
writing, a person to cast votes on behalf of the unit
owner and a 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 or its agent, failure to
provide the requested record or to respond within 30 days
shall be deemed a denial by the board.
(3) A reasonable fee may be charged by the board for
the cost of retrieving and copying records properly
requested.
(4) If the board fails to provide records properly
requested under paragraph (1) of this subsection (i) within
the time period provided in that paragraph (1), the unit
owner may seek appropriate relief and shall be entitled to
an award of reasonable attorney's fees and costs if the
unit owner prevails and the court finds that such failure
is due to the acts or omissions of the board of managers or
the board of directors.
(j) The board shall have standing and capacity to act in a
representative capacity in relation to matters involving the
common areas or more than one unit, on behalf of the unit
owners as their interests may appear.

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(Source: P.A. 96-1400, eff. 7-29-10.)
(765 ILCS 160/1-35)
Sec. 1-35. Unit owner powers, duties, and obligations.
(a) The provisions of this Act, the declaration, bylaws,
other community instruments, and rules and regulations that
relate to the use of an individual unit or the common areas
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 Act. With regard to any
lease entered into subsequent to the effective date of this
Act, the unit owner leasing the unit shall deliver a copy of
the signed lease to the association 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.
(b) 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.
(c) Two-thirds of the membership unit owners may remove a
board member as a director at a duly duty called special
meeting of the unit owners.
(d) In the event of any resale of a unit in a common
interest community association by a unit owner other than the
developer, the board shall make available for inspection to the
prospective purchaser, upon demand, the following:
(1) A copy of the declaration, other instruments, and

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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.
(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
or for replacement fund and any other fund specifically
designated for association projects portion of such fund
earmarked for any specified project by the board.
(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
association.
The principal officer of the board or such other officer as
is specifically designated shall furnish the above information
within 30 days after receiving a written request for such

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information.
A reasonable fee covering the direct out-of-pocket cost of
copying and providing such information may be charged by the
association or the board to the unit seller for providing the
information.
(Source: P.A. 96-1400, eff. 7-29-10.)
(765 ILCS 160/1-40)
Sec. 1-40. Meetings.
(a) Notice Written notice of any membership meeting shall
be given detailing the time, place, and purpose of such meeting
mailed or delivered giving members no less than 10 and no more
than 30 days prior to the meeting through a prescribed delivery
method notice of the time, place, and purpose of such meeting.
(b) Meetings.
(1) Twenty percent of the membership unit owners shall
constitute a quorum, unless the community instruments
indicate a lesser amount otherwise.
(2) The membership unit owners shall hold an annual
meeting, one of the purposes of which shall be to elect
members of the board of managers or board of directors of
the common interest community association. The board of
directors may be elected at the annual meeting.
(3) Special meetings of the board may be called by the
president, by or 25% of the members of the board, or by any
other method that is prescribed in the community

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instruments. Special meetings of the membership unit
owners may be called by the president, the board, or by 20%
of the membership, or any other method that is prescribed
in the community instruments unit owners.
(4) Except to the extent otherwise provided by this
Act, the board shall give the unit owners notice of all
board meetings at least 48 hours prior to the meeting by
sending notice by using a prescribed delivery method mail,
personal delivery, or by posting copies of notices of
meetings in entranceways, elevators, or other conspicuous
places in the common areas of the common interest community
at least 48 hours prior to the meeting except where there
is no common entranceway for 7 or more units, the board may
designate one or more locations in the proximity of these
units where the notices of meetings shall be posted. The
board shall give unit owners, by mail or personal delivery,
notice of any board meeting, through a prescribed delivery
method, concerning the adoption of (i) the proposed annual
budget, (ii) regular assessments, or (iii) a separate or
special assessment within 10 to 60 30 days prior to the
meeting, unless otherwise provided in Section 1-45 (a) or
any other provision of this Act.
(5) Meetings of the board 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

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a court or administrative tribunal, or when the common
interest community association finds that such an action is
probable or imminent, (ii) to consider third party
contracts or 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. Any vote on these matters shall be taken at a
meeting or portion thereof open to any unit owner.
(6) The board must reserve a portion of the meeting of
the board for comments by unit owners; provided, however,
the duration and meeting order for the unit owner comment
period is within the sole discretion of the board.
(Source: P.A. 96-1400, eff. 7-29-10.)
(765 ILCS 160/1-45)
Sec. 1-45. Finances.
(a) Each unit owner shall receive through a prescribed
delivery method, at least 30 days but not more than 60 days
prior to the adoption thereof by the board, 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.
(b) The board shall provide all unit owners with a
reasonably detailed summary of the receipts, common expenses,
and reserves for the preceding budget year. The board shall (i)

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make available for review 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 or (ii) provide a consolidated
annual independent audit report of the financial status of all
fund accounts within the association.
(c) 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
common interest community association, upon written petition
by unit owners with 20% 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 shall be deemed ratified.
(d) 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.

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(e) Separate assessments for expenditures relating to
emergencies or mandated by law may be adopted by the board
without being subject to unit owner approval or the provisions
of subsection (c) or (f) of this Section. As used herein,
"emergency" means an immediate danger to the structural
integrity of the common areas or to the life, health, safety,
or property of the unit owners.
(f) Assessments for additions and alterations to the common
areas 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 members at a
meeting called for that purpose votes of all unit owners.
(g) The board may adopt separate assessments payable over
more than one fiscal year. With respect to multi-year
assessments not governed by subsections (e) and (f) of this
Section, 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.
(h) The board of a common interest community association
shall have the authority to establish and maintain a system of
master metering of public utility services to collect payments
in conjunction therewith, subject to the requirements of the
Tenant Utility Payment Disclosure Act.
(Source: P.A. 96-1400, eff. 7-29-10.)
(765 ILCS 160/1-55)

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Sec. 1-55. Fidelity insurance. 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 that is
commercially available or reasonably required 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 that is
commercially available or reasonably required 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 management company.
(Source: P.A. 96-1400, eff. 7-29-10.)
(765 ILCS 160/1-60)
Sec. 1-60. Errors and omissions.
(a) If there is an omission or error in the declaration or
other instrument of the association, the 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

SB1651 Enrolled - 24 - LRB097 08355 AJO 48482 b
majority vote of the members unit owners at a meeting called
for that purpose, unless the Act or the declaration of the
association specifically provides for greater percentages or
different procedures.
(b) 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 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 or a majority vote of
the members unit owners at a meeting called for 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 association or
the liability for common expenses appertaining to the unit.
(c) If a scrivener's error in the declaration or other
instrument is corrected by vote of two-thirds of the members of

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the board pursuant to the authority established in subsection
(a) or subsection (b), the board, upon written petition by
members unit owners with 20% of the votes of the association
received within 30 days of the board action, shall call a
meeting of the members unit owners within 30 days of the filing
of the petition to consider the board action. Unless a majority
of the votes of the members unit owners of the association are
cast at the meeting to reject the action, it is ratified
whether or not a quorum is present.
(d) 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 Department of Veterans Affairs, or their
respective successors and assigns.
(Source: P.A. 96-1400, eff. 7-29-10.)
(765 ILCS 160/1-75)
Sec. 1-75. Exemptions for small community interest
communities.
(a) A common interest community association organized
under the General Not for Profit Corporation Act of 1986 and

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having either (i) 10 units or less or (ii) annual budgeted
assessments of $100,000 or less shall be exempt from this Act
unless the association affirmatively elects to be covered by
this Act by a majority of its directors or members and unit
owners.
(b) Common interest community associations which in their
declaration, bylaws, or other governing documents provide that
the association may not use the courts or an arbitration
process to collect or enforce assessments, fines, or similar
levies and common interest community associations (i) of 10
units or less or (ii) having annual budgeted assessments of
$50,000 or less shall be exempt from subsection (a) of Section
1-30, subsections (a) and (b) of Section 1-40, and Section 1-55
but shall be required to provide notice of meetings to unit
owners in a manner and at a time that will allow unit owners to
participate in those meetings.
(Source: P.A. 96-1400, eff. 7-29-10.)
(765 ILCS 160/1-80 new)
Sec. 1-80. Compliance. A common interest community
association shall be in full compliance with the provisions of
this Act no later than January 1, 2012.
Section 10. The Condominium Property Act is amended by
changing Section 18.5 as follows:

SB1651 Enrolled - 27 - LRB097 08355 AJO 48482 b
(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.
(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

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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
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

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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
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

SB1651 Enrolled - 30 - LRB097 08355 AJO 48482 b
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
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

SB1651 Enrolled - 31 - LRB097 08355 AJO 48482 b
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.
(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
and bylaws and any amendments, articles of
incorporation of the master association, annual
reports and any rules and regulations adopted by the

SB1651 Enrolled - 32 - LRB097 08355 AJO 48482 b
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
of the General Not For Profit Corporation Act of 1986
shall be maintained.
(vi) With respect to units owned by a land trust,

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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.
(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

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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
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

SB1651 Enrolled - 35 - LRB097 08355 AJO 48482 b
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,
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.

SB1651 Enrolled - 36 - LRB097 08355 AJO 48482 b
(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
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

SB1651 Enrolled - 37 - LRB097 08355 AJO 48482 b
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
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

SB1651 Enrolled - 38 - LRB097 08355 AJO 48482 b
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.
(3) A statement of any capital expenditures
anticipated by the association within the current or
succeeding 2 fiscal years.

SB1651 Enrolled - 39 - LRB097 08355 AJO 48482 b
(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.
(g-1) The purchaser of a unit of a common interest
community at a judicial foreclosure sale, other than a
mortgagee, who takes possession of a unit of a common interest

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community 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 that would have become due in the absence of any
assessment acceleration during the 6 months immediately
preceding institution of an action to enforce the collection of
assessments, and that 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 that accrued before he or she
acquired title. The notice of sale of a unit of a common
interest community under subsection (c) of Section 15-1507 of
the Code of Civil Procedure shall state that the purchaser of
the unit other than a mortgagee shall pay the assessments
required by this subsection (g-1).
(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

SB1651 Enrolled - 41 - LRB097 08355 AJO 48482 b
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
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

SB1651 Enrolled - 42 - LRB097 08355 AJO 48482 b
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
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

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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
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

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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
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

SB1651 Enrolled - 45 - LRB097 08355 AJO 48482 b
by operation of law.
(j) (Blank). 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. 96-1045, eff. 7-14-10.)
Section 999. Effective date. This Act takes effect upon
becoming law.